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H.B. 61

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PROPERTY TAX NOTIFICATION,

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ASSESSMENT, COLLECTION, AND APPEAL

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1997 GENERAL SESSION

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STATE OF UTAH

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Sponsor: Eli H. Anderson

6    AN ACT RELATING TO THE PROPERTY TAX ACT; RENAMING THE STATE ASSESSING
7    AND COLLECTING LEVY TO THE MULTICOUNTY ASSESSING AND COLLECTING
8    LEVY; OUTLINING AND RESTRICTING THE INFORMATION THAT MAY BE
9    CONTAINED ON PROPERTY TAX NOTICES AND VALUATION NOTICES;
10    MODIFYING THE PROPERTY TAX INCREASE NOTICE AND ADVERTISEMENT
11    PROVISIONS; MAKING TECHNICAL CORRECTIONS; AND PROVIDING FOR
12    RETROSPECTIVE OPERATION.
13    This act affects sections of Utah Code Annotated 1953 as follows:
14    AMENDS:
15         59-2-906.1, as last amended by Chapter 271, Laws of Utah 1995
16         59-2-906.3, as enacted by Chapter 243, Laws of Utah 1993
17         59-2-911, as last amended by Chapter 271, Laws of Utah 1995
18         59-2-918, as last amended by Chapter 271, Laws of Utah 1995
19         59-2-919, as last amended by Chapters 271 and 278, Laws of Utah 1995
20         59-2-1317, as last amended by Chapters 181 and 278, Laws of Utah 1995
21    Be it enacted by the Legislature of the state of Utah:
22        Section 1. Section 59-2-906.1 is amended to read:
23         59-2-906.1. Property Tax Valuation Agency Fund -- Creation -- Statewide levy --
24     Additional county levy permitted.
25        (1) (a) There is created the Property Tax Valuation Agency Fund, to be funded by a
26    [statewide] multicounty assessing and collecting levy not to exceed .0003 as provided in
27    Subsection (2).

1        (b) The multicounty assessing and collecting levy under Subsection (1)(a) shall be
2    imposed annually by each county in the state.
3        [(b)] (c) The purpose of the [statewide] multicounty assessing and collecting levy created
4    under Subsection (1)(a) and the disbursement formulas established in Section 59-2-906.2 is to
5    promote the accurate valuation of property, the establishment and maintenance of uniform
6    assessment levels within and among counties, and the efficient administration of the property tax
7    system, including the costs of assessment, collection, and distribution of property taxes.
8        [(c)] (d) Income derived from the investment of money in the fund created in this
9    subsection shall be deposited in and become part of the fund.
10        (2) (a) Except as authorized in Subsection (2)(b), beginning in fiscal year 1996-97 to fund
11    the Property Tax Valuation Agency Fund the Legislature shall authorize [a] the amount of the
12    multicounty assessing and collecting levy, except that the multicounty assessing and collecting
13    levy may not [to] exceed the certified revenue levy [to fund the Property Tax Valuation Agency
14    Fund] as defined in Subsection 53A-17a-103.
15        (b) If the Legislature authorizes a multicounty assessing and collecting levy that exceeds
16    the certified revenue levy, it is subject to the notice requirements of Section 59-2-926.
17        (3) (a) The multicounty assessing and collecting levy authorized by the Legislature under
18    Subsection (2) shall be separately stated on the tax notice as a [state] multicounty assessing and
19    collecting levy.
20        (b) [Any] The multicounty assessing and collecting levy authorized by the Legislature
21    under Subsection (2) is:
22        (i) exempt from the redevelopment provisions of Subsections 17A-2-1199.48(1),
23    17A-2-1199.48(2), 17A-2-1247(1), and 17A-2-1247(2);
24        (ii) in addition to and exempt from the maximum levies allowable under Section 59-2-908;
25    and
26        (iii) exempt from the notice requirements of Sections 59-2-918 and 59-2-919.
27        (c) Each county shall transmit quarterly to the state treasurer the portion of the .0003
28    [state] multicounty assessing and collecting levy which is above the amount to which that county
29    is entitled to under Section 59-2-906.2.
30        (i) The revenue shall be transmitted no later than the 10th day of the month following the
31    end of the quarter in which the revenue is collected.

