H.B. 391

1

PUBLIC SCHOOL FUNDING
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Wayne A. Harper
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends provisions in the Minimum School Program Act, the Property Tax
10 Act, and the Sales and Use Tax Act relating to certain property tax levies and the
11 funding of public school programs.
12 Highlighted Provisions:
13 This bill:
14 . repeals the authority of school districts to levy certain property taxes;
15 . requires a school district to abate certain property taxes raised for debt service to the
16 extent that money is available from other sources for the payment of bond interest,
17 principal, and redemption premiums;
18 . requires a school district to use the money received from the increase in the sales
19 and use tax to offset the loss of certain property tax revenue;
20 . prohibits a taxing entity from imposing a property tax rate higher than the taxing
21 entity's certified tax rate for three years;
22 . increases the sales and use tax on certain transactions by 1.65%;
23 . dedicates the revenue generated by the 1.65% increase to the Uniform School Fund;
24 . adjusts a school district's certified tax rate due to the repeal or amendment of the
25 property taxing authority of the school district;
26 . defines terms; and
27 . makes technical changes.

28 Monies Appropriated in this Bill:
29 None
30 Other Special Clauses:
31 This bill provides an effective date and provides retrospective operation for Section
32 59-2-919.1 .
33 Utah Code Sections Affected:
34 AMENDS:
35 11-2-7, as last amended by Laws of Utah 1961, Chapters 25 and 30
36 11-13-302, as last amended by Laws of Utah 2007, Chapter 108
37 20A-1-203, as last amended by Laws of Utah 2007, Chapter 215
38 53A-1a-513, as last amended by Laws of Utah 2005, Chapters 9 and 291
39 53A-2-118.2, as enacted by Laws of Utah 2007, Chapter 297
40 53A-2-206, as last amended by Laws of Utah 2007, Chapter 372
41 53A-17a-103, as last amended by Laws of Utah 2007, Chapters 107 and 372
42 53A-17a-105, as last amended by Laws of Utah 1994, Chapter 268
43 53A-17a-127, as last amended by Laws of Utah 2001, Chapter 73
44 53A-21-103, as last amended by Laws of Utah 2003, Chapter 320
45 53A-21-104, as last amended by Laws of Utah 2007, Chapter 344
46 59-2-404, as last amended by Laws of Utah 1999, Chapter 181
47 59-2-405, as last amended by Laws of Utah 2005, Chapters 217 and 244
48 59-2-405.1, as last amended by Laws of Utah 2006, Chapter 164
49 59-2-405.2, as last amended by Laws of Utah 2006, Fifth Special Session, Chapter 3
50 59-2-405.3, as enacted by Laws of Utah 2005, Chapter 217
51 59-2-919, as last amended by Laws of Utah 2006, Chapters 26 and 104
52 59-2-924, as last amended by Laws of Utah 2007, Chapters 107 and 329
53 59-12-103, as last amended by Laws of Utah 2007, Chapters 9, 101, 126, 206, and 288
54 59-12-1201, as last amended by Laws of Utah 2006, Chapters 135 and 253
55 63-30d-704, as enacted by Laws of Utah 2004, Chapter 267
56 ENACTS:
57 53A-17a-154, Utah Code Annotated 1953
58 53A-18-107, Utah Code Annotated 1953

59 59-2-919.1, Utah Code Annotated 1953
60 REPEALS:
61 53A-2-114, as last amended by Laws of Utah 1996, Chapter 326
62 53A-2-115, as last amended by Laws of Utah 1996, Chapter 326
63 53A-16-107, as last amended by Laws of Utah 1999, Chapter 332
64 53A-16-110, as last amended by Laws of Utah 2004, Chapter 371
65 53A-17a-133, as last amended by Laws of Utah 2006, Chapter 26
66 53A-17a-134, as last amended by Laws of Utah 2006, Chapter 26
67 53A-17a-143, as last amended by Laws of Utah 1995, Chapter 271
68 53A-17a-145, as renumbered and amended by Laws of Utah 1991, Chapter 72
69 53A-17a-151, as enacted by Laws of Utah 2004, Chapter 305
70
71 Be it enacted by the Legislature of the state of Utah:
72 Section 1. Section 11-2-7 is amended to read:
73 11-2-7. Expenses -- Payment of -- Authority to appropriate and tax -- Licensing
74 of television owners and users -- Collection of license fees.
75 (1) All expenses incurred in the equipment, operation and maintenance of such
76 recreational facilities and activities shall be paid from the treasuries of the respective cities,
77 towns, counties, or school districts, and the governing bodies of the same may annually
78 appropriate[, and cause to be raised by taxation,] money for such purposes.
79 (2) In areas so remote from regular transmission points of the large television stations
80 that television reception is impossible without special equipment and adequate, economical and
81 proper television is not available to the public by private sources, said local authorities may
82 also, by ordinance, license, for the purpose of raising revenue to equip, operate and maintain
83 television transmission and relay facilities, all users or owners of television sets within the
84 jurisdiction of said local authorities, and may provide for the collection of the license fees by
85 suit or otherwise and may also enforce obedience to such ordinances with such fine and
86 imprisonment as the local authorities deem proper; provided that the punishment for any
87 violation of such ordinances shall be by a fine not exceeding $50.00 or by imprisonment not
88 exceeding one day for each $5.00 of said fine, if the fine is not paid.
89 Section 2. Section 11-13-302 is amended to read:

