UtahS.B. 2362026 General SessionSenateWALLET

Property Tax Exemption Process Amendments

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Annual filings protect owners' tax exemptions

Beginning January 1, 2027, owners of exempt property covered by Section 59-2-1101(3)(a)(iv) or (v) must file annual statements by March 1. The Utah State Tax Commission sets the form and contents by rule and makes the form available to counties. Owners can file through March 31 if they prove a medical emergency, death, or another extraordinary, unexpected event prevented timely filing. They must also prove that no other responsible person could file the statement. Without timely filing or this exception, the county board must revoke the exemption and notify the owner by April 1. Losing the exemption can raise the owner's property tax bill.

Owners face exemption reviews with appeals

Beginning January 1, 2027, county boards can review exempt property when they have reason to believe it no longer qualifies. The board must first notify the owner in the manner set by rule. If the property no longer qualifies, the board must issue a written decision revoking the exemption. The decision must explain the owner's right to appeal to the Utah State Tax Commission. Losing the exemption can raise the owner's property tax bill.

More filing time for qualifying owners

Beginning January 1, 2027, owners acquiring qualifying property on or after January 1 get a separate exclusive use exemption deadline. They can apply by June 1 of the acquisition year or 120 days after acquisition, whichever is later. The county board must issue a written decision by May 15 or 90 days after filing, whichever is later. The decision must explain the owner's right to appeal to the Utah State Tax Commission.

New filing rules for tax exemptions

Beginning January 1, 2027, Utah's general property tax exemption process requires a written application by March 1 of the exemption year. The applicant or agent must verify it with a signed statement. Some exemptions have separate rules or require no application. Counties cannot require applications for exemptions in Section 59-2-1101(3)(a)(i), (vi), (viii), or Sections 59-2-1110 through 1114. For exemptions in Section 59-2-1101(3)(a)(ii) or (iii), counties can require applications only when the base-property description meets the statutory test. The county board of equalization can request more information, require a hearing with sworn answers, or both. Applicants or their agents must respond for the exemption to be granted. Hearings are no longer required for every application, but boards can subpoena witnesses and take evidence. The board must issue a written decision by the assessor's deadline to complete and deliver that year's assessment book. Applicants can appeal to the Utah State Tax Commission, and decisions must explain that right.

Sponsors & Cosponsors

Sponsor

Keith Grover
Republican • Senate

Cosponsors

David Shallenberger
Republican • House

Roll Call Votes

All Roll Calls

Yes: 135 • No: 1

House vote • 3/6/2026

House/ passed 3rd reading

Yes: 66 • No: 1

House vote • 3/2/2026

House Comm - Favorable Recommendation

Yes: 9 • No: 0

Senate vote • 2/23/2026

Senate/ passed 3rd reading

Yes: 24 • No: 0

Senate vote • 2/20/2026

Senate/ passed 2nd reading

Yes: 26 • No: 0

Senate vote • 2/5/2026

Senate Comm - Substitute Recommendation

Yes: 5 • No: 0