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Utah Constitutional Amendment B, Tax Exemption for Property Leased by a Government Entity (2018)
- General election: Nov. 6
- Voter registration deadline: Oct. 9 (mail), or Oct. 30 (online or in-person)
- Early voting: Oct. 23 - Nov. 2
- Absentee voting deadline: Nov. 6
- Online registration: Yes
- Same-day registration: Yes
- Voter ID: Non-photo ID required
- Poll times: 7:00 a.m. to 8:00 p.m.
Utah Constitutional Amendment B | |
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Election date November 6, 2018 | |
Topic Taxes | |
Status![]() | |
Type Constitutional amendment | Origin State legislature |
Utah Constitutional Amendment B, the Tax Exemption for Property Leased by a Government Entity Measure, was on the ballot in Utah as a legislatively referred constitutional amendment on November 6, 2018.[1] It was defeated.
A "yes" vote supported amending the state constitution to allow property tax exemptions for properties leased by a local or state government entity. |
A "no" vote opposed amending the state constitution to allow property tax exemptions for properties leased by a local or state government entity. |
Election results
Utah Constitutional Amendment B |
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Result | Votes | Percentage | ||
Yes | 287,329 | 28.38% | ||
725,194 | 71.62% |
Overview
What was Amendment B designed to do?
Constitutional Amendment B would have made real property that the State or a local government entity leases from a private owner exempt from property taxes.
According to the measure, real property would have had the same meaning as defined by state statute. State statute defines real property as "any right, title, estate, or interest in land, including all nonextracted minerals located in, on, or under the land, all buildings, fixtures and improvements on the land, and all water rights, rights-of-way, easements, rents, issues, profits, income, tenements, hereditaments, possessory rights, claims, including mining claims, privileges, and appurtenances belonging to, used, or enjoyed with the land or any part of the land."[2] This amendment would have become effective on January 1, 2019, if it passed.[1]
How did this measure get on the ballot?
Constitutional Amendment B was introduced by its sponsor Sen. Daniel Hemmert (R-14) on January 22, 2018. It passed in the Senate on February 14, 2018, with a vote of 21-7. All five Democratic senators voted against SJR 2, and 21 of 24 Republican senators voted in favor of it; two Republicans voted against it.[1]
At the time SJR 2 went through the legislature, Utah was a Republican trifecta; in the state House, Republicans held a 61-13 majority over Democrats, with one vacancy. Fifty votes in the House were required to pass SJR 2. On March 6, 2018, the state House voted 55-14, with six not voting, in favor of SJR 2, thereby certifying it for the November 2018 ballot.
Text of measure
Ballot title
The ballot title for Constitutional Amendment B was as follows:[3]
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Shall the Utah Constitution be amended to authorize the creation of a property tax exemption for real property, such as land or buildings, that the state or a local government entity leases from a private owner? [4] |
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Impartial analysis
The impartial analysis for Constitutional Amendment B was as follows:[3]
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Fiscal impact
The fiscal impact statement for Constitutional Amendment B was as follows:[3]
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Constitutional changes
- See also: Article XIII, Utah Constitution
Constitutional Amendment B would have amended section 3 of Article XIII of the state constitution. The following underlined text would have been added, and [bracketed struck-through] text would have been deleted:[1]
Note: Hover over the text and scroll to see the full text.