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1        (ii) If revenue is transmitted after the 10th day of the month following the end of the
2    quarter in which the revenue is collected, the county shall pay an interest penalty at the rate of 10%
3    each year until the revenue is transmitted.
4        (d) The state treasurer shall deposit the revenue from the [state] multicounty assessing and
5    collecting levy, any interest accrued from that levy, and any penalties received under Subsection
6    (3)(c) in the Property Tax Valuation Agency Fund.
7        (4) Each county may levy an additional property tax up to .0002 per dollar of taxable value
8    of taxable property as reported by each county. This levy shall be stated on the tax notice as a
9    county assessing and collecting levy.
10        (a) The purpose of the levy established in this subsection is to promote the accurate
11    valuation of property, the establishment and maintenance of uniform assessment levels within and
12    among counties, and the efficient administration of the property tax system, including the costs
13    of assessment, collection, and distribution of property taxes.
14        (b) Any levy established in Subsection (4)(a) is:
15        (i) exempt from the redevelopment provisions of Subsections 17A-2-1199.48(1),
16    17A-2-1199.48(2), 17A-2-1247(1), and 17A-2-1247(2);
17        (ii) in addition to and exempt from the maximum levies allowable under Section 59-2-908;
18    and
19        (iii) is subject to the notice requirements of Sections 59-2-918 and 59-2-919.
20        Section 2. Section 59-2-906.3 is amended to read:
21         59-2-906.3. Additional levies by counties.
22        (1) Beginning January 1, 1994, a county may levy an additional tax to fund state mandated
23    actions to meet legislative mandates or judicial or administrative orders which relate to promoting
24    the accurate valuation of property, the establishment and maintenance of uniform assessment
25    levels within and among counties, and the administration of the property tax system. An
26    additional rate levied under this subsection:
27        (a) shall be stated on the tax notice, and may be included on the tax notice with the county
28    assessing and collecting levy authorized under Subsection 59-2-906.1(4);
29        (b) may not be included in determining the maximum allowable levy for the county or
30    other taxing entities; and
31        (c) is subject to the notice requirements of Sections 59-2-918 and 59-2-919.

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1        (2) Beginning January 1, 1994, a county may levy an additional tax for reappraisal
2    programs that are formally adopted by the county commission and which conform to tax
3    commission rules. An additional rate levied under this subsection:
4        (a) shall be stated on the tax notice, and may be included on the tax notice with the county
5    assessing and collecting levy authorized under Subsection 59-2-906.1(4);
6        (b) may not be included in determining the maximum allowable levy for the county or
7    other taxing entities; and
8        (c) is subject to the notice requirements of Sections 59-2-918 and 59-2-919.
9        Section 3. Section 59-2-911 is amended to read:
10         59-2-911. Exceptions to maximum levy limitation.
11        (1) The maximum levies set forth in Section 59-2-908 do not apply to and do not include:
12        (a) levies made to pay outstanding judgment debts;
13        (b) levies made in any special improvement districts;
14        (c) levies made for extended services in any county service area;
15        (d) levies made for county library services;
16        (e) levies made to be used for storm water, flood, and water quality control;
17        (f) levies made to share disaster recovery expenses for public facilities and structures as
18    a condition of state assistance when a Presidential Declaration has been issued under the Disaster
19    Relief Act of 1974 (Public Law 93-288, 42 U.S.C. Section 5121);
20        (g) levies made to pay interest and provide for a sinking fund in connection with any
21    bonded or voter authorized indebtedness, including the bonded or voter authorized indebtedness
22    of county service areas, special service districts, and special improvement districts;
23        (h) levies made to fund local health departments;
24        (i) levies made to fund public transit districts;
25        (j) levies made to establish, maintain, and replenish special improvement guaranty funds;
26        (k) levies made in any special service district;
27        (l) levies made to fund municipal-type services to unincorporated areas of counties under
28    Title 17, Chapter 34;
29        (m) levies made to fund the purchase of paramedic or ambulance facilities and equipment
30    and to defray administration, personnel, and other costs of providing emergency medical and
31    paramedic services, but this exception only applies to those counties in which a resolution setting

