Second Substitute H.B. 111

Representative John Dougall proposes the following substitute bill:

1 PERSONAL PROPERTY - CERTIFIED TAX
2 RATE AMENDMENTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: John Dougall
6 Senate Sponsor: Wayne L. Niederhauser
7
8 LONG TITLE
9 General Description:
10 This bill amends the Minimum School Program Act and the Property Tax Act relating
11 to personal property and the calculation of the certified revenue levy and the certified
12 tax rate.
13 Highlighted Provisions:
14 This bill:
15 . defines terms;
16 . eliminates certain personal property from the calculation of the certified revenue
17 levy;
18 . eliminates certain personal property from the certified tax rate calculation;
19 . modifies the calculation of the certified tax rate; and
20 . makes technical changes.
21 Monies Appropriated in this Bill:
22 None
23 Other Special Clauses:
24 This bill provides for retrospective operation.
25 Utah Code Sections Affected:

26 AMENDS:
27 53A-17a-103, as last amended by Chapter 354, Laws of Utah 2006
28 59-2-102, as last amended by Chapters 223 and 249, Laws of Utah 2006
29 59-2-913, as last amended by Chapter 105, Laws of Utah 2006
30 59-2-924, as last amended by Chapters 26, 105 and 359, Laws of Utah 2006
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 53A-17a-103 is amended to read:
34 53A-17a-103. Definitions.
35 As used in this chapter:
36 (1) "Basic state-supported school program" or "basic program" means public education
37 programs for kindergarten, elementary, and secondary school students that are operated and
38 maintained for the amount derived by multiplying the number of weighted pupil units for each
39 district by $2,417, except as otherwise provided in this chapter.
40 (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
41 ad valorem property tax revenue equal to the sum of:
42 [(a)] (i) the amount of ad valorem property tax revenue to be generated statewide in the
43 previous year from imposing a minimum basic tax rate, as specified in Subsection
44 53A-17a-135 (1)(a); and
45 [(b)] (ii) the product of:
46 [(i)] (A) new growth, as defined in Section 59-2-924 and rules of the State Tax
47 Commission; and
48 [(ii)] (B) the minimum basic tax rate certified by the State Tax Commission for the
49 previous year.
50 (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
51 include property tax revenue received statewide from personal property that is:
52 (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
53 Assessment; and
54 (ii) semiconductor manufacturing equipment.
55 (3) "Leeway program" or "leeway" means a state-supported voted leeway program or
56 board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .

57 (4) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
58 (5) (a) "State-supported minimum school program" or "minimum school program"
59 means public school programs for kindergarten, elementary, and secondary schools as
60 described in this Subsection (5).
61 (b) The minimum school program established in the districts shall include the
62 equivalent of a school term of nine months as determined by the State Board of Education.
63 (c) (i) The board shall establish the number of days or equivalent instructional hours
64 that school is held for an academic school year.
65 (ii) Education, enhanced by utilization of technologically enriched delivery systems,
66 when approved by local school boards, shall receive full support by the State Board of
67 Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
68 commercial advertising.
69 (d) The program includes the total of the following annual costs:
70 (i) the cost of a basic state-supported school program; and
71 (ii) other amounts appropriated in this chapter in addition to the basic program.
72 (6) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
73 factors that is computed in accordance with this chapter for the purpose of determining the
74 costs of a program on a uniform basis for each district.
75 Section 2. Section 59-2-102 is amended to read:
76 59-2-102. Definitions.
77 As used in this chapter and title:
78 (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
79 engaging in dispensing activities directly affecting agriculture or horticulture with an
80 airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
81 rotorcraft's use for agricultural and pest control purposes.
82 (2) "Air charter service" means an air carrier operation which requires the customer to
83 hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
84 trip.
85 (3) "Air contract service" means an air carrier operation available only to customers
86 who engage the services of the carrier through a contractual agreement and excess capacity on
87 any trip and is not available to the public at large.

