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Second Substitute H.B. 77
Senator Wayne L. Niederhauser proposes the following substitute bill:
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PERSONAL PROPERTY TAX AMENDMENTS
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2008 GENERAL SESSION
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STATE OF UTAH
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Chief Sponsor: John Dougall
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Senate Sponsor:
Wayne L. Niederhauser
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LONG TITLE
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General Description:
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This bill amends the Property Tax Act and the chapter relating to the collection of
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certain personal property taxes and the calculation of the certified tax rate.
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Highlighted Provisions:
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This bill:
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. defines terms;
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. amends the time period within which a county assessor or treasurer is required to
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deposit its collections of personal property tax revenue with the state treasurer or a
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qualified depository for the credit of the state;
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. creates a depreciation schedule for certain classes of taxable tangible personal
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property;
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. allows a person to elect to designate certain taxable tangible personal property as
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"expensed personal property" for valuation and taxing purposes;
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. starting January 1, 2010, requires the Tax Commission to develop a depreciation
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schedule for short life expensed personal property;
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. prohibits a county from requiring a person to itemize the person's expensed personal
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property;
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. amends the date within which a person is required to file a statement with the
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county assessor's office listing the person's real and personal property;
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. eliminates the certified mailing requirement for a county assessor when the county
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assessor notifies a personal property taxpayer that the personal property taxpayer's
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signed statement is past due;
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. amends the formula for the calculation of the certified tax rate;
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. requires the portions of the certified tax rate calculation that relate to personal
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property values to be based on the prior year's personal property values;
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. amends the exemption amount for certain personal property;
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. exempts certain personal property with a residual value of 15% or less from
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taxation;
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. amends the time period within which a personal property tax or uniform fee is due;
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and
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. makes technical changes.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill takes effect on January 1, 2009.
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Utah Code Sections Affected:
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AMENDS:
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17-34-3, as last amended by Laws of Utah 2005, First Special Session, Chapter 9
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17C-1-408, as renumbered and amended by Laws of Utah 2006, Chapter 359
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53A-16-106, as last amended by Laws of Utah 1994, Chapter 12
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53A-17a-103, as last amended by Laws of Utah 2007, Chapters 107 and 372
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53A-17a-133, as last amended by Laws of Utah 2006, Chapter 26
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53A-19-102, as last amended by Laws of Utah 2007, Chapter 92
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53A-19-105, as last amended by Laws of Utah 2003, Chapter 122
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59-2-102, as last amended by Laws of Utah 2007, Chapters 107, 234, and 329
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59-2-306, as last amended by Laws of Utah 2000, Chapter 86
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59-2-307, as last amended by Laws of Utah 2006, Chapter 39
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59-2-908, as last amended by Laws of Utah 1995, Chapter 278
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59-2-913, as last amended by Laws of Utah 2007, Chapter 107
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59-2-914, as last amended by Laws of Utah 1995, Chapter 278
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59-2-918, as last amended by Laws of Utah 2006, Chapters 26 and 104
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59-2-924, as last amended by Laws of Utah 2007, Chapters 107, and 329
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59-2-1115, as last amended by Laws of Utah 2007, Chapter 8
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59-2-1302, as last amended by Laws of Utah 2007, Chapter 306
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59-2-1330, as last amended by Laws of Utah 2002, Chapters 196 and 240
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ENACTS:
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59-2-108, Utah Code Annotated 1953
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59-2-924.2, Utah Code Annotated 1953
66
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
17-34-3
is amended to read:
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17-34-3. Taxes or service charges.
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(1) (a) If a county furnishes the municipal-type services and functions described in
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Section
17-34-1
to areas of the county outside the limits of incorporated cities or towns, the
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entire cost of the services or functions so furnished shall be defrayed from funds that the county
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has derived from:
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(i) taxes that the county may lawfully levy or impose outside the limits of incorporated
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towns or cities;
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(ii) service charges or fees the county may impose upon the persons benefited in any
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way by the services or functions; or
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(iii) a combination of these sources.
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(b) As the taxes or service charges or fees are levied and collected, they shall be placed
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in a special revenue fund of the county and shall be disbursed only for the rendering of the
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services or functions established in Section
17-34-1
within the unincorporated areas of the
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county or as provided in Subsection
10-2-121
(2).
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(2) For the purpose of levying taxes, service charges, or fees provided in this section,
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the county legislative body may establish a district or districts in the unincorporated areas of
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the county.
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(3) Nothing contained in this chapter may be construed to authorize counties to impose
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or levy taxes not otherwise allowed by law.
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[(4) (a) A county required under Subsection
17-34-1
(4) to provide advanced life
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support and paramedic services to the unincorporated area of the county and that previously
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paid for those services through a countywide levy may increase its levy under Subsection
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(1)(a)(i) to generate in the unincorporated area of the county the same amount of revenue as the
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county loses from that area due to the required decrease in the countywide certified tax rate
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under Subsection
59-2-924
(2)(k)(i).]
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[(b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and
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hearing requirements of Sections
59-2-918
and
59-2-919
.]
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[(5)] (4) Notwithstanding any other provision of this chapter, a county providing fire,
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paramedic, and police protection services in a designated recreational area, as provided in
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Subsection
17-34-1
(5), may fund those services from the county general fund with revenues
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derived from both inside and outside the limits of cities and towns, and the funding of those
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services is not limited to unincorporated area revenues.
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Section 2.
Section
17C-1-408
is amended to read:
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17C-1-408. Base taxable value to be adjusted to reflect other changes.
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(1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
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(A) a decrease of more than 20% from the previous tax year's levy; or
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(B) a cumulative decrease over a consecutive five-year period of more than 100% from
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the levy in effect at the beginning of the five-year period.
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(ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
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fifth year of the five-year period.
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(b) If there is a qualifying decrease in the minimum basic school levy under Section
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59-2-902
that would result in a reduction of the amount of tax increment to be paid to an
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agency:
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(i) the base taxable value of taxable property within the project area shall be reduced in
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the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
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agency with approximately the same amount of tax increment that would have been paid to the
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agency each year had the qualifying decrease not occurred; and
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(ii) the amount of tax increment paid to the agency each year for the payment of bonds
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and indebtedness may not be less than what would have been paid to the agency if there had
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been no qualifying decrease.
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(2) (a) The amount of the base taxable value to be used in determining tax increment
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shall be:
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(i) increased or decreased by the amount of an increase or decrease that results from:
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(A) a statute enacted by the Legislature or by the people through an initiative;
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(B) a judicial decision;
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(C) an order from the State Tax Commission to a county to adjust or factor its
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assessment rate under Subsection
59-2-704
(2);
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(D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
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Section
59-2-103
; or
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(E) an increase or decrease in the percentage of fair market value, as defined under
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Section
59-2-102
; and
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(ii) reduced for any year to the extent necessary, even if below zero, to provide an
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agency with approximately the same amount of money the agency would have received without
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a reduction in the county's certified tax rate if:
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(A) in that year there is a decrease in the county's certified tax rate under Subsection
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[
59-2-924
(2)(c) or (d)(i)]
59-2-924.2
(2) or (3)(a);
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(B) the amount of the decrease is more than 20% of the county's certified tax rate of the
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previous year; and
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(C) the decrease would result in a reduction of the amount of tax increment to be paid
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to the agency.
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(b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
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increment paid to an agency each year for payment of bonds or other indebtedness may not be
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less than would have been paid to the agency each year if there had been no increase or
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decrease under Subsection (2)(a).
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Section 3.
Section
53A-16-106
is amended to read:
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53A-16-106. Annual certification of tax rate proposed by local school board --
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Inclusion of school district budget -- Modified filing date.
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(1) Prior to June 22 of each year, each local school board shall certify to the county
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legislative body in which the district is located, on forms prescribed by the State Tax
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Commission, the proposed tax rate approved by the local school board.
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(2) A copy of the district's budget, including items under Section
53A-19-101
, and a
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certified copy of the local school board's resolution which approved the budget and set the tax
151
rate for the subsequent school year beginning July 1 shall accompany the tax rate.
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(3) If the tax rate approved by the board is in excess of the "certified tax rate" as
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defined under Subsection
59-2-924
[(2)](3)(a), the date for filing the tax rate and budget
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adopted by the board shall be that established under Section
59-2-919
.
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Section 4.
Section
53A-17a-103
is amended to read:
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53A-17a-103. Definitions.
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As used in this chapter:
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(1) "Basic state-supported school program" or "basic program" means public education
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programs for kindergarten, elementary, and secondary school students that are operated and
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maintained for the amount derived by multiplying the number of weighted pupil units for each
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district by $2,514, except as otherwise provided in this chapter.
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(2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
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ad valorem property tax revenue equal to the sum of:
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(i) the amount of ad valorem property tax revenue to be generated statewide in the
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previous year from imposing a minimum basic tax rate, as specified in Subsection
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53A-17a-135
(1)(a); and
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(ii) the product of:
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(A) new growth, as defined in:
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(I) Section
59-2-924
; and
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(II) rules of the State Tax Commission; and
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(B) the minimum basic tax rate certified by the State Tax Commission for the previous
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year.
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(b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
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include property tax revenue received statewide from personal property that is:
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(i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
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Assessment; and
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(ii) semiconductor manufacturing equipment.
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(c) For purposes of calculating the certified revenue levy described in this Subsection
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(2), the tax commission shall use:
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(i) the taxable value of real property assessed by a county assessor contained on the
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assessment roll;
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(ii) the taxable value of real and personal property assessed by the commission; and
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(iii) the taxable year end value of personal property assessed by a county assessor
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contained on the prior year's assessment roll.
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(3) "Leeway program" or "leeway" means a state-supported voted leeway program or
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board leeway program authorized under Section
53A-17a-133
or
53A-17a-134
.
