Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Policy topic
No spam. Unsubscribe anytime.
House raises damage threshold and approves tax relief for disaster-damaged property
Summary
The House passed House Bill 324, allowing county boards to reduce taxable value for property damaged by natural disasters; lawmakers amended the damage threshold to 40% (replacing a proposed 30% and alternative 50%) and the bill passed 70–0.
The Utah House approved House Bill 324 Tuesday to let county boards of equalization reduce taxable value for property that sustains damage from natural disasters, prorating taxes for the portion of the year after the damage occurred. Representative Bradley Last, the bill’s sponsor, explained the change is an ‘‘apportionment bill’’ allowing owners to apply for a reduction in taxable valuation when damage occurs mid-year.
The House’s debate focused on the qualifying damage threshold used to trigger relief. The bill originally set the threshold at 30 percent. Representative Newbold proposed an amendment to increase the threshold to 50 percent, arguing a higher standard would limit frivolous appeals. Representative Harper then offered a substitute amendment setting the threshold at 40 percent; Representative Parker summarized the compromise as ‘‘somewhere between 30–40%’’ and argued 40 percent is more equitable than 50 percent.
Representative Last said the 30 percent number was reached after consultation with county assessors and legislative research but acknowledged the body must choose a standard the legislature is comfortable with. After extended floor discussion, the House adopted the substitute amendment to set the threshold at 40 percent and passed HB324 as amended by voice and roll call. The clerk announced the final tally as 70 yes votes, 0 no votes, and the bill will be referred to the Senate.
Supporters said the bill helps residents affected by sudden, concentrated losses — for example, communities hit by wildfire or flood — by allowing a pro rata tax reduction reflecting the portion of the year the property remained undamaged. Lawmakers pressed on how assessors should measure damage and noted the difference between assessed value and market value when families choose whether to repair a damaged home.
The House also discussed limits and filing deadlines; sponsor comments and following amendments clarified that counties will administer reductions through existing board-of-equalization processes.