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1    forth the intention to make those levies has been duly adopted by the county legislative body and
2    approved by a majority of the voters of the county voting at a special or general election;
3        (n) levies made to pay for the costs of state legislative mandates or judicial or
4    administrative orders under Section 59-2-906.3;
5        (o) the [state] multicounty and county assessing and collecting levies made to promote
6    accurate property valuations, uniform assessment levels, and the efficient administration of the
7    property tax system under Section 59-2-906.1; and
8        (p) all other exceptions to the maximum levy limitation pursuant to statute.
9        (2) (a) Upon the retirement of bonds issued for the development of a convention complex
10    described in Section 17-12-4, and notwithstanding Section 59-2-908, any county of the first class
11    may continue to impose a property tax levy equivalent to the average property tax levy previously
12    imposed to pay debt service on those retired bonds.
13        (b) Notwithstanding that the imposition of the levy set forth in Subsection (2)(a) may not
14    result in an increased amount of ad valorem tax revenue, it is subject to the notice requirements
15    of Sections 59-2-918 and 59-2-919.
16        (c) The revenues from this continued levy shall be used only for the funding of convention
17    facilities as defined in Section 59-12-602.
18        Section 4. Section 59-2-918 is amended to read:
19         59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
20        (1) A taxing entity may not budget an increased amount of ad valorem tax revenue
21    exclusive of revenue from new growth as defined in Subsection 59-2-924(2) unless it advertises
22    its intention to do so at the same time that it advertises its intention to fix its budget for the
23    forthcoming fiscal year.
24        (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
25    advertisement required by this section may be combined with the advertisement required by
26    Section 59-2-919.
27        (b) For taxing entities operating under a January 1 through December 31 fiscal year, the
28    advertisement shall meet the size, type, placement, and frequency requirements established under
29    Section 59-2-919.
30        (3) (a) The form of the advertisement shall meet the size, type, placement, and frequency
31    requirements established under Section 59-2-919 and shall be substantially as follows:

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1    
"NOTICE OF TAX INCREASE

2        The (name of the taxing entity) [has proposed] is proposing to [budget an] increase [in] its
3    property tax revenue [from $_____________ to $__________ or ____% and to (increase/decrease)
4    its total budget from $__________ to $__________ or ____%. The proposed increase in property
5    tax revenues will come from the following sources (include all of the following provisions):]. As
6    a result of the proposed increase, the tax on a (insert the average value of a house in the taxing
7    entity rounded to the nearest thousand dollars) residence will be $__________, and the tax on a
8    business having the same value as the average value of a house in the taxing entity will
9    be__________. Without the proposed increase the tax would be $__________, and the tax on a
10    business having the same value as the average value of a house in the taxing entity would
11    be_________. The (name of the taxing entity) is proposing to increase its property tax revenue
12    from $__________ collected last year to $__________ proposed this year, an increase of
13    __________%.
14        [(a) $__________ of the proposed increase will come from an increase in the property tax
15    rate from (last year's ad valorem property tax rate) to (this year's property tax rate); and]
16        [(b) $__________ of the proposed increase will come from (provide a commission
17    approved explanation of the cause of adjustment or increased revenues, such as reappraisals or
18    factoring orders);]
19        [(c) $__________ of the proposed increase will come from natural increases in the value
20    of the tax base due to (explain cause of new growth, such as new building activity, annexation,
21    etc.);]
22        [(d) a home valued at $100,000 in (name of the taxing entity) which based on last year's
23    property tax rate and budget paid $_____________ in property taxes would pay the following:]
24        [(i) $__________ if (name of taxing entity) does not budget an increase in property tax
25    revenue exclusive of new growth; and]
26        [(ii) $__________ if the proposed increase in budgeted property tax revenues exclusive
27    of new growth is adopted.]
28        All concerned citizens are invited to [attend] a public hearing on the tax increase [and
29    budget] to be held on (date and time) at (meeting place)."
30        (b) At the bottom of the notice in smaller point type as determined by the commission, the
31    taxing entity shall include the following information:

