SB 97 — Tax Revenue Amendments

or (c) the county board of equalization determines that there is reason to believe that the residential property no longer qualifies for the residential exemption.

(2) (a) The application described in Subsection (1):

(i) shall be on a form the commission provides by rule and makes available to the counties;

(ii) shall be signed by the owner of the residential property;

and (iii) may not request the sales price of the residential property.

(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing the contents of the form described in Subsection (2)(a).

- 8 - SB0097S01 compared with SB0097S04 (c) For purposes of the application described in Subsection (1), a county may not request information from an owner of a residential property beyond the information in the form provided by the commission under this Subsection (2).

(3) (a) [Regardless of whether a county legislative body adopts an ordinance described in Subsection (1), before] Before a county may apply a residential exemption to the value of part-year residential property, an owner of the property shall:

(i) subject to Subsection (6), file the application described in Subsection (2)(a) with the county board of equalization;

and (ii) include as part of the application described in Subsection (2)(a) a statement that certifies:

(A) the date the part-year residential property became residential property;

(B) that the part-year residential property will be used as residential property for 183 or more consecutive calendar days during the calendar year for which the owner seeks to obtain the residential exemption;

and (C) that the owner, or a member of the owner's household, may not claim a residential exemption for any property for the calendar year for which the owner seeks to obtain the residential exemption, other than the part-year residential property, or as allowed under Section 59-2-103 with respect to the primary residence or household furnishings, furniture, and equipment of the owner's tenant.

(b) If an owner files an application under this Subsection (3) on or after May 1 of the calendar year for which the owner seeks to obtain the residential exemption, the county board of equalization may require the owner to pay an application fee not to exceed $50.

(4) Before a county allows residential property described in Subsection 59-2-102(35)(b)(ii) a residential exemption authorized under Section 59-2-103, an owner of the residential property shall file with the county assessor a written declaration that:

(a) states under penalty of perjury that, to the best of each owner's knowledge, upon completion of construction or occupancy of the residential property, the residential property will be used for residential purposes as a primary residence;

(b) is signed by each owner of the residential property;

and (c) is on a form approved by the commission.

(5) - 9 - SB0097S01 compared with SB0097S04 (a) Before a county allows residential property described in Subsection 59-2-103(6)(b) a residential exemption authorized under Section 59-2-103, an owner of the residential property shall file with the county assessor a written declaration that:

(i) states under penalty of perjury that, to the best of each owner's knowledge, the residential property will be used for residential purposes as a primary residence of a tenant;

(ii) is signed by each owner of the residential property;

and (iii) is on a form approved by the commission.

(b) (i) (A) In addition to the declaration, a county assessor may request from an owner a current lease agreement signed by the tenant.

(B) If the lease agreement is insufficient for a county assessor to make a determination about eligibility for a residential exemption, a county assessor may request a copy of the real estate insurance policy for the property.

(C) If the real estate insurance policy is insufficient for a county assessor to make a determination about eligibility for a residential exemption, a county assessor may request a copy of a filing from the most recent federal tax return showing that the owner had profit or loss from the residential property as a rental.

(ii) A county assessor may not request information from an owner's tenant.

(6) (a) Except as provided in Subsection (6)(b), the county board of equalization may not accept from a property owner an application to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence that is filed after the later of:

(i) September 15 of the calendar year for which the property owner seeks to receive the residential exemption;

or (ii) the last day of a 45-day period beginning on the day on which the county auditor provides the notice under Section 59-2-919.1.

(b) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may make rules providing for circumstances under which the county board of equalization is required to - 10 - SB0097S01 compared with SB0097S04 accept a property owner's application for a residential exemption authorized under Section 59-2-103 that is filed after the time period described in Subsection (6)(a).

(ii) The commission shall report to the Revenue and Taxation Interim Committee on any rules [promulgated] implemented under this Subsection (6)(b).

(7) Except as provided in Subsection (8), if a property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence, the property owner shall:

(a) file a written statement with the county board of equalization of the county in which the property is located:

(i) on a form provided by the county board of equalization;

and (ii) notifying the county board of equalization that the property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence;

and (b) declare on the property owner's individual income tax return under Chapter 10, Individual Income Tax Act, for the taxable year for which the property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence, that the property owner no longer qualifies to receive a residential exemption authorized under Section 59-2-103 for the property owner's primary residence.

