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Looking back: Breaking down 2025's SB 37 and SB 16

Education & Reading Ryan Le
Looking back: Breaking down 2025's SB 37 and SB 16
(Source: FlagsForGood.com - https://flagsforgood.com/blogs/news/utahs-new-beehive-flag-explained)

Property taxes don’t always make the front page, but they have a direct impact on your family, your wallet, and our community here in Iron County, Utah. Two bills from this year’s legislative session, SB 37 and SB 16, sparked important debates about who controls local school funding and how property taxes are communicated to the public.

The Iron Bulwark thinks it's important to be aware of these as to where our legislators stand: these are things that could come up again in different ways in the future.

Let’s break them down in plain language.

SB 37: Who Controls School Property Taxes?

What It Proposed

Right now, the property taxes you pay for schools in Iron County stay here in the county. They fund teacher salaries, classroom supplies, extracurricular programs, buses, and school building upkeep.

SB 37 would have changed that, had Governor Cox not vetoed it. The bill proposed sending all local school property tax revenue into the state’s general fund. The state would then redistribute money back to school districts using a formula that guarantees at least $4,674 per student (this is called the Weighted Pupil Unit, or WPU. You can learn more in our article covering Senator Vickers' address to the School Board and Community on how schools are funded in Utah).

Why It Matters

Here’s an example:

  • If your family pays $1,200 in school property taxes today, that money goes straight to Iron County schools.
  • Under SB 37, that $1,200 would first go to Salt Lake City, and lawmakers would then decide how much money comes back to our local schools.

Critics argued this would take away local control and create uncertainty about whether all of our money would make it back to Iron County classrooms. Supporters said it would make funding more equitable across Utah.

What Happened

The bill passed both chambers of the legislature but was vetoed by Governor Spencer Cox in March 2025. For now, local school property taxes remain under local control.

SB 16: Making Property Taxes More Transparent

What It Does

This bill made changes to the way property taxes are assessed and communicated.

  • Standardized Form: The property tax valuation notice must now be on a uniform form approved by the state tax commission and used consistently across all counties.
  • Detailed Tax Information: Notices must include itemized tax information for all applicable taxing entities, showing the dollar amount of tax liability for the previous year and under the current rate, breaking down levies separately (e.g., charter school levy, debt service levies).
  • Clear Tax Impact Statement: Notices must explicitly state the tax impact on the property, improving clarity on what the tax changes mean financially to the property owner.
  • Public Hearing Details: The date, time, and place of the required public hearing for each taxing entity must be prominently included in the notice, ensuring property owners are fully informed of opportunities to participate.
  • Additional Information: Notices must provide instructions on how taxpayers can obtain more information about property valuations, including information from county websites or assessor offices, deadlines for appeals, and taxpayer relief programs.
  • Deferral Information: For property owners 75 or older, notices must include statements about eligibility for property tax deferrals and contact information for applying.

Prior to SB16, notices generally informed property owners about valuation and tax increases but lacked this level of detailed breakdown, uniformity, and actionable information in a standardized statewide format.

Why It Matters

Think of the yearly property tax notice you get in the mail. In the past, these could be hard to read, and some taxpayers questioned whether assessments were fair.

With SB 16, notices are designed to be clearer and more accurate. And if you think your tax bill is too high or don’t understand a proposed increase, you now have more opportunities to ask questions—whether by showing up at the courthouse or logging in from home.

What Happened

  • In both the Utah House and Senate, SB 16 passed unanimously – or near-unanimously – with recorded votes showing 100% approval in both chambers.
  • It was signed into law by the Governor on March 26, 2025, and filed in the Lieutenant Governor’s office shortly thereafter.
  • Legislative tracking confirms its final status as “Passed”, with the Governor’s signature officially placing it into Utah law.

Why These Bills Matter in Iron County

  • For homeowners: Property taxes are one of the biggest recurring costs of owning a home. How they’re collected and where they go directly affects your household budget.
  • For parents: School funding shapes class sizes, teacher pay, extracurricular opportunities, and building maintenance. A shift like SB 37 could have changed how predictable that funding is.
  • For the whole community: Transparency matters. SB 16 gives Iron County residents more tools to understand where their money is going and to hold officials accountable.

Closing Thoughts

Property taxes might not always make headlines, but they are central to how our schools and services are funded. It's easy to miss in the headlines. SB 37 asked whether local school taxes should remain under local control or be centralized at the state level. SB 16 pushed for more transparency and public access in the property tax process.

Both bills remind us that being informed and engaged matters. After all, these decisions affect not just numbers on a tax notice, but the future of our schools, neighborhoods, and families here in Iron County.

It's important that we ask these questions to our legislators and future legislators when running for office, "Where did you stand on SB 37? Do you think the state should centralize all local tax funding for school districts?" and see if their values align with your own.

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