League panel warns truth-in-taxation reforms could sharply shift who pays property taxes

Speakers at the Utah League of Cities and Towns Legislative Policy Committee spent more than an hour on Oct. 20 reviewing the state’s Truth in Taxation process and potential legislative changes that could limit local governments’ ability to raise property-tax revenue.

The committee heard a historical overview from Roger (tax policy advisor), who said Truth in Taxation — the state process that governs how local governments notify residents and seek approval for property-tax increases — has largely worked as intended since its adoption in 1985 but contains “clunky” notice and procedural requirements that tripped up dozens of taxing entities this year. "The process is still in your hands," Roger said, while warning that other proposals could take away local flexibility.

Why it matters: Cities, counties, school districts and special districts all rely on property-tax revenue for services and infrastructure. Any change to the Truth in Taxation triggers, timing or the residential exemption could move revenue between property classes (residential vs. nonresidential) or cap local revenue growth, affecting budgets across jurisdictions.

Key details…