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(4) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
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(5) (a) "State-supported minimum school program" or "minimum school program"
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means public school programs for kindergarten, elementary, and secondary schools as
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described in this Subsection (5).
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(b) The minimum school program established in the districts shall include the
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equivalent of a school term of nine months as determined by the State Board of Education.
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(c) (i) The board shall establish the number of days or equivalent instructional hours
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that school is held for an academic school year.
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(ii) Education, enhanced by utilization of technologically enriched delivery systems,
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when approved by local school boards, shall receive full support by the State Board of
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Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
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commercial advertising.
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(d) The program includes the total of the following annual costs:
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(i) the cost of a basic state-supported school program; and
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(ii) other amounts appropriated in this chapter in addition to the basic program.
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(6) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
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factors that is computed in accordance with this chapter for the purpose of determining the
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costs of a program on a uniform basis for each district.
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Section 5.
Section
53A-17a-133
is amended to read:
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53A-17a-133. State-supported voted leeway program authorized -- Election
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requirements -- State guarantee -- Reconsideration of the program.
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(1) An election to consider adoption or modification of a voted leeway program is
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required if initiative petitions signed by 10% of the number of electors who voted at the last
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preceding general election are presented to the local school board or by action of the board.
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(2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
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voting at an election in the manner set forth in Section
53A-16-110
must vote in favor of a
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special tax.
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(ii) The tax rate may not exceed .002 per dollar of taxable value.
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(b) The district may maintain a school program which exceeds the cost of the program
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referred to in Section
53A-17a-145
with this voted leeway.
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(c) In order to receive state support the first year, a district must receive voter approval
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no later than December 1 of the year prior to implementation.
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(3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
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to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
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taxable value.
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(b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
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of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
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in Section
53A-17a-134
, so that the guarantee shall apply up to a total of .002 per dollar of
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taxable value if a school district levies a tax rate under both programs.
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(c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
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shall be indexed each year to the value of the weighted pupil unit by making the value of the
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guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
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(ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
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pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
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the prior year's weighted pupil unit.
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(d) (i) The amount of state guarantee money to which a school district would otherwise
233
be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
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levy is reduced as a consequence of changes in the certified tax rate under Section
59-2-924
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pursuant to changes in property valuation.
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(ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
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the certified tax rate.
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(4) (a) An election to modify an existing voted leeway program is not a reconsideration
239
of the existing program unless the proposition submitted to the electors expressly so states.
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(b) A majority vote opposing a modification does not deprive the district of authority to
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continue an existing program.
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(c) If adoption of a leeway program is contingent upon an offset reducing other local
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school board levies, the board must allow the electors, in an election, to consider modifying or
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discontinuing the program prior to a subsequent increase in other levies that would increase the
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total local school board levy.
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(d) Nothing contained in this section terminates, without an election, the authority of a
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school district to continue an existing voted leeway program previously authorized by the
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voters.
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(5) Notwithstanding Section
59-2-918
, a school district may budget an increased
250
amount of ad valorem property tax revenue derived from a voted leeway imposed under this
251
section in addition to revenue from new growth as defined in Subsection
59-2-924
[(2)](4),
252
without having to comply with the advertisement requirements of Section
59-2-918
, if the
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voted leeway is approved:
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(a) in accordance with Section
53A-16-110
on or after January 1, 2003; and
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(b) within the four-year period immediately preceding the year in which the school
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district seeks to budget an increased amount of ad valorem property tax revenue derived from
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the voted leeway.
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(6) Notwithstanding Section
59-2-919
, a school district may levy a tax rate under this
259
section that exceeds the certified tax rate without having to comply with the advertisement
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requirements of Section
59-2-919
if:
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(a) the levy exceeds the certified tax rate as the result of a school district budgeting an
262
increased amount of ad valorem property tax revenue derived from a voted leeway imposed
263
under this section; and
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(b) if the voted leeway was approved:
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(i) in accordance with Section
53A-16-110
on or after January 1, 2003; and
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(ii) within the four-year period immediately preceding the year in which the school
267
district seeks to budget an increased amount of ad valorem property tax revenue derived from
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the voted leeway.
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Section 6.
Section
53A-19-102
is amended to read:
270
53A-19-102. Local school boards budget procedures.
271
(1) Prior to June 22 of each year, each local school board shall adopt a budget and
272
make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
273
certified tax rate defined in [Subsection] Section
59-2-924
[(2)], the board shall comply with
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Sections
59-2-918
and
59-2-919
in adopting the budget, except as provided by Section
275
53A-17a-133
.
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(2) Prior to the adoption of a budget containing a tax rate which does not exceed the
277
certified tax rate, the board shall hold a public hearing, as defined in Section
10-9a-103
, on the
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proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
279
Act, in regards to the hearing, the board shall do the following:
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(a) publish the required newspaper notice at least ten days prior to the hearing; and
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(b) file a copy of the proposed budget with the board's business administrator for public
282
inspection at least ten days prior to the hearing.
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(3) The board shall file a copy of the adopted budget with the state auditor and the
284
State Board of Education.
285
Section 7.
Section
53A-19-105
is amended to read:
286
53A-19-105. School district interfund transfers.
287
(1) A school district shall spend revenues only within the fund for which they were
288
originally authorized, levied, collected, or appropriated.
289
(2) Except as otherwise provided in this section, school district interfund transfers of
290
residual equity are prohibited.
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(3) The State Board of Education may authorize school district interfund transfers of
292
residual equity when a district states its intent to create a new fund or expand, contract, or
293
liquidate an existing fund.
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(4) The State Board of Education may also authorize school district interfund transfers
295
of residual equity for a financially distressed district if the board determines the following:
296
(a) the district has a significant deficit in its maintenance and operations fund caused
297
by circumstances not subject to the administrative decisions of the district;
298
(b) the deficit cannot be reasonably reduced under Section
53A-19-104
; and
299
(c) without the transfer, the school district will not be capable of meeting statewide
300
educational standards adopted by the State Board of Education.
301
(5) The board shall develop standards for defining and aiding financially distressed
302
school districts under this section in accordance with Title 63, Chapter 46a, Utah
303
Administrative Rulemaking Act.
304
(6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
305
and reported in the debt service fund.
306
(b) Debt service levies under Subsection
59-2-924
[(2)(a)(v)(C)](3)(e)(iii) that are not
307
subject to the certified tax rate hearing requirements of Sections
59-2-918
and
59-2-919
may
308
not be used for any purpose other than retiring general obligation debt.
309
(c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
310
year shall be used in subsequent years for general obligation debt retirement.
311
(d) Any amounts left in the debt service fund after all general obligation debt has been
312
retired may be transferred to the capital projects fund upon completion of the budgetary hearing
313
process required under Section
53A-19-102
.
314
Section 8.
Section
59-2-102
is amended to read:
315
59-2-102. Definitions.
316
As used in this chapter and title:
317
(1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
318
engaging in dispensing activities directly affecting agriculture or horticulture with an
319
airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
320
rotorcraft's use for agricultural and pest control purposes.
321
(2) "Air charter service" means an air carrier operation which requires the customer to
322
hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
323
trip.
324
(3) "Air contract service" means an air carrier operation available only to customers
325
who engage the services of the carrier through a contractual agreement and excess capacity on
326
any trip and is not available to the public at large.
327
(4) "Aircraft" is as defined in Section
72-10-102
.
328
(5) "Airline" means any air carrier operating interstate routes on a scheduled basis
329
which offers to fly passengers or cargo on the basis of available capacity on regularly scheduled
330
routes.
331
(6) "Assessment roll" means a permanent record of the assessment of property as
332
assessed by the county assessor and the commission and may be maintained manually or as a
333
computerized file as a consolidated record or as multiple records by type, classification, or
334
categories.
335
(7) (a) "Certified revenue levy" means a property tax levy that provides [the same
336
amount of ad valorem property tax revenue as was collected for the prior year, plus new
337
growth, but exclusive of revenue from collections from redemptions, interest, and penalties.] an
338
amount of ad valorem property tax revenue equal to the sum of:
339
(i) the amount of ad valorem property tax revenue to be generated statewide in the
340
previous year from imposing a minimum basic tax rate, as specified in Subsection
341
53A-17a-135
(1)(a); and
342
(ii) the product of:
343
(A) new growth, as defined in:
344
(I) Section
59-2-924
; and
345
(II) rules of the commission; and
346
(B) the minimum basic tax rate certified by the commission for the previous year.
347
(b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
348
include property tax revenue received by a taxing entity from personal property that is:
349
(i) assessed by a county assessor in accordance with Part 3, County Assessment; and
350
(ii) semiconductor manufacturing equipment.
351
(c) For purposes of calculating the certified revenue levy described in this Subsection
352
(7), the commission shall use:
353
(i) the taxable value of real property assessed by a county assessor contained on the
354
assessment roll;
355
(ii) the taxable value of real and personal property assessed by the commission; and
356
(iii) the taxable year end value of personal property assessed by a county assessor
357
contained on the prior year's assessment roll.
358
(8) "County-assessed commercial vehicle" means:
359
(a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
360
Section
41-1a-301
and is not operated interstate to transport the vehicle owner's goods or
361
property in furtherance of the owner's commercial enterprise;
362
(b) any passenger vehicle owned by a business and used by its employees for
363
transportation as a company car or vanpool vehicle; and
364
(c) vehicles which are:
365
(i) especially constructed for towing or wrecking, and which are not otherwise used to
366
transport goods, merchandise, or people for compensation;
367
(ii) used or licensed as taxicabs or limousines;
368
(iii) used as rental passenger cars, travel trailers, or motor homes;
369
(iv) used or licensed in this state for use as ambulances or hearses;
370
(v) especially designed and used for garbage and rubbish collection; or
371
(vi) used exclusively to transport students or their instructors to or from any private,
372
public, or religious school or school activities.