88 (4) "Aircraft" is as defined in Section 72-10-102 .
89 (5) "Airline" means any air carrier operating interstate routes on a scheduled basis
90 which offers to fly passengers or cargo on the basis of available capacity on regularly scheduled
91 routes.
92 (6) "Assessment roll" means a permanent record of the assessment of property as
93 assessed by the county assessor and the commission and may be maintained manually or as a
94 computerized file as a consolidated record or as multiple records by type, classification, or
95 categories.
96 (7) (a) "Certified revenue levy" means a property tax levy that provides the same
97 amount of ad valorem property tax revenue as was collected for the prior year, plus new
98 growth, but exclusive of revenue from collections from redemptions, interest, and penalties.
99 (b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
100 include property tax revenue received by a taxing entity from personal property that is:
101 (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
102 (ii) semiconductor manufacturing equipment.
103 (8) "County-assessed commercial vehicle" means:
104 (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
105 Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
106 property in furtherance of the owner's commercial enterprise;
107 (b) any passenger vehicle owned by a business and used by its employees for
108 transportation as a company car or vanpool vehicle; and
109 (c) vehicles which are:
110 (i) especially constructed for towing or wrecking, and which are not otherwise used to
111 transport goods, merchandise, or people for compensation;
112 (ii) used or licensed as taxicabs or limousines;
113 (iii) used as rental passenger cars, travel trailers, or motor homes;
114 (iv) used or licensed in this state for use as ambulances or hearses;
115 (v) especially designed and used for garbage and rubbish collection; or
116 (vi) used exclusively to transport students or their instructors to or from any private,
117 public, or religious school or school activities.
118 (9) (a) Except as provided in Subsection (9)(b), for purposes of Section 59-2-801 ,

119 "designated tax area" means a tax area created by the overlapping boundaries of only the
120 following taxing entities:
121 (i) a county; and
122 (ii) a school district.
123 (b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
124 by the overlapping boundaries of:
125 (i) the taxing entities described in Subsection (9)(a); and
126 (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
127 and the boundaries of the city or town are identical; or
128 (B) a special service district if the boundaries of the school district under Subsection
129 (9)(a) are located entirely within the special service district.
130 (10) "Eligible judgment" means a final and unappealable judgment or order under
131 Section 59-2-1330 :
132 (a) that became a final and unappealable judgment or order no more than 14 months
133 prior to the day on which the notice required by Subsection 59-2-919 (4) is required to be
134 mailed; and
135 (b) for which a taxing entity's share of the final and unappealable judgment or order is
136 greater than or equal to the lesser of:
137 (i) $5,000; or
138 (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
139 previous fiscal year.
140 (11) (a) "Escaped property" means any property, whether personal, land, or any
141 improvements to the property, subject to taxation and is:
142 (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
143 to the wrong taxpayer by the assessing authority;
144 (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
145 comply with the reporting requirements of this chapter; or
146 (iii) undervalued because of errors made by the assessing authority based upon
147 incomplete or erroneous information furnished by the taxpayer.
148 (b) Property which is undervalued because of the use of a different valuation
149 methodology or because of a different application of the same valuation methodology is not

150 "escaped property."
151 (12) "Fair market value" means the amount at which property would change hands
152 between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
153 and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
154 market value" shall be determined using the current zoning laws applicable to the property in
155 question, except in cases where there is a reasonable probability of a change in the zoning laws
156 affecting that property in the tax year in question and the change would have an appreciable
157 influence upon the value.
158 (13) "Farm machinery and equipment," for purposes of the exemption provided under
159 Section 59-2-1101 , means tractors, milking equipment and storage and cooling facilities, feed
160 handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
161 tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
162 equipment used primarily for agricultural purposes; but does not include vehicles required to be
163 registered with the Motor Vehicle Division or vehicles or other equipment used for business
164 purposes other than farming.
165 (14) "Geothermal fluid" means water in any form at temperatures greater than 120
166 degrees centigrade naturally present in a geothermal system.
167 (15) "Geothermal resource" means:
168 (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
169 and
170 (b) the energy, in whatever form, including pressure, present in, resulting from, created
171 by, or which may be extracted from that natural heat, directly or through a material medium.
172 (16) (a) "Goodwill" means:
173 (i) acquired goodwill that is reported as goodwill on the books and records:
174 (A) of a taxpayer; and
175 (B) that are maintained for financial reporting purposes; or
176 (ii) the ability of a business to:
177 (A) generate income that exceeds a normal rate of return on assets; or
178 (B) obtain an economic or competitive advantage resulting from:
179 (I) superior management skills;
180 (II) reputation;