(8) A property owner is not required to file a written statement or make the declaration described in Subsection (7) if the property owner:

(a) changes primary residences;

(b) qualified to receive a residential exemption authorized under Section 59-2-103 for the residence that was the property owner's former primary residence;

and (c) qualifies to receive a residential exemption authorized under Section 59-2-103 for the residence that is the property owner's current primary residence.

(9) Subsections (2) through (8) do not apply to qualifying exempt primary residential rental personal property.

(10) (a) [Subject to Subsection (11), for] For the first calendar year in which a property owner qualifies to receive a residential exemption under Section 59-2-103, a county assessor may require the property owner to file a signed statement described in Section 59-2-306.

- 11 - SB0097S01 compared with SB0097S04 (b) [Subject to Subsection (11) and notwithstanding] Notwithstanding Section 59-2-306, for a calendar year after the calendar year described in Subsection (10)(a) in which a property owner qualifies for an exemption authorized under Section 59-2-1115 for qualifying exempt primary residential rental personal property, a signed statement described in Section 59-2-306 with respect to the qualifying exempt primary residential rental personal property may only require the property owner to certify, under penalty of perjury, that the property owner qualifies for the exemption authorized under Section 59-2-1115.

[(11) (a) After an ownership interest in residential property changes, the county assessor shall:] [(i) notify the owner of the residential property that the owner is required to submit a written declaration described in Subsection (11)(d) within 90 days after the day on which the county assessor mails the notice under this Subsection (11)(a);

and] [(ii) provide the owner of the residential property with the form described in Subsection (11)(e) to make the written declaration described in Subsection (11)(d).] [(b) A county assessor is not required to provide a notice to an owner of residential property under Subsection (11)(a) if the situs address of the residential property is the same as any one of the following:] [(i) the mailing address of the residential property owner or the tenant of the residential property;] [(ii) the address listed on the:] [(A) residential property owner's driver license;

or] [(B) tenant of the residential property's driver license;

or] [(iii) the address listed on the:] [(A) residential property owner's voter registration;

or] [(B) tenant of the residential property's voter registration.] [(c) A county assessor is not required to provide a notice to an owner of residential property under Subsection (11)(a) if:] [(i) the owner is using a post office box or rural route box located in the county where the residential property is located;

and] [(ii) the residential property is located in a county of the fourth, fifth, or sixth class.] - 12 - SB0097S01 compared with SB0097S04 [(d) An owner of residential property that receives a notice described in Subsection (11)(a) shall submit a written declaration to the county assessor under penalty of perjury certifying the information contained in the form described in Subsection (11)(e).] [(e) The written declaration required by Subsection (11)(d) shall be:] [(i) signed by the owner of the residential property;

and] [(ii) in substantially the following form:

"Residential Property Declaration This form must be submitted to the County Assessor's office where your new residential property is located within 90 days of receipt.

Failure to do so will result in the county assessor taking action that could result in the withdrawal of the primary residential exemption from your residential property.

Residential Property Owner Information Name(s):__________________________________________________ Home Phone:_______________________________________________ Work Phone:_______________________________________________ Mailing Address:____________________________________________ Residential Property Information Physical Address:___________________________________________ Certification 1.

Is this property used as a primary residential property or part-year residential property for you or another person? "Part-year residential property" means owned property that is not residential property on January 1 of a calendar year but becomes residential property after January 1 of the calendar year.

Yes No 2.

Will this primary residential property or part-year residential property be occupied for 183 or more consecutive calendar days by the owner or another person? A part-year residential property occupied for 183 or more consecutive calendar days in a calendar year by the owner(s) or a tenant is eligible for the exemption.

Yes No If a property owner or a property owner's spouse claims a residential exemption under Utah Code Ann.

§59-2-103 for property in this state that is the primary residence of the property owner or - 13 - SB0097S01 compared with SB0097S04 the property owner's spouse, that claim of a residential exemption shall be considered in determining whether the property owner and the property owner's spouse have domicile in Utah for income tax purposes.

Signature Under penalties of perjury, I declare to the best of my knowledge and belief, this declaration and accompanying pages are true, correct, and complete.

