Enrolled Copy H.B. 110
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Combined Basic Tax Rate Reduction
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Tiara Auxier
Senate Sponsor: Daniel McCay
Cosponsor: Stephanie Gricius Jefferson Moss
Cheryl K. Acton Jason B. Kyle Candice B. Pierucci
Tyler Clancy Trevor Lee Calvin Roberts
Joseph Elison Karianne Lisonbee R. Neil Walter
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LONG TITLE
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General Description:
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This bill repeals the weighted pupil unit (WPU) value rate from the combination of
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property tax rates that fund public education.
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Highlighted Provisions:
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This bill:
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▸ repeals the WPU value rate from the combination of property tax rates that fund public
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education;
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▸ provides that the repeal of the WPU value rate does not affect the amount of ongoing
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appropriations to the Teacher and Student Success Program;
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▸ includes a clause to coordinate the effect of the repeal of the WPU value rate with
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language that S.B. 37, Minimum Basic Tax Rate Amendments, enacts; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill provides a special effective date.
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This bill provides a coordination clause.
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Utah Code Sections Affected:
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AMENDS: H.B. 110 Enrolled Copy
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53F-2-301, as last amended by Laws of Utah 2024, Chapters 124, 460
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59-2-919.1, as last amended by Laws of Utah 2024, Chapter 246
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59-2-926, as last amended by Laws of Utah 2023, Chapter 7
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Utah Code Sections affected by Coordination Clause:
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53F-2-301, as last amended by Laws of Utah 2024, Chapters 124, 460
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Be it enacted by the Legislature of the state of Utah:
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The following section is affected by a coordination clause at the end of this bill.
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Section 1. Section 53F-2-301 is amended to read:
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53F-2-301 . Minimum basic tax rate for a fiscal year that begins after July 1,
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2022.
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(1) As used in this section:
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(a) "Basic levy increment rate" means a tax rate that will generate an amount of revenue
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equal to $75,000,000.
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[(b) "Combined basic rate" means a rate that is the sum of:]
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[(i) the minimum basic tax rate; and]
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[(ii) the WPU value rate.]
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[(c)] (b) "Commission" means the State Tax Commission.
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[(d)] (c) "Minimum basic local amount" means an amount that is:
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(i) equal to the sum of:
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(A) the school districts' contribution to the basic school program the previous
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fiscal year;
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(B) the amount generated by the basic levy increment rate; and
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(C) the eligible new growth, as defined in Section 59-2-924 and rules of the State
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Tax Commission multiplied by the minimum basic rate; and
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(ii) set annually by the Legislature in Subsection (2)(a).
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[(e)] (d) "Minimum basic tax rate" means a tax rate certified by the commission that will
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generate an amount of revenue equal to the minimum basic local amount described in
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Subsection (2)(a).
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[(f) "Weighted pupil unit value" or "WPU value" means the amount established each
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year in the enacted public education budget that is multiplied by the number of
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weighted pupil units to yield the funding level for the basic school program.]
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[(g) "WPU value amount" means an amount:]
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[(i) that is equal to the product of:]
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[(A) the WPU value increase limit; and]
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[(B) the percentage share of local revenue to the cost of the basic school program
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in the immediately preceding fiscal year; and]
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[(ii) set annually by the Legislature in Subsection (3)(a).]
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[(h) "WPU value increase limit" means the lesser of:]
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[(i) the total cost to the basic school program to increase the WPU value over the
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WPU value in the prior fiscal year; or]
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[(ii) the total cost to the basic school program to increase the WPU value by 4% over
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the WPU value in the prior fiscal year.]
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[(i) "WPU value rate" means a tax rate certified by the commission that will generate an
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amount of revenue equal to the WPU value amount described in Subsection (3)(a).]
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(2)(a) The minimum basic local amount for the fiscal year that begins on July 1, 2024, is
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$759,529,000 in revenue statewide.
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(b) The preliminary estimate of the minimum basic tax rate for a fiscal year that begins
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on July 1, 2024, is .001429.
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[(3)(a) The WPU value amount for the fiscal year that begins on July 1, 2024, is
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$29,240,600 in revenue statewide.]
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[(b) The preliminary estimate of the WPU value rate for the fiscal year that begins on
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July 1, 2024, is .000055.]
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[(4)] (3)(a) On or before June 22, the commission shall certify [for the year:] the
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minimum basic tax rate for the year.
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[(i) the minimum basic tax rate; and]
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[(ii) the WPU value rate.]
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(b) The estimate of the minimum basic tax rate provided in Subsection (2)(b) [and the
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estimate of the WPU value rate provided in Subsection (3)(b) are] is based on a
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forecast for property values for the next calendar year.
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(c) The certified minimum basic tax rate described in Subsection [(4)(a)(i) and the
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certified WPU value rate described in Subsection (4)(a)(ii) are ] (3)(a) is based on
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property values as of January 1 of the current calendar year, except personal property,
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which is based on values from the previous calendar year.
