Committee examines sales-ratio study, broker MOU and commercial sales disclosure after auditors find limited transaction data

The Revenue and Taxation Interim Committee reviewed the state's sales-ratio study process and a voluntary memorandum of understanding that brokers signed to share commercial sales data with county assessors.

Joshua (Josh) Nelson, director of property tax at the Utah State Tax Commission, described the statutory and rule framework for sales-ratio studies: assessors must value property at fair market value (Utah Code §59-2-103) and the commission runs sales-ratio studies to compare assessor values to transaction prices (Utah Code §59-2-704). Nelson said counties must meet statistical thresholds (95–105% for residential in many counties; 90–110% for other classes) and that the commission now provides an April preliminary study so counties can fix problems before roll closure.

Nelson reported that available recent sale data covered only a small share of total taxable parcels: roughly 2% of all taxable parcels statewide, with residential about 2.6% and commercial much lower in the counties that had enough commercial sales to study. "Only 10 counties had enough sales to justify a sales ratio study" for commercial property in 2025, he said.

Why it matters: Committee members and county assessors said limited commercial transaction data weakens the ability to verify commercial and centrally assessed values, which the audit showed can drive shifts of tax burden to homeowners when residential values surge.

Assessors and brokers respond Curtis Koch of the Utah Association of Counties and director of operations for the Multi-County Appraisal Trust told the committee that the MOU between assessors and brokerages had been useful, particularly along the Wasatch Front, but had limits. He noted counties currently cannot always share data easily with each other; some broker-disclosed data are not imported in a way assessors can use county to county.

Salt Lake County appraisal staff and commercial brokers said the relationship has improved but there are gaps. "We went from getting little or no commercial data to, you know, at least a substantial amount of commercial data," Salt Lake County speaker Chris Stavros told the committee, but he added that assessors had found some large-dollar sales that were not disclosed despite not being marked confidential.

Broker representatives said they want accurate valuations and a working process with assessors but objected to sweeping accusations of wrongdoing. Nick Wood of Newmark Mountain West said brokers "all want fair taxation" and urged solutions that preserve working relationships. Jared Booth (Colliers) and Erin Laney Barr (CBRE) participated and said they are cooperating under the MOU.

Committee reaction Committee members pressed both sides on remedies and whether statutory disclosure is needed. Staff and assessors said some states require disclosure as part of a public-file system; broker representatives responded they prefer cooperative approaches if they are reliable and enforceable. Committee members asked staff to track MOU compliance and the MOU's built-in reporting checks.

The tax commission and assessors urged better, consistent returns that document what was shared so counties can track compliance; brokers and assessors said they will continue to refine processes, but committee members said they may consider statutory options if voluntary reporting does not meet a robust standard.

No formal votes were taken on changes to the sales-disclosure approach; committee staff will gather compliance reports and follow up with assessors and broker signatories.