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House approves constitutional resolution and statute to exempt low‑value business personal property
Summary
The House passed a constitutional resolution (HJR1) and an implementing statute (HB338) to allow the Legislature to exempt small amounts of tangible personal property from property tax, pending voter approval of the constitutional change.
The Utah House approved second substitute HJR1 and the companion statutory bill HB338 on Feb. 16, 2006, to give the Legislature discretion to exempt low‑value tangible personal property from property taxation.
Representative John Dougal, sponsor of both measures, said the constitutional resolution would permit a statutory exemption for tangible personal property whose aggregate fair market value is inconsequential to state revenue; he and colleagues discussed a working threshold of $3,500 in aggregate value that would effectively exempt very small businesses. "About half of the businesses in our state that pay personal property tax cost more to collect than what they actually pay," Dougal said, arguing the change reduces administrative burden and aids small businesses.
The House recorded unanimous support for the constitutional resolution, which passed 73–0 (2 absent). The companion statute (HB338), described as conditional on voter approval of HJR1, also passed the House (68–0, 7 absent) and will be forwarded to the Senate for further consideration.
Floor discussion identified that the statutory change is contingent on voter approval and that implementing details and thresholds will be set in statute; advocacy groups including the League of Cities and Towns, the Association of Counties and business groups were cited as supporters.
