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Senate adopts substitute bill to adjust school-levy and homeowner exemptions to soften AMAC-related property-tax impact
Summary
The Utah Senate passed a substitute for Senate Bill 90 to adjust school levy rates and increase the homeowner exemption so homeowners are held harmless statewide while partially offsetting impacts on locally assessed businesses; the measure also requires county tax notices to note the Legislature reduced the minimum basic tax rate by $8,500,000.
Senators on the Utah Senate floor passed the first substitute to Senate Bill 90 on Feb. 25, 1994, after sponsor Senator Leonard Blackham described changes intended to blunt the fiscal effects of a proposed 5% intangible reinstatement tied to the AMAC situation. The substitute shifts the approach from reinstating an intangible tax to adjusting the school levy rate and increasing the homeowner exemption.
"This bill is the one that we're gonna go in and adjust the property taxes," Senator Leonard Blackham said while explaining the substitute, adding that the change is intended to "hold the homeowners harmless" on a statewide basis and "mitigate half of the impact to the locally assessed businesses." The amendment also adds a requirement that counties place a statement on tax notices saying the 1994 Utah Legislature reduced the minimum basic tax rate for property taxes by $8,500,000.
Supporters said the substitute better balances revenue and taxpayer impacts than the original language. The amendment to provide the precise uniform state tax-rate figures and the tax-notice language was adopted by voice vote, and the Senate proceeded under suspension of the rules to read the bill for second and third consideration and final passage.
A roll-call tally recorded the passage of the first substitute with the clerk announcing 26 ayes and three absent; the bill will be transmitted to the House for further action.
The bill text, as substituted, leaves technical figures and final rates to implementing sections and the amendment adopted on the floor; sponsors said the numbers had not been available at the committee stage and were supplied in the amendment adopted on the floor. The measure requires county-level notices to disclose the legislated reduction so taxpayers are informed of the change.
Next steps: the Senate sent the substitute to the House for consideration; any further changes would appear in the House conference or subsequent committee work.
