AI-generated summary. We recommend consulting the bill text for important decisions.

Under Utah's existing "truth-in-taxation" process — which allows local governments to raise property tax revenue above a baseline rate after holding public hearings — this bill caps how much extra revenue a taxing entity can collect at 5% above the prior year's property tax budget, without first getting voter approval. If a city, county, school district, or other taxing body wants to raise property taxes beyond that 5% threshold, it must put the question on a general election ballot, specify the exact dollar amount, and receive majority voter approval before proceeding. The bill also phases out a protection that previously shielded school districts from losing state guaranteed funding for up to one year when rising property values caused their tax rate to be adjusted downward, replacing it with a three-year gradual reduction in those excess state funds rather than immediate protection. Local governments seeking significant property tax increases will face a new voter approval requirement, giving residents a direct say in tax decisions that exceed the 5% cap.