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Second Substitute S.B. 168

Senator Leonard M. Blackham proposes to substitute the following bill:


             1     
CERTAIN MUNICIPAL SERVICES IN FIRST

             2     
CLASS COUNTIES

             3     
2001 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Leonard M. Blackham

             6      This act modifies provisions relating to Counties and to Revenue and Taxation to require
             7      counties of the first class to provide detective investigative services in their unincorporated
             8      area. The act requires those counties to decrease their countywide tax levy previously
             9      imposed to pay for those services. The act authorizes cities and towns located within those
             10      counties to increase their tax levy to generate within the city or town the same amount of
             11      revenue as the county would have collected from within the city or town. The act exempts
             12      the city and town tax increases from applicable notice and hearing requirements and
             13      expands an exemption from those same requirements for cities and towns that increase their
             14      tax rate to offset a countywide reduction relating to advanced life support and paramedic
             15      services. The act also makes technical changes.
             16      This act affects sections of Utah Code Annotated 1953 as follows:
             17      AMENDS:
             18          17-34-1, as repealed and reenacted by Chapter 199, Laws of Utah 2000
             19          17-34-3, as last amended by Chapter 199, Laws of Utah 2000
             20          59-2-924, as last amended by Chapters 22, 61, 141 and 199, Laws of Utah 2000
             21      Be it enacted by the Legislature of the state of Utah:
             22          Section 1. Section 17-34-1 is amended to read:
             23           17-34-1. Counties may provide municipal services -- First class counties required to
             24      provide paramedic and detective investigative services.
             25          (1) For purposes of this chapter, "municipal-type services" means:


             26          (a) fire protection service;
             27          (b) waste and garbage collection and disposal;
             28          (c) planning and zoning;
             29          (d) street lighting;
             30          (e) in a county of the first class[,]:
             31          (i) advanced life support and paramedic services; and
             32          (ii) detective investigative services; and
             33          (f) all other services and functions that are required by law to be budgeted, appropriated,
             34      and accounted for from a municipal services fund or a municipal capital projects fund as defined
             35      under Chapter 36, Uniform Fiscal Procedures Act for Counties.
             36          (2) A county may:
             37          (a) provide municipal-type services to areas of the county outside the limits of cities and
             38      towns without providing the same services to cities or towns;
             39          (b) fund those services by:
             40          (i) levying a tax on taxable property in the county outside the limits of cities and towns;
             41      or
             42          (ii) charging a service charge or fee to persons benefitting from the municipal-type
             43      services.
             44          (3) Each county of the first class shall provide [advanced life support and paramedic
             45      services] to the area of the county outside the limits of cities and towns[.]:
             46          (a) advanced life support and paramedic services; and
             47          (b) detective investigative services.
             48          Section 2. Section 17-34-3 is amended to read:
             49           17-34-3. Taxes or service charges.
             50          (1) (a) If a county furnishes the municipal-type services and functions described in Section
             51      17-34-1 to areas of the county outside the limits of incorporated cities or towns, the entire cost of
             52      the services or functions so furnished shall be defrayed from funds that the county has derived
             53      from [either]:
             54          (i) taxes [which] that the county may lawfully levy or impose outside the limits of
             55      incorporated towns or cities;
             56          (ii) service charges or fees the county may impose upon the persons benefited in any way


             57      by the services or functions; or
             58          (iii) a combination of these sources.
             59          (b) As the taxes or service charges or fees are levied and collected, they shall be placed in
             60      a special revenue fund of the county and shall be disbursed only for the rendering of the services
             61      or functions established in Section 17-34-1 within the unincorporated areas of the county.
             62          (2) For the purpose of levying taxes, service charges, or fees provided in this section, the
             63      county legislative body may establish a district or districts in the unincorporated areas of the
             64      county.
             65          (3) Nothing contained in this chapter may be construed to authorize counties to impose
             66      or levy taxes not otherwise allowed by law.
             67          (4) (a) A county required under Subsection 17-34-1 (3) to provide advanced life support
             68      and paramedic services to the unincorporated area of the county and that previously paid for those
             69      services through a countywide levy may increase its levy under Subsection (1)(a)(i) to generate in
             70      the unincorporated area of the county the same amount of revenue as the county loses from that
             71      area due to the required decrease in the countywide certified tax rate under Subsection
             72      59-2-924 (2)[(h)](k)(i).
             73          (b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and hearing
             74      requirements of Sections 59-2-918 and 59-2-919 .
             75          Section 3. Section 59-2-924 is amended to read:
             76           59-2-924. Report of valuation of property to county auditor and commission --
             77      Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
             78      budget.
             79          (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
             80      county auditor and the commission the following statements:
             81          (i) a statement containing the aggregate valuation of all taxable property in each taxing
             82      entity; and
             83          (ii) a statement containing the taxable value of any additional personal property estimated
             84      by the county assessor to be subject to taxation in the current year.
             85          (b) The county auditor shall, on or before June 8, transmit to the governing body of each
             86      taxing entity:
             87          (i) the statements described in Subsections (1)(a)(i) and (ii);


