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House approves constitutional amendment and statute clarifying tax exemptions for water-delivery facilities
Summary
House passed HJR2 (constitutional amendment) and HB54 (statutory details) to clarify property tax exemptions for water-delivery facilities and reasonable easements; sponsor disclosed owning shares in a water company. HJR2 passed 70-0, HB54 passed 69-0.
The Utah House on Feb. 5 approved a constitutional amendment (HJR2) and its implementing statute (HB54) to clarify that water-delivery facilities — including city, service districts, agricultural systems and some private non-profit water companies — are exempt from property taxation under the state constitution and to authorize reasonable easements for canal safety and maintenance.
Representative Painter, who sponsored the measures, said the legislation aims to close a ‘‘tiny gap’’ in constitutional language that led several county assessors and attorneys to question whether historic share-owned private water companies qualified for the exemption. Painter disclosed he owns shares in a water company before addressing HB54.
Fiscal context: Painter told the House that Utah collects about $2.2 billion a year in property taxes and that the exemption clarification would shift roughly $500,000 of assessed value within that total — which he characterized as a very small change unlikely to alter existing budgeted revenues materially.
Outcome: HJR2 passed the House 70-0 and HB54 passed 69-0 and both measures were transmitted to the Senate.
Next step: the constitutional amendment requires further action in the legislative process and the statutory changes will be considered by the Senate.