181 (III) customer relationships;
182 (IV) patronage; or
183 (V) a factor similar to Subsections (16)(a)(ii)(B)(I) through (IV).
184 (b) "Goodwill" does not include:
185 (i) the intangible property described in Subsection (19)(a) or (b);
186 (ii) locational attributes of real property, including:
187 (A) zoning;
188 (B) location;
189 (C) view;
190 (D) a geographic feature;
191 (E) an easement;
192 (F) a covenant;
193 (G) proximity to raw materials;
194 (H) the condition of surrounding property; or
195 (I) proximity to markets;
196 (iii) value attributable to the identification of an improvement to real property,
197 including:
198 (A) reputation of the designer, builder, or architect of the improvement;
199 (B) a name given to, or associated with, the improvement; or
200 (C) the historic significance of an improvement; or
201 (iv) the enhancement or assemblage value specifically attributable to the interrelation
202 of the existing tangible property in place working together as a unit.
203 (17) (a) For purposes of Section 59-2-103 :
204 (i) "household" means the association of persons who live in the same dwelling,
205 sharing its furnishings, facilities, accommodations, and expenses; and
206 (ii) "household" includes married individuals, who are not legally separated, that have
207 established domiciles at separate locations within the state.
208 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
209 commission may make rules defining the term "domicile."
210 (18) (a) Except as provided in Subsection (18)(c), "improvement" means a building,
211 structure, fixture, fence, or other item that is permanently attached to land, regardless of

212 whether the title has been acquired to the land, if:
213 (i) (A) attachment to land is essential to the operation or use of the item; and
214 (B) the manner of attachment to land suggests that the item will remain attached to the
215 land in the same place over the useful life of the item; or
216 (ii) removal of the item would:
217 (A) cause substantial damage to the item; or
218 (B) require substantial alteration or repair of a structure to which the item is attached.
219 (b) "Improvement" includes:
220 (i) an accessory to an item described in Subsection (18)(a) if the accessory is:
221 (A) essential to the operation of the item described in Subsection (18)(a); and
222 (B) installed solely to serve the operation of the item described in Subsection (18)(a);
223 and
224 (ii) an item described in Subsection (18)(a) that:
225 (A) is temporarily detached from the land for repairs; and
226 (B) remains located on the land.
227 (c) Notwithstanding Subsections (18)(a) and (b), "improvement" does not include:
228 (i) an item considered to be personal property pursuant to rules made in accordance
229 with Section 59-2-107 ;
230 (ii) a moveable item that is attached to land:
231 (A) for stability only; or
232 (B) for an obvious temporary purpose;
233 (iii) (A) manufacturing equipment and machinery; or
234 (B) essential accessories to manufacturing equipment and machinery;
235 (iv) an item attached to the land in a manner that facilitates removal without substantial
236 damage to:
237 (A) the land; or
238 (B) the item; or
239 (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
240 transportable factory-built housing unit is considered to be personal property under Section
241 59-2-1503 .
242 (19) "Intangible property" means:

243 (a) property that is capable of private ownership separate from tangible property,
244 including:
245 (i) moneys;
246 (ii) credits;
247 (iii) bonds;
248 (iv) stocks;
249 (v) representative property;
250 (vi) franchises;
251 (vii) licenses;
252 (viii) trade names;
253 (ix) copyrights; and
254 (x) patents;
255 (b) a low-income housing tax credit; or
256 (c) goodwill.
257 (20) "Low-income housing tax credit" means:
258 (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
259 or
260 (b) a low-income housing tax credit under:
261 (i) Section 59-7-607 ; or
262 (ii) Section 59-10-1010 .
263 (21) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
264 (22) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
265 valuable mineral.
266 (23) "Mining" means the process of producing, extracting, leaching, evaporating, or
267 otherwise removing a mineral from a mine.
268 (24) (a) "Mobile flight equipment" means tangible personal property that is:
269 (i) owned or operated by an:
270 (A) air charter service;
271 (B) air contract service; or
272 (C) airline; and
273 (ii) (A) capable of flight;

274 (B) attached to an aircraft that is capable of flight; or
275 (C) contained in an aircraft that is capable of flight if the tangible personal property is
276 intended to be used:
277 (I) during multiple flights;
278 (II) during a takeoff, flight, or landing; and
279 (III) as a service provided by an air charter service, air contract service, or airline.
280 (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
281 engine that is rotated:
282 (A) at regular intervals; and
283 (B) with an engine that is attached to the aircraft.
284 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
285 the commission may make rules defining the term "regular intervals."
286 (25) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
287 sand, rock, gravel, and all carboniferous materials.
288 (26) "Personal property" includes:
289 (a) every class of property as defined in Subsection (27) which is the subject of
290 ownership and not included within the meaning of the terms "real estate" and "improvements";
291 (b) gas and water mains and pipes laid in roads, streets, or alleys;
292 (c) bridges and ferries;
293 (d) livestock which, for the purposes of the exemption provided under Section
294 59-2-1112 , means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
295 (e) outdoor advertising structures as defined in Section 72-7-502 .
296 (27) (a) "Property" means property that is subject to assessment and taxation according
297 to its value.
298 (b) "Property" does not include intangible property as defined in this section.
299 (28) "Public utility," for purposes of this chapter, means the operating property of a
300 railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
301 company, electrical corporation, telephone corporation, sewerage corporation, or heat
302 corporation where the company performs the service for, or delivers the commodity to, the
303 public generally or companies serving the public generally, or in the case of a gas corporation
304 or an electrical corporation, where the gas or electricity is sold or furnished to any member or

