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House adopts amendments and approves SB 26 to allow counties to exchange property tax for sales tax
Summary
The Utah House adopted floor amendments addressing redevelopment agency protections and referendum timing and passed Senate Bill 26 (county sales‑tax option) 70–1, sending the measure back to the Senate; sponsors said the change could reduce statewide property taxes by roughly $60–67 million if widely implemented.
The Utah House debated and amended Senate Bill 26 on Feb. 20, 1997 before approving it 70–1 and returning it to the Senate. The bill would let counties opt to exchange a quarter‑point of property‑tax capacity for a $0.25 countywide sales tax, subject to a dollar‑for‑dollar reduction in property tax and local public‑notice and referendum safeguards.
Representative Valentine described two classes of adopted amendments. The first addresses redevelopment‑agency (RDA) impacts using a band or ‘‘haircut’’ approach: if an RDA’s base‑year valuation varies less than 20% from its baseline, no adjustment is required; if it exceeds that band, windfalls are clipped and, if valuations fall beyond the band, other entities hold harmless RDAs for debt‑service on bonded indebtedness. The second amendment shifts referendum timing and establishes a transition year (1997) with options to hold intervening referenda in municipal general or general elections rather than special elections, intended to prevent a county from collecting tax for 11 months and then having an ordinance voided by a later referendum.
Supporters argued the measure diversifies county revenue sources by allowing localities to capture growth through sales tax rather than property tax, and sponsors presented an estimate that full implementation could reduce statewide property taxes by roughly $60–67 million. Representatives noted procedural safeguards: at least two public hearings and notice requirements before adoption, and a local referendum before collections begin.
Opposition on the floor was limited; a few members raised implementation questions and the need to protect RDAs with bonded indebtedness, which the adopted amendments aimed to address. The House adopted the Valentine's amendments on the floor (goldenrod/pink amendment sheets were used to record changes) and voted to pass SB 26, which the clerk reported as 70 yes and 1 no.
Provenance: Floor debate and amendment explanations beginning SEG 1240 (sponsor overview) through SEG 1477 (vote announcement).