__________________(Owner signature) _____________________Date (mm/dd/yyyy) __________________(Owner printed name)] [(f) For purposes of a written declaration described in this Subsection (11), a county may not request information from a property owner beyond the information described in the form provided in Subsection (11)(e).] [(g) (i) If, after receiving a written declaration filed under Subsection (11)(d), the county determines that the property has been incorrectly qualified or disqualified to receive a residential exemption, the county shall:] [(A) redetermine the property's qualification to receive a residential exemption;

and] [(B) notify the claimant of the redetermination and the county's reason for the redetermination.] [(ii) The redetermination provided in Subsection (11)(g)(i)(A) is final unless:] [(A) except as provided in Subsection (11)(g)(iii), the property owner appeals the redetermination to the board of equalization in accordance with Subsection 59-2-1004(2);

or] [(B) the county determines that the property is eligible to receive a primary residential exemption as part-year residential property.] [(iii) The board of equalization may not accept an appeal that is filed after the later of:] [(A) September 15 of the current calendar year;

or] [(B) the last day of the 45-day period beginning on the day on which the county auditor provides the notice under Section 59-2-919.1.] [(h) (i) If a residential property owner fails to file a written declaration required by Subsection (11)(d), the county assessor shall mail to the owner of the residential property a notice that:] [(A) the property owner failed to file a written declaration as required by Subsection (11)(d);

and] - 14 - SB0097S01 compared with SB0097S04 [(B) the property owner will no longer qualify to receive the residential exemption authorized under Section 59-2-103 for the property that is the subject of the written declaration if the property owner does not file the written declaration required by Subsection (11)(d) within 30 days after the day on which the county assessor mails the notice under this Subsection (11)(h)(i).] [(ii) If a property owner fails to file a written declaration required by Subsection (11)(d) after receiving the notice described in Subsection (11)(h)(i), the property owner no longer qualifies to receive the residential exemption authorized under Section 59-2-103 in the calendar year for the property that is the subject of the written declaration unless:] [(A) except as provided in Subsection (11)(h)(iii), the property owner appeals the redetermination to the board of equalization in accordance with Subsection 59-2-1004(2);

or] [(B) the county determines that the property is eligible to receive a primary residential exemption as part-year residential property.] [(iii) The board of equalization may not accept an appeal that is filed after the later of:] [(A) September 15 of the current calendar year;

or] [(B) the last day of the 45-day period beginning on the day on which the county auditor provides the notice under Section 59-2-919.1.] [(iv) A property owner that is disqualified to receive the residential exemption under Subsection (11)(h) (ii) may file an application described in Subsection (1) to determine whether the owner is eligible to receive the residential exemption.] [(i) The requirements of this Subsection (11) do not apply to a county assessor in a county that adopts and enforces an ordinance described in Subsection (1).] {Section 5.

Section 59-2-917 is amended to read:

} 59-2-917.

Use of funds.

(1) The money raised by the levy imposed by Section 59-2-916 may be used for development purposes as provided in Section 59-2-916 or the governing body of any taxing entity may make contributions to the extent of the fund raised by the tax, to any state or government agency which has been organized for that public purpose and is engaged in the development.

(2) Notwithstanding any other provision of law, beginning May 6, 2026, a taxing entity may not deposit property tax revenue into a reserve fund for capital improvement projects.

{Section 6.

} - 15 - SB0097S01 compared with SB0097S04 59-2-919.

- 7 - SB0097 compared with SB0097S04 (A) assessed by a county assessor in accordance with Part 3, County Assessment;

- 16 - SB0097S01 compared with SB0097S04 (2) Except as provided in Subsection (11), a taxing entity may not levy a tax rate that exceeds the taxing entity's certified tax rate unless the taxing entity meets:

- 8 - SB0097 compared with SB0097S04 (i) 14 or more days before the date of the regular general election or municipal general election held in the current calendar year, states at a public meeting:

(b) - 17 - SB0097S01 compared with SB0097S04 (i) For a county executive calendar year taxing entity, the statement described in Subsection (3)(a)(i) shall be made by the:

- 9 - SB0097 compared with SB0097S04 (A) make the statement described in Subsection (3)(a)(i) 14 or more days before the county executive calendar year taxing entity conducts the public hearing under Subsection (3)(a)(v);

This notice contains estimates of the tax on your property and the proposed tax increase on your - 18 - SB0097S01 compared with SB0097S04 property as a result of this tax increase.

