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Committee advances property-tax bill that phases down one circuit-breaker program; critics say seniors would lose relief
Summary
Senate Bill 197 would eliminate one circuit-breaker homeowner tax abatement over five years and retain a tax-deferral program that must be repaid on sale or transfer. The committee approved the bill on a 4–2 vote after extensive public testimony from seniors, housing groups and county officials.
Chairman Dan McKay, sponsor of Senate Bill 197, told the Revenue and Taxation Committee that the bill responds to lessons from recent circuit-breaker pilot programs and to concerns that the homeowner abatement creates incentives for older owners to remain in high-value homes rather than freeing housing supply.
Under the bill, one of the circuit-breaker programs that provided a tax abatement would be phased out over five years; the other program — a deferral that defers property taxes and creates a lien to be paid at a later transaction — would remain. McKay said many participants preferred the outright abatement, and the deferral was underutilized, but the bill would shift future relief toward a mechanism that recovers unpaid taxes when property changes hands.
The bill generated substantial public comment. Joe Hirabayashi of AARP Utah warned the committee about mortgage-holder obstacles: because county code requires a primary lienholder’s signature for deferral, many homeowners who still have mortgages could be unable to access the deferral option. Steve Erickson of Crossroads Urban Center and Utah NAHRO said the deferral has been underused and said the bill would amount to a “tax hike on lower income seniors” by reducing direct abatement.
Several longtime advocates for seniors described the circuit-breaker abatement as a long-standing lifeline. Jerry Schmidt and Timothy Funk, both testifying in opposition, urged the committee to retain the current homeowner abatement; Funk said the program is a “commendable program” seniors rely on. Zoe Newman of the Utah Housing Coalition urged the committee not to reduce the renter refund program and called the circuit-breaker renter refund a “lifeline for low income renters 66 years of age plus.”
Senator Mike Harper said he could not support the bill because he sponsors alternative legislation to increase the circuit breaker. The committee voted to favorably recommend SB 197 by roll call. The clerk recorded the final committee vote as 4 in favor and 2 opposed; Senators Jeremy Colomore, Lincoln Fillmore, Derek Wilson and Chair Dan McKay voted aye; Senators Mike Harper and Luz Escamilla voted no. The bill will proceed to the full Senate for further consideration.
Committee members asked the sponsor to review eligibility thresholds and to discuss options for improving the deferral program's take-up and administrative processes; the sponsor said he would continue discussions.