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1        (i) a statement that the proposed tax increase will result in a tax rate for the taxing entity
2    that exceeds the certified tax rate; and
3        (ii) a statement that the certified tax rate means a tax rate that will provide the same ad
4    valorem property tax revenue for each taxing entity as was collected for the prior year excluding
5    collections from redemptions, interest, penalties, and new growth.
6        (4) If a final decision [on the proposed tax increase] regarding the budgeting of an
7    increased amount of ad valorem tax revenue will not be made at the public hearing, [the notice
8    required by this section shall also include notice of the final decision in the following form:] the
9    taxing entity shall announce at the public hearing the scheduled time and place for consideration
10    and adoption of the proposed budget increase.
11        ["A final decision on the proposed tax increase will be made on (date and time) in a public
12    hearing to be held at (meeting place)."]
13        (5) [All] Each taxing [entities] entity operating under the January 1 through December 31
14    fiscal year shall by March 1 notify the county of the date, time, and place of the public hearing at
15    which the budget for the following fiscal year will be considered. The county shall include that
16    information with the tax notice.
17        Section 5. Section 59-2-919 is amended to read:
18         59-2-919. Resolution proposing tax increases -- Notice -- Contents -- Personal mailed
19     notice in addition to advertisement -- Contents -- Hearing -- Dates.
20        A tax rate in excess of the certified tax rate may not be levied until a resolution has been
21    approved by the taxing entity in accordance with the following procedure:
22        (1) The taxing entity shall advertise its intent to exceed the certified tax rate in a
23    newspaper of general circulation in the county. The advertisement shall be no less than 1/4 page
24    in size and the type used shall be no smaller than 18 point, and surrounded by a 1/4-inch border.
25    The advertisement may not be placed in that portion of the newspaper where legal notices and
26    classified advertisements appear. It is legislative intent that, whenever possible, the advertisement
27    appear in a newspaper that is published at least [five days a] one day per week[, unless the only
28    newspaper in the county is published less than five days a week]. It is further the intent of the
29    Legislature that the newspaper selected be one of general interest and readership in the community,
30    and not one of limited subject matter. The advertisement shall be run once each week for the two
31    weeks preceding the adoption of the final budget. The advertisement shall state that the taxing

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1    entity will meet on a certain day, time, and place fixed in the advertisement, which shall be not less
2    than seven days after the day the first advertisement is published, for the purpose of hearing
3    comments regarding any proposed increase and to explain the reasons for the proposed increase.
4    The meeting on the proposed increase may coincide with the hearing on the proposed budget of
5    the taxing entity.
6        (2) (a) The form and content of the notice shall be substantially as follows:
7    
"NOTICE OF TAX INCREASE

8        The (name of the taxing entity) [has proposed] is proposing to [budget an] increase [in] its
9    property tax revenue [from $__________ to $__________ or ____% and to (increase/decrease)
10    its total budget from $__________ to $__________ or ____%. The proposed increase in property
11    tax revenues will come from the following sources (include all of the following provisions):]. As
12    a result of the proposed increase, the tax on a (insert the average value of a house in the taxing
13    entity rounded to the nearest thousand dollars) residence will be $__________, and the tax on a
14    business having the same value as the average value of a house in the taxing entity will be
15    $__________. Without the proposed increase the tax on a (insert the average value of a house in
16    the taxing entity rounded to the nearest thousand dollars) residence would be $__________, and
17    the tax on a business having the same value as the average value of a house in the taxing entity
18    would be $__________. The (name of the taxing entity) is proposing to increase its property tax
19    revenue from $__________ collected last year to $__________ proposed this year, an increase of
20    __________%.
21        The (insert year) proposed tax rate is __________. Without the proposed increase the rate
22    would be __________.
23        [(a) $__________ of the proposed increase will come from an increase in the property tax
24    rate from (last year's ad valorem property tax rate) to (this year's property tax rate); and]
25        [(b) $__________ of the proposed increase will come from (provide a commission
26    approved explanation of the cause of adjustment or increased revenues, such as reappraisals or
27    factoring orders);]
28        [(c) $__________ of the proposed increase will come from natural increases in the value
29    of the tax base due to (explain cause of new growth, such as new building activity, annexation,
30    etc.);]
31        [(d) a home valued at $100,000 in (name of the taxing entity) which based on last year's

