UtahUtah taxing bodies must explain tax increases and reserve money
Utah taxing bodies with July–June budget years proposing above-certified property tax rates must explain the effects and set aside money until after final budget adoption.
What it does
Covered taxing bodies with July–June budget years must explain proposed property tax increases and their expected effects at public meetings before adopting a budget. Legal exemptions apply.
Taxing bodies with July–June budget years proposing an above-certified rate must adopt a temporary budget and tax impact report. They must set aside money they cannot spend until after final budget adoption.
Towns with July–June budget years and no public website as of May 1 must use a physical address and post required tax increase information at town hall or their main business location.
The State Tax Commission cannot approve above-certified rates after timely findings of rule violations. Missed early disclosures alone do not require rejection for the budget year starting July 1, 2026.
Argument forThe tax impact report could help residents connect a proposed tax increase with changes in department spending and services.
Argument againstSetting aside general fund money could limit a taxing body's ability to pay for services before it adopts its final budget.
More detail
Covered taxing bodies must explain proposed property tax increases at public meetings before adopting their budget. This covers taxing bodies with July–June budget years seeking a rate above the certified rate, which is designed to bring in the prior year's budgeted property tax revenue. The first-budget presentation rule does not apply if the tentative budget presented during or before the first May meeting contains no proposed tax increase. Legal exemptions apply. Certain school taxes and bodies budgeting less than $20,000 in property tax revenue in both the previous and current budget years are exempt from notice requirements. Officials present a tax impact report when first presenting a tentative budget with an increase. From May 1 through June 13, they state the expected extra revenue, purpose, and percentage increase.
Covered taxing bodies must adopt a temporary budget, provide a separate tax impact report, and set aside general fund money. This covers taxing bodies with July–June budget years proposing a property tax rate above the certified rate. The money set aside must equal at least the extra property tax revenue expected from the proposed increase. The report must explain expected revenue, tax effects for average homes and commercial properties, and budget and service effects for affected departments. Officials must present the separate report at each budget hearing held before June 30 that discusses the proposed general fund budget. The temporary budget and reserve are required by June 30. Reserved money cannot be spent or committed from July 1 until after final budget adoption, which occurs before September 1.
Covered towns must give their town hall or main business address instead of a website address and post required information there. This covers municipalities legally classified by population as towns that use July–June budget years and propose a tax rate increase. The town must provide evidence of compliance to the State Tax Commission as the commission requires. May 1 refers to the year the town proposes the increase. Physical postings must meet the same deadlines as the required website postings.
The State Tax Commission cannot approve a rate above the certified rate when it finds a failure to meet applicable requirements by the stated deadline. This covers taxing bodies seeking rates above the certified rate, which is designed to bring in the prior year's budgeted property tax revenue. For the budget year starting July 1, 2026, missed early meeting disclosures alone do not trigger this approval restriction. Other violations still trigger it. The commission must notify the taxing body of missed early disclosures and warn that such failures in later budget years will prevent approval. The commission must find the violation on or before September 15 of the year the tax hearing is required. The law takes effect May 6, 2026.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 23Governor Spencer Cox SignedBecame Law
