File: President Stuart Adams (R-Layton) presides over the Senate on Tuesday, Jan. 16, 2024, at the Capitol in Salt Lake City. The new bill would increase transparency in how property taxes are set for commercial real estate. (Kristin Murphy, Deseret News)
(Kristin Murphy, Deseret News)
SALT LAKE CITY – A bill in the Utah Legislature would make property taxes on commercial properties more accurate. But commercial real estate brokers are trying to get ahead of him.
Property tax settings for residential and commercial properties in Utah differ in one important way. While the fair market value of residential properties is publicly known, the same information is not publicly available for commercial real estate. As a result, appraisers often make assumptions about the value of commercial properties.
The bill's sponsor, Sen. Dan McKay (R-Salt Lake City), said such estimates for commercial real estate are often too low, according to Building Salt Lake. And to make up for it, it puts an additional burden on homeowners.
McKay has sponsored the bill for the second year in a row. It would require real estate agents to provide actual market prices for commercial properties.
Building Salt Lake said the brokers responded by meeting with appraisers across the Wasatch Front to try to find a compromise. The bill is currently in a holding pattern.