305 consumers within the state for domestic, commercial, or industrial use. Public utility also
306 means the operating property of any entity or person defined under Section 54-2-1 except water
307 corporations.
308 (29) "Real estate" or "real property" includes:
309 (a) the possession of, claim to, ownership of, or right to the possession of land;
310 (b) all mines, minerals, and quarries in and under the land, all timber belonging to
311 individuals or corporations growing or being on the lands of this state or the United States, and
312 all rights and privileges appertaining to these; and
313 (c) improvements.
314 (30) "Residential property," for the purposes of the reductions and adjustments under
315 this chapter, means any property used for residential purposes as a primary residence. It does
316 not include property used for transient residential use or condominiums used in rental pools.
317 (31) For purposes of Subsection 59-2-801 (1)(e), "route miles" means the number of
318 miles calculated by the commission that is:
319 (a) measured in a straight line by the commission; and
320 (b) equal to the distance between a geographical location that begins or ends:
321 (i) at a boundary of the state; and
322 (ii) where an aircraft:
323 (A) takes off; or
324 (B) lands.
325 (32) (a) "State-assessed commercial vehicle" means:
326 (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
327 to transport passengers, freight, merchandise, or other property for hire; or
328 (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
329 transports the vehicle owner's goods or property in furtherance of the owner's commercial
330 enterprise.
331 (b) "State-assessed commercial vehicle" does not include vehicles used for hire which
332 are specified in Subsection (8)(c) as county-assessed commercial vehicles.
333 (33) "Taxable value" means fair market value less any applicable reduction allowed for
334 residential property under Section 59-2-103 .
335 (34) "Tax area" means a geographic area created by the overlapping boundaries of one

336 or more taxing entities.
337 (35) "Taxing entity" means any county, city, town, school district, special taxing
338 district, or any other political subdivision of the state with the authority to levy a tax on
339 property.
340 (36) "Tax roll" means a permanent record of the taxes charged on property, as extended
341 on the assessment roll and may be maintained on the same record or records as the assessment
342 roll or may be maintained on a separate record properly indexed to the assessment roll. It
343 includes tax books, tax lists, and other similar materials.
344 Section 3. Section 59-2-913 is amended to read:
345 59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
346 statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
347 establishing tax levies -- Format of statement.
348 (1) As used in this section[:], "budgeted property tax revenues" does not include
349 property tax revenue received by a taxing entity from personal property that is:
350 (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
351 (b) semiconductor manufacturing equipment.
352 [(a) "percentage net change in the value of taxable property for the equalization
353 period" means the percentage net change between the taxable value of taxable property:]
354 [(i) (A) on June 8; and]
355 [(B) listed on the assessment roll as reported by the:]
356 [(I) county assessor; and]
357 [(II) county auditor; and]
358 [(ii) (A) on December 31; and]
359 [(B) as reported by the county auditor as a year-end taxable value; and]
360 [(b) "taxable property" means property:]
361 [(i) described in Section 59-2-201 that is assessed by the commission; and]
362 [(ii) described in Section 59-2-301 that is assessed by a county assessor.]
363 (2) (a) The legislative body of each taxing entity shall file a statement as provided in
364 this section with the county auditor of the county in which the taxing entity is located.
365 (b) The auditor shall annually transmit the statement to the commission:
366 (i) before June 22; or

367 (ii) with the approval of the commission, on a subsequent date prior to the date
368 established under Section 59-2-1317 for mailing tax notices.
369 (c) The statement shall contain the amount and purpose of each levy fixed by the
370 legislative body of the taxing entity.
371 (3) For purposes of establishing the levy set for each of a taxing entity's applicable
372 funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
373 the budgeted property tax revenues, specified in a budget which has been adopted and
374 approved prior to setting the levy, by the amount calculated under Subsections
375 59-2-924 (2)(a)(iii)(B)(I) through (III).
376 (4) The format of the statement under this section shall:
377 (a) be determined by the commission; and
378 (b) cite any applicable statutory provisions that:
379 (i) require a specific levy; or
380 (ii) limit the property tax levy for any taxing entity.
381 (5) The commission may require certification that the information submitted on a
382 statement under this section is true and correct.
383 Section 4. Section 59-2-924 is amended to read:
384 59-2-924. Report of valuation of property to county auditor and commission --
385 Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
386 tax rate -- Rulemaking authority -- Adoption of tentative budget.
387 (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to
388 the county auditor and the commission the following statements:
389 (i) a statement containing the aggregate valuation of all taxable property in each taxing
390 entity; and
391 (ii) a statement containing the taxable value of any additional personal property
392 estimated by the county assessor to be subject to taxation in the current year.
393 (b) The county auditor shall, on or before June 8, transmit to the governing body of
394 each taxing entity:
395 (i) the statements described in Subsections (1)(a)(i) and (ii);
396 (ii) an estimate of the revenue from personal property;
397 (iii) the certified tax rate; and

