BYU faces property tax exemption deadline for consolidation plans

The Utah County Board of Equalization convened on February 12, 2025, to discuss critical property tax exemption issues, particularly focusing on the eligibility of properties held by organizations for future use. A significant point of discussion centered around the exclusive use requirement for property tax exemptions, which stipulates that properties must be actively utilized by the applying organization at the time of application.

The board examined a specific case involving Brigham Young University (BYU), which has acquired a property that is currently vacant. The discussion highlighted that simply holding a property without any active use, such as construction or demolition, does not meet the criteria for tax exemption. The board emphasized the need for BYU to demonstrate action on the property, such as obtaining a demolition permit, to qualify for the exemption for the upcoming tax years of 2024 and 2025.

The board noted that the 120-day window for BYU to take action on the property, which began upon the transfer of ownership, had already lapsed as of January 29, 2025. This means that unless BYU can provide evidence of active use or construction, the property will not qualify for the exemption in the near future.

In conclusion, the board's discussions underscore the importance of adhering to state regulations regarding property use for tax exemptions. The outcome of this case will set a precedent for how similar situations are handled in Utah County, emphasizing the necessity for organizations to actively engage with their properties to maintain tax benefits. The board plans to revisit this issue in their March meeting, allowing BYU a final opportunity to present evidence of compliance with the exclusive use requirement.