90 11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
91 suppliers -- Method of calculating -- Collection -- Extent of tax lien.
92 (1) (a) Each project entity created under this chapter that owns a project and that sells
93 any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
94 property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
95 valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
96 this section to each taxing jurisdiction within which the project or any part of it is located.
97 (b) For purposes of this section, "annual fee" means the annual fee described in
98 Subsection (1)(a) that is in lieu of ad valorem property tax.
99 (c) The requirement to pay an annual fee shall commence:
100 (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
101 impact alleviation payments under contracts or determination orders provided for in Sections
102 11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
103 candidate in which the date of commercial operation of the last generating unit, other than any
104 generating unit providing additional project capacity, of the project occurs, or, in the case of
105 any facilities providing additional project capacity, with the fiscal year of the candidate
106 following the fiscal year of the candidate in which the date of commercial operation of the
107 generating unit providing the additional project capacity occurs; and
108 (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
109 Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
110 project commences, or, in the case of facilities providing additional project capacity, with the
111 fiscal year of the taxing jurisdiction in which construction of those facilities commences.
112 (d) The requirement to pay an annual fee shall continue for the period of the useful life
113 of the project or facilities.
114 (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
115 because the ad valorem property tax imposed by a school district and authorized by the
116 Legislature under Section 53A-17a-135 represents [both: (i)] a levy mandated by the state for
117 the state minimum school program under Section 53A-17a-135 [; and].
118 [(ii) local levies for capital outlay, maintenance, transportation, and other purposes
119 under Sections 11-2-7 , 53A-16-107 , 53A-16-110 , 53A-17a-126 , 53A-17a-127 , 53A-17a-133 ,
120 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 .]

121 (b) The annual fees due a school district shall be as follows:
122 (i) the project entity shall pay to the school district an annual fee for the state minimum
123 school program at the rate imposed by the school district and authorized by the Legislature
124 under Subsection 53A-17a-135 (1); and
125 (ii) for all other local property tax levies authorized to be imposed by a school district,
126 the project entity shall pay to the school district either:
127 (A) an annual fee; or
128 (B) impact alleviation payments under contracts or determination orders provided for
129 in Sections 11-13-305 and 11-13-306 .
130 (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
131 by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
132 multiplying the fee base or value determined in accordance with Subsection (4) for that year of
133 the portion of the project located within the jurisdiction by the percentage of the project which
134 is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
135 (b) As used in this section, "tax rate," when applied in respect to a school district,
136 includes any assessment to be made by the school district under Subsection (2) or Section
137 63-51-6 .
138 (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
139 an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
140 the proceeds of which were used to provide public facilities and services for impact alleviation
141 in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
142 (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
143 (i) take into account the fee base or value of the percentage of the project located
144 within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
145 capacity, service, or other benefit sold to the supplier or suppliers; and
146 (ii) reflect any credit to be given in that year.
147 (4) (a) Except as otherwise provided in this section, the annual fees required by this
148 section shall be paid, collected, and distributed to the taxing jurisdiction as if:
149 (i) the annual fees were ad valorem property taxes; and
150 (ii) the project were assessed at the same rate and upon the same measure of value as
151 taxable property in the state.

152 (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
153 this section, the fee base of a project may be determined in accordance with an agreement
154 among:
155 (A) the project entity; and
156 (B) any county that:
157 (I) is due an annual fee from the project entity; and
158 (II) agrees to have the fee base of the project determined in accordance with the
159 agreement described in this Subsection (4).
160 (ii) The agreement described in Subsection (4)(b)(i):
161 (A) shall specify each year for which the fee base determined by the agreement shall be
162 used for purposes of an annual fee; and
163 (B) may not modify any provision of this chapter except the method by which the fee
164 base of a project is determined for purposes of an annual fee.
165 (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
166 described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
167 Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
168 jurisdiction.
169 (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
170 year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
171 portion of the project for which there is not an agreement:
172 (I) for that year; and
173 (II) using the same measure of value as is used for taxable property in the state.
174 (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
175 Commission in accordance with rules made by the State Tax Commission.
176 (c) Payments of the annual fees shall be made from:
177 (i) the proceeds of bonds issued for the project; and
178 (ii) revenues derived by the project entity from the project.
179 (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
180 other benefits of the project whose tangible property is not exempted by Utah Constitution
181 Article XIII, Section 3, from the payment of ad valorem property tax shall require each
182 purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,

183 its share, determined in accordance with the terms of the contract, of these fees.
184 (ii) It is the responsibility of the project entity to enforce the obligations of the
185 purchasers.
186 (5) (a) The responsibility of the project entity to make payment of the annual fees is
187 limited to the extent that there is legally available to the project entity, from bond proceeds or
188 revenues, monies to make these payments, and the obligation to make payments of the annual
189 fees is not otherwise a general obligation or liability of the project entity.
190 (b) No tax lien may attach upon any property or money of the project entity by virtue of
191 any failure to pay all or any part of an annual fee.
192 (c) The project entity or any purchaser may contest the validity of an annual fee to the
193 same extent as if the payment was a payment of the ad valorem property tax itself.
194 (d) The payments of an annual fee shall be reduced to the extent that any contest is
195 successful.
196 (6) (a) The annual fee described in Subsection (1):
197 (i) shall be paid by a public agency that:
198 (A) is not a project entity; and
199 (B) owns an interest in a facility providing additional project capacity if the interest is
200 otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
201 (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
202 accordance with Subsection (6)(b).
203 (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
204 rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
205 (i) the fee base or value of the facility providing additional project capacity located
206 within the jurisdiction;
207 (ii) the percentage of the ownership interest of the public agency in the facility; and
208 (iii) the portion, expressed as a percentage, of the public agency's ownership interest
209 that is attributable to the capacity, service, or other benefit from the facility that is sold by the
210 public agency to an energy supplier or suppliers whose tangible property is not exempted by
211 Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
212 (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
213 obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect

214 to its ownership interest as though it were a project entity.
215 Section 3. Section 20A-1-203 is amended to read:
216 20A-1-203. Calling and purpose of special elections.
217 (1) Statewide and local special elections may be held for any purpose authorized by
218 law.
219 (2) (a) Statewide special elections shall be conducted using the procedure for regular
220 general elections.
221 (b) Except as otherwise provided in this title, local special elections shall be conducted
222 using the procedures for regular municipal elections.
223 (3) The governor may call a statewide special election by issuing an executive order
224 that designates:
225 (a) the date for the statewide special election; and
226 (b) the purpose for the statewide special election.
227 (4) The Legislature may call a statewide special election by passing a joint or
228 concurrent resolution that designates:
229 (a) the date for the statewide special election; and
230 (b) the purpose for the statewide special election.
231 (5) (a) The legislative body of a local political subdivision may call a local special
232 election only for:
233 (i) a vote on a bond or debt issue;
234 [(ii) a vote on a voted leeway program authorized by Section 53A-17a-133 or
235 53A-17a-134 ;]
236 [(iii)] (ii) an initiative authorized by Chapter 7, Part 5, Local Initiatives - Procedure;
237 [(iv)] (iii) a referendum authorized by Chapter 7, Part 6, Local Referenda - Procedures;
238 [(v)] (iv) if required or authorized by federal law, a vote to determine whether or not
239 Utah's legal boundaries should be changed;
240 [(vi)] (v) a vote authorized or required by Title 59, Chapter 12, Sales and Use Tax Act;
241 or
242 [(vii)] (vi) a vote to elect members to school district boards for a new school district
243 and a remaining school district, as defined in Section 53A-2-117 , following the creation of a
244 new school district under Section 53A-2-118.1 .

245 (b) The legislative body of a local political subdivision may call a local special election
246 by adopting an ordinance or resolution that designates:
247 (i) the date for the local special election; and
248 (ii) the purpose for the local special election.
249 Section 4. Section 53A-1a-513 is amended to read:
250 53A-1a-513. Funding for charter schools.
251 (1) (a) Charter schools shall receive funding as described in this section, except
252 Subsections (2) through (7) do not apply to charter schools described in Subsection (1)(b).
253 (b) Charter schools authorized by local school boards that are converted from district
254 schools or operate in district facilities without paying reasonable rent shall receive funding as
255 prescribed in Section 53A-1a-515 .
256 (2) (a) Except as provided in Subsection (2)(b), a charter school shall receive state
257 funds, as applicable, on the same basis as a school district receives funds.
258 (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
259 to charter schools, charter school pupils shall be weighted, where applicable, as follows:
260 (i) .55 for kindergarten pupils;
261 (ii) .9 for pupils in grades 1-6;
262 (iii) .99 for pupils in grades 7-8; and
263 (iv) 1.2 for pupils in grades 9-12.
264 (c) The State Board of Education shall make rules in accordance with Title 63, Chapter
265 46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including hold
266 harmless provisions to maintain a charter elementary school's funding level for a period of two
267 years after the effective date of the distribution formula.
268 (d) Subsection (2)(b) does not apply to funds appropriated to charter schools to replace
269 local property tax revenues.
270 (3) The State Board of Education shall adopt rules to provide for the distribution of
271 monies to charter schools under this section.
272 (4) (a) The Legislature shall provide an appropriation for charter schools for each of
273 their students to replace some of the local property tax revenues that are not available to charter
274 schools. The amount of money provided for each charter school student shall be determined
275 by:

276 (i) calculating the sum of:
277 (A) school districts' operations and maintenance revenues derived from local property
278 taxes, except revenues from imposing a minimum basic tax rate pursuant to Section
279 53A-17a-135 ;
280 (B) school districts' capital projects revenues derived from local property taxes; and
281 (C) school districts' expenditures for interest on debt; and
282 (ii) dividing the sum by the total average daily membership of the districts' schools.
283 (b) Of the monies provided to a charter school under Subsection (4)(a), 10% shall be
284 expended for funding school facilities only.
285 (c) To qualify for money under Subsection (4)(a), a new charter school shall, by
286 September 30 of the school year prior to the school year it intends to begin operations:
287 (i) obtain approval of its application for a charter from:
288 (A) the State Board of Education, pursuant to Section 53A-1a-505 ; or
289 (B) a local school board, pursuant to Section 53A-1a-515 ; and
290 (ii) submit to the chartering entity an estimate of the charter school's first year
291 enrollment.
292 (d) Subsection (4)(c) does not apply to charter schools beginning operations in the
293 2005-06 school year.
294 (e) By December 1, the State Charter School Board shall submit to the Governor's
295 Office of Planning and Budget and the Office of the Legislative Fiscal Analyst an estimate of
296 total charter school enrollment in the state for the following school year.
297 (5) Charter schools are eligible to receive federal funds if they meet all applicable
298 federal requirements and comply with relevant federal regulations.
299 (6) The State Board of Education shall distribute funds for charter school students
300 directly to the charter school.
301 (7) (a) Notwithstanding Subsection (2), a charter school is not eligible to receive state
302 transportation funding.
303 (b) The board shall also adopt rules relating to the transportation of students to and
304 from charter schools, taking into account [Sections] Section 53A-2-210 [and 53A-17a-127 ].
305 (c) The governing body of the charter school may provide transportation through an
306 agreement or contract with the local school board, a private provider, or with parents.