373
(9) (a) Except as provided in Subsection (9)(b), for purposes of Section
59-2-801
,
374
"designated tax area" means a tax area created by the overlapping boundaries of only the
375
following taxing entities:
376
(i) a county; and
377
(ii) a school district.
378
(b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
379
by the overlapping boundaries of:
380
(i) the taxing entities described in Subsection (9)(a); and
381
(ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
382
and the boundaries of the city or town are identical; or
383
(B) a special service district if the boundaries of the school district under Subsection
384
(9)(a) are located entirely within the special service district.
385
(10) "Eligible judgment" means a final and unappealable judgment or order under
386
Section
59-2-1330
:
387
(a) that became a final and unappealable judgment or order no more than 14 months
388
prior to the day on which the notice required by Subsection
59-2-919
(4) is required to be
389
mailed; and
390
(b) for which a taxing entity's share of the final and unappealable judgment or order is
391
greater than or equal to the lesser of:
392
(i) $5,000; or
393
(ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
394
previous fiscal year.
395
(11) (a) "Escaped property" means any property, whether personal, land, or any
396
improvements to the property, subject to taxation and is:
397
(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
398
to the wrong taxpayer by the assessing authority;
399
(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
400
comply with the reporting requirements of this chapter; or
401
(iii) undervalued because of errors made by the assessing authority based upon
402
incomplete or erroneous information furnished by the taxpayer.
403
(b) Property which is undervalued because of the use of a different valuation
404
methodology or because of a different application of the same valuation methodology is not
405
"escaped property."
406
(12) "Fair market value" means the amount at which property would change hands
407
between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
408
and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
409
market value" shall be determined using the current zoning laws applicable to the property in
410
question, except in cases where there is a reasonable probability of a change in the zoning laws
411
affecting that property in the tax year in question and the change would have an appreciable
412
influence upon the value.
413
(13) "Farm machinery and equipment," for purposes of the exemption provided under
414
Section
59-2-1101
, means tractors, milking equipment and storage and cooling facilities, feed
415
handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
416
tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
417
equipment used primarily for agricultural purposes; but does not include vehicles required to be
418
registered with the Motor Vehicle Division or vehicles or other equipment used for business
419
purposes other than farming.
420
(14) "Geothermal fluid" means water in any form at temperatures greater than 120
421
degrees centigrade naturally present in a geothermal system.
422
(15) "Geothermal resource" means:
423
(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
424
and
425
(b) the energy, in whatever form, including pressure, present in, resulting from, created
426
by, or which may be extracted from that natural heat, directly or through a material medium.
427
(16) (a) "Goodwill" means:
428
(i) acquired goodwill that is reported as goodwill on the books and records:
429
(A) of a taxpayer; and
430
(B) that are maintained for financial reporting purposes; or
431
(ii) the ability of a business to:
432
(A) generate income:
433
(I) that exceeds a normal rate of return on assets; and
434
(II) resulting from a factor described in Subsection (16)(b); or
435
(B) obtain an economic or competitive advantage resulting from a factor described in
436
Subsection (16)(b).
437
(b) The following factors apply to Subsection (16)(a)(ii):
438
(i) superior management skills;
439
(ii) reputation;
440
(iii) customer relationships;
441
(iv) patronage; or
442
(v) a factor similar to Subsections (16)(b)(i) through (iv).
443
(c) "Goodwill" does not include:
444
(i) the intangible property described in Subsection (20)(a) or (b);
445
(ii) locational attributes of real property, including:
446
(A) zoning;
447
(B) location;
448
(C) view;
449
(D) a geographic feature;
450
(E) an easement;
451
(F) a covenant;
452
(G) proximity to raw materials;
453
(H) the condition of surrounding property; or
454
(I) proximity to markets;
455
(iii) value attributable to the identification of an improvement to real property,
456
including:
457
(A) reputation of the designer, builder, or architect of the improvement;
458
(B) a name given to, or associated with, the improvement; or
459
(C) the historic significance of an improvement; or
460
(iv) the enhancement or assemblage value specifically attributable to the interrelation
461
of the existing tangible property in place working together as a unit.
462
(17) "Governing body" means:
463
(a) for a county, city, or town, the legislative body of the county, city, or town;
464
(b) for a local district under Title 17B, Limited Purpose Local Government Entities -
465
Local Districts, the local district's board of trustees;
466
(c) for a school district, the local board of education; or
467
(d) for a special service district under Title 17A, Chapter 2, Part 13, Utah Special
468
Service District Act:
469
(i) the legislative body of the county or municipality that created the special service
470
district, to the extent that the county or municipal legislative body has not delegated authority
471
to an administrative control board established under Section
17A-2-1326
; or
472
(ii) the administrative control board, to the extent that the county or municipal
473
legislative body has delegated authority to an administrative control board established under
474
Section
17A-2-1326
.
475
(18) (a) For purposes of Section
59-2-103
:
476
(i) "household" means the association of persons who live in the same dwelling,
477
sharing its furnishings, facilities, accommodations, and expenses; and
478
(ii) "household" includes married individuals, who are not legally separated, that have
479
established domiciles at separate locations within the state.
480
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
481
commission may make rules defining the term "domicile."
482
(19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
483
structure, fixture, fence, or other item that is permanently attached to land, regardless of
484
whether the title has been acquired to the land, if:
485
(i) (A) attachment to land is essential to the operation or use of the item; and
486
(B) the manner of attachment to land suggests that the item will remain attached to the
487
land in the same place over the useful life of the item; or
488
(ii) removal of the item would:
489
(A) cause substantial damage to the item; or
490
(B) require substantial alteration or repair of a structure to which the item is attached.
491
(b) "Improvement" includes:
492
(i) an accessory to an item described in Subsection (19)(a) if the accessory is:
493
(A) essential to the operation of the item described in Subsection (19)(a); and
494
(B) installed solely to serve the operation of the item described in Subsection (19)(a);
495
and
496
(ii) an item described in Subsection (19)(a) that:
497
(A) is temporarily detached from the land for repairs; and
498
(B) remains located on the land.
499
(c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
500
(i) an item considered to be personal property pursuant to rules made in accordance
501
with Section
59-2-107
;
502
(ii) a moveable item that is attached to land:
503
(A) for stability only; or
504
(B) for an obvious temporary purpose;
505
(iii) (A) manufacturing equipment and machinery; or
506
(B) essential accessories to manufacturing equipment and machinery;
507
(iv) an item attached to the land in a manner that facilitates removal without substantial
508
damage to:
509
(A) the land; or
510
(B) the item; or
511
(v) a transportable factory-built housing unit as defined in Section
59-2-1502
if that
512
transportable factory-built housing unit is considered to be personal property under Section
513
59-2-1503
.
514
(20) "Intangible property" means:
515
(a) property that is capable of private ownership separate from tangible property,
516
including:
517
(i) moneys;
518
(ii) credits;
519
(iii) bonds;
520
(iv) stocks;
521
(v) representative property;
522
(vi) franchises;
523
(vii) licenses;
524
(viii) trade names;
525
(ix) copyrights; and
526
(x) patents;
527
(b) a low-income housing tax credit; or
528
(c) goodwill.
529
(21) "Low-income housing tax credit" means:
530
(a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
531
or
532
(b) a low-income housing tax credit under:
533
(i) Section
59-7-607
; or
534
(ii) Section
59-10-1010
.
535
(22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
536
(23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
537
valuable mineral.
538
(24) "Mining" means the process of producing, extracting, leaching, evaporating, or
539
otherwise removing a mineral from a mine.
540
(25) (a) "Mobile flight equipment" means tangible personal property that is:
541
(i) owned or operated by an:
542
(A) air charter service;
543
(B) air contract service; or
544
(C) airline; and
545
(ii) (A) capable of flight;
546
(B) attached to an aircraft that is capable of flight; or
547
(C) contained in an aircraft that is capable of flight if the tangible personal property is
548
intended to be used:
549
(I) during multiple flights;
550
(II) during a takeoff, flight, or landing; and
551
(III) as a service provided by an air charter service, air contract service, or airline.
552
(b) (i) "Mobile flight equipment" does not include a spare part other than a spare
553
engine that is rotated:
554
(A) at regular intervals; and
555
(B) with an engine that is attached to the aircraft.
556
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
557
the commission may make rules defining the term "regular intervals."
558
(26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
559
sand, rock, gravel, and all carboniferous materials.
560
(27) "Personal property" includes:
561
(a) every class of property as defined in Subsection (28) which is the subject of
562
ownership and not included within the meaning of the terms "real estate" and "improvements";
563
(b) gas and water mains and pipes laid in roads, streets, or alleys;
564
(c) bridges and ferries;
565
(d) livestock which, for the purposes of the exemption provided under Section
566
59-2-1112
, means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
567
(e) outdoor advertising structures as defined in Section
72-7-502
.
568
(28) (a) "Property" means property that is subject to assessment and taxation according
569
to its value.
570
(b) "Property" does not include intangible property as defined in this section.
571
(29) "Public utility," for purposes of this chapter, means the operating property of a
572
railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
573
company, electrical corporation, telephone corporation, sewerage corporation, or heat
574
corporation where the company performs the service for, or delivers the commodity to, the
575
public generally or companies serving the public generally, or in the case of a gas corporation
576
or an electrical corporation, where the gas or electricity is sold or furnished to any member or
577
consumers within the state for domestic, commercial, or industrial use. Public utility also
578
means the operating property of any entity or person defined under Section
54-2-1
except water
579
corporations.