(1) The following are exempt from property tax:
- (a) property owned by the State;
- (b) property owned by a public library;
- (c) property owned by a school district;
- (d) property owned by a political subdivision of the State, other than a school district, and located within the political subdivision;
- (e) property owned by a political subdivision of the State, other than a school district, and located outside the political subdivision unless the Legislature by statute authorizes the property tax on that property;
- (f) property owned by a nonprofit entity used exclusively for religious, charitable, or educational purposes;
- (g) places of burial not held or used for private or corporate benefit;
- (h) farm equipment and farm machinery as defined by statute;
- (i) water rights, reservoirs, pumping plants, ditches, canals, pipes, flumes, power plants, and transmission lines to the extent owned and used by an individual or corporation to irrigate land that is:
- (i) within the State; and
- (ii) owned by the individual or corporation, or by an individual member of the corporation; and
- (j) (i) if owned by a nonprofit entity and used within the State to irrigate land, provide domestic water, as defined by statute, or provide water to a public water supplier:
- (A) water rights; and
- (B) reservoirs, pumping plants, ditches, canals, pipes, flumes, and, as defined by statute, other water infrastructure;
- (ii) land occupied by a reservoir, ditch, canal, or pipe that is exempt under Subsection
(1)(j)(i)(B) if the land is owned by the nonprofit entity that owns the reservoir, ditch, canal, or pipe; and
- (iii) land immediately adjacent to a reservoir, ditch, canal, or pipe that is exempt under Subsection (1)(j)(i)(B) if the land is:
- (A) owned by the nonprofit entity that owns the adjacent reservoir, ditch, canal, or pipe; and
- (B) reasonably necessary for the maintenance or for otherwise supporting the operation of the reservoir, ditch, canal, or pipe.
- (iii) land immediately adjacent to a reservoir, ditch, canal, or pipe that is exempt under Subsection (1)(j)(i)(B) if the land is:
(2) (a) The Legislature may by statute exempt the following from property tax:
- (i) tangible personal property constituting inventory present in the State on January 1 and held for sale in the ordinary course of business;
- (ii) tangible personal property present in the State on January 1 and held for sale or processing and shipped to a final destination outside the State within 12 months;
- (iii) subject to Subsection (2)(b), property to the extent used to generate and deliver electrical power for pumping water to irrigate lands in the State;
- (iv) up to 45% of the fair market value of residential property, as defined by statute;
- (v) household furnishings, furniture, and equipment used exclusively by the owner of that property in maintaining the owner's home; and
- (vi) tangible personal property that, if subject to property tax, would generate an inconsequential amount of revenue.
- (b) The exemption under Subsection (2)(a)(iii) shall accrue to the benefit of the users of pumped water as provided by statute.
(3) The following may be exempted from property tax as provided by statute:
- (a) property owned by a disabled person who, during military training or a military conflict, was disabled in the line of duty in the military service of the United States or the State;
- (b) property owned by the unmarried surviving spouse or the minor orphan of a person who:
- (i) is described in Subsection (3)(a); or
- (ii) during military training or a military conflict, was killed in action or died in the line of duty in the military service of the United States or the State; [
and]
- (c) real property owned by a person in the military or the person's spouse, or both, and used as the person's primary residence, if the person serves under an order to federal active duty out of state for at least 200 days in a calendar year or 200 consecutive days[
.]; and - (d) real property that the State or a local government entity, as defined by statute, leases from a private owner.
(4) The Legislature may by statute provide for the remission or abatement of the taxes of the poor.[4]
Readability score
- See also: Ballot measure readability scores, 2018
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The Office of Legislative Research and General Counsel wrote the ballot language for this measure.
In 2018, for the 167 statewide measures on the ballot, the average ballot title or question was written at a level appropriate for those with between 19 and 20 years of U.S. formal education (graduate school-level of education), according to the FKGL formula. Read Ballotpedia's entire 2018 ballot language readability report here. |
Support
Supporters
Sen. Daniel Hemmert (R-14) and Rep. Adam Robertson (R-63) sponsored Constitutional Amendment B and authored the official argument in support of it.[1]
Arguments
Official argument
The following official argument was submitted in favor of Constitutional Amendment B:[5]
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Constitutional Amendment B: A more simple, efficient and transparent tax policy It does not make sense to use taxes to pay taxes. This is why the Utah Constitution exempts government entities from paying property taxes on property that it owns. Amendment B simply provides real property leased by the state or a local government entity to also be exempt from property taxes.
