Senate committee approves amendment but fails to advance neighbor tax-credit bill on tie

Senate Bill 279, which would create a neighbor tax credit for properties adjacent to large homeless-services campuses, was amended in committee but ultimately failed to get a favorable recommendation on Feb. 17 after the final motion ended in a tie.

Sen. Escamilla introduced the measure and an amendment that set a 500-bed threshold and specified the credit would be a nonrefundable reduction equal to 50% of property taxes for parcels within a one-mile radius of qualifying homeless-service campuses built after the stated effective date. The sponsor said the proposal responded to constituent concerns after the announcement of a proposed 1,300-bed facility in Salt Lake City and said the credit would be ongoing to offset long-term neighborhood impacts.

Committee discussion focused on scope and mechanics. Sen. Brammer asked whether the language might be manipulated (for example, by siting a qualifying bed facility next to commercial property) and suggested naming the specific facility if the bill targeted a single project. Members also pressed how the credit would flow to property owners when many properties are held in pass-through LLCs and whether the income-tax fund was the appropriate source for what many described as a property-impact reimbursement.

The committee adopted the sponsor’s Amendment #1 unanimously, but when members later voted on the motion to favorably recommend SB 279 as amended, the roll-call resulted in a tie and the chair ruled the motion failed. The sponsor said he would continue to work on drafting and to consider narrowing language if necessary.

Because the committee did not advance the bill, SB 279 will not move to the full Senate from this committee without further action.