Take Action – Tell Utah Legislators to Maintain Current Property Tax Exemption for Rental Housing

Oppose SB 97 and Maintain the Current Property Tax Rates for Rental Housing in Utah.

Dear [Lawmaker],

As a Rental Housing Provider and/or Real Estate Practitioner and constituent, I am writing to express my strong concerns about SB 97, Tax Revenue Amendments, as proposed by Senator Daniel McCay.

We are in the middle of a housing affordability and inventory crisis.  The bill would remove the primary residential property tax exemption from existing rental units. This change would significantly harm the financial viability of many housing projects and would almost certainly result in soaring rents for tenants across the state.

Among my top concerns are:

Increase in Rents – Market-rate apartment communities and rental homes would be forced to increase residents’ rents to offset this increase in property taxes. Without such rent increases, many properties would be at risk of default under their existing financing arrangements.

Worsening Housing Affordability -  An even more devastating impact on properties serving low-income households who receive federal subsidies through the Low-Income Housing Tax Credit (LIHTC), operating on the thinnest of margins, erasing their ability to absorb the substantial increase in operating costs.

Sky-Rocketing Operating Costs – These are carefully underwritten to determine the amount of federal subsidy needed.  Loan amounts and allowable rental rates are set based on those assumptions, including the existing primary residential property tax exemption. As a result, this bill will place many affordable housing developments in financial distress.

For these reasons, I respectfully urge you to vote against SB 97.

Sincerely,
______

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