Whether the state owns or leases property it does not make sense to use tax dollars to pay property taxes. Join us in voting FOR Amendment B for a more simple, efficient and transparent tax policy.[4] |
” |
Click [show] to reveal the rebuttal to the official opposition argument | |||
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Opposition
Opponents
Sen. Gene Davis (D-3) and Rep. Sandra Hollins (D-23) authored the official argument in opposition to Constitutional Amendment B.[5]
The following legislators voted against referring Constitutional Amendment B to the ballot.[1]
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Arguments
Official argument
The following official argument was submitted in opposition to Constitutional Amendment B:[5]
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Amendment B rewards a few at the expense of all others. Amendment B is a government giveaway to certain property owners who voluntarily lease their property to the government. This is a tax exemption that every other property owner would be expected to pay. Each year, local governments are guaranteed the same amount of revenue they received in the previous year and adjust the property tax rate to ensure this. When we grant exemptions, the share is spread among the remaining taxpayers. The taxes the exempted property owner would have paid are then shifted to every other taxpayer to offset the difference. In short, this measure only helps a small handful of property owners while making everyone else pay the exempted owner’s share. Property tax is a vitally important source of local government funding. School districts, cities, and counties rely on property tax to provide essential services like educating our children, constructing and maintaining streets, making sure our air and water are clean, and protecting our communities. Why provide a special handout to those who already benefit from leasing property to the government? The property owner who leases to the government is already receiving the benefit of a good and reliable tenant paying market value using public dollars. Passing this measure would provide that property owner with the additional benefit of a tax exemption. Two years ago, the citizens of this state were asked to vote on a constitutional amendment nearly identical to this one. The people wisely rejected that change on Election Day. We ask that you make the same decision here. The state constitution has worked well for 122 years without this property tax exemption. The constitution is intentionally hard to change. We should only tinker with it when it is absolutely necessary--when the reasons to do so are compelling and the need is vital. There is no compelling reason to make this change now. Vote Against Constitutional Amendment B.[4] |
” |
Click [show] to reveal the rebuttal to the official support argument | |||
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Media editorials
- See also: 2018 ballot measure media endorsements
Support
Ballotpedia did not identify any media editorials supporting Amendment B. If you are aware of one, please send an email with a link to editor@ballotpedia.org.
Opposition
- The Salt Lake Tribune said: "Amendment B is another property tax break idea that was offered to the voters — and rejected by them — once before. It deserves to be rejected again. The idea is that property owned by those governments is automatically tax-exempt, and so the properties they rent should be, too. The claim is that it would actually save those governments some money because private owners, knowing there will be no property taxes to pay, can charge lower rents. The problem with that idea is that landlords are unlikely to cut local governments break in their rent if they get a break in their taxes. They’ll just pocket the savings. Savings that will have to be made up by raising property tax rates on everyone else. Rates charged not only by the, say, city that is leasing the property, but also by the county, school district, library and every other taxing district affected. The proposal is an unneeded boost for the landowning few."[6]
Campaign finance
Total campaign contributions: | |
Support: | $0.00 |
Opposition: | $0.00 |
Ballotpedia had not identified any committees registered in support of or in opposition to the measure.[7] If you are aware of a committee registered to support or oppose this measure, please email editor@ballotpedia.org.
Background
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Property tax exemption on the ballot in 2018
Another amendment regarding property tax exemption, the Utah Active Military Property Tax Exemption Amendment, was also on the ballot in Utah as a legislatively referred constitutional amendment on November 6, 2018. The measure was designed to change the required amount of time served in the military under an order of active duty to receive a property tax exemption from 200 days in a calendar year to 200 days in a 365-day period. A person in the military or the person’s spouse would be eligible for the tax exemption, as provided by statute.
Amendment C of 2016
A similar amendment, the Utah Property Tax Exemptions Amendment, (Amendment C), was on the November 8, 2016, ballot in Utah as a legislatively referred constitutional amendment. It was defeated. It would have allowed the state legislature to exempt tangible personal property leased by the state from property taxes. The election results for the measure were as follows:
Amendment C | ||||
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Total Votes cast in elections: 1152369 | ||||
Result | Votes | Percentage | ||
![]() | 572,785 | 49.7% | ||
Yes | 426,207 | 37.0% |
- Note: The percentages above do not add up to 100 percent because of ballots that were cast on which Amendment C was left blank. The percentages displayed are the percentages of all ballots cast in the election because the "yes" votes must equal a majority of all votes cast. Constitutional amendments in Utah require approval from a majority of all voters casting a vote in the election, which means that filling out a ballot but not voting on Amendment C had the same effect as voting "no."