- Mar 16House/ to GovernorTo Governor
- Mar 16House/ received enrolled bill from PrintingMinor
- Mar 12House/ enrolled bill to Printing
- Mar 12Enrolled Bill Returned to House or SenateMinor
- Mar 11Draft of Enrolled Bill Prepared
- Mar 11Bill Received from House for EnrollingMinor
- Mar 11House/ signed by Speaker/ sent for enrollingMajor
- Mar 11House/ received from SenateMinor
- Mar 10Senate/ to House
- Mar 10Senate/ signed by President/ returned to HouseMajor
- Mar 10Senate/ received from HouseMinor
- Mar 7House/ to Senate
- Vote recorded House/ concurs with Senate amendment. Result: pass.Lower
- Vote recorded Senate/ passed 2nd & 3rd readings/ suspension. Result: pass.Upper
- Mar 7House/ concurs with Senate amendmentMajor
- Mar 7House/ placed on Concurrence Calendar
- Mar 7House/ received from SenateMinor
- Mar 7Senate/ to House with amendments
- Mar 7Senate/ passed 2nd & 3rd readings/ suspensionMajor
- Mar 7Senate/ floor amendment
- Mar 7Senate/ substituted
- Mar 7Senate/ 2nd readingMinor
- Mar 7Senate/ motion to reconsider
- Mar 7LFA/ fiscal note publicly available for HB0236S03
- Mar 7LFA/ fiscal note sent to sponsor for HB0236S03
- Mar 7LFA/ bill sent to agencies for fiscal input for HB0236S03
- Mar 7LFA/ bill assigned to staff for fiscal analysis for HB0236S03
- Mar 6Senate/ to House with amendments
- Vote recorded Senate/ passed 2nd & 3rd readings/ suspension. Result: pass.Upper
- Mar 6Senate/ passed 2nd & 3rd readings/ suspensionPassed Senate
- Mar 6Senate/ floor amendment
- Mar 6Senate/ substituted
- Mar 6Senate/ uncircled
- Mar 6Senate/ circled
- Mar 6Senate/ Rules to 2nd Reading Calendar
- Mar 5Senate/ 2nd Reading Calendar to Rules [Senate Rules Committee]Minor
- Feb 28LFA/ fiscal note publicly available for HB0236S02
- Feb 28LFA/ fiscal note sent to sponsor for HB0236S02
- Feb 27LFA/ bill sent to agencies for fiscal input for HB0236S02
- Feb 27LFA/ bill assigned to staff for fiscal analysis for HB0236S02
- Feb 19Senate/ circled
- Feb 19Senate/ 2nd & 3rd readings/ suspensionMinor
- Feb 18Senate/ placed on 2nd Reading Calendar
- Feb 18Senate/ committee report favorable [Senate Revenue and Taxation Committee]Minor
- Feb 18Senate Comm - Favorable Recommendation [Senate Revenue and Taxation Committee]Minor
- Feb 13Senate/ to standing committee [Senate Revenue and Taxation Committee]Minor
- Feb 12Senate/ 1st reading (Introduced)Minor
- Feb 10Senate/ received from HouseMinor
- Vote recorded House/ passed 3rd reading. Result: pass.Lower
- Feb 10House/ to Senate
- Feb 10House/ passed 3rd readingPassed House
- Feb 10House/ substituted
- Feb 10House/ 3rd readingMinor
- Feb 3LFA/ fiscal note publicly available for HB0236S01
- Feb 3LFA/ fiscal note sent to sponsor for HB0236S01
- Feb 2LFA/ bill sent to agencies for fiscal input for HB0236S01
- Feb 2LFA/ bill assigned to staff for fiscal analysis for HB0236S01
- Jan 30House/ 2nd readingMinor
- Jan 30House/ committee report favorable [House Revenue and Taxation Committee]Minor
- Jan 29House Comm - Favorable Recommendation [House Revenue and Taxation Committee]Minor
- Jan 28House/ to standing committee [House Revenue and Taxation Committee]Minor
- Jan 20House/ 1st reading (Introduced)Minor
- Jan 20House/ received fiscal note from Fiscal AnalystMinor
- Jan 17LFA/ fiscal note publicly available for HB0236
- Jan 17LFA/ fiscal note sent to sponsor for HB0236
- Jan 14House/ received bill from Legislative ResearchMinor
- Jan 12LFA/ bill sent to agencies for fiscal input for HB0236
- Jan 12LFA/ bill assigned to staff for fiscal analysis for HB0236
- Jan 12Numbered Bill Publicly Distributed
- Jan 12Bill Numbered but not DistributedIntroduced
Taxes & BudgetGovernment & Ethics