Bill > HB0236

This bill, titled "Truth in Taxation Amendments," aims to enhance transparency and public involvement in property tax increases by modifying existing "truth in taxation" laws. It introduces new requirements for taxing entities, which are governmental bodies that levy taxes, to provide more detailed information to the public before they can increase property tax rates beyond a certain threshold, known as the "certified tax rate." Key changes include requiring fiscal year taxing entities (those operating on a July 1 to June 30 cycle) to present a "tentative budget" that includes a proposed tax rate increase and a "property tax impact schedule" detailing the estimated dollar amount and percentage of the increase, as well as its impact on average residential and commercial properties, and the operational impact on different departments. This schedule must be made available to the public at public hearings held before June 30. Additionally, the bill mandates that any additional tax revenue generated by a proposed increase must be set aside in a restricted account until the final budget is adopted, preventing immediate expenditure. The bill also refines the notice requirements for both calendar year and fiscal year taxing entities, ensuring that the public is informed about proposed tax hikes through various channels, including mail and advertisements, and clarifies the process for public hearings, including when they can be held and what information must be presented. It also includes provisions for exceptions to these requirements, such as for taxing entities with very low ad valorem tax revenue or those expressly exempted by law, and specifies an effective date of May 6, 2026.

Budget and Finance

https://le.utah.gov/~2026/bills/static/HB0236.html