BOE pauses decision on BYU property-exemption request, asks for proof of use

The Utah County Board of Equalization on Jan. 30 continued consideration of Brigham Young University’s application for a 2024 property-tax exemption for a parcel adjacent to the former Provo High School, asking BYU to provide evidence that the property was put into educational use or that demolition/construction commenced before the end of 2024.

Eric Bousaith, identifying himself as BYU’s assistant university tax manager, told the board the university acquired the parcel in October and plans to demolish existing apartment units and add the site to BYU’s west campus. He told commissioners he did not have an exact demolition timeframe but that the university intended to move forward “very shortly.”

Adam Beck of the Utah County Attorney’s Office cautioned that the term “vacant land” can undercut an exemption claim. He said, “Vacant land…is not deemed to be devoted exclusively to educational purposes and therefore is not exempt from property taxes,” and urged the board to require evidence of active use or construction permits.

Staff explained a statutory change gives 501(c)(3) educational organizations up to 120 days from acquisition to file and show use; however, for the board to grant a partial exemption for 2024 the applicant must show the property was in current use or that construction had commenced during the 2024 eligibility period. Several commissioners said they were inclined to deny a 2024 exemption if evidence of use was not provided, but agreed to continue the matter to the next BOE meeting so BYU could supply additional documentation.

The board then voted to continue the item to the next BOE meeting; the motion carried on recorded aye votes. Staff said BYU could refile for 2025 if it cannot show use for the 2024 period and that building permits or demolition permits would be examples of evidence the board would consider.