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H.B. 181 Enrolled

                 

CERTIFIED TAX RATE NOTICE AMENDMENT

                 
1999 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: A. Lamont Tyler

                  AN ACT RELATING TO TAXATION; PROVIDING ADDITIONAL INFORMATION ON THE
                  CERTIFIED TAX RATE NOTICE ABOUT THE IMPACT OF A PROPOSED TAX
                  INCREASE ON AN AVERAGE RESIDENCE.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  AMENDS:
                      59-2-918, as last amended by Chapters 5 and 306, Laws of Utah 1998
                      59-2-919, as last amended by Chapters 5 and 306, Laws of Utah 1998
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 59-2-918 is amended to read:
                       59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
                      (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an increased
                  amount of ad valorem tax revenue exclusive of revenue from new growth as defined in Subsection
                  59-2-924 (2) unless it advertises its intention to do so at the same time that it advertises its intention
                  to fix its budget for the forthcoming fiscal year.
                      (b) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
                  advertisement requirements of this section if the taxing entity collected less than $15,000 in ad
                  valorem tax revenues for the previous fiscal year.
                      (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
                  advertisement required by this section may be combined with the advertisement required by
                  Section 59-2-919 .
                      (b) For taxing entities operating under a January 1 through December 31 fiscal year, the
                  advertisement shall meet the size, type, placement, and frequency requirements established under
                  Section 59-2-919 .
                      (3) The form of the advertisement shall meet the size, type, placement, and frequency
                  requirements established under Section 59-2-919 and shall be substantially as follows:


                 
"NOTICE OF PROPOSED TAX INCREASE

                      The (name of the taxing entity) is proposing to increase its property tax revenue. As a result
                  of the proposed increase, the tax on a (insert the average value of a residence in the taxing entity
                  rounded to the nearest thousand dollars) residence will be $__________, and the tax on a business
                  having the same value as the average value of a residence in the taxing entity will be__________.
                  Without the proposed increase, the tax on a (insert the average value of a residence in the taxing
                  entity rounded to the nearest thousand dollars) residence would be $__________, and the tax on a
                  business having the same value as the average value of a residence in the taxing entity would
                  be_________. [The (name of the taxing entity) is proposing to increase its property tax revenue                   from
                  $__________ collected last year to $__________ proposed this year, an increase of __________%.]
                      This would be an increase of ______%, which is $______ per year ($______ per month) on
                  a (insert the average value of a residence in the taxing entity rounded to the nearest thousand dollars)
                  residence or $______ per year on a business having the same value as the average value of a
                  residence in the taxing entity. With new growth, this property tax increase, and other factors, (name
                  of taxing entity) will increase its property tax revenue from $_____ collected last year to $_____
                  collected this year which is a revenue increase of _____%.
                      All concerned citizens are invited to a public hearing on the tax increase to be held on (date
                  and time) at (meeting place)."
                      (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
                  revenue is not made at the public hearing, the taxing entity shall announce at the public hearing the
                  scheduled time and place for consideration and adoption of the proposed budget increase.
                      (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal year shall
                  by March 1 notify the county of the date, time, and place of the public hearing at which the budget
                  for the following fiscal year will be considered.
                      (b) The county shall include the information described in Subsection (5)(a) with the tax
                  notice.
                      (6) A taxing entity shall hold a public hearing under this section beginning at or after 6 p.m.
                      Section 2. Section 59-2-919 is amended to read:

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                       59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of                   proposed
                  tax increase -- Personal mailed notice in addition to advertisement -- Contents of personal
                  mailed notice -- Hearing -- Dates.
                      A tax rate in excess of the certified tax rate may not be levied until a resolution has been
                  approved by the taxing entity in accordance with the following procedure:
                      (1) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a
                  newspaper or combination of newspapers of general circulation in the taxing entity.
                      (ii) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
                  advertisement requirements of this section if the taxing entity collected less than $15,000 in ad
                  valorem tax revenues for the previous fiscal year.
                      (b) The advertisement shall be no less than 1/4 page in size and the type used shall be no
                  smaller than 18 point, and surrounded by a 1/4-inch border.
                      (c) The advertisement may not be placed in that portion of the newspaper where legal notices
                  and classified advertisements appear.
                      (d) It is legislative intent that, whenever possible, the advertisement appear in a newspaper
                  that is published at least one day per week.
                      (e) It is further the intent of the Legislature that the newspaper or combination of newspapers
                  selected be of general interest and readership in the taxing entity, and not of limited subject matter.
                      (f) The advertisement shall be run once each week for the two weeks preceding the adoption
                  of the final budget.
                      (g) The advertisement shall state that the taxing entity will meet on a certain day, time, and
                  place fixed in the advertisement, which shall be not less than seven days after the day the first
                  advertisement is published, for the purpose of hearing comments regarding any proposed increase
                  and to explain the reasons for the proposed increase.
                      (h) The meeting on the proposed increase may coincide with the hearing on the proposed
                  budget of the taxing entity.
                      (2) The form and content of the notice shall be substantially as follows:
                 