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1    property tax rate and budget paid $____________ in property taxes would pay the following:]
2        [(i) $__________ if (name of taxing entity) does not budget an increase in property tax
3    revenue exclusive of new growth; and]
4        [(ii) $__________ if the proposed increase in budgeted property tax revenues exclusive
5    of new growth is adopted.]
6        All concerned citizens are invited to [attend] a public hearing on the tax increase to be held
7    on (date and time) at (meeting place)."
8        (b) At the bottom of the notice in smaller point type as determined by the commission, the
9    taxing entity shall include the following information:
10        (i) a statement that the proposed tax increase will result in a tax rate for the taxing entity
11    that exceeds the certified tax rate; and
12        (ii) a statement that the certified tax rate means a tax rate that will provide the same ad
13    valorem property tax revenue for each taxing entity as was collected for the prior year excluding
14    collections from redemptions, interest, penalties, and new growth.
15        (3) The commission shall adopt rules governing the joint use of one advertisement under
16    this section or Section 59-2-918 by two or more taxing entities and may, upon petition by any
17    taxing entity, authorize either:
18        (a) the use of weekly newspapers in counties having both daily and weekly newspapers
19    where the weekly newspaper would provide equal or greater notice to the taxpayer; or
20        (b) the use of a commission-approved direct notice to each taxpayer if the cost of the
21    advertisement would cause undue hardship and the direct notice is different and separate from that
22    provided for in Subsection (4).
23        (4) In addition to providing the notice required by [Subsection] Subsections (1) and (2),
24    the county auditor, on or before July 22 of each year, shall notify, by mail, [all owners] each owner
25    of real estate as defined in Section 59-2-102 [shown] who is listed on the assessment roll[, on a
26    form approved by the commission, which shall be uniform in content in all counties throughout
27    the state, of the value of the property, the date the county board of equalization will meet to hear
28    complaints on the valuation, itemized tax information for all taxing entities, including a separate
29    statement for the minimum school levy under Section 53A-17a-135 of the dollar amount the
30    taxpayer would have paid based on last year's rate and the amount of the taxpayer's liability under
31    the current rate, the tax impact on the property, and the time and place of the required public

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1    hearing for each entity. This notice shall be mailed at least ten days before the county board of
2    equalization meets and at least ten days before the public hearing on the proposed increase in the
3    certified tax rate]. The notice shall:
4        (a) be sent to all owners of real property by mail not less than ten days before the day on
5    which:
6        (i) the county board of equalization meets; and
7        (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax
8    rate;
9        (b) the notice shall be printed on a form that is:
10        (i) approved by the commission; and
11        (ii) uniform in content in all counties in the state;
12        (c) contain for each property only:
13        (i) the value of the property;
14        (ii) the date the county board of equalization will meet to hear complaints on the valuation;
15        (iii) itemized tax information for all taxing entities, including a separate statement for the
16    minimum school levy under Section 53A-17a-135 stating:
17        (A) the dollar amount the taxpayer would have paid based on last year's rate; and
18        (B) the amount of the taxpayer's liability under the current rate;
19        (iv) the tax impact on the property;
20        (v) the time and place of the required public hearing for each entity;
21        (vi) property tax information pertaining to taxpayer relief, options for payment of taxes,
22    and collection procedures;
23        (vii) other information specifically authorized to be included on the notice under Title 59,
24    Chapter 2, Property Tax Act; and
25        (viii) other property tax information approved by the commission.
26        (5) The taxing entity, after the hearing has been held in accordance with the above
27    procedures, may adopt a resolution levying a tax rate in excess of the certified tax rate. If the
28    resolution adopting the tax rate is not adopted on the day of the public hearing, the scheduled time
29    and place for consideration and adoption of the resolution shall be announced at the public hearing.
30    If the resolution is to be considered at a day and time that is more than two weeks after the public
31    hearing described in Subsection (4)(c)(v), the taxing entity shall advertise the date of the proposed

