State Tax Day - Current, S.13, Utah—Property Tax: Enacted Legislation Provides That Extraterritorial County Property is Taxable Unless Exceptions Apply, (Mar 23, 2026)

Beginning January 1, 2027, extraterritorial county property that is acquired on or after May 6, 2026, is subject to Utah property tax. Beginning January 1, 2029, extraterritorial county property that was acquired before May 6, 2026, is subject to property tax. "Extraterritorial county property" means real property owned by a county that is located outside the geographical boundaries of the county.

However, extraterritorial county property retains the exemption under Sec. 59-2-1101(3)(a)(iii)(A) if the county that owns the property and the county where the property is located: (i) agree to maintain the exemption in regard to the extraterritorial county property; and (ii) enter into an agreement regarding the extraterritorial county property.

If extraterritorial county property is subject to property tax, the extraterritorial county property must be assessed and taxed at the property's taxable value and use immediately before the county's acquisition of the extraterritorial county property, including any assessment under Part 5 of the Farmland Assessment Act. If the use of extraterritorial county property subject to property tax changes from an agricultural use to a non-qualifying use, the county that owns the property is subject to the rollback tax. The rollback tax must be calculated based on the difference between the greenbelt assessment and the fair market value assessment for the preceding five years.

Ch. 201 (H.B. 445), Laws 2026, effective May 6, 2026, except as noted