politics

Utah Lawmakers Propose Property Taxpayer Bill of Rights Amid Rising Tax Concerns

Utah lawmakers are considering a 'Bill of Rights' for property taxpayers to curb rising tax hikes amid public outcry.

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Amid an ongoing dialogue about rising property taxes in Utah, state lawmakers are gearing up to consider a 'Bill of Rights' for property taxpayers aimed at curbing significant tax increases by local governments. This initiative comes on the heels of widespread outrage expressed by residents at truth-in-taxation hearings held across the state last year, where many voiced their frustrations regarding unexpected property tax hikes. Cities and counties, facing budget crises, have proposed substantial increases to fund essential services like snow removal, public safety, and infrastructure repairs. One notable instance involved a shocking proposal for a 225% property tax hike in a single community, highlighting the urgency of the issue. Representative Tiara Auxier, a Republican from Morgan, is at the forefront of this legislative effort. She has introduced a bill designed to establish a framework for property tax increases, requiring local governments to justify any proposed hikes that exceed a certain threshold. "If they want to increase it? They’re going to have to justify it," Auxier stated in an interview with FOX 13 News. The proposed 'Bill of Rights' aims to impose a constitutional limit on spending and revenue growth, tying it to inflation and population growth. Under this plan, any tax increases above this limit would necessitate a vote from the community, thereby enhancing accountability and transparency in local governance. During a meeting with the Utah Taxpayers Association, Auxier discussed her proposal, which has already sparked interest and concern. Billy Hesterman, the president of the association, expressed cautious optimism, stating, "We’re open to it and looking at it; we just want to make sure it doesn’t inspire government to look at fees and other ways to generate revenue that’s less transparent than the current property tax system." In response to these concerns, Auxier noted that her bill would include measures to prevent local governments from circumventing the proposed regulations by shifting burdens to fees instead of taxes. House Majority Leader Casey Snider, a Republican from Paradise, echoed the sentiments of constituents, emphasizing that property taxes are a consistent concern. "If you look at where we are going in terms of the concerns of our constituents, property tax is consistently too high," Snider remarked. This legislative push comes amid a broader effort by Republican leaders to provide tax relief, particularly as residents express dissatisfaction with rising costs of living, including gas taxes and housing affordability. As lawmakers debate these tax reforms, they face challenges, particularly concerning the potential impact on small businesses. Hesterman cautioned that while efforts to relieve homeowners may be beneficial, they could inadvertently create additional burdens for small business owners. "That’s certainly where the focus is, and that’s why they’re looking at things that will potentially bring some relief to a homeowner," Hesterman explained. "But if they’re a small business owner also? They’re going to see that burden undone on the other side." Another significant tax policy proposal comes from Representative Cal Roberts, a Republican from Draper, who aims to cut the tax on gas consumers by half while simultaneously increasing the tax on refineries and oil exports by the same amount. This proposal has garnered considerable attention and pushback from Utah's oil and gas industry, with lobbyists actively expressing their concerns during legislative meetings. Roberts defended his proposal, arguing that the opposition stems from the concern that the industry cannot simply pass the increased tax onto consumers without affecting their margins. In further tax-related discussions, Representative Melissa Garff Ballard, a Republican from North Salt Lake, has introduced a bill to eliminate the so-called 'marriage penalty tax.' Ballard believes this reform would save taxpayers money and encourage lower-income individuals to file jointly, ultimately reducing dependence on social safety programs. "Especially the lower-income individuals, encouraging them to file jointly, get married, instead of having one getting the head of household status and the other trying to get multiple welfare programs," she said. However, the fate of a broader income tax cut remains uncertain. Although the 'Big, Beautiful Bill' championed by the Trump administration previously resulted in income tax cuts for some Utahns, current fiscal constraints may limit further reductions. Governor Spencer Cox's proposed budget did not include additional income tax cuts, as the income tax revenue is earmarked for public education in the state. Despite this, Senator Dan McCay, who chairs the Senate Revenue & Taxation Committee, has suggested a modest half-percent cut to income tax, contingent on updated fiscal figures expected in mid-February. In contrast, House Minority Leader Angela Romero, a Democrat from Salt Lake City, criticized the proposed tax cuts from her Republican colleagues, arguing that the relief offered would be minimal and suggesting that funds should instead be allocated to support lower-income residents. "I’d rather not save money when it comes to $48 on my income tax and make sure that money is going to our social safety net," she argued. As the Utah legislature prepares for its next session, the discussions around property tax relief, income tax reforms, and the proposed taxpayer protections reflect a growing recognition of the financial strain many residents face. Lawmakers are tasked with balancing the need for revenue with the expectations of their constituents, setting the stage for what could be a contentious and pivotal legislative session in 2026.