398 (iv) all forms necessary to submit a tax levy request.
399 (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad
400 valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
401 prior year.
402 (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
403 include:
404 (A) collections from redemptions;
405 (B) interest; [and]
406 (C) penalties[.]; and
407 (D) revenue received by a taxing entity from personal property that is:
408 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
409 (II) semiconductor manufacturing equipment.
410 (iii) (A) (I) Except as otherwise provided in [Subsection (2)(a)(v)] this section, the
411 certified tax rate shall be calculated by dividing the ad valorem property tax revenues budgeted
412 for the prior year by the taxing entity by the amount calculated under Subsection (2)(a)(iii)(B).
413 (B) For purposes of Subsection (2)(a)(iii)(A), the legislative body of a taxing entity
414 shall calculate an amount as follows:
415 (I) calculate for the taxing entity the difference between:
416 (Aa) the aggregate taxable value of all property taxed; and
417 (Bb) any redevelopment adjustments for the current calendar year;
418 (II) after making the calculation required by Subsection (2)(a)(iii)(B)(I), calculate an
419 amount determined by increasing or decreasing the amount calculated under Subsection
420 (2)(a)(iii)(B)(I) by the average of the percentage net change in the value of taxable property for
421 the equalization period for the three calendar years immediately preceding the current calendar
422 year;
423 (III) after making the calculation required by Subsection (2)(a)(iii)(B)(II), calculate the
424 product of:
425 (Aa) the amount calculated under Subsection (2)(a)(iii)(B)(II); and
426 (Bb) the percentage of property taxes collected for the five calendar years immediately
427 preceding the current calendar year; and
428 (IV) after making the calculation required by Subsection (2)(a)(iii)(B)(III), calculate an

429 amount determined by subtracting from the amount calculated under Subsection
430 (2)(a)(iii)(B)(III) any new growth as defined in this section:
431 (Aa) within the taxing entity; and
432 (Bb) for the current calendar year.
433 (C) For purposes of Subsection (2)(a)(iii)(B)(I), the aggregate taxable value of all
434 property taxed [includes]:
435 (I) except as provided in Subsection (2)(a)(iii)(C)(II), includes the total taxable value of
436 the real and personal property contained on the tax rolls of the taxing entity; and
437 [(II) the taxable value of any additional personal property estimated by the county
438 assessor to be subject to taxation in the current year.]
439 (II) does not include the total taxable value of personal property contained on the tax
440 rolls of the taxing entity that is:
441 (Aa) assessed by a county assessor in accordance with Part 3, County Assessment; and
442 (Bb) semiconductor manufacturing equipment.
443 (D) For purposes of Subsection (2)(a)(iii)(B)(II), for calendar years beginning on or
444 after January 1, 2007, the value of taxable property does not include the value of personal
445 property that is:
446 (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
447 County Assessment; and
448 (II) semiconductor manufacturing equipment.
449 (E) For purposes of Subsection (2)(a)(iii)(B)(III)(Bb), for calendar years beginning on
450 or after January 1, 2007, the percentage of property taxes collected does not include property
451 taxes collected from personal property that is:
452 (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
453 County Assessment; and
454 (II) semiconductor manufacturing equipment.
455 [(D)] (F) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
456 Act, the commission may prescribe rules for calculating redevelopment adjustments for a
457 calendar year.
458 (iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
459 Act, the commission shall make rules determining the calculation of ad valorem property tax

