Senate approves change to property tax "circuit breaker," converting forgiveness into deferral

The Utah State Senate on the floor approved first substitute Senate Bill 197, a measure that converts the state's property tax "circuit breaker" forgiveness program into a deferred repayment program for qualifying homeowners. Senator McKay presented the bill and moved its passage; the measure passed the Senate on a recorded roll call.

Supporters said the bill is intended to preserve homeownership for older residents who lack liquid cash to pay rising property tax bills while ensuring the deferred tax is ultimately paid rather than shifted to other taxpayers. Senator McKay said the bill would let qualifying homeowners defer property taxes until a future transfer or sale of the property and would carry a preferred interest rate so counties are repaid.

Under the first substitute presented on the floor, qualifying conditions include: homeowners aged 65 or older; household income under $55,000 (the sponsor said the income threshold is under active adjustment in committee to align with other proposals); household liquid resources less than 20 times the base-year property tax; and…