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Second Substitute H.B. 178

Representative Raymond W. Short proposes to substitute the following bill:


             1     
PROPERTY TAX CERTIFIED TAX RATE

             2     
ADJUSTMENTS - UNIFORM FEES

             3     
2000 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Raymond W. Short

             6      AN ACT RELATING TO THE PROPERTY TAX ACT; REQUIRING THE STATE TAX
             7      COMMISSION TO ADJUST A TAXING ENTITY'S CERTIFIED TAX RATE AND CERTIFIED
             8      REVENUE LEVY UNDER CERTAIN CIRCUMSTANCES; REPEALING OBSOLETE
             9      LANGUAGE; MAKING TECHNICAL CHANGES; AND PROVIDING FOR
             10      RETROSPECTIVE OPERATION.
             11      This act affects sections of Utah Code Annotated 1953 as follows:
             12      AMENDS:
             13          59-2-924, as last amended by Chapter 353, Laws of Utah 1999
             14      Be it enacted by the Legislature of the state of Utah:
             15          Section 1. Section 59-2-924 is amended to read:
             16           59-2-924. Report of valuation of property to county auditor and commission --
             17      Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
             18      budget.
             19          (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
             20      county auditor and the commission the following statements:
             21          (i) a statement containing the aggregate valuation of all taxable property in each taxing
             22      entity; and
             23          (ii) a statement containing the taxable value of any additional personal property estimated
             24      by the county assessor to be subject to taxation in the current year.
             25          (b) The county auditor shall, on or before June 8, transmit to the governing body of each


             26      taxing entity:
             27          (i) the statements described in Subsections (1)(a)(i) and (ii);
             28          (ii) an estimate of the revenue from personal property;
             29          (iii) the certified tax rate; and
             30          (iv) all forms necessary to submit a tax levy request.
             31          (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
             32      property tax revenues for a taxing entity as were collected by that taxing entity for the prior year.
             33          (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not include:
             34          (A) collections from redemptions;
             35          (B) interest; and
             36          (C) penalties.
             37          (iii) Except as provided in Subsection (2)(a)(iv), the certified tax rate shall be calculated
             38      by dividing the ad valorem property tax revenues collected for the prior year by the taxing entity
             39      by the taxable value established in accordance with Section 59-2-913 .
             40          (iv) The certified tax rates for the taxing entities described in this Subsection (2)(a)(iv)
             41      shall be calculated as follows:
             42          (A) except as provided in Subsection (2)(a)(iv)(B), for new taxing entities the certified tax
             43      rate is zero;
             44          (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             45          (I) in a county of the first, second, or third class, the levy imposed for municipal-type
             46      services under Sections 17-34-1 and 17-36-9 ; and
             47          (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             48      purposes and such other levies imposed solely for the municipal-type services identified in Section
             49      17-34-2 and Subsection 17-36-3 (22);
             50          (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
             51      imposed by that section, except that the certified tax rates for the following levies shall be
             52      calculated in accordance with Section 59-2-913 and this section:
             53          (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
             54      53A-17a-127 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
             55          (II) levies to pay for the costs of state legislative mandates or judicial or administrative
             56      orders under Section 59-2-906.3 .


             57          (v) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330 shall be
             58      established at that rate which is sufficient to generate only the revenue required to satisfy the
             59      known, unpaid judgments. The ad valorem property tax revenue generated by the judgment levy
             60      shall not be considered in establishing the taxing entity's aggregate certified tax rate.
             61          (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the
             62      taxable value of property on the assessment roll.
             63          (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the assessment
             64      roll does not include new growth as defined in Subsection (2)(b)(iii).
             65          (iii) "New growth" means:
             66          (A) the difference between the increase in taxable value of the taxing entity from the
             67      previous calendar year to the current year; minus
             68          (B) the amount of increase to locally assessed real property taxable values resulting from
             69      factoring, reappraisal, or any other adjustments.
             70          (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from uniform
             71      fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a result of
             72      any county imposing a sales and use tax under Title 59, Chapter 12, Part 11, County Option Sales
             73      and Use Tax, the taxing entity shall decrease its certified tax rate to offset the increased revenues.
             74          (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under Title 59,
             75      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
             76          (A) decreased on a one-time basis by the amount of the estimated sales tax revenue to be
             77      distributed to the county under Subsection 59-12-1102 (3); and
             78          (B) increased by the amount necessary to offset the county's reduction in revenue from
             79      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a
             80      result of the decrease in the certified tax rate under Subsection (2)(d)(i)(A).
             81          (ii) The commission shall determine estimates of sales tax distributions for purposes of
             82      Subsection (2)(d)(i).
             83          [(e) For the calendar year beginning on January 1, 1998, and ending December 31, 1998,
             84      a taxing entity's certified tax rate shall be increased by the amount necessary to offset the decrease
             85      in revenues from uniform fees on tangible personal property under Section 59-2-405 as a result of
             86      the decrease in uniform fees on tangible personal property under Section 59-2-405 enacted by the
             87      Legislature during the 1997 Annual General Session.]