460 revenues budgeted by a taxing entity.
461 (B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues
462 budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax
463 revenues are calculated for purposes of Section 59-2-913 .
464 (v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v)
465 shall be calculated as follows:
466 (A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified
467 tax rate is zero;
468 (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
469 (I) in a county of the first, second, or third class, the levy imposed for municipal-type
470 services under Sections 17-34-1 and 17-36-9 ; and
471 (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
472 purposes and such other levies imposed solely for the municipal-type services identified in
473 Section 17-34-1 and Subsection 17-36-3 (22); and
474 (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
475 imposed by that section, except that the certified tax rates for the following levies shall be
476 calculated in accordance with Section 59-2-913 and this section:
477 (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
478 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
479 (II) levies to pay for the costs of state legislative mandates or judicial or administrative
480 orders under Section 59-2-906.3 .
481 (vi) (A) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
482 established at that rate which is sufficient to generate only the revenue required to satisfy one
483 or more eligible judgments, as defined in Section 59-2-102 .
484 (B) The ad valorem property tax revenue generated by the judgment levy shall not be
485 considered in establishing the taxing entity's aggregate certified tax rate.
486 (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use
487 the taxable value of property on the assessment roll.
488 (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the
489 assessment roll does not include:
490 (A) new growth as defined in Subsection (2)(b)(iii)[.]; or

491 (B) the total taxable value of personal property contained on the tax rolls of the taxing
492 entity that is:
493 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
494 (II) semiconductor manufacturing equipment.
495 (iii) "New growth" means:
496 (A) the difference between the increase in taxable value of the taxing entity from the
497 previous calendar year to the current year; minus
498 (B) the amount of an increase in taxable value described in Subsection (2)(b)[(iv)](v).
499 (iv) For purposes of Subsection (2)(b)(iii), the taxable value of the taxing entity does
500 not include the taxable value of personal property that is:
501 (A) contained on the tax rolls of the taxing entity if that property is assessed by a
502 county assessor in accordance with Part 3, County Assessment; and
503 (B) semiconductor manufacturing equipment.
504 [(iv)] (v) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
505 (A) the amount of increase to locally assessed real property taxable values resulting
506 from factoring, reappraisal, or any other adjustments; or
507 (B) the amount of an increase in the taxable value of property assessed by the
508 commission under Section 59-2-201 resulting from a change in the method of apportioning the
509 taxable value prescribed by:
510 (I) the Legislature;
511 (II) a court;
512 (III) the commission in an administrative rule; or
513 (IV) the commission in an administrative order.
514 (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
515 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
516 59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
517 12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
518 rate to offset the increased revenues.
519 (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
520 Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
521 (A) decreased on a one-time basis by the amount of the estimated sales and use tax

522 revenue to be distributed to the county under Subsection 59-12-1102 (3); and
523 (B) increased by the amount necessary to offset the county's reduction in revenue from
524 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
525 59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
526 (2)(d)(i)(A).
527 (ii) The commission shall determine estimates of sales and use tax distributions for
528 purposes of Subsection (2)(d)(i).
529 (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
530 communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
531 decreased on a one-time basis by the amount necessary to offset the first 12 months of
532 estimated revenue from the additional resort communities sales and use tax imposed under
533 Section 59-12-402 .
534 [(f) For the calendar year beginning on January 1, 1999, and ending on December 31,
535 1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
536 adjustment in revenues from uniform fees on tangible personal property under Section
537 59-2-405.1 as a result of the adjustment in uniform fees on tangible personal property under
538 Section 59-2-405.1 enacted by the Legislature during the 1998 Annual General Session.]
539 [(g) For purposes of Subsections (2)(h) through (j):]
540 [(i) "1998 actual collections" means the amount of revenues a taxing entity actually
541 collected for the calendar year beginning on January 1, 1998, under Section 59-2-405 for: ]
542 [(A) motor vehicles required to be registered with the state that weigh 12,000 pounds
543 or less; and]
544 [(B) state-assessed commercial vehicles required to be registered with the state that
545 weigh 12,000 pounds or less.]
546 [(ii) "1999 actual collections" means the amount of revenues a taxing entity actually
547 collected for the calendar year beginning on January 1, 1999, under Section 59-2-405.1 .]
548 [(h) For the calendar year beginning on January 1, 2000, the commission shall make
549 the following adjustments:]
550 [(i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for
551 the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were
552 greater than the sum of:]

553 [(A) the taxing entity's 1999 actual collections; and]
554 [(B) any adjustments the commission made under Subsection (2)(f);]
555 [(ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for
556 the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were
557 greater than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual
558 collections were less than the sum of:]
559 [(A) the taxing entity's 1999 actual collections; and]
560 [(B) any adjustments the commission made under Subsection (2)(f); and]
561 [(iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if,
562 for the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections
563 were less than the taxing entity's 1999 actual collections.]
564 [(i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing
565 entity's certified tax rate under this section and a taxing entity's certified revenue levy under
566 Section 59-2-906.1 by the amount necessary to offset the difference between:]
567 [(A) the taxing entity's 1998 actual collections; and]
568 [(B) the sum of:]
569 [(I) the taxing entity's 1999 actual collections; and]
570 [(II) any adjustments the commission made under Subsection (2)(f).]
571 [(ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing
572 entity's certified tax rate under this section and a taxing entity's certified revenue levy under
573 Section 59-2-906.1 by the amount necessary to offset the difference between:]
574 [(A) the sum of:]
575 [(I) the taxing entity's 1999 actual collections; and]
576 [(II) any adjustments the commission made under Subsection (2)(f); and]
577 [(B) the taxing entity's 1998 actual collections.]
578 [(iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing
579 entity's certified tax rate under this section and a taxing entity's certified revenue levy under
580 Section 59-2-906.1 by the amount of any adjustments the commission made under Subsection
581 (2)(f).]
582 [(j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
583 for purposes of Subsections (2)(f) through (i), the commission may make rules establishing the