Tangible personal property (2016 amendment) vs. real property (2018 amendment)
The 2016 amendment would have exempted tangible personal property leased by the state from property tax. This amendment on the ballot in 2018 would have exempted real property leased by the state from property tax. Click "show" to see the difference between tangible personal property and real property:
Tangible personal property definition | |||||
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According to the Utah State Tax Commission's Property Tax Division, tangible personal property is "equipment, machinery, furniture or other tangible personal property that is functioning at its highest and best use for the purpose it was designed and constructed and is generally capable of performing that function without being combined with other items of personal property. An item of taxable tangible personal property is not an individual component part of a piece of machinery or equipment but the item of machinery or equipment as a whole. For example, a fully functioning computer is an item of taxable tangible personal property but the motherboard, hard drive, tower or sound card are not." Going into the election, tangible personal property leased from an individual by the state was subject to property taxation, but the proposed amendment, Amendment C, was designed to exempt that type of property from taxation in such a case.[8] |
Real property definition | |||||
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According to the 2018 measure, real property would have had the same meaning as defined by state statute. State statute defines real property as "any right, title, estate, or interest in land, including all nonextracted minerals located in, on, or under the land, all buildings, fixtures and improvements on the land, and all water rights, rights-of-way, easements, rents, issues, profits, income, tenements, hereditaments, possessory rights, claims, including mining claims, privileges, and appurtenances belonging to, used, or enjoyed with the land or any part of the land."[9] |
Implementing legislation
The implementing legislation for the amendment is Senate Bill 76, a companion bill to the proposed constitutional amendment that outlines specific details in the Utah Code Annotated for obtaining a property tax exemption for property leased to the state or local government. SB 76 also provides for relevant definitions for terms such as eligible leased real property and local government entity. The implementing legislation would have taken effect on January 1, 2019, if Amendment B passes.[10]
The full text of SB 76 can be read here.
Referred amendments on the ballot
From 1996 through 2016, the state legislature referred 39 constitutional amendments to the ballot. Voters approved 36 and rejected three of the referred amendments. All of the amendments were referred to the ballot for general elections during even-numbered election years. The average number of amendments appearing on the general election ballot was between three and four. The approval rate at the ballot box was 92.3 percent during the 20-year period from 1996 through 2016. The rejection rate was 7.7 percent.
Legislatively-referred constitutional amendments, 1996-2016 | |||||||||
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Total number | Approved | Percent approved | Defeated | Percent defeated | Annual average | Annual median | Annual minimum | Annual maximum | |
39 | 36 | 92.31% | 3 | 7.69% | 3.55 | 3.00 | 1 | 6 |
Path to the ballot
- See also: Amending the Utah Constitution
To put a legislatively referred constitutional amendment before voters, a two-thirds (66.67%) vote is required in both the Utah State Senate and the Utah House of Representatives.
This amendment—Senate Joint Resolution 2—was introduced by its sponsor Sen. Daniel Hemmert (R-14) on January 22, 2018. It was read for the third time and passed in the Senate on February 14, 2018, with a vote of 21-7; one senator was absent or not voting. All five Democratic senators voted against SJR 2, and 21 of 24 Republican senators voted in favor of it; two Republicans voted against it and one was absent or not voting. SJR 2 was then sent to the state House and referred to the House Revenue and Taxation Committee on February 15, 2018.[1]
At the time SJR 2 went through the legislature, Utah was a Republican trifecta; in the state House, Republicans held a 61-13 majority over Democrats, with one vacancy. Fifty votes in the House were required to pass SJR 2. On March 6, 2018, the state House voted 55-14, with six not voting, in favor of SJR 2, thereby certifying it for the November 2018 ballot.
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How to cast a vote
- See also: Voting in Utah
Poll times
Utah is an all-mail voting state that offers vote centers for voters that choose to vote in person. All vote centers are open from 7 a.m. to 8 p.m. local time. Utah voters are able to vote in person at any vote center. An individual who is in line at the time polls close must be allowed to vote.[11]
Registration requirements
- Check your voter registration status here.