307 (8) (a) (i) The state superintendent of public instruction may allocate grants for both
308 start-up and ongoing costs to eligible charter school applicants from monies appropriated for
309 the implementation of this part.
310 (ii) Applications for the grants shall be filed on a form determined by the state
311 superintendent and in conjunction with the application for a charter.
312 (iii) The amount of a grant may vary based upon the size, scope, and special
313 circumstances of the charter school.
314 (iv) The governing board of the charter school shall use the grant to meet the expenses
315 of the school as established in the school's charter.
316 (b) The State Board of Education shall coordinate the distribution of federal monies
317 appropriated to help fund costs for establishing and maintaining charter schools within the
318 state.
319 (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
320 endowment, gift, or donation of any property made to the school for any of the purposes of this
321 part.
322 (b) It is unlawful for any person affiliated with a charter school to demand or request
323 any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
324 with the charter school as a condition for employment or enrollment at the school or continued
325 attendance at the school.
326 (10) The State Office of Education shall use up to $1,044,000 of funding provided for
327 new growth to fund additional growth needs in charter schools in fiscal year 2005.
328 Section 5. Section 53A-2-118.2 is amended to read:
329 53A-2-118.2. New school district property tax -- Limitations.
330 (1) [(a)] A new school district created under Section 53A-2-118.1 may not impose a
331 property tax prior to the fiscal year in which the new school district assumes responsibility for
332 providing student instruction.
333 [(b)] (2) The remaining school district retains authority to impose property taxes on the
334 existing school district, including the territory of the new school district, until the fiscal year in
335 which the new school district assumes responsibility for providing student instruction.
336 [(2) (a) If at the time a new school district created pursuant to Section 53A-2-118.1
337 assumes responsibility for student instruction any portion of the territory within the new school

338 district was subject to a levy pursuant to Section 53A-16-110 or 53A-17a-133 , the new school
339 district's board may:]
340 [(i) discontinue the levy for the new school district;]
341 [(ii) impose a levy on the new school district as provided in Section 53A-16-110 or
342 53A-17a-133 ; or]
343 [(iii) impose the levy on the new school district, subject to Subsection (2)(b).]
344 [(b) If the new school district's board applies a levy to the new school district pursuant
345 to Subsection (2)(a)(iii), the levy may not exceed the maximum duration or rate authorized by
346 the voters of the existing district or districts at the time of the vote to create the new school
347 district.]
348 Section 6. Section 53A-2-206 is amended to read:
349 53A-2-206. Interstate compact students -- Inclusion in attendance count --
350 Funding for foreign exchange students -- Annual report -- Requirements for exchange
351 student agencies.
352 (1) A school district or charter school may include the following students in the
353 district's or school's membership and attendance count for the purpose of apportionment of
354 state monies:
355 (a) a student enrolled under an interstate compact, established between the State Board
356 of Education and the state education authority of another state, under which a student from one
357 compact state would be permitted to enroll in a public school in the other compact state on the
358 same basis as a resident student of the receiving state; or
359 (b) a student receiving services under the Compact on Placement of Children.
360 (2) (a) A school district or charter school may include foreign exchange students in the
361 district's or school's membership and attendance count for the purpose of apportionment of
362 state monies, except as provided in Subsections (2)(b) through [(e)] (d).
363 (b) (i) Notwithstanding Section 53A-17a-106 , foreign exchange students may not be
364 included in average daily membership for the purpose of determining the number of weighted
365 pupil units in the grades 1-12 basic program.
366 (ii) Subject to the limitation in Subsection (2)(c), the number of weighted pupil units in
367 the grades 1-12 basic program attributed to foreign exchange students shall be equal to the
368 number of foreign exchange students who were:

369 (A) enrolled in a school district or charter school on October 1 of the previous fiscal
370 year; and
371 (B) sponsored by an agency approved by the district's local school board or charter
372 school's governing board.
373 (c) (i) The total number of foreign exchange students in the state that may be counted
374 for the purpose of apportioning state monies under Subsection (2)(b) shall be the lesser of:
375 (A) the number of foreign exchange students enrolled in public schools in the state on
376 October 1 of the previous fiscal year; or
377 (B) 328 foreign exchange students.
378 (ii) The State Board of Education shall make rules in accordance with Title 63, Chapter
379 46a, Utah Administrative Rulemaking Act, to administer the cap on the number of foreign
380 exchange students that may be counted for the purpose of apportioning state monies under
381 Subsection (2)(b).
382 [(d) Notwithstanding Sections 53A-17a-133 and 53A-17a-134 , weighted pupil units in
383 the grades 1-12 basic program for foreign exchange students, as determined by Subsections
384 (2)(b) and (c), may not be included for the purposes of determining a school district's state
385 guarantee money under the voted or board leeway programs.]
386 [(e)] (d) Notwithstanding Section 53A-17a-125 , foreign exchange students may not be
387 included in enrollment when calculating student growth for the purpose of adjusting the annual
388 appropriation for retirement and Social Security.
389 (3) A school district or charter school may:
390 (a) enroll foreign exchange students that do not qualify for state monies; and
391 (b) pay for the costs of those students with other funds available to the school district
392 or charter school.
393 (4) Due to the benefits to all students of having the opportunity to become familiar
394 with individuals from diverse backgrounds and cultures, school districts are encouraged to
395 enroll foreign exchange students, as provided in Subsection (3), particularly in schools with
396 declining or stable enrollments where the incremental cost of enrolling the foreign exchange
397 student may be minimal.
398 (5) The board shall make an annual report to the Legislature on the number of
399 exchange students and the number of interstate compact students sent to or received from

