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Committee restores five-year 'hold harmless' for school district tax effort

Utah House Revenue and Taxation Committee · January 29, 2026
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Summary

Lawmakers voted to favorably recommend HB300, which restores a prior five-year hold-harmless calculation for school districts to reduce the frequency of tax-rate adjustments tied to rising property values; Granite School District testified it faced a $44M shortfall tied to last year’s change.

The committee unanimously recommended House Bill 300, a measure sponsored by Representative Kyle to restore a five-year hold-harmless provision affecting how local school districts’ tax effort is measured for state funding guarantees.

Representative Kyle described the change as a reversal of last year’s code update and said it would allow districts more predictability and flexibility as property values fluctuate. He said the intent is to reduce the pressure for frequent tax-rate adjustments caused by rising assessed values.

Ben Orsland, superintendent of Granite School District, testified the change was “a fix” and said that last year’s code changes contributed to a roughly $44,000,000 shortfall for the district and an ongoing pressure of about $7,000,000 for the current year. He urged the committee to approve the restoration to protect services and avoid sharp personnel cuts.

After brief committee discussion and a motion from Representative Coford, the committee voted to forward HB300 with a favorable recommendation.