580
(30) "Real estate" or "real property" includes:
581
(a) the possession of, claim to, ownership of, or right to the possession of land;
582
(b) all mines, minerals, and quarries in and under the land, all timber belonging to
583
individuals or corporations growing or being on the lands of this state or the United States, and
584
all rights and privileges appertaining to these; and
585
(c) improvements.
586
(31) "Residential property," for the purposes of the reductions and adjustments under
587
this chapter, means any property used for residential purposes as a primary residence. It does
588
not include property used for transient residential use or condominiums used in rental pools.
589
(32) For purposes of Subsection
59-2-801
(1)(e), "route miles" means the number of
590
miles calculated by the commission that is:
591
(a) measured in a straight line by the commission; and
592
(b) equal to the distance between a geographical location that begins or ends:
593
(i) at a boundary of the state; and
594
(ii) where an aircraft:
595
(A) takes off; or
596
(B) lands.
597
(33) (a) "State-assessed commercial vehicle" means:
598
(i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
599
to transport passengers, freight, merchandise, or other property for hire; or
600
(ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
601
transports the vehicle owner's goods or property in furtherance of the owner's commercial
602
enterprise.
603
(b) "State-assessed commercial vehicle" does not include vehicles used for hire which
604
are specified in Subsection (8)(c) as county-assessed commercial vehicles.
605
(34) "Taxable value" means fair market value less any applicable reduction allowed for
606
residential property under Section
59-2-103
.
607
(35) "Tax area" means a geographic area created by the overlapping boundaries of one
608
or more taxing entities.
609
(36) "Taxing entity" means any county, city, town, school district, special taxing
610
district, local district under Title 17B, Limited Purpose Local Government Entities - Local
611
Districts, or other political subdivision of the state with the authority to levy a tax on property.
612
(37) "Tax roll" means a permanent record of the taxes charged on property, as extended
613
on the assessment roll and may be maintained on the same record or records as the assessment
614
roll or may be maintained on a separate record properly indexed to the assessment roll. It
615
includes tax books, tax lists, and other similar materials.
616
Section 9.
Section
59-2-108
is enacted to read:
617
59-2-108. Depreciation schedule for certain taxable tangible personal property.
618
(1) As used in this section:
619
(a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
620
property into service; and
621
(ii) includes:
622
(A) the purchase price for a new or used item;
623
(B) the cost of freight and shipping;
624
(C) the cost of installation, engineering, erection, or assembly; and
625
(D) sales and use taxes.
626
(b) "Expensed personal property" means an item of taxable tangible personal property
627
that:
628
(i) has an acquisition cost of $1,000 or less; and
629
(ii) a person elects to have assessed according to a schedule described in Subsection
630
(4).
631
(c) (i) "Item of taxable tangible personal property" does not include an improvement to
632
real property or a part that will become an improvement.
633
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
634
the commission may make rules defining the term "item of taxable tangible personal property."
635
(d) (i) "Short life expensed personal property" means expensed personal property that
636
is the same type as the following personal property:
637
(A) short life property;
638
(B) short life trade fixtures; or
639
(C) computer hardware.
640
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
641
the commission may make rules defining the following terms:
642
(A) "short life property";
643
(B) "short life trade fixtures"; and
644
(C) "computer hardware."
645
(e) "Taxable tangible personal property" means tangible personal property that is
646
subject to taxation under this chapter.
647
(2) (a) A person may elect to designate taxable tangible personal property as expensed
648
personal property.
649
(b) A county shall not require a person to:
650
(i) itemize expensed personal property on the signed statement described in Section
651
59-2-306
; and
652
(ii) track expensed personal property.
653
(c) If a taxpayer's expensed personal property is audited in accordance with Subsection
654
59-2-306
(3), a taxpayer shall provide proof of the acquisition cost of the expensed personal
655
property.
656
(3) (a) An election to designate taxable tangible personal property as expensed personal
657
property under this section may not be revoked.
658
(b) Except as provided in Subsection (3)(d), if an item of taxable tangible personal
659
property is designated as expensed personal property, the person must pay taxes according to
660
the taxable value determined by the schedule for a term designated by a schedule described in
661
Subsection (4).
662
(c) If a person sells or otherwise disposes of an item of expensed personal property
663
prior to the time period described in Subsection (3)(b) or (d), the person shall continue to pay
664
taxes according to the schedule described in Subsection (4).
665
(d) If a person elects to designate an item of taxable tangible personal property
666
acquired before December 31, 2008, as expensed personal property at a time after the first year
667
after the item is acquired, the person must pay taxes according to the taxable value determined
668
by the schedule for a time period that equals:
669
(i) the time period designated in Subsection (3)(b); less
670
(ii) the time period beginning when the person acquired the item of expensed personal
671
property and ending when the person designated the item as short life expensed personal
672
property.
673
(e) If a person elects to designate taxable tangible personal property as expensed
674
personal property in accordance with Subsection (2)(a), the person may not appeal the values
675
described in Subsection (4).
676
(4) (a) For the taxable year beginning on January 1, 2009 and ending on December 31,
677
2009, the taxable value of short life expensed personal property is calculated by applying the
678
percent good factor against the acquisition cost of the property as follows:
679
Short Life Expensed Personal Property Schedule
680
Year of Percent Good of
681
Acquisition Acquisition Cost
682
2008 69%
683
2007 52%
684
2006 30%
685
2005 17%
686
2004 11%
687
(b) For taxable years beginning on or after January 1, 2010, the taxable value of short
688
life expensed personal property shall be assessed according to a schedule developed by the
689
commission in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
690
Section 10.
Section
59-2-306
is amended to read:
691
59-2-306. Statements by taxpayers -- Power of assessors respecting statements.
692
(1) The county assessor may request a signed statement from any person setting forth
693
all the real and personal property assessable by the assessor which is owned, possessed,
694
managed, or under the control of the person at 12 [o'clock] noon on January 1. [This
695
statement]
696
(2) (a) Except as provided in Subsection (2)(b) or (c), a signed statement described in
697
Subsection (1) shall be filed on or before May 15 of the year the statement described in
698
Subsection (1) is requested by the county assessor.
699
(b) For a county of the first class, the signed statement described in Subsection (1) shall
700
be filed [within 30] on the later of:
701
(i) 60 days after requested by the assessor[.]; or
702
(ii) on or before May 15 of the year the statement described in Subsection (1) is
703
requested by the county assessor if, by resolution, the county legislative body of that county
704
adopts the deadline described in Subsection (2)(a).
705
(c) If a county assessor requests a signed statement described in Subsection (1) on or
706
after March 16, the person shall file the signed statement within 60 days after requested by the
707
assessor.
708
[(2)] (3) The signed statement shall include the following:
709
(a) all property belonging to, claimed by, or in the possession, control, or management
710
of the person, any firm of which the person is a member, or any corporation of which the
711
person is president, secretary, cashier, or managing agent;
712
(b) the county in which the property is located or in which it is taxable; and, if taxable
713
in the county in which the signed statement was made, also the city, town, school district, road
714
district, or other taxing district in which it is located or taxable; and
715
(c) all lands in parcels or subdivisions not exceeding 640 acres each, the sections and
716
fractional sections of all tracts of land containing more than 640 acres which have been
717
sectionized by the United States Government, and the improvements on those lands.
718
[(3)] (4) Every assessor may subpoena and examine any person in any county in
719
relation to any signed statement but may not require that person to appear in any county other
720
than the county in which the subpoena is served.
721
Section 11.
Section
59-2-307
is amended to read:
722
59-2-307. Refusal by taxpayer to file signed statement -- Penalty -- Assessor to
723
estimate value -- Reporting information to other counties.
724
(1) (a) Each person who fails to file the signed statement required by Section
59-2-306
,
725
fails to file the signed statement with respect to name and place of residence, or fails to appear
726
and testify when requested by the assessor, shall pay a penalty equal to 10% of the estimated
727
tax due, but not less than $100 for each failure to file a signed and completed statement.
728
(b) Each penalty under Subsection (1)(a) shall be collected in the manner provided by
729
Sections
59-2-1302
and
59-2-1303
, except as otherwise provided for in this section, or by a
730
judicial proceeding brought in the name of the assessor.
731
(c) All money recovered by any assessor under this section shall be paid into the county
732
treasury.
733
(2) (a) The penalty imposed by Subsection (1)(a) may not be waived or reduced by the
734
assessor, county, county Board of Equalization, or commission except pursuant to a procedure
735
for the review and approval of reductions and waivers adopted by county ordinance, or by
736
administrative rule adopted in accordance with Title 63, Chapter 46a, Utah Administrative
737
Rulemaking Act.
738
(b) The penalty under Subsection (1)(a) for failure to appear and testify when requested
739
by the assessor may not be imposed until 30 days after the [certified] postmark date of mailing
740
of a subsequent [certified] notice.
741
(3) (a) If [any] an owner neglects or refuses to file [the] a signed statement [within 30
742
days of the date the first county request was sent] requested by an assessor of a county of the
743
first class as required under Section
59-2-306
, the assessor [shall] of a county of the first class:
744
(i) shall make:
745
(A) a subsequent request by [certified] mail for the signed statement, informing the
746
owner of the consequences of not filing a signed statement; and
747
(B) a record of the failure to file and an estimate of the value of the property of the
748
owner based on known facts and circumstances; and
749
(ii) may impose a fee for the actual and necessary expenses of the [certified] mailing
750
under Subsection (3)(a)(i)(A).
751
(b) The value fixed by the assessor may not be reduced by the county board of
752
equalization or by the commission.
753
(4) If the signed statement discloses property in any other county, the assessor shall file
754
the signed statement and send a [certified] copy to the assessor of each county in which the
755
property is located.
756
Section 12.
Section
59-2-908
is amended to read:
757
59-2-908. Single aggregate limitation -- Maximum levy.
