Tax season may feel far away, but there’s an important deadline on the horizon for Summit County homeowners looking to take advantage of a big discount.
The Utah Constitution includes the right to have up to a 45% exemption on property taxes if the home in question is used as a primary residence. However, five counties that rely on tourism and resort communities — Summit, Wasatch, Washington, Kanab and Grand counties — require an application to have a home declared a primary residence, explained Summit County Assessor Stephanie Poll.
Unfortunately, not every homeowner is aware of the exemption or how to properly apply for it, despite the best efforts of Poll’s office, local realtors and third-party title companies.
“That’s where the heartache comes in, especially if you’re a first-time homeowner,” Poll said.
To be considered a primary residence, someone needs to live in the home for 183 consecutive days annually.
Whenever a piece of property changes ownership, the primary residence exemption is removed. The Assessor’s Office then sends a notice alerting the new homeowner of their need to apply for the exemption if the home is being used as a primary residence.
Households should also receive a reminder in August each year when they’re mailed their notice of valuation, Poll said.
Summit County’s local ordinance regarding primary residences specifically extends the application deadline to Nov. 30, weeks after other counties stop accepting exemption applications, with hopes that it will encourage more full-time residents to submit the necessary paperwork.
“We work to notice, whether it’s on the notice of valuation, the tax bill, our own applications, a letter that goes out, just to make it as clear as possible for those first-time homeowners to get them in and asking questions so they can make an application for it,” Poll added.
Poll emphasized the value of reading letters sent by the county government, saying she knows it’s easy to forget about a piece of mail if it’s not a bill, but it could be something intended to give residents important information.
“The devil’s in the details, and I’ve been guilty of it myself. You get your mail, and you think, ‘This is not a bill,’ so you toss it to the side and don’t really pay attention,” she said. “But all of the details on those notices of valuation tell you about your primary home discount. We even have a little logo now that says, ‘Live here full-time? Lower your taxes!’ We’re trying to get people’s attention.”
Landlords also qualify for the exemption as long as their tenant pays Utah income taxes and meets the same 183-day criteria.
“I do get a little bit of pushback from our investment landlords who rent out workforce housing,” Poll said. “The problem is (the tenant) could be there close to the six months as they come in to work the ski season. However, it’s not their domicile. It’s not the place where they plan to return to … so if you’re a landlord here in Summit County and you want to receive the exemption, you’ll want to make sure you’re renting to a Utah (resident).”
Poll acknowledged the tax exemption and application process can be confusing, especially for new homeowners, but she encouraged anyone with questions to call her office just in case.
“This is our lingo, but for somebody who doesn’t get it or it doesn’t hit home to them, they blow it off, which is why we went with this red stamp saying, ‘Lower your taxes,’” Poll said. “Because who likes paying taxes at all? And they’ll see that and say, ‘Gosh, I can lower them,’ so we’re hoping to grab their attention this year.”
Approximately 54% of homes in Summit County are classified as secondary homes, Poll said.
More information on the primary residence exemption is available online by visiting summitcountyutah.gov/525/Primary-Residence-Exemption.