400 public schools outside the state.
401 (6) (a) A local school board or charter school governing board shall require each
402 approved exchange student agency to provide it with a sworn affidavit of compliance prior to
403 the beginning of each school year.
404 (b) The affidavit shall include the following assurances:
405 (i) that the agency has complied with all applicable policies of the board;
406 (ii) that a household study, including a background check of all adult residents, has
407 been made of each household where an exchange student is to reside, and that the study was of
408 sufficient scope to provide reasonable assurance that the exchange student will receive proper
409 care and supervision in a safe environment;
410 (iii) that host parents have received training appropriate to their positions, including
411 information about enhanced criminal penalties under Subsection 76-5-406 (10) for persons who
412 are in a position of special trust;
413 (iv) that a representative of the exchange student agency shall visit each student's place
414 of residence at least once each month during the student's stay in Utah;
415 (v) that the agency will cooperate with school and other public authorities to ensure
416 that no exchange student becomes an unreasonable burden upon the public schools or other
417 public agencies;
418 (vi) that each exchange student will be given in the exchange student's native language
419 names and telephone numbers of agency representatives and others who could be called at any
420 time if a serious problem occurs; and
421 (vii) that alternate placements are readily available so that no student is required to
422 remain in a household if conditions appear to exist which unreasonably endanger the student's
423 welfare.
424 (7) (a) A local school board or charter school governing board shall provide each
425 approved exchange student agency with a list of names and telephone numbers of individuals
426 not associated with the agency who could be called by an exchange student in the event of a
427 serious problem.
428 (b) The agency shall make a copy of the list available to each of its exchange students
429 in the exchange student's native language.
430 Section 7. Section 53A-17a-103 is amended to read:

431 53A-17a-103. Definitions.
432 As used in this chapter:
433 (1) "Basic state-supported school program" or "basic program" means public education
434 programs for kindergarten, elementary, and secondary school students that are operated and
435 maintained for the amount derived by multiplying the number of weighted pupil units for each
436 district by $2,514, except as otherwise provided in this chapter.
437 (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
438 ad valorem property tax revenue equal to the sum of:
439 (i) the amount of ad valorem property tax revenue to be generated statewide in the
440 previous year from imposing a minimum basic tax rate, as specified in Subsection
441 53A-17a-135 (1)(a); and
442 (ii) the product of:
443 (A) new growth, as defined in Section 59-2-924 and rules of the State Tax
444 Commission; and
445 (B) the minimum basic tax rate certified by the State Tax Commission for the previous
446 year.
447 (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
448 include property tax revenue received statewide from personal property that is:
449 (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
450 Assessment; and
451 (ii) semiconductor manufacturing equipment.
452 [(3) "Leeway program" or "leeway" means a state-supported voted leeway program or
453 board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .]
454 [(4)] (3) "Pupil in average daily membership (ADM)" means a full-day equivalent
455 pupil.
456 [(5)] (4) (a) "State-supported minimum school program" or "minimum school
457 program" means public school programs for kindergarten, elementary, and secondary schools
458 as described in this Subsection [(5)] (4).
459 (b) The minimum school program established in the districts shall include the
460 equivalent of a school term of nine months as determined by the State Board of Education.
461 (c) (i) The board shall establish the number of days or equivalent instructional hours

462 that school is held for an academic school year.
463 (ii) Education, enhanced by utilization of technologically enriched delivery systems,
464 when approved by local school boards, shall receive full support by the State Board of
465 Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
466 commercial advertising.
467 (d) The program includes the total of the following annual costs:
468 (i) the cost of a basic state-supported school program; and
469 (ii) other amounts appropriated in this chapter in addition to the basic program.
470 [(6)] (5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
471 factors that is computed in accordance with this chapter for the purpose of determining the
472 costs of a program on a uniform basis for each district.
473 Section 8. Section 53A-17a-105 is amended to read:
474 53A-17a-105. Action required for underestimated or overestimated weighted
475 pupil units -- Action required for underestimating or overestimating local contributions.
476 (1) If the number of weighted pupil units in a program is underestimated in Section
477 53A-17a-104 , the amount per pupil in that program paid under this chapter must be reduced so
478 that the amount paid does not exceed the estimated amount by program.
479 (2) If the number of weighted pupil units in a program is overestimated in Section
480 53A-17a-104 , the state superintendent of public instruction shall either increase the amount
481 paid in that program per weighted pupil unit or transfer the unused amount in that program to
482 another program included in the minimum school program.
483 (3) (a) If surplus funds are transferred to another program, the state superintendent, if
484 he determines certain districts have greater need for additional funds, may designate the
485 districts as well as the programs to which the transferred funds will be allocated.
486 (b) Any amounts transferred under Subsection (a) may be spent in addition to the
487 amounts listed in Section 53A-17a-104 .
488 (4) The limitation on the proceeds from local tax rates for operation and maintenance
489 programs under this chapter is subject to [modification by local school boards under Sections
490 53A-17a-133 and 53A-17a-134 and to] special tax rates authorized by this chapter, and shall be
491 adjusted accordingly.
492 (5) If local contributions are overestimated, the guarantee per weighted pupil unit is

493 reduced for all programs so the total state contribution for operation and maintenance programs
494 does not exceed the amount authorized in Subsection 53A-17a-104 (1).
495 (6) (a) If local contributions from the basic tax rate for operation and maintenance
496 programs are underestimated, the excess is applied first to support the value of the weighted
497 pupil unit as set by the Legislature for total weighted pupil units generated by the districts and
498 those costs of Social Security and retirement, transportation, and board and voted leeway that
499 occur as a result of the additional generated weighted pupil units, following internal
500 adjustments by the state superintendent as provided in this section.
501 (b) The state contribution is decreased so the total school program cost for operation
502 and maintenance programs does not exceed the total estimated contributions to school districts
503 for all programs under Subsection 53A-17a-104 (2) plus the amount of local revenue necessary
504 to support the value of the weighted pupil unit for weighted pupil units generated and those
505 costs of Social Security and retirement, transportation, and board and voted leeway that occur
506 as a result of the additional generated weighted pupil units.
507 (7) As an exception to Section 63-38-8 , the state fiscal officer may not close out
508 appropriations from the Uniform School Fund at the end of a fiscal year.
509 Section 9. Section 53A-17a-127 is amended to read:
510 53A-17a-127. Eligibility for state-supported transportation -- Approved bus
511 routes -- Additional local tax.
512 (1) A student eligible for state-supported transportation means:
513 (a) a student enrolled in kindergarten through grade six who lives at least 1-1/2 miles
514 from school;
515 (b) a student enrolled in grades seven through 12 who lives at least two miles from
516 school; and
517 (c) a student enrolled in a special program offered by a school district and approved by
518 the State Board of Education for trainable, motor, multiple-disabled, or other students with
519 severe disabilities who are incapable of walking to school or where it is unsafe for students to
520 walk because of their disabling condition, without reference to distance from school.
521 (2) If a school district implements double sessions as an alternative to new building
522 construction, with the approval of the State Board of Education, those affected elementary
523 school students residing less than 1-1/2 miles from school may be transported one way to or