584 method for determining a taxing entity's 1998 actual collections and 1999 actual collections.]
585 [(k)] (f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
586 Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
587 unincorporated area of the county shall be decreased by the amount necessary to reduce
588 revenues in that fiscal year by an amount equal to the difference between the amount the county
589 budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
590 countywide and the amount the county spent during fiscal year 2000 for those services,
591 excluding amounts spent from a municipal services fund for those services.
592 (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
593 (2)[(k)](f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that
594 fiscal year by the amount that the county spent during fiscal year 2000 for advanced life
595 support and paramedic services countywide, excluding amounts spent from a municipal
596 services fund for those services.
597 (ii) (A) A city or town located within a county of the first class to which Subsection
598 (2)[(k)](f)(i) applies may increase its certified tax rate by the amount necessary to generate
599 within the city or town the same amount of revenues as the county would collect from that city
600 or town if the decrease under Subsection (2)[(k)](f)(i) did not occur.
601 (B) An increase under Subsection (2)[(k)](f)(ii)(A), whether occurring in a single fiscal
602 year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
603 of Sections 59-2-918 and 59-2-919 .
604 [(l)] (g) (i) The certified tax rate of each county required under Subsection
605 17-34-1 (4)(b) to provide detective investigative services to the unincorporated area of the
606 county shall be decreased:
607 (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
608 by at least $4,400,000; and
609 (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
610 by an amount equal to the difference between $9,258,412 and the amount of the reduction in
611 revenues under Subsection (2)[(l)](g)(i)(A).
612 (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
613 county to which Subsection (2)[(l)](g)(i) applies may increase its certified tax rate to generate
614 within the city or town the same amount of revenue as the county would have collected during

615 county fiscal year 2001 from within the city or town except for Subsection (2)[(l)](g)(i)(A).
616 (II) Beginning with municipal fiscal year 2003, a city or town located within a county
617 to which Subsection (2)[(l)](g)(i) applies may increase its certified tax rate to generate within
618 the city or town the same amount of revenue as the county would have collected during county
619 fiscal year 2002 from within the city or town except for Subsection (2)[(l)](g)(i)(B).
620 (B) (I) Except as provided in Subsection (2)[(l)](g)(ii)(B)(II), an increase in the city or
621 town's certified tax rate under Subsection (2)[(l)](g)(ii)(A), whether occurring in a single fiscal
622 year or spread over multiple fiscal years, is subject to the notice and hearing requirements of
623 Sections 59-2-918 and 59-2-919 .
624 (II) For an increase under this Subsection (2)[(l)](g)(ii) that generates revenue that does
625 not exceed the same amount of revenue as the county would have collected except for
626 Subsection (2)[(l)](g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if
627 the city or town:
628 (Aa) publishes a notice that meets the size, type, placement, and frequency
629 requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
630 by the county to one imposed by the city or town, and explains how the revenues from the tax
631 increase will be used; and
632 (Bb) holds a public hearing on the tax shift that may be held in conjunction with the
633 city or town's regular budget hearing.
634 [(m)] (h) (i) This Subsection (2)[(m)](h) applies to each county that:
635 (A) establishes a countywide special service district under Title 17A, Chapter 2, Part
636 13, Utah Special Service District Act, to provide jail service, as provided in Subsection
637 17A-2-1304 (1)(a)(x); and
638 (B) levies a property tax on behalf of the special service district under Section
639 17A-2-1322 .
640 (ii) (A) The certified tax rate of each county to which this Subsection (2)[(m)](h)
641 applies shall be decreased by the amount necessary to reduce county revenues by the same
642 amount of revenues that will be generated by the property tax imposed on behalf of the special
643 service district.
644 (B) Each decrease under Subsection (2)[(m)](h)(ii)(A) shall occur contemporaneously
645 with the levy on behalf of the special service district under Section 17A-2-1322 .