758
(1) Except as provided in Subsection (2), each county shall have a single aggregate
759
limitation on the property tax levied for all purposes by the county. Except as provided in
760
Section
59-2-911
, this limitation may not exceed the maximum set forth in this section. The
761
maximum is:
762
(a) .0032 per dollar of taxable value in all counties with a total taxable value of more
763
than $100,000,000; and
764
(b) .0036 per dollar of taxable value in all counties with a total taxable value of less
765
than $100,000,000.
766
(2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
767
limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
768
generates revenues for the county in an amount that is less than the revenues that would be
769
generated by the county under the certified tax rate established in [Subsection] Section
770
59-2-924
[(2)].
771
(b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that
772
does not exceed the certified tax rate established in [Subsection] Section
59-2-924
[(2)].
773
Section 13.
Section
59-2-913
is amended to read:
774
59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
775
statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
776
establishing tax levies -- Format of statement.
777
(1) As used in this section, "budgeted property tax revenues" does not include property
778
tax revenue received by a taxing entity from personal property that is:
779
(a) assessed by a county assessor in accordance with Part 3, County Assessment; and
780
(b) semiconductor manufacturing equipment.
781
(2) (a) The legislative body of each taxing entity shall file a statement as provided in
782
this section with the county auditor of the county in which the taxing entity is located.
783
(b) The auditor shall annually transmit the statement to the commission:
784
(i) before June 22; or
785
(ii) with the approval of the commission, on a subsequent date prior to the date
786
established under Section
59-2-1317
for mailing tax notices.
787
(c) The statement shall contain the amount and purpose of each levy fixed by the
788
legislative body of the taxing entity.
789
(3) For purposes of establishing the levy set for each of a taxing entity's applicable
790
funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
791
the budgeted property tax revenues, specified in a budget which has been adopted and
792
approved prior to setting the levy, by the amount calculated under Subsections
793
59-2-924
[(2)(a)(iii)(B)(I) through (III)] (3)(c)(ii)(A) through (C).
794
(4) The format of the statement under this section shall:
795
(a) be determined by the commission; and
796
(b) cite any applicable statutory provisions that:
797
(i) require a specific levy; or
798
(ii) limit the property tax levy for any taxing entity.
799
(5) The commission may require certification that the information submitted on a
800
statement under this section is true and correct.
801
Section 14.
Section
59-2-914
is amended to read:
802
59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement
803
adjusted levies to county auditor.
804
(1) If the commission determines that a levy established for a taxing entity set under
805
Section
59-2-913
is in excess of the maximum levy permitted by law, the commission shall:
806
(a) lower the levy so that it is set at the maximum level permitted by law;
807
(b) notify the taxing entity which set the excessive rate that the rate has been lowered;
808
and
809
(c) notify the county auditor of the county or counties in which the taxing entity is
810
located to implement the rate established by the commission.
811
(2) A levy set for a taxing entity by the commission under this section shall be the
812
official levy for that taxing entity unless:
813
(a) the taxing entity lowers the levy established by the commission; or
814
(b) the levy is subsequently modified by a court order.
815
(3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
816
a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the
817
rate established by the taxing entity for the current year generates revenues for the taxing entity
818
in an amount that is less than the revenues that would be generated by the taxing entity under
819
the certified tax rate established in [Subsection] Section
59-2-924
[(2)].
820
(b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax
821
rate that does not exceed the certified rate established in [Subsection] Section
59-2-924
[(2)].
822
Section 15.
Section
59-2-918
is amended to read:
823
59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
824
(1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
825
increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
826
in Subsection
59-2-924
[(2)](4) unless it advertises its intention to do so at the same time that it
827
advertises its intention to fix its budget for the forthcoming fiscal year.
828
(b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
829
advertisement or hearing requirements of this section if:
830
(A) the taxing entity:
831
(I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
832
or
833
(II) is expressly exempted by law from complying with the requirements of this
834
section; or
835
(B) the increased amount of ad valorem tax revenue results from a tax rate increase that
836
is exempted under Subsection
59-2-919
(1)(a)(ii)(B) from the advertisement and hearing
837
requirements of Section
59-2-919
.
838
(ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
839
advertisement requirements of this section if Section
53A-17a-133
allows the taxing entity to
840
budget an increased amount of ad valorem property tax revenue without having to comply with
841
the advertisement requirements of this section.
842
(2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
843
advertisement required by this section may be combined with the advertisement required by
844
Section
59-2-919
.
845
(b) For taxing entities operating under a January 1 through December 31 fiscal year,
846
the advertisement required by this section shall meet the size, type, placement, and frequency
847
requirements established under Section
59-2-919
.
848
(3) The form of the advertisement required by this section shall meet the size, type,
849
placement, and frequency requirements established under Section
59-2-919
and shall be
850
substantially as follows:
851
"NOTICE OF PROPOSED TAX INCREASE
852
(NAME OF TAXING ENTITY)
853
The (name of the taxing entity) is proposing to increase its property tax revenue.
854
* If the proposed budget is approved, this would be an increase of _____% above
855
the (name of the taxing entity) property tax budgeted revenue for the prior year.
856
* The (name of the taxing entity) tax on a (insert the average value of a residence
857
in the taxing entity rounded to the nearest thousand dollars) residence would
858
increase from $______ to $________, which is $_______ per year.
859
* The (name of the taxing entity) tax on a (insert the value of a business having
860
the same value as the average value of a residence in the taxing entity) business
861
would increase from $________ to $_______, which is $______ per year.
862
All concerned citizens are invited to a public hearing on the tax increase.
863
PUBLIC HEARING
864
Date/Time: (date) (time)
865
Location: (name of meeting place and address of meeting place)
866
To obtain more information regarding the tax increase, citizens may contact the (name
867
of the taxing entity) at (phone number of taxing entity)."
868
(4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
869
revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
870
announce at the public hearing the scheduled time and place for consideration and adoption of
871
the proposed budget increase.
872
(5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
873
year shall by March 1 notify the county of the date, time, and place of the public hearing at
874
which the budget for the following fiscal year will be considered.
875
(b) The county shall include the information described in Subsection (5)(a) with the tax
876
notice.
877
(6) A taxing entity shall hold a public hearing under this section beginning at or after 6
878
p.m.
879
Section 16.
Section
59-2-924
is amended to read:
880
59-2-924. Report of valuation of property to county auditor and commission --
881
Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
882
tax rate -- Rulemaking authority -- Adoption of tentative budget.
883
(1) [(a)] Before June 1 of each year, the county assessor of each county shall deliver to
884
the county auditor and the commission the following statements:
885
[(i)] (a) a statement containing the aggregate valuation of all taxable real property [in]
886
assessed by a county assessor in accordance with Part 3, County Assessment, for each taxing
887
entity; and
888
[(ii)] (b) a statement containing the taxable value of [any additional] all personal
889
property [estimated by the county assessor to be subject to taxation in the current year] assessed
890
by a county assessor in accordance with Part 3, County Assessment, from the prior year end
891
values.
892
[(b)] (2) The county auditor shall, on or before June 8, transmit to the governing body
893
of each taxing entity:
894
[(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
895
[(ii)] (b) an estimate of the revenue from personal property;
896
[(iii)] (c) the certified tax rate; and
897
[(iv)] (d) all forms necessary to submit a tax levy request.
898
[(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad
899
valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
900
prior year.
901
[(ii)] (b) For purposes of this Subsection [(2), "ad] (3):
902
(i) "Ad valorem property tax revenues" do not include:
903
(A) collections from redemptions;
904
(B) interest;
905
(C) penalties; and
906
(D) revenue received by a taxing entity from personal property that is:
907
(I) assessed by a county assessor in accordance with Part 3, County Assessment; and
908
(II) semiconductor manufacturing equipment.
909
(ii) "Aggregate taxable value of all property taxed" means:
910
(A) the aggregate taxable value of all real property assessed by a county assessor in
911
accordance with Part 3, County Assessment, for the current year;
912
(B) the aggregate taxable year end value of all personal property assessed by a county
913
assessor in accordance with Part 3, County Assessment, for the prior year; and
914
(C) the aggregate taxable value of all real and personal property assessed by the
915
commission in accordance with Part 2, Assessment of Property, for the current year.
916
[(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
917
be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
918
the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
919
[(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
920
taxing entity shall calculate an amount as follows:
921
[(I)] (A) calculate for the taxing entity the difference between:
922
[(Aa)] (I) the aggregate taxable value of all property taxed; and
923
[(Bb)] (II) any redevelopment adjustments for the current calendar year;
924
[(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]
925
(3)(c)(ii)(A), calculate an amount determined by increasing or decreasing the amount
926
calculated under Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A) by the average of the percentage net
927
change in the value of taxable property for the equalization period for the three calendar years
928
immediately preceding the current calendar year;
929
[(III)] (C) after making the calculation required by Subsection [(2)(a)(iii)(B)(II)]
930
(3)(c)(ii)(B), calculate the product of:
931
[(Aa)] (I) the amount calculated under Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B); and
932
[(Bb)] (II) the percentage of property taxes collected for the five calendar years
933
immediately preceding the current calendar year; and
934
[(IV)] (D) after making the calculation required by Subsection [(2)(a)(iii)(B)(III)]
935
(3)(c)(ii)(C), calculate an amount determined by subtracting from the amount calculated under
936
Subsection [(2)(a)(iii)(B)(III)] (3)(c)(ii)(C) any new growth as defined in this section:
937
[(Aa)] (I) within the taxing entity; and
938
[(Bb)] (II) for the following calendar year:
939
(Aa) for new growth from real property assessed by a county assessor in accordance
940
with Part 3, County Assessment and all property assessed by the commission in accordance
941
with Section
59-2-201
, the current calendar year[.]; and
942
(Bb) for new growth from personal property assessed by a county assessor in
943
accordance with Part 3, County Assessment, the prior calendar year.