             88          [(f)] (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             89      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             90      decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
             91      revenue from the additional resort communities sales tax imposed under Section 59-12-402 .
             92          [(g)] (f) For the calendar year beginning on January 1, 1999, and ending on December 31,
             93      1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
             94      adjustment in revenues from uniform fees on tangible personal property under Section 59-2-405.1
             95      as a result of the adjustment in uniform fees on tangible personal property under Section
             96      59-2-405.1 enacted by the Legislature during the 1998 Annual General Session.
             97          (g) For purposes of Subsections (2)(h) through (j):
             98          (i) "1998 actual collections" means the amount of revenues a taxing entity actually
             99      collected for the calendar year beginning on January 1, 1998, under Section 59-2-405 for:
             100          (A) motor vehicles required to be registered with the state that weigh 12,000 pounds or
             101      less; and
             102          (B) state-assessed commercial vehicles required to be registered with the state that weigh
             103      12,000 pounds or less.
             104          (ii) "1999 actual collections" means the amount of revenues a taxing entity actually
             105      collected for the calendar year beginning on January 1, 1999, under Section 59-2-405.1.
             106          (h) For the calendar year beginning on January 1, 2000, the commission shall make the
             107      following adjustments:
             108          (i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for the
             109      calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater
             110      than the sum of:
             111          (A) the taxing entity's 1999 actual collections; and
             112          (B) any adjustments the commission made under Subsection (2)(f);
             113          (ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for the
             114      calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater
             115      than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual collections were
             116      less than the sum of:
             117          (A) the taxing entity's 1999 actual collections; and
             118          (B) any adjustments the commission made under Subsection (2)(f); and


             119          (iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for
             120      the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were less
             121      than the taxing entity's 1999 actual collections.
             122          (i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing entity's
             123      certified tax rate under this section and a taxing entity's certified revenue levy under Section
             124      59-2-906.1 by the amount necessary to offset the difference between:
             125          (A) the taxing entity's 1998 actual collections; and
             126          (B) the sum of:
             127          (I) the taxing entity's 1999 actual collections; and
             128          (II) any adjustments the commission made under Subsection (2)(f).
             129          (ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing entity's
             130      certified tax rate under this section and a taxing entity's certified revenue levy under Section
             131      59-2-906.1 by the amount necessary to offset the difference between:
             132          (A) the sum of:
             133          (I) the taxing entity's 1999 actual collections; and
             134          (II) any adjustments the commission made under Subsection (2)(f); and
             135          (B) the taxing entity's 1998 actual collections.
             136          (iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing entity's
             137      certified tax rate under this section and a taxing entity's certified revenue levy under Section
             138      59-2-906.1 by the amount of any adjustments the commission made under Subsection (2)(f).
             139          (j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
             140      purposes of Subsections (2)(f) through (i), the commission may make rules establishing the method
             141      for determining a taxing entity's 1998 actual collections and 1999 actual collections.
             142          (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             143          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             144      auditor of:
             145          (i) its intent to exceed the certified tax rate; and
             146          (ii) the amount by which it proposes to exceed the certified tax rate.
             147          (c) The county auditor shall notify all property owners of any intent to exceed the certified
             148      tax rate in accordance with Subsection 59-2-919 (2).
             149          (4) (a) The taxable value for the base year under Subsection 17A-2-1247 (2)(a) or