646 [(n)] (i) (i) As used in this Subsection (2)[(n)](i):
647 (A) "Annexing county" means a county whose unincorporated area is included within a
648 fire district by annexation.
649 (B) "Annexing municipality" means a municipality whose area is included within a fire
650 district by annexation.
651 (C) "Equalized fire protection tax rate" means the tax rate that results from:
652 (I) calculating, for each participating county and each participating municipality, the
653 property tax revenue necessary to cover all of the costs associated with providing fire
654 protection, paramedic, and emergency services:
655 (Aa) for a participating county, in the unincorporated area of the county; and
656 (Bb) for a participating municipality, in the municipality; and
657 (II) adding all the amounts calculated under Subsection (2)[(n)](i)(i)(C)(I) for all
658 participating counties and all participating municipalities and then dividing that sum by the
659 aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
660 (Aa) for participating counties, in the unincorporated area of all participating counties;
661 and
662 (Bb) for participating municipalities, in all the participating municipalities.
663 (D) "Fire district" means a county service area under Title 17A, Chapter 2, Part 4,
664 County Service Area Act, in the creation of which an election was not required under
665 Subsection 17B-2-214 (3)(c).
666 (E) "Fire protection tax rate" means:
667 (I) for an annexing county, the property tax rate that, when applied to taxable property
668 in the unincorporated area of the county, generates enough property tax revenue to cover all the
669 costs associated with providing fire protection, paramedic, and emergency services in the
670 unincorporated area of the county; and
671 (II) for an annexing municipality, the property tax rate that generates enough property
672 tax revenue in the municipality to cover all the costs associated with providing fire protection,
673 paramedic, and emergency services in the municipality.
674 (F) "Participating county" means a county whose unincorporated area is included
675 within a fire district at the time of the creation of the fire district.
676 (G) "Participating municipality" means a municipality whose area is included within a

677 fire district at the time of the creation of the fire district.
678 (ii) In the first year following creation of a fire district, the certified tax rate of each
679 participating county and each participating municipality shall be decreased by the amount of
680 the equalized fire protection tax rate.
681 (iii) In the first year following annexation to a fire district, the certified tax rate of each
682 annexing county and each annexing municipality shall be decreased by the fire protection tax
683 rate.
684 (iv) Each tax levied under this section by a fire district shall be considered to be levied
685 by:
686 (A) each participating county and each annexing county for purposes of the county's
687 tax limitation under Section 59-2-908 ; and
688 (B) each participating municipality and each annexing municipality for purposes of the
689 municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
690 city.
691 (j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
692 entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
693 certified tax rate that may result from excluding the following from the certified tax rate under
694 Subsection (2)(a) enacted by the Legislature during the 2007 General Session:
695 (i) personal property tax revenue:
696 (A) received by a taxing entity;
697 (B) assessed by a county assessor in accordance with Part 3, County Assessment; and
698 (C) for personal property that is semiconductor manufacturing equipment; or
699 (ii) the taxable value of personal property:
700 (A) contained on the tax rolls of a taxing entity;
701 (B) assessed by a county assessor in accordance with Part 3, County Assessment; and
702 (C) that is semiconductor manufacturing equipment.
703 (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
704 (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
705 auditor of:
706 (i) its intent to exceed the certified tax rate; and
707 (ii) the amount by which it proposes to exceed the certified tax rate.

708 (c) The county auditor shall notify all property owners of any intent to exceed the
709 certified tax rate in accordance with Subsection 59-2-919 (2).
710 (4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
711 reduced for any year to the extent necessary to provide a community development and renewal
712 agency established under Title 17C, Limited Purpose Local Government Entities - Community
713 Development and Renewal Agencies, with approximately the same amount of money the
714 agency would have received without a reduction in the county's certified tax rate if:
715 (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
716 (2)(d)(i);
717 (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
718 previous year; and
719 (iii) the decrease results in a reduction of the amount to be paid to the agency under
720 Section 17C-1-403 or 17C-1-404 .
721 (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
722 year to the extent necessary to provide a community development and renewal agency with
723 approximately the same amount of money as the agency would have received without an
724 increase in the certified tax rate that year if:
725 (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
726 a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and
727 (ii) The certified tax rate of a city, school district, or special district increases
728 independent of the adjustment to the taxable value of the base year.
729 (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
730 (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
731 development and renewal agency established under Title 17C, Limited Purpose Local
732 Government Entities - Community Development and Renewal Agencies, for the payment of
733 bonds or other contract indebtedness, but not for administrative costs, may not be less than that
734 amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
735 (2)(d)(i).
736 Section 5. Retrospective operation.
737 This bill has retrospective operation to January 1, 2007.