944
[(C)] (iii) For purposes of Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A), the aggregate
945
taxable value of all property taxed:
946
[(I)] (A) except as provided in Subsection [(2)(a)(iii)(C)(II), includes the total taxable
947
value of the real and personal property contained on the tax rolls of the taxing entity; and]
948
(3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in Subsection (3)(b)(ii);
949
[(II)] (B) does not include the total taxable value of personal property contained on the
950
tax rolls of the taxing entity that is:
951
[(Aa)] (I) assessed by a county assessor in accordance with Part 3, County Assessment;
952
and
953
[(Bb)] (II) semiconductor manufacturing equipment[.]; and
954
(C) for personal property assessed by a county assessor in accordance with Part 3,
955
County Assessment, the taxable value of personal property is the year end value of the personal
956
property contained on the prior year's tax rolls of the entity.
957
[(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
958
beginning on or after January 1, 2007, the value of taxable property does not include the value
959
of personal property that is:
960
[(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
961
3, County Assessment; and
962
[(II)] (B) semiconductor manufacturing equipment.
963
[(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
964
calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
965
does not include property taxes collected from personal property that is:
966
[(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
967
3, County Assessment; and
968
[(II)] (B) semiconductor manufacturing equipment.
969
[(F)] (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or
970
after January 1, 2009, the value of taxable property does not include the value of personal
971
property that is within the taxing entity assessed by a county assessor in accordance with Part 3,
972
County Assessment.
973
(vii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
974
the commission may prescribe rules for calculating redevelopment adjustments for a calendar
975
year.
976
[(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
977
Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
978
property tax revenues budgeted by a taxing entity.
979
[(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
980
revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted
981
property tax revenues are calculated for purposes of Section
59-2-913
.
982
[(v)] (e) The certified tax rates for the taxing entities described in this Subsection
983
[(2)(a)(v)] (3)(e) shall be calculated as follows:
984
[(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
985
entities the certified tax rate is zero;
986
[(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax
987
rate is:
988
[(I)] (A) in a county of the first, second, or third class, the levy imposed for
989
municipal-type services under Sections
17-34-1
and
17-36-9
; and
990
[(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
991
county purposes and such other levies imposed solely for the municipal-type services identified
992
in Section
17-34-1
and Subsection
17-36-3
(22); and
993
[(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
994
actual levy imposed by that section, except that the certified tax rates for the following levies
995
shall be calculated in accordance with Section
59-2-913
and this section:
996
[(I)] (A) school leeways provided for under Sections
11-2-7
,
53A-16-110
,
997
53A-17a-125
,
53A-17a-127
,
53A-17a-133
,
53A-17a-134
,
53A-17a-143
,
53A-17a-145
, and
998
53A-21-103
; and
999
[(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
1000
administrative orders under Section
59-2-906.3
.
1001
[(vi) (A)] (f) (i) A judgment levy imposed under Section
59-2-1328
or
59-2-1330
shall
1002
be established at that rate which is sufficient to generate only the revenue required to satisfy
1003
one or more eligible judgments, as defined in Section
59-2-102
.
1004
[(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
1005
be considered in establishing the taxing entity's aggregate certified tax rate.
1006
[(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
1007
shall use:
1008
(i) the taxable value of real property assessed by a county assessor contained on the
1009
assessment roll[.];
1010
(ii) the taxable value of real and personal property assessed by the commission; and
1011
(iii) the taxable year end value of personal property assessed by a county assessor
1012
contained on the prior year's assessment roll.
1013
[(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
1014
property on the assessment roll does not include[: (A)] new growth as defined in Subsection
1015
[(2)(b)(iii); or] (4)(c).
1016
[(B) the total taxable value of personal property contained on the tax rolls of the taxing
1017
entity that is:]
1018
[(I) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1019
[(II) semiconductor manufacturing equipment.]
1020
[(iii)] (c) "New growth" means:
1021
[(A)] (i) the difference between the increase in taxable value of the following property
1022
of the taxing entity from the previous calendar year to the current year[;]:
1023
(A) real property assessed by a county assessor in accordance with Part 3, County
1024
Assessment; and
1025
(B) property assessed by the commission under Section
59-2-201
; plus
1026
(ii) the difference between the increase in taxable year end value of personal property
1027
of the taxing entity from the year prior to the previous calendar year to the previous calendar
1028
year; minus
1029
[(B)] (iii) the amount of an increase in taxable value described in Subsection
1030
[(2)(b)(v)] (4)(e).
1031
[(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of
1032
personal property of the taxing entity does not include the taxable value of personal property
1033
that is:
1034
[(A)] (i) contained on the tax rolls of the taxing entity if that property is assessed by a
1035
county assessor in accordance with Part 3, County Assessment; and
1036
[(B)] (ii) semiconductor manufacturing equipment.
1037
[(v)] (e) Subsection [(2)(b)(iii)(B)] (4)(c)(iii) applies to the following increases in
1038
taxable value:
1039
[(A)] (i) the amount of increase to locally assessed real property taxable values
1040
resulting from factoring, reappraisal, or any other adjustments; or
1041
[(B)] (ii) the amount of an increase in the taxable value of property assessed by the
1042
commission under Section
59-2-201
resulting from a change in the method of apportioning the
1043
taxable value prescribed by:
1044
[(I)] (A) the Legislature;
1045
[(II)] (B) a court;
1046
[(III)] (C) the commission in an administrative rule; or
1047
[(IV)] (D) the commission in an administrative order.
1048
(f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
1049
property on the prior year's assessment roll does not include:
1050
(i) new growth as defined in Subsection (4)(c); or
1051
(ii) the total taxable year end value of personal property contained on the prior year's
1052
tax rolls of the taxing entity that is:
1053
(A) assessed by a county assessor in accordance with Part 3, County Assessment; and
1054
(B) semiconductor manufacturing equipment.
1055
[(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1056
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1057
59-2-405.2
, or
59-2-405.3
as a result of any county imposing a sales and use tax under Chapter
1058
12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1059
rate to offset the increased revenues.]
1060
[(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1061
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:]
1062
[(A) decreased on a one-time basis by the amount of the estimated sales and use tax
1063
revenue to be distributed to the county under Subsection
59-12-1102
(3); and]
1064
[(B) increased by the amount necessary to offset the county's reduction in revenue
1065
from uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1066
59-2-405.2
, or
59-2-405.3
as a result of the decrease in the certified tax rate under Subsection
1067
(2)(d)(i)(A).]
1068
[(ii) The commission shall determine estimates of sales and use tax distributions for
1069
purposes of Subsection (2)(d)(i).]
1070
[(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
1071
communities sales tax under Section
59-12-402
, the municipality's certified tax rate shall be
1072
decreased on a one-time basis by the amount necessary to offset the first 12 months of
1073
estimated revenue from the additional resort communities sales and use tax imposed under
1074
Section
59-12-402
.]
1075
[(f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
1076
Subsection
17-34-1
(4)(a) to provide advanced life support and paramedic services to the
1077
unincorporated area of the county shall be decreased by the amount necessary to reduce
1078
revenues in that fiscal year by an amount equal to the difference between the amount the county
1079
budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
1080
countywide and the amount the county spent during fiscal year 2000 for those services,
1081
excluding amounts spent from a municipal services fund for those services.]
1082
[(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
1083
(2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
1084
year by the amount that the county spent during fiscal year 2000 for advanced life support and
1085
paramedic services countywide, excluding amounts spent from a municipal services fund for
1086
those services.]
1087
[(ii) (A) A city or town located within a county of the first class to which Subsection
1088
(2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
1089
the city or town the same amount of revenues as the county would collect from that city or
1090
town if the decrease under Subsection (2)(f)(i) did not occur.]
1091
[(B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal
1092
year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
1093
of Sections
59-2-918
and
59-2-919
.]
1094
[(g) (i) The certified tax rate of each county required under Subsection
17-34-1
(4)(b) to
1095
provide detective investigative services to the unincorporated area of the county shall be
1096
decreased:]
1097
[(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
1098
by at least $4,400,000; and]
1099
[(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
1100
by an amount equal to the difference between $9,258,412 and the amount of the reduction in
1101
revenues under Subsection (2)(g)(i)(A).]
1102
[(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
1103
county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
1104
within the city or town the same amount of revenue as the county would have collected during
1105
county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).]
1106
[(II) Beginning with municipal fiscal year 2003, a city or town located within a county
1107
to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
1108
city or town the same amount of revenue as the county would have collected during county
1109
fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).]
1110
[(B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
1111
town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
1112
or spread over multiple fiscal years, is subject to the notice and hearing requirements of
1113
Sections
59-2-918
and
59-2-919
.]
1114
[(II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does
1115
not exceed the same amount of revenue as the county would have collected except for
1116
Subsection (2)(g)(i), the requirements of Sections
59-2-918
and
59-2-919
do not apply if the
1117
city or town:]
1118
[(Aa) publishes a notice that meets the size, type, placement, and frequency
1119
requirements of Section
59-2-919
, reflects that the increase is a shift of a tax from one imposed
1120
by the county to one imposed by the city or town, and explains how the revenues from the tax
1121
increase will be used; and]
1122
[(Bb) holds a public hearing on the tax shift that may be held in conjunction with the
1123
city or town's regular budget hearing.]
1124
[(h) (i) This Subsection (2)(h) applies to each county that:]
1125
[(A) establishes a countywide special service district under Title 17A, Chapter 2, Part
1126
13, Utah Special Service District Act, to provide jail service, as provided in Subsection
1127
17A-2-1304
(1)(a)(x); and]
1128
[(B) levies a property tax on behalf of the special service district under Section
1129
17A-2-1322
.]
