Committee backs changes to Truth-in-Taxation process to give public earlier notice

The committee unanimously recommended House Bill 236, a bill aimed at giving the public earlier and clearer information when local governments consider property-tax increases.

Rep. Peterson said the bill requires fiscal entities (school districts, cities and certain special service districts) to discuss potential tax increases in a May public meeting and to notify the tax commission. Jurisdictions would have to publish two budgets: an operating budget that does not include a proposed tax increase and a second budget that reflects the tax increase. Under current practice, jurisdictions commonly adopt budgets that assume the increase; HB 236 would require jurisdictions to operate on the operating budget until a Truth-in-Taxation hearing is held, preventing premature hiring or purchases tied to an unfinalized tax increase.

Supporters — including the Utah Taxpayers Association and the Utah Chamber — said the change improves transparency and gives taxpayers clearer information ahead of formal hearings. Committee members asked about how strictly entities must adhere to items included in the tax-linked budget and whether the bill could be gamed; the sponsor said the approach is designed to encourage accurate public disclosure and that budgets still require public hearings to move to a higher-tax scenario.

The committee adopted a substitute and gave the bill a favorable recommendation. The sponsor and supporters indicated ongoing conversations with cities and districts to refine implementation details.