             150      17A-2-1202 (2), as the case may be, shall be reduced for any year to the extent necessary to provide
             151      a redevelopment agency established under Title 17A, Chapter 2, Part 12, Utah Neighborhood
             152      Development Act, with approximately the same amount of money the agency would have received
             153      without a reduction in the county's certified tax rate if:
             154          (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             155      (2)(d)(i);
             156          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             157      previous year; and
             158          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             159      Section 17A-2-1247 or 17A-2-1247.5 .
             160          (b) The taxable value of the base year under Subsection 17A-2-1247 (2)(a) or
             161      17A-2-1202 (2), as the case may be, shall be increased in any year to the extent necessary to
             162      provide a redevelopment agency with approximately the same amount of money as the agency
             163      would have received without an increase in the certified tax rate that year if:
             164          (i) in that year the taxable value for the base year under Subsection 17A-2-1247 (2) or
             165      17A-2-1202 (2) is reduced due to a decrease in the certified tax rate under Subsection (2)(c) or
             166      (2)(d)(i); and
             167          (ii) The certified tax rate of a city, school district, or special district increases independent
             168      of the adjustment to the taxable value of the base year.
             169          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i),
             170      the amount of money allocated and, when collected, paid each year to a redevelopment agency
             171      established under Title 17A, Chapter 2, Part 12, Utah Neighborhood Development Act, for the
             172      payment of bonds or other contract indebtedness, but not for administrative costs, may not be less
             173      than that amount would have been without a decrease in the certified tax rate under Subsection
             174      (2)(c) or (2)(d)(i).
             175          [(5) (a) Except as provided in Subsections (5)(d) through (f), for the calendar year
             176      beginning on January 1, 1998, and ending December 31, 1998, to impose a tax rate that exceeds
             177      the certified tax rate established in Subsection (2), a taxing entity shall obtain approval for the tax
             178      increase by a majority vote of the:]
             179          [(i) governing body; and]
             180          [(ii) people as provided in Subsection (5)(b).]


             181          [(b) To obtain voter approval for a tax increase under Subsection (5)(a), a taxing entity
             182      shall:]
             183          [(i) hold an election on the fourth Tuesday in June; and]
             184          [(ii) conduct the election according to the procedures and requirements of Title 20A,
             185      Election Code, governing local elections.]
             186          [(c) A tax rate imposed by a taxing entity under this Subsection (5) may not exceed the
             187      maximum levy permitted by law under Section 59-2-908 .]
             188          [(d) Notwithstanding Subsection (5)(a), a school district is not required to obtain voter
             189      approval under this Subsection (5) to impose a tax rate that exceeds the certified tax rate:]
             190          [(i) under Section 53A-17a-135 , if the Legislature increases the minimum basic tax rate
             191      under Section 53A-17a-135 ;]
             192          [(ii) under Section 53A-21-103 ;]
             193          [(iii) under Section 53A-16-111 ;]
             194          [(iv) if, on or after January 1, 1997, but on or before December 31, 1997, the school
             195      district obtained voter approval to impose the tax rate; or]
             196          [(v) if, on or after January 1, 1998, the school district obtains voter approval to impose the
             197      tax rate under a statutory provision, other than the provisions of this section, requiring voter
             198      approval to impose the tax rate.]
             199          [(e) Notwithstanding Subsection (5)(a), a municipality is not required to obtain voter
             200      approval under this Subsection (5) to impose a tax rate that exceeds the certified tax rate if:]
             201          [(i) the municipality meets the requirements of Sections 59-2-918 and 59-2-919 ; and]
             202          [(ii) in adopting the resolution required under Section 59-2-919 , the municipal legislative
             203      body obtains approval to impose the tax rate by two-thirds of all members of the municipal
             204      legislative body.]
             205          [(f) Notwithstanding Subsection (5)(a), a county or municipality is not required to obtain
             206      voter approval under this Subsection (5) to impose a tax rate under Section 17A-2-1322 that
             207      exceeds the certified tax rate calculated for a special service district established under Title 17A,
             208      Chapter 2, Part 13, Utah Special Service District Act, if the county or municipality obtained voter
             209      approval to impose a tax on property within the special service district:]
             210          [(i) under Section 17A-2-1322 ; and]
             211          [(ii) on or after June 1, 1996.]


             212          Section 2. Retrospective operation.
             213          This act has retrospective operation to January 1, 2000.


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