Legislative Update - 2026 Week 3
Legislative Updates
Friday February 13th, 2026
The Legislative session is halfway over as of this week. Below are the latest updates on some key issues the RHA team is working on this session:
SB 97 S1 Tax Revenue Amendments by Sen. Dan McCay (R)
The current version of the bill that passed out of committee would limit the primary residential property tax exemption to one per household, eliminating the use of the primary residential property tax exemption for any rental properties. This would obviously be a major tax policy shift that would be extremely detrimental to rental housing providers and tenants alike. This bill and policy proposal are part of a larger discussion going on this session about property tax and the right mix between commercial versus residential property tax burden. The RHA will be fighting to kill this bill as long as it is proceeding through the process. The bill passed in Senate committee a couple weeks ago and passed in the Senate in a close 16-11 vote on second reading this week. It is now circled on the third reading calendar in the Senate.
The RHA applied to the National Apartment Association for a grant to help fight this issue. With help from NAA, the RHA will be running an issue advocacy campaign to activate rental housing providers, real estate practitioners, and tenants in targeted legislative districts to contact their legislator to express their opposition to this ill-considered proposal.
RHA-supported Appropriations Requests —
The RHA is supporting two Requests for Appropriation (RFA) this session. Rep. Jim Dunnigan sponsored a RFA in the Criminal Justice Appropriations Subcommittee that would fund an expanded statewide eviction prevention court mediation program. That RFA was prioritized by the subcommittee and will now move on to be considered by Executive Appropriations for the final budget. Senator Lincoln Fillmore sponsored an RFA in the Economic and Community Development Appropriations Subcommittee to provide additional funding for the Section 8 Voucher Landlord Incentive Fund that makes landlords whole who experience difficulties when renting to tenants utilizing public-assistance vouchers. That RFA was also prioritized and will now be considered by Executive Appropriations for the final budget. A big thank you to Subcommittee Chair Senator Cal Musselman for his leadership and support.
HB 388 Public Health Hazard Amendments by Rep Lisa Shepherd (R)
This was the bill the came out of interim discussions had on the meth contamination issue. RHA was concerned about the expansion of testing for meth without sufficient cause. RHA joined the Utah Association of REALTORS in working with the sponsor to limit this bill to hotels and motels. With that change, the RHA is supporting the bill and will continue to work on the meth issue after the legislative session. The passed out of House Committee and is now being considered in the House.
HB 377 1st Sub—Real Estate Amendments by Rep. Neil Walter (R)
A new version of Rep. Walter’s bill to update the Property Management License statute will likely be heard in House committee early next week. The RHA has been working closely with the bill sponsor along with the UAR, Division of Real Estate, and other key stakeholders to continue work on the new residential property management license and training program that will go into effect later this year or early 2027. The bill is seeking to find a compromise approach to beginning this new license. Rep Walter is a real estate practitioner and property manager himself and is a great advocate for the real estate and property management industry. The bill will likely continue to evolve as it continues to move through the process. The RHA continues to work with DRE staff on ideas for the best approach to administrative rule and continuing education for the new license. The statute and rule related this new residential property management license will likely evolve in the first few years as we see how the new license works in practice.