"NOTICE OF PROPOSED TAX INCREASE


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                      The (name of the taxing entity) is proposing to increase its property tax revenue. As a result
                  of the proposed increase, the tax on a (insert the average value of a residence in the taxing entity
                  rounded to the nearest thousand dollars) residence will be $__________, and the tax on a business
                  having the same value as the average value of a residence in the taxing entity will be $__________.
                  Without the proposed increase the tax on a (insert the average value of a residence in the taxing
                  entity rounded to the nearest thousand dollars) residence would be $__________, and the tax on a
                  business having the same value as the average value of a residence in the taxing entity would be
                  $__________. [The (name of the taxing entity) is proposing to increase its property tax revenue
                  from $__________ collected last year to $__________ proposed this year, an increase of
                  __________%].
                      The (insert year) proposed tax rate is __________. Without the proposed increase, the rate
                  would be __________. This would be an increase of ______%, which is $______ per year ($______
                  per month) on a (insert the average value of a residence in the taxing entity rounded to the nearest
                  thousand dollars) residence or $______ per year on a business having the same value as the average
                  value of a residence in the taxing entity. With new growth, this property tax increase, and other
                  factors, (name of taxing entity) will increase its property tax revenue from $_____ collected last year
                  to $_____ collected this year which is a revenue increase of _____%.
                      All concerned citizens are invited to a public hearing on the tax increase to be held on (date
                  and time) at (meeting place)."
                      (3) The commission shall adopt rules governing the joint use of one advertisement under this
                  section or Section 59-2-918 by two or more taxing entities and may, upon petition by any taxing
                  entity, authorize either:
                      (a) the use of weekly newspapers in counties having both daily and weekly newspapers
                  where the weekly newspaper would provide equal or greater notice to the taxpayer; or
                      (b) the use of a commission-approved direct notice to each taxpayer if the cost of the
                  advertisement would cause undue hardship and the direct notice is different and separate from that
                  provided for in Subsection (4).
                      (4) In addition to providing the notice required by Subsections (1) and (2), the county

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                  auditor, on or before July 22 of each year, shall notify, by mail, each owner of real estate as defined
                  in Section 59-2-102 who is listed on the assessment roll. The notice shall:
                      (a) be sent to all owners of real property by mail not less than ten days before the day on
                  which:
                      (i) the county board of equalization meets; and
                      (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax rate;
                      (b) the notice shall be printed on a form that is:
                      (i) approved by the commission; and
                      (ii) uniform in content in all counties in the state;
                      (c) contain for each property:
                      (i) the value of the property;
                      (ii) the date the county board of equalization will meet to hear complaints on the valuation;
                      (iii) itemized tax information for all taxing entities, including a separate statement for the
                  minimum school levy under Section 53A-17a-135 stating:
                      (A) the dollar amount the taxpayer would have paid based on last year's rate; and
                      (B) the amount of the taxpayer's liability under the current rate;
                      (iv) the tax impact on the property;
                      (v) the time and place of the required public hearing for each entity;
                      (vi) property tax information pertaining to taxpayer relief, options for payment of taxes, and
                  collection procedures;
                      (vii) other information specifically authorized to be included on the notice under Title 59,
                  Chapter 2, Property Tax Act; and
                      (viii) other property tax information approved by the commission.
                      (5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt a
                  resolution levying a tax rate in excess of the certified tax rate.
                      (b) If a resolution adopting a tax rate is not adopted on the day of the public hearing, the
                  scheduled time and place for consideration and adoption of the resolution shall be announced at the
                  public hearing.

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                      (c) If a resolution adopting a tax rate is to be considered at a day and time that is more than
                  two weeks after the public hearing described in Subsection (4)(c)(v), a taxing entity, other than a
                  taxing entity described in Subsection (1)(a)(ii), shall advertise the date of the proposed adoption of
                  the resolution in the same manner as provided under Subsections (1) and (2).
                      (6) (a) All hearings shall be open to the public.
                      (b) The governing body of a taxing entity conducting a hearing shall permit all interested
                  parties desiring to be heard an opportunity to present oral testimony within reasonable time limits.
                      (7) (a) Each taxing entity shall notify the county legislative body by March 1 of each year
                  of the date, time, and place of its public hearing.
                      (b) A taxing entity may not schedule its hearing at the same time as another overlapping
                  taxing entity in the same county, but all taxing entities in which the power to set tax levies is vested
                  in the same governing board or authority may consolidate the required hearings into one hearing.
                      (c) The county legislative body shall resolve any conflicts in hearing dates and times after
                  consultation with each affected taxing entity.
                      (8) A taxing entity shall hold a public hearing under this section beginning at or after 6 p.m.

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