524 from school because of safety factors relating to darkness or other hazardous conditions as
525 determined by the local school board.
526 (3) (a) The State Office of Education shall distribute transportation monies to school
527 districts based on three factors:
528 (i) an allowance per mile for approved bus routes;
529 (ii) an allowance per hour for approved bus routes; and
530 (iii) an annual allowance for equipment and overhead costs based on approved bus
531 routes and the age of the equipment.
532 (b) In order for a bus to be considered for the equipment allowance, it must meet
533 federal and state regulations and standards for school buses.
534 (c) The State Office of Education shall annually review the allowance per mile, the
535 allowance per hour, and the annual equipment and overhead allowance and adjust the
536 allowance to reflect current economic conditions.
537 (4) (a) Approved bus routes for funding purposes shall be determined on fall data
538 collected by October 1.
539 (b) Approved route funding shall be determined on the basis of the most efficient and
540 economic routes.
541 (5) A Transportation Advisory Committee with representation from local school
542 superintendents, business officials, school district transportation supervisors, and the State
543 Office of Education shall serve as a review committee for addressing school transportation
544 needs, including recommended approved bus routes.
545 (6) (a) A local school board may provide for the transportation of students who are not
546 eligible under Subsection (1), regardless of the distance from school, from[: (i)] general funds
547 of the district[; and].
548 [(ii) a tax rate not to exceed .0003 per dollar of taxable value imposed on the district.]
549 [(b) A local school board may use revenue from the tax to pay for transporting
550 participating students to interscholastic activities, night activities, and educational field trips
551 approved by the board and for the replacement of school buses.]
552 [(c) (i) If a local school board levies a tax under Subsection (6)(a)(ii) of at least .0002,
553 the]
554 (b) (i) The state may contribute an amount not to exceed 85% of the state average cost

555 per mile, contingent upon the Legislature appropriating funds for a state contribution.
556 (ii) The State Office of Education shall distribute the state contribution according to
557 rules enacted by the State Board of Education.
558 [(d)] (c) (i) The amount of state guarantee money to which a school district would
559 otherwise be entitled to under Subsection (6)[(c)](b) may not be reduced for the sole reason
560 that the district's levy is reduced as a consequence of changes in the certified tax rate under
561 Section 59-2-924 due to changes in property valuation.
562 (ii) Subsection (6)[(d)](c)(i) applies for a period of two years following the change in
563 the certified tax rate.
564 (7) There is appropriated for the fiscal year beginning July 1, 1999, $225,000 to the
565 state board as the state's contribution under Subsection (6)[(c)](b)(i).
566 Section 10. Section 53A-17a-154 is enacted to read:
567 53A-17a-154. Homeowner Protection Program -- Increase in the Uniform School
568 Fund --Use of funds received by a school district -- Property tax offset.
569 (1) The revenue deposited into the Uniform School Fund under Subsection
570 59-12-103 (11) as part of the Homeowner Protection Program, shall be allocated to school
571 districts based on a school district's total weighted pupil units compared to the total weighted
572 pupil units for all districts in the state.
573 (2) The portion a school district receives of the revenue described in Subsection (1)
574 shall be used by the school district to offset the school district's decreased certified tax rate as a
575 result of the repeal of the school district's authority to levy property taxes as repealed or
576 amended by the Legislature during the 2008 General Session:
577 (a) Section 11-2-7 ;
578 (b) Section 53A-16-107 ;
579 (c) Section 53A-16-110 ;
580 (d) Section 53A-16-111 ;
581 (e) Section 53A-17a-127 ;
582 (f) Section 53A-17a-133 ;
583 (g) Section 53A-17a-134 ;
584 (h) Section 53A-17a-143 ;
585 (i) Section 53A-17a-145 ;

586 (j) Section 53A-17a-151 ; and
587 (k) Section 63-30d-704 .
588 (3) Any money allocated to a school district in accordance with this section not used to
589 offset the property tax decrease described in Subsection (2) shall be used for the payment of
590 bond interest, principal, and redemption premiums as required in Section 53A-18-107 .
591 Section 11. Section 53A-18-107 is enacted to read:
592 53A-18-107. Abatement of property taxes levied for debt service.
593 If the bonding covenants allow, the direct annual tax imposed for bonds issued by a
594 school district in accordance with the following shall be abated to the extent that money is
595 available from sources other than ad valorem taxes for the payment of bond interest, principal,
596 and redemption premiums:
597 (1) a bond issued under this chapter; or
598 (2) a bond issued under Title 11, Chapter 14, Local Government Bonding Act.
599 Section 12. Section 53A-21-103 is amended to read:
600 53A-21-103. Qualifications for participation in the foundation program --
601 Distribution of monies -- Distribution formulas.
602 [(1) In order for a school district to qualify for monies under the Capital Outlay
603 Foundation Program established in Subsection 53A-21-102 (1), a local school board must levy a
604 tax rate of up to .0024 per dollar of taxable value for capital outlay and debt service.]
605 [(2) The State Board of Education shall adopt rules in accordance with Title 63,
606 Chapter 46a, Utah Administrative Rulemaking Act, that: (a) allow a school district levying
607 less than the full .0024 tax rate to receive proportional funding under the foundation program
608 based upon the percentage of the .0024 tax rate levied by the district; and (b) maintain a school
609 district's funding under the Capital Outlay Foundation Program for up to two years if the school
610 district's funding would otherwise be reduced as a consequence of changes in the certified tax
611 rate under Section 59-2-924 due to changes in property valuation.]
612 [(3)] The State Board of Education shall distribute monies in the Capital Outlay
613 Foundation Program in accordance with a formula developed by the state superintendent of
614 public instruction which guarantees that [a] an estimated tax rate of up to .0024 per dollar of
615 taxable value for capital outlay and debt service yields a minimum amount per pupil in average
616 daily membership.