To register to vote in Utah, an applicant must be a citizen of the United States, a resident of Utah for at least 30 days prior to the election, and at least 18 years old by the next general election. Pre-registration is available for 16- and 17-year-olds. 17-year-olds may vote in primary elections if they will turn 18 by the general election.[12] Registration can be completed online or by mailing in a form. The deadline to register online or by mail is 11 days before Election Day. After this deadline, voters may register in person at a vote center by casting a provisional ballot and providing two forms of identification.[13][12][14]
Automatic registration
- See also: Automatic voter registration
Utah does not practice automatic voter registration.[15]
Online registration
- See also: Online voter registration
Utah has implemented an online voter registration system. Residents can register to vote by visiting this website.
Same-day registration
- See also: Same-day voter registration
Utah allows same-day voter registration at polling places during the 10 days preceding and on Election Day.[13][14]
Residency requirements
Prospective voters must be residents of the state for at least 30 days before the election.[13]
Verification of citizenship
Utah does not require proof of citizenship for voter registration. An individual must attest that they are a U.S. citizen when registering to vote. According to the state's voter registration application, a person who commits fraudulent registration is "guilty of a class A misdemeanor" under Utah Code 20A-2-401.[16]
All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment.[17] Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters.
Verifying your registration
The Utah lieutenant governor’s office allows residents to check their voter registration status online by visiting this website.
Voter ID requirements
Utah requires in-person voters to present non-photo identification while voting.[18]
The following list of accepted ID was current as of May 2025:
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"Valid voter identification" means:
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Click here for the Utah statute defining accepted ID to ensure you have the most current information.
See also
External links
Footnotes
- ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 Utah State Legislature, "Senate Joint Resolution 2," accessed February 20, 2018
- ↑ Utah Code, "Real Estate, Conveyances, Definitions," accessed June 14, 2018
- ↑ 3.0 3.1 3.2 Utah Lieutenant Governor; Elections, "Constitutional Amendment B," accessed September 27, 2018
- ↑ 4.0 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
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tag; name "quotedisclaimer" defined multiple times with different content - ↑ 5.0 5.1 5.2 Utah Lt. Governor, "Arguments for and against Constitutional Amendment B," accessed September 29, 2018
- ↑ Salt Lake Tribune, "Tribune editorial: Yes on Amendment A. No on B. Hell no on C," accessed October 19, 2018
- ↑ Utah Disclosures, "Political Issue Committee Search," accessed June 14, 2018
- ↑ Utah State Tax Commission Property Tax Division, "Valuation Guidelines," accessed August 26, 2016
- ↑ Utah Code, "Real Estate, Conveyances, Definitions," accessed June 14, 2018
- ↑ Utah Legislature, "Senate Bill 76," accessed October 19, 2018
- ↑ Utah State Legislature, “Utah Code 20A-1-302. Opening and closing of polls on election day.” accessed May 13, 2025
- ↑ 12.0 12.1 Utah State Legislature, “Utah Code 20A-2-101. Eligibility for registration.” accessed May 13, 2025
- ↑ 13.0 13.1 13.2 Utah Lieutenant Governor, “Welcome to the Utah Voter Registration Website,” accessed May 13, 2025
- ↑ 14.0 14.1 Utah State Legislature, “20A-2-207. Registration by provisional ballot.” accessed May 13, 2025
- ↑ NCSL, "State Profiles: Elections," accessed May 13, 2025
- ↑ Utah State Legislature, “Utah Code 20A-2-401. Fraudulent registration -- Penalty.” accessed May 13, 2025
- ↑ Under federal law, the national mail voter registration application (a version of which is in use in all states with voter registration systems) requires applicants to indicate that they are U.S. citizens in order to complete an application to vote in state or federal elections, but does not require voters to provide documentary proof of citizenship. According to the U.S. Department of Justice, the application "may require only the minimum amount of information necessary to prevent duplicate voter registrations and permit State officials both to determine the eligibility of the applicant to vote and to administer the voting process."
- ↑ 18.0 18.1 Utah State Legislature, "Utah Code 20A-1-102. Definitions." accessed May 13, 2025
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