1130
[(ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
1131
shall be decreased by the amount necessary to reduce county revenues by the same amount of
1132
revenues that will be generated by the property tax imposed on behalf of the special service
1133
district.]
1134
[(B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
1135
the levy on behalf of the special service district under Section
17A-2-1322
.]
1136
[(i) (i) As used in this Subsection (2)(i):]
1137
[(A) "Annexing county" means a county whose unincorporated area is included within
1138
a fire district by annexation.]
1139
[(B) "Annexing municipality" means a municipality whose area is included within a
1140
fire district by annexation.]
1141
[(C) "Equalized fire protection tax rate" means the tax rate that results from:]
1142
[(I) calculating, for each participating county and each participating municipality, the
1143
property tax revenue necessary to cover all of the costs associated with providing fire
1144
protection, paramedic, and emergency services:]
1145
[(Aa) for a participating county, in the unincorporated area of the county; and]
1146
[(Bb) for a participating municipality, in the municipality; and]
1147
[(II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
1148
participating counties and all participating municipalities and then dividing that sum by the
1149
aggregate taxable value of the property, as adjusted in accordance with Section
59-2-913
:]
1150
[(Aa) for participating counties, in the unincorporated area of all participating counties;
1151
and]
1152
[(Bb) for participating municipalities, in all the participating municipalities.]
1153
[(D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1154
Area Act, in the creation of which an election was not required under Subsection
1155
17B-1-214
(3)(c).]
1156
[(E) "Fire protection tax rate" means:]
1157
[(I) for an annexing county, the property tax rate that, when applied to taxable property
1158
in the unincorporated area of the county, generates enough property tax revenue to cover all the
1159
costs associated with providing fire protection, paramedic, and emergency services in the
1160
unincorporated area of the county; and]
1161
[(II) for an annexing municipality, the property tax rate that generates enough property
1162
tax revenue in the municipality to cover all the costs associated with providing fire protection,
1163
paramedic, and emergency services in the municipality.]
1164
[(F) "Participating county" means a county whose unincorporated area is included
1165
within a fire district at the time of the creation of the fire district.]
1166
[(G) "Participating municipality" means a municipality whose area is included within a
1167
fire district at the time of the creation of the fire district.]
1168
[(ii) In the first year following creation of a fire district, the certified tax rate of each
1169
participating county and each participating municipality shall be decreased by the amount of
1170
the equalized fire protection tax rate.]
1171
[(iii) In the first year following annexation to a fire district, the certified tax rate of each
1172
annexing county and each annexing municipality shall be decreased by the fire protection tax
1173
rate.]
1174
[(iv) Each tax levied under this section by a fire district shall be considered to be levied
1175
by:]
1176
[(A) each participating county and each annexing county for purposes of the county's
1177
tax limitation under Section
59-2-908
; and]
1178
[(B) each participating municipality and each annexing municipality for purposes of
1179
the municipality's tax limitation under Section
10-5-112
, for a town, or Section
10-6-133
, for a
1180
city.]
1181
[(j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1182
entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
1183
certified tax rate that may result from excluding the following from the certified tax rate under
1184
Subsection (2)(a) enacted by the Legislature during the 2007 General Session:]
1185
[(i) personal property tax revenue:]
1186
[(A) received by a taxing entity;]
1187
[(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1188
[(C) for personal property that is semiconductor manufacturing equipment; or]
1189
[(ii) the taxable value of personal property:]
1190
[(A) contained on the tax rolls of a taxing entity;]
1191
[(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1192
[(C) that is semiconductor manufacturing equipment.]
1193
[(3)] (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative
1194
budget.
1195
(b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
1196
auditor of:
1197
(i) its intent to exceed the certified tax rate; and
1198
(ii) the amount by which it proposes to exceed the certified tax rate.
1199
(c) The county auditor shall notify all property owners of any intent to exceed the
1200
certified tax rate in accordance with Subsection
59-2-919
(2).
1201
[(4) (a) The taxable value for the base year under Subsection
17C-1-102
(6) shall be
1202
reduced for any year to the extent necessary to provide a community development and renewal
1203
agency established under Title 17C, Limited Purpose Local Government Entities - Community
1204
Development and Renewal Agencies, with approximately the same amount of money the
1205
agency would have received without a reduction in the county's certified tax rate if:]
1206
[(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
1207
(2)(d)(i);]
1208
[(ii) the amount of the decrease is more than 20% of the county's certified tax rate of
1209
the previous year; and]
1210
[(iii) the decrease results in a reduction of the amount to be paid to the agency under
1211
Section
17C-1-403
or
17C-1-404
.]
1212
[(b) The base taxable value under Subsection
17C-1-102
(6) shall be increased in any
1213
year to the extent necessary to provide a community development and renewal agency with
1214
approximately the same amount of money as the agency would have received without an
1215
increase in the certified tax rate that year if:]
1216
[(i) in that year the base taxable value under Subsection
17C-1-102
(6) is reduced due to
1217
a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and]
1218
[(ii) The certified tax rate of a city, school district, local district, or special service
1219
district increases independent of the adjustment to the taxable value of the base year.]
1220
[(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
1221
(2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
1222
development and renewal agency established under Title 17C, Limited Purpose Local
1223
Government Entities - Community Development and Renewal Agencies, for the payment of
1224
bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1225
amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
1226
(2)(d)(i).]
1227
Section 17.
Section
59-2-924.2
is enacted to read:
1228
59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
1229
(1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
1230
in accordance with Section
59-2-924
.
1231
(2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1232
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1233
59-2-405.2
, or
59-2-405.3
as a result of any county imposing a sales and use tax under Chapter
1234
12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1235
rate to offset the increased revenues.
1236
(3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1237
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
1238
(i) decreased on a one-time basis by the amount of the estimated sales and use tax
1239
revenue to be distributed to the county under Subsection
59-12-1102
(3); and
1240
(ii) increased by the amount necessary to offset the county's reduction in revenue from
1241
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1242
59-2-405.2
, or
59-2-405.3
as a result of the decrease in the certified tax rate under Subsection
1243
(3)(a)(i).
1244
(b) The commission shall determine estimates of sales and use tax distributions for
1245
purposes of Subsection (3)(a).
1246
(4) Beginning January 1, 1998, if a municipality has imposed an additional resort
1247
communities sales tax under Section
59-12-402
, the municipality's certified tax rate shall be
1248
decreased on a one-time basis by the amount necessary to offset the first 12 months of
1249
estimated revenue from the additional resort communities sales and use tax imposed under
1250
Section
59-12-402
.
1251
(5) (a) This Subsection (5) applies to each county that:
1252
(i) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
1253
Utah Special Service District Act, to provide jail service, as provided in Subsection
1254
17A-2-1304
(1)(a)(x); and
1255
(ii) levies a property tax on behalf of the special service district under Section
1256
17A-2-1322
.
1257
(b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
1258
decreased by the amount necessary to reduce county revenues by the same amount of revenues
1259
that will be generated by the property tax imposed on behalf of the special service district.
1260
(ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
1261
levy on behalf of the special service district under Section
17A-2-1322
.
1262
(6) (a) As used in this Subsection (6):
1263
(i) "Annexing county" means a county whose unincorporated area is included within a
1264
fire district by annexation.
1265
(ii) "Annexing municipality" means a municipality whose area is included within a fire
1266
district by annexation.
1267
(iii) "Equalized fire protection tax rate" means the tax rate that results from:
1268
(A) calculating, for each participating county and each participating municipality, the
1269
property tax revenue necessary to cover all of the costs associated with providing fire
1270
protection, paramedic, and emergency services:
1271
(I) for a participating county, in the unincorporated area of the county; and
1272
(II) for a participating municipality, in the municipality; and
1273
(B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
1274
participating counties and all participating municipalities and then dividing that sum by the
1275
aggregate taxable value of the property, as adjusted in accordance with Section
59-2-913
:
1276
(I) for participating counties, in the unincorporated area of all participating counties;
1277
and
1278
(II) for participating municipalities, in all the participating municipalities.
1279
(iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1280
Area Act, in the creation of which an election was not required under Subsection
1281
17B-1-214
(3)(c).
1282
(v) "Fire protection tax rate" means:
1283
(A) for an annexing county, the property tax rate that, when applied to taxable property
1284
in the unincorporated area of the county, generates enough property tax revenue to cover all the
1285
costs associated with providing fire protection, paramedic, and emergency services in the
1286
unincorporated area of the county; and
1287
(B) for an annexing municipality, the property tax rate that generates enough property
1288
tax revenue in the municipality to cover all the costs associated with providing fire protection,
1289
paramedic, and emergency services in the municipality.
1290
(vi) "Participating county" means a county whose unincorporated area is included
1291
within a fire district at the time of the creation of the fire district.
1292
(vii) "Participating municipality" means a municipality whose area is included within a
1293
fire district at the time of the creation of the fire district.
1294
(b) In the first year following creation of a fire district, the certified tax rate of each
1295
participating county and each participating municipality shall be decreased by the amount of
1296
the equalized fire protection tax rate.
1297
(c) In the first year following annexation to a fire district, the certified tax rate of each
1298
annexing county and each annexing municipality shall be decreased by the fire protection tax
1299
rate.
1300
(d) Each tax levied under this section by a fire district shall be considered to be levied
1301
by:
1302
(i) each participating county and each annexing county for purposes of the county's tax
1303
limitation under Section
59-2-908
; and
1304
(ii) each participating municipality and each annexing municipality for purposes of the
1305
municipality's tax limitation under Section
10-5-112
, for a town, or Section
10-6-133
, for a
1306
city.
