At the June interim meeting of the Legislature’s Revenue and Taxation Committee, the Kem C. Gardner Policy Institute presented a timely report on a growing piece of Utah’s property tax system: non-primary residential property.
These properties include vacation homes, cabins and short-term rental properties. Unlike a primary residence, which receives Utah’s 45% residential property tax exemption, non-primary residential property is taxed at its full market value. That difference matters. The Gardner Institute used the example of two homes each valued at $500,000. Under the 2024 statewide average property tax rate, the primary residence would have a taxable value of $275,000 and owe about $2,551 in property taxes. The non-primary residence, taxed on the full $500,000 value, would owe about $4,638.
The report shows that non-primary residential property is no longer a small or obscure corner of the tax base. In 2024, it generated roughly $481 million in property taxes, making it the third-largest property type by taxes paid in Utah. It accounted for about 9% of all Utah property taxes, up from 4% in 2000.
This shift is part of a broader trend. Over the last two decades, Utah’s property tax base has moved more heavily toward residential property. Primary and non-primary residential property combined accounted for 48.2% of property taxes in 2000. By 2024, that had grown to 61.3%. That change reflects strong growth in residential property values compared with other types of property.
Within that larger residential shift, non-primary residential property has grown especially fast. According to the report, non-primary residential property’s share of total residential property taxes more than doubled, rising from 6.7% in 1987 to 14.1% in 2024. From 2001 to 2024, non-primary residential properties also increased as a share of residential parcels, assessed value and total residential property taxes.
The impact, however, is not evenly spread across the state. Tourism-heavy areas carry much of the non-primary residential property tax base. Summit, Wasatch and Washington counties together accounted for about two-thirds of the $480.9 million in non-primary residential property taxes paid statewide in 2024. Summit County alone accounted for 36.1% of statewide non-primary residential property taxes. Wasatch accounted for 17.5%, and Washington accounted for 14%.
That concentration has important policy implications. In counties with high-value vacation homes or short-term rentals, local governments can raise significant property tax revenue from people who may not live in the county full time. In some cases, this can reduce the pressure on primary residential taxpayers. The Gardner Institute noted that non-primary residential property makes up more than half of the property tax base in Rich, Summit and Wasatch counties.
Summit County provides a clear example. Nearly 60% of its property tax came from non-primary residential property in 2024. Davis County, by contrast, has the state’s highest share of primary residential property. In Davis County, the primary residential share of property taxes rose from 55% in 2000 to 70% in 2024.
The report also highlighted an important interaction with Utah’s Truth in Taxation system. Truth in Taxation generally prevents local governments from receiving automatic windfalls when property values rise. But it does not prevent shifts between classes of property when values grow at different rates. As residential values have grown, and as non-primary residential properties have increased in number and value, the distribution of who pays has changed.
Interestingly, the effective tax rate on non-primary residential property has fallen faster than the rate on primary residential property. That is because many non-primary homes are located in high-value areas with larger tax bases, allowing local governments to generate sufficient revenue with lower rates.
The takeaway for taxpayers and policymakers is clear: Utah’s property tax system is working as designed. Truth in Taxation remains an essential taxpayer protection, yet it does not freeze the tax burden in place. As Utah grows, lawmakers should continue watching how property value changes, residential exemptions and local tax bases affect who ultimately pays the bill.
You can read the full Kem C. Gardner Policy Institute Report here: https://le.utah.gov/interim/2026/pdf/00002845.pdf