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[(5)] (4)(a) To qualify for receipt of the state contribution toward the basic school
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program and as a school district's contribution toward the cost of the basic school
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program for the school district, each local school board shall impose the [combined
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basic] minimum basic tax rate.
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(b)(i) The state is not subject to the notice requirements of Section 59-2-926 before
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imposing the tax rates described in this Subsection [(5)] (4).
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(ii) The state is subject to the notice requirements of Section 59-2-926 if the state
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authorizes a tax rate that exceeds the tax rates described in this Subsection [(5)] (4).
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[(6)] (5)(a) The state shall contribute to each school district toward the cost of the basic
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school program in the school district an amount of money that is the difference
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between the cost of the school district's basic school program and the sum of revenue
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generated by the school district by the following:
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(i) the [combined basic] minimum basic tax rate; and
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(ii) the basic levy increment rate.
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(b)(i) If the difference described in Subsection [(6)(a)] (5)(a) equals or exceeds the
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cost of the basic school program in a school district, no state contribution shall be
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made to the basic school program for the school district.
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(ii) The proceeds of the difference described in Subsection [(6)(a)] (5)(a) that exceed
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the cost of the basic school program shall be paid into the Uniform School Fund
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as provided by law and by the close of the fiscal year in which the proceeds were
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calculated.
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[(7)] (6) Upon appropriation by the Legislature, the Division of Finance shall deposit an
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amount equal to the proceeds generated statewide[:]
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[(a)] by the basic levy increment rate into the Minimum Basic Growth Account created
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in Section 53F-9-302[; and] .
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[(b)] (7) [by the WPU value rate into] Nothing in the repeal of the tax rate indexed to the
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increase in the value of the WPU affects the ongoing appropriations to the Teacher and
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Student Success Account created in Section 53F-9-306.
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Section 2. Section 59-2-919.1 is amended to read:
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59-2-919.1 . Notice of property valuation and tax changes.
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(1) In addition to the notice requirements of Section 59-2-919, the county auditor, on or
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before July 22 of each year, shall notify each owner of real estate who is listed on the
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assessment roll.
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(2) The notice described in Subsection (1) shall:
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(a) except as provided in Subsection (4), be sent to all owners of real property by mail
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10 or more days before the day on which:
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(i) the county board of equalization meets; and
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(ii) the taxing entity holds a public hearing on the proposed increase in the certified
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tax rate;
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(b) be on a form that is:
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(i) approved by the commission; and
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(ii) uniform in content in all counties in the state; and
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(c) contain for each property:
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(i) the assessor's determination of the value of the property;
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(ii) the taxable value of the property;
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(iii)(A) the deadline for the taxpayer to make an application to appeal the
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valuation or equalization of the property under Section 59-2-1004; or
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(B) for property assessed by the commission, the deadline for the taxpayer to
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apply to the commission for a hearing on an objection to the valuation or
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equalization of the property under Section 59-2-1007;
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(iv) for a property assessed by the commission, a statement that the taxpayer may not
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appeal the valuation or equalization of the property to the county board of
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equalization;
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(v) itemized tax information for all applicable taxing entities, including:
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(A) the dollar amount of the taxpayer's tax liability for the property in the prior
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year; and
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(B) the dollar amount of the taxpayer's tax liability under the current rate;
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(vi) the following, stated separately:
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(A) the charter school levy described in Section 53F-2-703;
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(B) the multicounty assessing and collecting levy described in Subsection
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59-2-1602(2);
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(C) the county assessing and collecting levy described in Subsection 59-2-1602(4);
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(D) levies for debt service voted on by the public;
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(E) levies imposed for special purposes under Section 10-6-133.4;
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(F) for a fiscal year that begins on or after July 1, 2023, the [combined basic]
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minimum basic tax rate as defined in Section 53F-2-301; and
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(G) if applicable, the annual payment described in Subsection 63H-1-501(4)(a);
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(vii) the tax impact on the property;
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(viii) the date, time, and place of the required public hearing for each entity;
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(ix) property tax information pertaining to:
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(A) taxpayer relief;
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(B) options for payment of taxes;
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(C) collection procedures; and
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(D) the residential exemption described in Section 59-2-103;
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(x) information specifically authorized to be included on the notice under this chapter;
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(xi) the last property review date of the property as described in Subsection
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59-2-303.1(1)(c);
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(xii) instructions on how the taxpayer may obtain additional information regarding
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the valuation of the property, including the characteristics and features of the
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property, from at least one the following sources:
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(A) a website maintained by the county; or
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(B) the county assessor's office; and
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(xiii) other information approved by the commission.