617 Section 13. Section 53A-21-104 is amended to read:
618 53A-21-104. School Building Revolving Account -- Access to the account.
619 (1) There is created a nonlapsing "School Building Revolving Account" administered
620 within the Uniform School Fund by the state superintendent of public instruction in accordance
621 with rules adopted by the State Board of Education.
622 (2) Monies received by a school district from the School Building Revolving Account
623 may not exceed the district's bonding limit minus its outstanding bonds.
624 (3) In order to receive monies from the account, a school district must do the
625 following:
626 [(a) levy a tax of at least .0024 for capital outlay and debt service;]
627 [(b)] (a) contract with the state superintendent of public instruction to repay the
628 monies, with interest at a rate established by the state superintendent, within five years of their
629 receipt, using future state building monies or local revenues or both;
630 [(c)] (b) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual
631 loan repayments, unless the state superintendent of public instruction alters the payment
632 schedule to improve a hardship situation; and
633 [(d)] (c) meet any other condition established by the State Board of Education pertinent
634 to the loan.
635 (4) (a) The state superintendent shall establish a committee, including representatives
636 from state and local education entities, to:
637 (i) review requests by school districts for loans under this section; and
638 (ii) make recommendations regarding approval or disapproval of the loan applications
639 to the state superintendent.
640 (b) If the committee recommends approval of a loan application under Subsection
641 (4)(a)(ii), the committee's recommendation shall include:
642 (i) the recommended amount of the loan;
643 (ii) the payback schedule; and
644 (iii) the interest rate to be charged.
645 (5) (a) There is established within the School Building Revolving Account the Charter
646 School Building Subaccount administered by the State Board of Education, in consultation
647 with the State Charter School Board, in accordance with rules adopted by the State Board of

648 Education.
649 (b) The Charter School Building Subaccount shall consist of:
650 (i) money appropriated to the subaccount by the Legislature;
651 (ii) money received from the repayment of loans made from the subaccount; and
652 (iii) interest earned on monies in the subaccount.
653 (c) The state superintendent of public instruction shall make loans to charter schools
654 from the Charter School Building Subaccount to pay for the costs of:
655 (i) planning expenses;
656 (ii) constructing or renovating charter school buildings;
657 (iii) equipment and supplies; or
658 (iv) other start-up or expansion expenses.
659 (d) Loans to new charter schools or charter schools with urgent facility needs may be
660 given priority.
661 (6) (a) The State Board of Education shall establish a committee, which shall include
662 individuals who have expertise or experience in finance, real estate, and charter school
663 administration, one of whom shall be nominated by the governor to:
664 (i) review requests by charter schools for loans under this section; and
665 (ii) make recommendations regarding approval or disapproval of the loan applications
666 to the State Charter School Board and the State Board of Education.
667 (b) If the committee recommends approval of a loan application under Subsection
668 (6)(a)(ii), the committee's recommendation shall include:
669 (i) the recommended amount of the loan;
670 (ii) the payback schedule; and
671 (iii) the interest rate to be charged.
672 (c) The committee members may not:
673 (i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or
674 (ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
675 or entity that contracts with a loan applicant.
676 (7) The State Board of Education, in consultation with the State Charter School Board,
677 shall approve all loans to charter schools under this section.
678 (8) Loans to charter schools under this section may not exceed a term of five years.

679 (9) The State Board of Education may not approve loans to charter schools under this
680 section that exceed a total of $2,000,000 in any year.
681 Section 14. Section 59-2-404 is amended to read:
682 59-2-404. Uniform fee on aircraft -- Collection of fee by county -- Distribution of
683 fees -- Rules to implement section.
684 (1) There is levied in lieu of the ad valorem tax a uniform fee on aircraft required to be
685 registered with the state in an amount equal to the following percent of the average wholesale
686 market value of the aircraft as established by the commission:
687 (a) for aerial applicators as defined in Section 59-2-102 as follows:
688 Calendar Year Uniform Fee
689 2000 0.4%
690 2001 0.3%
691 2002 and all subsequent years 0.2%; and
692 (b) for all other aircraft required to be registered with the state as follows:
693 Calendar Year Uniform Fee
694 2000 0.8%
695 2001 0.6%
696 2002 and all subsequent years 0.4%.
697 (2) The uniform fee shall be collected by the counties with the registration fee and
698 distributed [to the taxing districts in accordance with Article XIII, Sec. 14, Utah Constitution]
699 in accordance with Subsection (3).
700 (3) (a) Forty-five percent of the uniform fees received by a county under Subsection (2)
701 shall be distributed to each taxing entity within the county that is not a school district in the
702 same proportion in which revenues collected from ad valorem property tax are distributed.
703 (b) Each taxing entity described in Subsection (3)(a) that receives revenues from the
704 uniform fees imposed by this section shall distribute the revenues in the same proportion in
705 which revenues collected from the ad valorem property tax are distributed.
706 (c) Fifty-five percent of the revenues collected in a county from the uniform fee shall
707 be distributed by the county to each school district within the county in proportion to the school
708 district's percentage of the total current year enrollment in all of the school districts within the
709 county, as of the October 1 enrollment counts.