- 10 - SB0097 compared with SB0097S04 (ix) may contain other information approved by the commission;

- 19 - SB0097S01 compared with SB0097S04 (i) Section 53F-8-301 allows the taxing entity to levy a tax rate that exceeds that certified tax rate without having to comply with the notice provisions of this section;

and - 11 - SB0097 compared with SB0097S04 (ii) as a class A notice under Section 63G-30-102.

The (name of the taxing entity) invites all concerned citizens to a public hearing for the purpose of hearing comments regarding the proposed tax increase and to explain the reasons for the - 20 - SB0097S01 compared with SB0097S04 proposed tax increase.

- 12 - SB0097 compared with SB0097S04 (a) shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing the joint use of one advertisement described in Subsection (6) by two or more taxing entities;

and - 21 - SB0097S01 compared with SB0097S04 (C) available for individuals to attend or participate either in person or remotely through electronic means.

and - 13 - SB0097 compared with SB0097S04 (D) provide an interested party desiring to be heard an opportunity to present oral testimony within reasonable time limits and without unreasonable restriction on the number of individuals allowed to make public comment.

(f) - 22 - SB0097S01 compared with SB0097S04 (i) Except as provided in Subsection (8)(f)(ii), a taxing entity may not hold the public hearing described in Subsection (3)(a)(v) or (4)(b) on the same date as another public hearing of the taxing entity.

(9) - 14 - SB0097 compared with SB0097S04 (a) If a taxing entity does not make a final decision on budgeting additional ad valorem tax revenue at a public hearing described in Subsection (3)(a)(v) or (4)(b), the taxing entity shall:

- 23 - SB0097S01 compared with SB0097S04 (11) For a fiscal year within a truth-in-taxation exemption period, a taxing entity may adopt a budget that is equal to or less than the base year budgeted revenue without complying with this section.

(12) (a)A Except as provided in Subsection (12)(b), a taxing entity may not adopt a final budget that budgets an amount of additional ad valorem tax revenue that exceeds 5% of last year's property tax budgeted revenue, excluding eligible new growth.

(b) The prohibition in Subsection (12)(a) does not apply to a taxing entity that:

(i) is a school district;

and (ii) receives state support in accordance with Section 53F-2-601.

- 15 - SB0097 compared with SB0097S04 {(a)} {(i)} (a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with this chapter.

- 24 - SB0097S01 compared with SB0097S04 (B) the aggregate taxable value of all real and personal property the commission assesses in accordance with Part 2, Assessment of Property, for the current year;

- 16 - SB0097 compared with SB0097S04 (iii) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, the same as that term is defined in Section 11-70-101;

- 25 - SB0097S01 compared with SB0097S04 (ix) for a first home investment zone created under Title 63N, Chapter 3, Part 16, First Home Investment Zone Act, a property's taxable value as shown upon the assessment roll last equalized during the base year, as that term is defined in Section 63N-3-1601;

- 17 - SB0097 compared with SB0097S04 (ii) an incorrect allocation of taxable value of real or personal property the commission assesses in accordance with Part 2, Assessment of Property;

- 26 - SB0097S01 compared with SB0097S04 (ix) land only property;

or (B) the amount calculated by subtracting the centrally assessed benchmark value for each centrally assessed industry, adjusted for prior year end incremental value, from the taxable value of real and personal property the commission assesses in accordance with Part 2, Assessment of - 18 - SB0097 compared with SB0097S04 Property, for each centrally assessed industry for the current year, adjusted for current year incremental value.

- 27 - SB0097S01 compared with SB0097S04 [(k)] (l) "Host local government" means the same as that term is defined in Section 63N-2-502.

and - 19 - SB0097 compared with SB0097S04 (B) the number that represents the percentage of the property tax augmentation, as defined in Section 11-59-207, that is paid to the Point of the Mountain State Land Authority;

and - 28 - SB0097S01 compared with SB0097S04 (B) the number that represents the percentage of the property tax allocation from that project area that is paid to the authority;

- 20 - SB0097 compared with SB0097S04 (viii) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part 5, Home Ownership Promotion Zone, an amount calculated by multiplying:

- 29 - SB0097S01 compared with SB0097S04 (A) the difference between the taxable value and the base taxable value of the property located within a qualified development zone for a major sporting event venue zone and upon which property tax increment is collected;

or - 21 - SB0097 compared with SB0097S04 (B) the amount calculated by subtracting the year end taxable value of real property the county assessor assesses in accordance with Part 3, County Assessment, for the previous year, adjusted for prior year end incremental value from the taxable value of real property the county assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted for current year incremental value{, minus any change in value to real property, as a result of physical improvements, that is less than 200%100% higher than the taxable value of the real property for the previous year,year}. subject to Subsection (10)}.

or - 30 - SB0097S01 compared with SB0097S04 (E) subject to Subsection (10), taxable value attributable to physical improvements to an existing structure or the construction of a new structure that does not add new building area related to residential or commercial use, and excluding any increase in taxable value for property that was assessed in the previous year as partially completed new growth.

- 22 - SB0097 compared with SB0097S04 (vi) for a home ownership promotion zone created under Title 10, Chapter 21, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part 5, Home Ownership Promotion Zone, the same as that term is defined in Section 10-21-101 or Section 17-80-101;

- 31 - SB0097S01 compared with SB0097S04 [(iii)] (C) for the Utah Fairpark Area Investment and Restoration District created in Section 11-70-201, an amount equal to the incremental value that is no longer provided to the Utah Fairpark Area Investment and Restoration District;

- 23 - SB0097 compared with SB0097S04 [(viii)] (H) for a first home investment zone created under Title 63N, Chapter 3, Part 16, First Home Investment Zone Act, an amount equal to the incremental value that is no longer provided to a first home investment zone as tax increment;

(ii) "Project area new growth" does not include, for any entity {described in SubsectionsSubsection (1)(r)(i)(A)(1)(r)(i)} through (I)} listed under Subsection (1)(s)(i), {a change in value for } tangible personal property.

- 32 - SB0097S01 compared with SB0097S04 (ii) for a housing and transit reinvestment zone or convention center reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, the same as the term "property tax increment" is defined in Section 63N-3-602;

and - 24 - SB0097 compared with SB0097S04 (b) a statement containing the taxable value of all personal property a county assessor assesses in accordance with Part 3, County Assessment, from the prior year end values.

(4) (a) (i) Except as otherwise provided in this section and subject to Subsection (4)(a)(ii), the certified tax rate shall be calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the prior year{,year minus any amount of interest the taxing entity earned or realized on an investment during the current year,} by the amount calculated under Subsection (4)(b).

- 33 - SB0097S01 compared with SB0097S04 (b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall calculate an amount as follows:

and - 25 - SB0097 compared with SB0097S04 (B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the amount calculated under Subsection (4)(b)(iii).

and - 34 - SB0097S01 compared with SB0097S04 (d) for debt service voted on by the public, the certified tax rate is the actual levy imposed by that section, except that a certified tax rate for the following levies shall be calculated in accordance with Section 59-2-913 and this section:

- 26 - SB0097 compared with SB0097S04 (ii) the year end taxable value of personal property:

(9) - 35 - SB0097S01 compared with SB0097S04 (a) Subject to Subsection (9)(d), the commission shall provide notice, through electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim Committee if:

(c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by subtracting the total taxable value of real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the current year, from the total year end taxable - 27 - SB0097 compared with SB0097S04 value of the real and personal property of a taxpayer the commission assesses in accordance with Part 2, Assessment of Property, for the previous year.

(10) For purposes of {determining locally assessed new growth under this section} Subsection (1)(q)(1)(q)(i)(B), (i)(B), a {taxing entity } county assessor may not {consider a change in value for real property as a result } use permit value to determine the market value of construction in progress as of {physical improvements until completion of the physical improvements.} January 1.

{(1)(1) {Except as provided in SubsectionsSubsection (2)(2), throughthis (4),} thisThis bill takes effect on May{June 6, 2026.} } {(2) {The actions affecting Section 59-2-924 (Effective 06/01/26) take effect on June 1, 2026.}2026} } {(3) {The actions affecting Section 59-2-919 (Effective 07/01/26) take effect on July 1, 2026.} } (4) {The actions affecting Section 59-2-103.5 (Effective 01/01/27) take } This bill takes effect on January 1, 2027.

-{(2) 36{The -actions SB0097S01affecting comparedSection with59-2-919 SB0097S04(Effective 07/01/26) take effect on July 1, 2026.} } Section 6.

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