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(3) If a taxing entity that is subject to the notice and hearing requirements of Subsection
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59-2-919(4) proposes a tax increase, the notice described in Subsection (1) shall state, in
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addition to the information required by Subsection (2):
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(a) the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
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(b) the difference between the dollar amount of the taxpayer's tax liability if the
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proposed increase is approved and the dollar amount of the taxpayer's tax liability
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under the current rate, placed in close proximity to the information described in
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Subsection (2)(c)(viii);
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(c) the percentage increase that the dollar amount of the taxpayer's tax liability under the
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proposed tax rate represents as compared to the dollar amount of the taxpayer's tax
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liability under the current tax rate; and
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(d) for each taxing entity proposing a tax increase, the dollar amount of additional ad
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valorem tax revenue, as defined in Section 59-2-919, that would be generated each
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year if the proposed tax increase is approved.
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(4)(a) Subject to the other provisions of this Subsection (4), a county auditor may, at the
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county auditor's discretion, provide the notice required by this section to a taxpayer
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by electronic means if a taxpayer makes an election, according to procedures
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determined by the county auditor, to receive the notice by electronic means.
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(b)(i) If a notice required by this section is sent by electronic means, a county auditor
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shall attempt to verify whether a taxpayer receives the notice.
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(ii) If receipt of the notice sent by electronic means cannot be verified 14 days or
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more before the county board of equalization meets and the taxing entity holds a
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public hearing on a proposed increase in the certified tax rate, the notice required
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by this section shall also be sent by mail as provided in Subsection (2).
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(c) A taxpayer may revoke an election to receive the notice required by this section by
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electronic means if the taxpayer provides written notice to the county auditor on or
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before April 30.
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(d) An election or a revocation of an election under this Subsection (4):
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(i) does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
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before the due date for paying the tax; or
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(ii) does not alter the requirement that a taxpayer appealing the valuation or the
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equalization of the taxpayer's real property submit the application for appeal
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within the time period provided in Subsection 59-2-1004(3).
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(e) A county auditor shall provide the notice required by this section as provided in
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Subsection (2), until a taxpayer makes a new election in accordance with this
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Subsection (4), if:
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(i) the taxpayer revokes an election in accordance with Subsection (4)(c) to receive
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the notice required by this section by electronic means; or
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(ii) the county auditor finds that the taxpayer's electronic contact information is
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invalid.
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(f) A person is considered to be a taxpayer for purposes of this Subsection (4) regardless
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of whether the property that is the subject of the notice required by this section is
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exempt from taxation.
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Section 3. Section 59-2-926 is amended to read:
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59-2-926 . Proposed tax increase by state -- Notice -- Contents -- Dates.
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If the state authorizes a tax rate that exceeds the [combined basic ] minimum basic tax
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rate described in Section 53F-2-301, or authorizes a levy pursuant to Section 59-2-1602 that
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exceeds the certified revenue levy as defined in Section 59-2-102, the state shall publish a
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notice no later than 10 days after the last day of the annual legislative general session that
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meets the following requirements:
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(1)(a) The Office of the Legislative Fiscal Analyst shall advertise that the state
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authorized a levy that generates revenue in excess of the previous year's ad valorem
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tax revenue, plus eligible new growth as defined in Section 59-2-924, but exclusive
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of revenue from collections from redemptions, interest, and penalties:
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(i) in a newspaper of general circulation in the state; and
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(ii) as required in Section 45-1-101.
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(b) Except an advertisement published on a website, the advertisement described in
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Subsection (1)(a):
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(i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
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point, and surrounded by a 1/4-inch border;
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(ii) may not be placed in that portion of the newspaper where legal notices and
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classified advertisements appear; and
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(iii) shall be run once.
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"NOTICE OF TAX INCREASE
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The state has budgeted an increase in its property tax revenue from $__________ to
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$__________ or ____%. The increase in property tax revenues will come from the following
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sources (include all of the following provisions):
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(a) $__________ of the increase will come from (provide an explanation of the cause of
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adjustment or increased revenues, such as reappraisals or factoring orders);
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(b) $__________ of the increase will come from natural increases in the value of the tax
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base due to (explain cause of eligible new growth, such as new building activity,
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annexation, etc.); and
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(c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
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the basic state-supported school program, applicable tax rate for the Property Tax
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Valuation Fund, or both) paid $____________ in property taxes would pay the
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following:
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(i) $__________ if the state of Utah did not budget an increase in property tax
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revenue exclusive of eligible new growth; and
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(ii) $__________ under the increased property tax revenues exclusive of eligible new
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growth budgeted by the state of Utah."
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Section 4. Effective Date.
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This bill takes effect on July 1, 2026.
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Section 5. Coordinating H.B. 110 with S.B. 37.
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If H.B. 110, Minimum Basic Tax Rate Reduction, and S.B. 37, Minimum Basic Tax
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Rate Amendments, both pass and become law, the Legislature intends that, on July 1, 2026,
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the term "minimum basic tax rate" replace the term "combined basic rate" that S.B. 37 enacts
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within Subsection 53F-2-301(5)(b).
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