             88          (ii) an estimate of the revenue from personal property;
             89          (iii) the certified tax rate; and
             90          (iv) all forms necessary to submit a tax levy request.
             91          (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
             92      property tax revenues for a taxing entity as were collected by that taxing entity for the prior year.
             93          (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not include:
             94          (A) collections from redemptions;
             95          (B) interest; and
             96          (C) penalties.
             97          (iii) Except as provided in Subsection (2)(a)(iv), the certified tax rate shall be calculated
             98      by dividing the ad valorem property tax revenues collected for the prior year by the taxing entity
             99      by the taxable value established in accordance with Section 59-2-913 .
             100          (iv) The certified tax rates for the taxing entities described in this Subsection (2)(a)(iv)
             101      shall be calculated as follows:
             102          (A) except as provided in Subsection (2)(a)(iv)(B), for new taxing entities the certified tax
             103      rate is zero;
             104          (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             105          (I) in a county of the first, second, or third class, the levy imposed for municipal-type
             106      services under Sections 17-34-1 and 17-36-9 ; and
             107          (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             108      purposes and such other levies imposed solely for the municipal-type services identified in Section
             109      17-34-1 and Subsection 17-36-3 (22);
             110          (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
             111      imposed by that section, except that the certified tax rates for the following levies shall be
             112      calculated in accordance with Section 59-2-913 and this section:
             113          (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
             114      53A-17a-127 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
             115          (II) levies to pay for the costs of state legislative mandates or judicial or administrative
             116      orders under Section 59-2-906.3 .
             117          (v) (A) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330 shall be
             118      established at that rate which is sufficient to generate only the revenue required to satisfy one or


             119      more eligible judgments, as defined in Section 59-2-102 .
             120          (B) The ad valorem property tax revenue generated by the judgment levy shall not be
             121      considered in establishing the taxing entity's aggregate certified tax rate.
             122          (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the
             123      taxable value of property on the assessment roll.
             124          (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the assessment
             125      roll does not include new growth as defined in Subsection (2)(b)(iii).
             126          (iii) "New growth" means:
             127          (A) the difference between the increase in taxable value of the taxing entity from the
             128      previous calendar year to the current year; minus
             129          (B) the amount of an increase in taxable value described in Subsection (2)(b)(iv).
             130          (iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
             131          (A) the amount of increase to locally assessed real property taxable values resulting from
             132      factoring, reappraisal, or any other adjustments; or
             133          (B) the amount of an increase in the taxable value of property assessed by the commission
             134      under Section 59-2-201 resulting from a change in the method of apportioning the taxable value
             135      prescribed by:
             136          (I) the Legislature;
             137          (II) a court;
             138          (III) the commission in an administrative rule; or
             139          (IV) the commission in an administrative order.
             140          (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from uniform
             141      fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a result of
             142      any county imposing a sales and use tax under Chapter 12, Part 11, County Option Sales and Use
             143      Tax, the taxing entity shall decrease its certified tax rate to offset the increased revenues.
             144          (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under Chapter
             145      12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
             146          (A) decreased on a one-time basis by the amount of the estimated sales tax revenue to be
             147      distributed to the county under Subsection 59-12-1102 (3); and
             148          (B) increased by the amount necessary to offset the county's reduction in revenue from
             149      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a