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1    adoption of the resolution in the same manner as provided under Subsections (1) and (2).
2        (6) All hearings shall be open to the public. The governing body of the taxing entity
3    conducting the hearing shall permit all interested parties desiring to be heard an opportunity to
4    present oral testimony within reasonable time limits.
5        (7) Each taxing entity shall notify the county legislative body by March 1 of each year of
6    the date, time, and place of its public hearing. A taxing entity may not schedule its hearing at the
7    same time as another overlapping taxing entity in the same county, but all taxing entities in which
8    the power to set tax levies is vested in the same governing board or authority may consolidate the
9    required hearings into one hearing. The county legislative body shall resolve any conflicts in
10    hearing dates and times after consultation with each affected taxing entity.
11        Section 6. Section 59-2-1317 is amended to read:
12         59-2-1317. Index of property owners -- Tax notice.
13        (1) Upon receipt of the assessment roll, the county treasurer shall index the names of all
14    property owners shown by the assessment roll. The commission shall prescribe a form of index
15    which shall be uniform in all the counties throughout the state.
16        (2) (a) The treasurer shall proceed to collect the taxes and furnish to each taxpayer, except
17    those taxpayers under Sections 59-2-1302 and 59-2-1307, by mail, postage prepaid, or leave at the
18    taxpayer's residence or usual place of business, if known, a notice containing only:
19        (i) the kind and value of property assessed to the taxpayer;
20        (ii) the street address of the property, where applicable;
21        (iii) if the property is subject to a detailed review in the next year under Section
22    59-2-303.1;
23        (iv) the amount of tax levied; [and]
24        (v) the aggregate amount of taxes to be paid for state, county, city, town, school, and other
25    purposes;
26        (vi) property tax information pertaining to taxpayer relief, options for payment of taxes,
27    and collection procedures;
28        (vii) other information specifically authorized to be included on the notice under Title 59,
29    Chapter 2, Property Tax Act;
30        (viii) other property tax information approved by the commission; and
31        [(v)] (ix) for notices applicable to the 1995 ad valorem tax year, the following statement:

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1        "The 1995 Utah State Legislature and the governor reduced the minimum basic tax rate and
2    took other legislative action for property taxpayers statewide, resulting in a (the amount of the
3    statewide reduction determined by the commission under Subsection (2)[(c)] (b)) property tax
4    reduction. Without this reduction, property taxes on an average home valued at $100,000 would
5    have increased by an additional (amount)."
6        [(b) The notice shall set out the aggregate amount of taxes to be paid for state, county, city,
7    town, school, and other purposes.]
8        [(c)] (b) (i) The commission shall determine the amount of the statewide reduction on or
9    before June 22, 1995, for purposes of the notice required under Subsection (2)(a)[(v)] (ix).
10        (ii) The amount of the statewide reduction under Subsection (2)[(c)] (b)(i) shall be no less
11    than $122,000,000.
12        (3) For any property on which a property tax delinquency exists, the treasurer shall stamp
13    on the notice "Prior taxes are delinquent on this parcel. "The notice shall set out separately all
14    taxes levied only on a certain kind or class of property for a special purpose or purposes, and shall
15    have printed or stamped on it the effective rate of taxation for each purpose for which taxes have
16    been levied, when and where payable, the date the taxes will be delinquent, and the penalty
17    provided by law.
18        (4) The notice shall be mailed by November 1. The notice shall be in duplicate form and
19    the county treasurer need not mail out a tax receipt acknowledging payment.
20        (5) After notices have been mailed, the county treasurer shall make available the
21    assessment roll, map books, and statements to the clerk of the county board of equalization.
22        Section 7. Retrospective operation.
23        This act has retrospective operation to January 1, 1997.




Legislative Review Note
    as of 12-27-96 10:49 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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