AI-generated summary, not yet reviewed by Better Utah staff. Please consult the bill text.

Utah's "truth-in-taxation" process currently lets cities, counties, school districts, and other local taxing bodies raise property tax revenue above their certified rate after providing public notice and holding hearings, with no cap on how much they can raise this way. This bill would cap the additional revenue a taxing entity can collect through this process at 5% above last year's property tax budget (not counting revenue from new growth); to exceed that 5% limit, the taxing entity would need voter approval through a ballot question at a general election that specifies the exact dollar amount being requested, and it could not later budget more than that approved amount. If voters approve such a measure, the taxing entity would be exempt from the usual notice and hearing requirements for that year's increase. Separately, the bill would eliminate a one-year "hold harmless" protection that currently shields school districts from an immediate loss of state guaranteed funding when rising property values cause their certified tax rate to drop, replacing it with a phase-out schedule that reduces any such excess state funding gradually over three years (100% in 2026, 66% in 2027, 33% in 2028, and none by 2029).