             150      result of the decrease in the certified tax rate under Subsection (2)(d)(i)(A).
             151          (ii) The commission shall determine estimates of sales tax distributions for purposes of
             152      Subsection (2)(d)(i).
             153          (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             154      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             155      decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
             156      revenue from the additional resort communities sales tax imposed under Section 59-12-402 .
             157          (f) For the calendar year beginning on January 1, 1999, and ending on December 31, 1999,
             158      a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the adjustment
             159      in revenues from uniform fees on tangible personal property under Section 59-2-405.1 as a result
             160      of the adjustment in uniform fees on tangible personal property under Section 59-2-405.1 enacted
             161      by the Legislature during the 1998 Annual General Session.
             162          (g) For purposes of Subsections (2)(h) through (j):
             163          (i) "1998 actual collections" means the amount of revenues a taxing entity actually
             164      collected for the calendar year beginning on January 1, 1998, under Section 59-2-405 for:
             165          (A) motor vehicles required to be registered with the state that weigh 12,000 pounds or
             166      less; and
             167          (B) state-assessed commercial vehicles required to be registered with the state that weigh
             168      12,000 pounds or less.
             169          (ii) "1999 actual collections" means the amount of revenues a taxing entity actually
             170      collected for the calendar year beginning on January 1, 1999, under Section 59-2-405.1 .
             171          (h) For the calendar year beginning on January 1, 2000, the commission shall make the
             172      following adjustments:
             173          (i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for the
             174      calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater
             175      than the sum of:
             176          (A) the taxing entity's 1999 actual collections; and
             177          (B) any adjustments the commission made under Subsection (2)(f);
             178          (ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for the
             179      calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater
             180      than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual collections were


             181      less than the sum of:
             182          (A) the taxing entity's 1999 actual collections; and
             183          (B) any adjustments the commission made under Subsection (2)(f); and
             184          (iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for
             185      the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were less
             186      than the taxing entity's 1999 actual collections.
             187          (i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing entity's
             188      certified tax rate under this section and a taxing entity's certified revenue levy under Section
             189      59-2-906.1 by the amount necessary to offset the difference between:
             190          (A) the taxing entity's 1998 actual collections; and
             191          (B) the sum of:
             192          (I) the taxing entity's 1999 actual collections; and
             193          (II) any adjustments the commission made under Subsection (2)(f).
             194          (ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing entity's
             195      certified tax rate under this section and a taxing entity's certified revenue levy under Section
             196      59-2-906.1 by the amount necessary to offset the difference between:
             197          (A) the sum of:
             198          (I) the taxing entity's 1999 actual collections; and
             199          (II) any adjustments the commission made under Subsection (2)(f); and
             200          (B) the taxing entity's 1998 actual collections.
             201          (iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing entity's
             202      certified tax rate under this section and a taxing entity's certified revenue levy under Section
             203      59-2-906.1 by the amount of any adjustments the commission made under Subsection (2)(f).
             204          (j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
             205      purposes of Subsections (2)(f) through (i), the commission may make rules establishing the method
             206      for determining a taxing entity's 1998 actual collections and 1999 actual collections.
             207          (k) (i) (A) For fiscal year 2000, the certified tax rate of each county [to which] required
             208      under Subsection [ 17-34-3 (4)(a) applies] 17-34-1 (3)(a) to provide advanced life support and
             209      paramedic services to the unincorporated area of the county shall be decreased by the amount
             210      necessary to reduce revenues in that fiscal year by an amount equal to the difference between the
             211      amount the county budgeted in its 2000 fiscal year budget for advanced life support and paramedic


             212      services countywide and the amount the county spent during fiscal year 2000 for those services,
             213      excluding amounts spent from a municipal services fund for those services.
             214          (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
             215      [ 17-34-3 (4)(a)] (2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues
             216      in that fiscal year by the amount that the county spent during fiscal year 2000 for advanced life
             217      support and paramedic services countywide, excluding amounts spent from a municipal services
             218      fund for those services.
             219          (ii) (A) [For fiscal year 2001, a] A city or town located within a county of the first class
             220      to which Subsection [ 17-34-3 (4)(a)] (2)(k)(i) applies may increase its certified tax rate by the
             221      amount necessary to generate within the city or town the same amount of revenues as the county
             222      would collect from that city or town if the decrease under Subsection (2)(k)(i) did not occur.
             223          (B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal year
             224      or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
             225      Sections 59-2-918 and 59-2-919 .
             226          (l) (i) The certified tax rate of each county required under Subsection 17-34-1 (3)(b) to
             227      provide detective investigative services to the unincorporated area of the county shall be decreased:
             228          (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year by
             228a      h AT LEAST h
             229      $4,400,000; and
             230          (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year by
             231      h [ $4,858,412 ] AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN $9,258,412 AND THE AMOUNT
             231a      OF THE REDUCTION IN REVENUES UNDER SUBSECTION (2)(I)(i)(A) h .
             232          (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             233      county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within
             234      the city or town the same amount of revenue as the county would have collected during county
             235      fiscal year 2001from within the city or town except for Subsection (2)(l)(i)(A).
             236          (I) Beginning with municipal fiscal year 2003, a city or town located within a county to
             237      which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the city or
             238      town the same amount of revenue as the county would have collected during county fiscal year
             239      2002 from within the city or town except for Subsection (2)(l)(i)(B).
             240          (B) S [ An ] (I) EXCEPT AS PROVIDED IN SUBSECTION (2)(l)(ii)(B)(II), AN s
             240a      increase in the city or town's certified tax rate under Subsection (2)(l)(ii)(A),
             241      whether occurring in a single fiscal year or spread over multiple fiscal years, is S [ not exempt
             241a      from
] SUBJECT TO s
the
             242      notice and hearing requirements of Sections 59-2-918 and 59-2-919 .
             242a      S     (II) FOR AN INCREASE UNDER THIS SUBSECTION (2)(l)(ii) THAT GENERATES REVENUE s


