Utah is experiencing a “tax shift,” where residents are paying more property tax relative to businesses.
That’s despite the fact that full-time residents are eligible for a 45% discount on their property taxes; in other words, the property tax rate is only applied to 55% of their home’s value.
In October, Rep. Steve Eliason, R-Sandy, introduced a bill proposal to increase that discount at an interim legislative meeting.
“That would give all homeowners a property tax cut. However, it would shift the burden to corporate taxpayers, as well as second homeowners for residential property,” Eliason said at the Revenue and Taxation Interim Committee. “We would mitigate the impact of that impact by giving a Utah State income tax deduction.”
The reason the bill would affect who pays more in property taxes — and one of the causes of the tax shift in the first place — is that one person’s tax bill depends on how much their neighbor has to pay.
Properties worth more pay more, and properties pay less if they’re worth less or if they have a primary residential exemption.
Summit County Deputy Manager Janna Young said the bill to increase the exemption will be one to watch, if it makes it to the floor during the 2026 General Session.
“While it helps residents, it is going to shift the tax burden then to the commercial sector. Because the way it works in Utah is taxing entities, like the county, are guaranteed to collect the same amount in property tax revenue every year regardless of inflation or recession — unless there's new growth or we go through the Truth-in-Taxation process,” she said on KPCW’s “Local News Hour” Dec. 23. “So it'll be interesting to see how that shapes out and where they end up moving that exemption to.”
It’s no ordinary bill though. The 45% discount is enshrined in the Utah Constitution, so as a constitutional amendment, it would take a vote of the legislature and the people to make the change.
Residents are not automatically enrolled in the property tax exemption in Summit or Wasatch counties.
By default, every property is categorized as “secondary” and is charged the full tax. Residents must show their county assessor proof they either live there or rent it out long-term.
The Utah Legislature’s 2026 General Session begins Jan. 20.
