The Utah State Capitol hosted an unlikely tag team this week as landlord groups and tenant advocates lined up on the same side of the microphone, blasting a property tax proposal they say will push already high rents even higher.
At the center of the fight is SB97, sponsored by Sen. Dan McCay (R‑Riverton). The bill would tighten Utah's 45% primary‑residence property tax exemption so it applies to only one home per household and would remove the break for businesses that own residential units, according to KSL. McCay told KSL the proposal "directly impacts me" because he owns rental properties, framing the bill as a way to encourage more owner‑occupied housing.
Where the bill stands
SB97 squeaked out of the Senate Revenue and Taxation Committee with a favorable recommendation last week, the committee record listing three yeas, two nays, and two absences. The bill has since been placed on the Senate second‑reading calendar. According to the Utah Legislature, the committee also forwarded a substitute version of the bill to the floor, and that substitute now awaits a vote by the full Senate.
Opponents say higher costs will hit renters
On the opposition side is a rare coalition: the Rental Housing Association of Utah and tenant advocates at the Utah Housing Coalition, both of which told KSL they are against the change. "Costs of providing rental housing are already extravagant," said Paul Smith, the association's executive director, who estimated that an average single‑family rental could face about $2,000 more in property taxes if the bill becomes law. Zoe Newmann of the Utah Housing Coalition said the measure would worsen affordability for renters.
How the residential exemption works in Utah
Utah's property tax rules are already a bit different from most states. The primary‑residence exemption can apply not only to an owner's home but also to a dwelling occupied by a tenant, cutting the taxable value by 45% when the unit is used as a household's primary residence, according to the Utah State Tax Commission. Counties oversee the declaration process that determines which properties get that break. SB97 would tighten those rules so that each household could claim the exemption on only one property.
Policy trade‑offs as lawmakers wrestle with affordability
Supporters argue that scaling back the exemption would push more homes into owner‑occupancy and better balance who pays for local government services. Critics counter that the plan does nothing to add new housing and will instead load extra costs onto rental owners who will pass them on to tenants.
The property tax fight is unfolding as lawmakers put housing affordability near the top of their to‑do list this session, weighing a mix of supply‑side bills and tax changes, according to KUER. SB97's future in the Senate is uncertain, with some Republican leaders signaling caution while the full chamber decides whether the proposed shift in who gets a tax break has the votes to pass. Landlords, tenant advocates, and lawmakers are all watching closely as the measure moves through the process.