             242b      S THAT DOES NOT EXCEED THE SAME AMOUNT OF REVENUE AS THE COUNTY WOULD HAVE
             242c      COLLECTED EXCEPT FOR SUBSECTION (2)(l)(i) h (B) h , THE REQUIREMENTS OF SECTIONS
             242c1      59-2-918
             242d      AND 59-2-919 DO NOT APPLY IF THE CITY OR TOWN:
             242e          (aa) PUBLISHES A NOTICE THAT MEETS THE SIZE, TYPE, PLACEMENT, AND FREQUENCY
             242f      REQUIREMENTS OF SECTION 59-2-919, REFLECTS THAT THE INCREASE IS A SHIFT OF A TAX
             242g      FROM
             242g      ONE IMPOSED BY THE COUNTY TO ONE IMPOSED BY THE CITY OR TOWN, AND EXPLAINS HOW
             242h      THE REVENUES FROM THE TAX INCREASE WILL BE USED; AND
             242i          (bb) HOLDS A PUBLIC HEARING ON THE TAX SHIFT THAT MAY BE HELD IN CONJUNCTION
             242j      WITH THE CITY OR TOWN'S REGULAR BUDGET HEARING. s


             243          (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             244          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             245      auditor of:
             246          (i) its intent to exceed the certified tax rate; and
             247          (ii) the amount by which it proposes to exceed the certified tax rate.
             248          (c) The county auditor shall notify all property owners of any intent to exceed the certified
             249      tax rate in accordance with Subsection 59-2-919 (2).
             250          (4) (a) The taxable value for the base year under Subsection 17A-2-1247 (2)(a) or
             251      17A-2-1202 (2), as the case may be, shall be reduced for any year to the extent necessary to provide
             252      a redevelopment agency established under Title 17A, Chapter 2, Part 12, Utah Neighborhood
             253      Development Act, with approximately the same amount of money the agency would have received
             254      without a reduction in the county's certified tax rate if:
             255          (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             256      (2)(d)(i);
             257          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             258      previous year; and
             259          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             260      Section 17A-2-1247 or 17A-2-1247.5 .
             261          (b) The taxable value of the base year under Subsection 17A-2-1247 (2)(a) or
             262      17A-2-1202 (2), as the case may be, shall be increased in any year to the extent necessary to
             263      provide a redevelopment agency with approximately the same amount of money as the agency
             264      would have received without an increase in the certified tax rate that year if:
             265          (i) in that year the taxable value for the base year under Subsection 17A-2-1247 (2) or
             266      17A-2-1202 (2) is reduced due to a decrease in the certified tax rate under Subsection (2)(c) or
             267      (2)(d)(i); and
             268          (ii) The certified tax rate of a city, school district, or special district increases independent
             269      of the adjustment to the taxable value of the base year.
             270          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i),
             271      the amount of money allocated and, when collected, paid each year to a redevelopment agency
             272      established under Title 17A, Chapter 2, Part 12, Utah Neighborhood Development Act, for the
             273      payment of bonds or other contract indebtedness, but not for administrative costs, may not be less


             274      than that amount would have been without a decrease in the certified tax rate under Subsection
             275      (2)(c) or (2)(d)(i).


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