1307
(7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1308
entity's certified tax rate, calculated in accordance with Section
59-2-924
, shall be adjusted by
1309
the amount necessary to offset any change in the certified tax rate that may result from
1310
excluding the following from the certified tax rate under Subsection
59-2-924
(3) enacted by the
1311
Legislature during the 2007 General Session:
1312
(a) personal property tax revenue:
1313
(i) received by a taxing entity;
1314
(ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1315
(iii) for personal property that is semiconductor manufacturing equipment; or
1316
(b) the taxable value of personal property:
1317
(i) contained on the tax rolls of a taxing entity;
1318
(ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1319
(iii) that is semiconductor manufacturing equipment.
1320
(8) (a) The taxable value for the base year under Subsection
17C-1-102
(6) shall be
1321
reduced for any year to the extent necessary to provide a community development and renewal
1322
agency established under Title 17C, Limited Purpose Local Government Entities - Community
1323
Development and Renewal Agencies, with approximately the same amount of money the
1324
agency would have received without a reduction in the county's certified tax rate, calculated in
1325
accordance with Section
59-2-924
, if:
1326
(i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
1327
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
1328
previous year; and
1329
(iii) the decrease results in a reduction of the amount to be paid to the agency under
1330
Section
17C-1-403
or
17C-1-404
.
1331
(b) The base taxable value under Subsection
17C-1-102
(6) shall be increased in any
1332
year to the extent necessary to provide a community development and renewal agency with
1333
approximately the same amount of money as the agency would have received without an
1334
increase in the certified tax rate that year if:
1335
(i) in that year the base taxable value under Subsection
17C-1-102
(6) is reduced due to
1336
a decrease in the certified tax rate under Subsection (2) or (3)(a); and
1337
(ii) the certified tax rate of a city, school district, local district, or special service
1338
district increases independent of the adjustment to the taxable value of the base year.
1339
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
1340
the amount of money allocated and, when collected, paid each year to a community
1341
development and renewal agency established under Title 17C, Limited Purpose Local
1342
Government Entities - Community Development and Renewal Agencies, for the payment of
1343
bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1344
amount would have been without a decrease in the certified tax rate under Subsection (2) or
1345
(3)(a).
1346
Section 18.
Section
59-2-1115
is amended to read:
1347
59-2-1115. Exemption of certain tangible personal property.
1348
(1) For purposes of this section:
1349
(a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
1350
property into service; and
1351
(ii) includes:
1352
(A) the purchase price for a new or used item;
1353
(B) the cost of freight and shipping;
1354
(C) the cost of installation, engineering, erection, or assembly; and
1355
(D) sales and use taxes.
1356
(b) (i) "Item of taxable tangible personal property" does not include an improvement to
1357
real property or a part that will become an improvement.
1358
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1359
the commission may make rules defining the term "item of taxable tangible personal property."
1360
(c) (i) "Taxable tangible personal property" means tangible personal property that is
1361
subject to taxation under this chapter.
1362
(ii) "Taxable tangible personal property" does not include:
1363
(A) tangible personal property required by law to be registered with the state before it
1364
is used:
1365
(I) on a public highway;
1366
(II) on a public waterway;
1367
(III) on public land; or
1368
(IV) in the air;
1369
(B) a mobile home as defined in Section
41-1a-102
; or
1370
(C) a manufactured home as defined in Section
41-1a-102
.
1371
[(1)] (2) (a) The taxable tangible personal property of a taxpayer is exempt from
1372
taxation if the taxable tangible personal property has a total aggregate fair market value per
1373
county of $3,500 or less.
1374
[(b) For purposes of this section, "taxable tangible personal property" does not
1375
include:]
1376
[(i) tangible personal property required by law to be registered with the state before it is
1377
used:]
1378
[(A) on a public highway;]
1379
[(B) on a public waterway;]
1380
[(C) on public land; or]
1381
[(D) in the air;]
1382
[(ii) a mobile home as defined in Section
41-1a-102
; or]
1383
[(iii) a manufactured home as defined in Section
41-1a-102
.]
1384
(b) An item of taxable tangible personal property is exempt from taxation if the item of
1385
taxable tangible personal property:
1386
(i) has an acquisition cost of $1,000 or less;
1387
(ii) has reached a percent good of 15% or less according to a personal property
1388
schedule:
1389
(A) published by the commission pursuant to Section
59-2-107
; or
1390
(B) for an item of personal property that is designated as expensed personal property in
1391
accordance with Section
59-2-108
, described in Section
59-2-108
; and
1392
(iii) is in a personal property schedule with a residual value of 15% or less.
1393
[(2)] (3) (a) For calendar years beginning on or after January 1, 2008, the commission
1394
shall increase the dollar amount described in Subsection [(1)] (2)(a):
1395
(i) by a percentage equal to the percentage difference between the consumer price
1396
index for the preceding calendar year and the consumer price index for calendar year 2006[.];
1397
and
1398
(ii) up to the nearest $100 increment.
1399
(b) For purposes of this Subsection [(2)](3), the commission shall calculate the
1400
consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1401
(c) If the percentage difference under Subsection [(2)](3)(a)(i) is zero or a negative
1402
percentage, the consumer price index increase for the year is zero.
1403
[(3)] (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
1404
Act, the commission may make rules to administer this section and provide for uniform
1405
implementation.
1406
Section 19.
Section
59-2-1302
is amended to read:
1407
59-2-1302. Assessor or treasurer's duties -- Collection of uniform fees and taxes
1408
on personal property -- Unpaid tax or unpaid uniform fee is a lien -- Delinquency interest
1409
-- Rate.
1410
(1) After the assessor assesses taxes or uniform fees on personal property, the assessor
1411
or, if this duty has been reassigned in an ordinance under Section
17-16-5.5
, the treasurer shall:
1412
(a) list the personal property tax or uniform fee as provided in Subsection (3) with the
1413
real property of the owner in the manner required by law if the assessor or treasurer, as the case
1414
may be, determines that the real property is sufficient to secure the payment of the personal
1415
property taxes or uniform fees;
1416
(b) immediately collect the taxes or uniform fees due on the personal property; or
1417
(c) on or before the day on which the tax or uniform fee on personal property is due,
1418
obtain from the taxpayer a bond that is:
1419
(i) payable to the county in an amount equal to the amount of the tax or uniform fee
1420
due, plus 20% of the amount of the tax or uniform fee due; and
1421
(ii) conditioned for the payment of the tax or uniform fee on or before November 30.
1422
(2) (a) An unpaid tax as defined in Section
59-1-705
, or unpaid uniform fee upon
1423
personal property listed with the real property is a lien upon the owner's real property as of 12
1424
o'clock noon of January 1 of each year.
1425
(b) An unpaid tax as defined in Section
59-1-705
, or unpaid uniform fee upon personal
1426
property not listed with the real property is a lien upon the owner's personal property as of 12
1427
o'clock noon of January 1 of each year.
1428
(3) The assessor or treasurer, as the case may be, shall make the listing under this
1429
section:
1430
(a) on the record of assessment of the real property; or
1431
(b) by entering a reference showing the record of the assessment of the personal
1432
property on the record of assessment of the real property.
1433
(4) (a) The amount of tax or uniform fee assessed upon personal property is delinquent
1434
if the tax or uniform fee is not paid [within 30 days after] on the day on which the tax notice or
1435
the combined signed statement and tax notice [due] under Section
59-2-306
is [mailed] due.
1436
(b) Delinquent taxes or uniform fees under Subsection (4)(a) shall bear interest from
1437
the date of delinquency until the day on which the delinquent tax or uniform fee is paid at an
1438
interest rate equal to the sum of:
1439
(i) 6%; and
1440
(ii) the federal funds rate target:
1441
(A) established by the Federal Open Markets Committee; and
1442
(B) that exists on the January 1 immediately preceding the date of delinquency.
1443
(5) A county assessor or treasurer shall deposit all collections of public funds from a
1444
personal property tax or personal property uniform fee no later than once every seven banking
1445
days with:
1446
(a) the state treasurer; or
1447
(b) a qualified depository for the credit of the county.
1448
Section 20.
Section
59-2-1330
is amended to read:
1449
59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
1450
entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
1451
Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
1452
commission -- Time periods for making payments to taxpayer.
1453
(1) Unless otherwise specifically provided by statute, property taxes shall be paid
1454
directly to the county assessor or the county treasurer:
1455
(a) on the date that the property taxes are due; and
1456
(b) as provided in this chapter.
1457
(2) A taxpayer shall receive payment as provided in this section if a reduction in the
1458
amount of any tax levied against any property for which the taxpayer paid a tax or any portion
1459
of a tax under this chapter for a calendar year is required by a final and unappealable judgment
1460
or order described in Subsection (3) issued by:
1461
(a) a county board of equalization;
1462
(b) the commission; or
1463
(c) a court of competent jurisdiction.
1464
(3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
1465
property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
1466
shall pay the taxpayer if:
1467
(i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
1468
authorized officer of the:
1469
(A) county; or
1470
(B) state;
1471
(ii) the taxpayer obtains a final and unappealable judgment or order:
1472
(A) from:
1473
(I) a county board of equalization;
1474
(II) the commission; or
1475
(III) a court of competent jurisdiction;
1476
(B) against:
1477
(I) the taxing entity or an authorized officer of the taxing entity; or
1478
(II) the state or an authorized officer of the state; and
1479
(C) ordering a reduction in the amount of any tax levied against any property for which
1480
a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
1481
(b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
1482
in accordance with Subsections (4) through (7).
1483
(4) For purposes of Subsections (2) and (3), the amount the state shall pay to a taxpayer
1484
is equal to the sum of:
1485
(a) if the difference described in this Subsection (4)(a) is greater than $0, the difference
1486
between:
1487
(i) the tax the taxpayer paid to the state in accordance with Subsection (2); and
1488
(ii) the amount of