Cox vetoes property tax diversion from Utah schools

Utah Governor Spencer Cox vetoed a bill on Monday that aimed to redirect property taxes from local schools to the state general fund. He stated that the plan "sends the wrong message" about the state’s commitment to education funding. The bill, SB37, would have changed how property tax revenue is collected and distributed. Cox explained that it misleads Utah residents, who expect their local property taxes to support their schools. He highlighted that this proposal contradicts the existing practice where local property taxes are directed to educational institutions. Cox's veto came after the Utah State Board of Education and other educational organizations opposed the bill. Sarah Reale, a board member, expressed gratitude for the governor's thoughtful decision. She noted that the united opposition from diverse groups indicated the need for reevaluation of the bill. If passed, SB37 would have required school districts to transfer all property tax revenue into the general fund. The state would still need to provide a minimum amount of funding per student but could allocate tax revenues elsewhere, which raised concerns among opponents that it would weaken local school funding. Cox argued that the bill could create confusion about how property taxes are used and potentially allow future governments to redirect funds away from education. He emphasized the importance of maintaining clarity and transparency in state financial practices. He also expressed concern about the increasing number of education-related bills introduced each year. Lawmakers have the option to override his veto with a two-thirds majority vote, but this is uncertain, as the bill did not achieve that threshold in the House. This story is still developing.