710 [(3)] (4) The commission shall promulgate rules to implement this section.
711 Section 15. Section 59-2-405 is amended to read:
712 59-2-405. Uniform fee on tangible personal property required to be registered
713 with the state -- Distribution of revenues -- Appeals.
714 (1) The property described in Subsection (2), except Subsections (2)(b)(ii) and (iii), is
715 exempt from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section 2,
716 Subsection (6).
717 (2) (a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
718 statewide uniform fee in lieu of the ad valorem tax on:
719 (i) motor vehicles required to be registered with the state that weigh 12,001 pounds or
720 more;
721 (ii) motorcycles as defined in Section 41-1a-102 that are required to be registered with
722 the state;
723 (iii) watercraft required to be registered with the state;
724 (iv) recreational vehicles required to be registered with the state; and
725 (v) all other tangible personal property required to be registered with the state before it
726 is used on a public highway, on a public waterway, on public land, or in the air.
727 (b) The following tangible personal property is exempt from the statewide uniform fee
728 imposed by this section:
729 (i) aircraft;
730 (ii) vintage vehicles as defined in Section 41-21-1 ;
731 (iii) state-assessed commercial vehicles;
732 (iv) tangible personal property subject to a uniform fee imposed by:
733 (A) Section 59-2-405.1 ;
734 (B) Section 59-2-405.2 ; or
735 (C) Section 59-2-405.3 ; and
736 (v) personal property that is exempt from state or county ad valorem property taxes
737 under the laws of this state or of the federal government.
738 (3) Beginning on January 1, 1999, the uniform fee is 1.5% of the fair market value of
739 the personal property, as established by the commission.
740 (4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is

741 brought into the state and is required to be registered in Utah shall, as a condition of
742 registration, be subject to the uniform fee unless all property taxes or uniform fees imposed by
743 the state of origin have been paid for the current calendar year.
744 (5) (a) [The] Forty-five percent of the revenues collected in [each] a county from the
745 uniform fee shall be distributed by the county to each taxing entity that is not a school district
746 in which the property described in Subsection (2) is located in the same proportion in which
747 revenue collected from ad valorem real property tax is distributed.
748 (b) [Each] A taxing entity that is not a school district shall distribute the revenues
749 received under Subsection (5)(a) in the same proportion in which revenue collected from ad
750 valorem real property tax is distributed.
751 (c) Fifty-five percent of the revenues collected in a county from the uniform fee shall
752 be distributed by the county to each school district within the county in proportion to the school
753 district's percentage of the total current year enrollment in all of the school districts within the
754 county, as of the October 1 enrollment counts.
755 (6) An appeal relating to the uniform fee imposed on the tangible personal property
756 described in Subsection (2) shall be filed pursuant to Section 59-2-1005 .
757 Section 16. Section 59-2-405.1 is amended to read:
758 59-2-405.1. Uniform fee on certain vehicles weighing 12,000 pounds or less --
759 Distribution of revenues -- Appeals.
760 (1) The property described in Subsection (2), except Subsection (2)(b)(ii), is exempt
761 from ad valorem property taxes pursuant to Utah Constitution Article XIII, Section 2,
762 Subsection (6).
763 (2) (a) Except as provided in Subsection (2)(b), there is levied as provided in this part a
764 statewide uniform fee in lieu of the ad valorem tax on:
765 (i) motor vehicles as defined in Section 41-1a-102 that:
766 (A) are required to be registered with the state; and
767 (B) weigh 12,000 pounds or less; and
768 (ii) state-assessed commercial vehicles required to be registered with the state that
769 weigh 12,000 pounds or less.
770 (b) The following tangible personal property is exempt from the statewide uniform fee
771 imposed by this section:

772 (i) aircraft;
773 (ii) vintage vehicles as defined in Section 41-21-1 ;
774 (iii) tangible personal property subject to a uniform fee imposed by:
775 (A) Section 59-2-405 ;
776 (B) Section 59-2-405.2 ; or
777 (C) Section 59-2-405.3 ; and
778 (iv) tangible personal property that is exempt from state or county ad valorem property
779 taxes under the laws of this state or of the federal government.
780 (3) (a) Except as provided in Subsections (3)(b) and (c), beginning on January 1, 1999,
781 the uniform fee for purposes of this section is as follows:
782 Age of Vehicle Uniform Fee
783 12 or more years $10
784 9 or more years but less than 12 years $50
785 6 or more years but less than 9 years $80
786 3 or more years but less than 6 years $110
787 Less than 3 years $150
788 (b) For registrations under Section 41-1a-215.5 , beginning on January 1, 2007, the
789 uniform fee for purposes of this section is as follows:
790 Age of Vehicle Uniform Fee
791 12 or more years $5
792 9 or more years but less than 12 years $25
793 6 or more years but less than 9 years $40
794 3 or more years but less than 6 years $55
795 Less than 3 years $75
796 (c) Notwithstanding Subsections (3)(a) and (b), beginning on September 1, 2001, for a
797 motor vehicle issued a temporary sports event registration certificate in accordance with
798 Section 41-3-306 , the uniform fee for purposes of this section is $5 for the event period
799 specified on the temporary sports event registration certificate regardless of the age of the
800 motor vehicle.
801 (4) Notwithstanding Section 59-2-407 , property subject to the uniform fee that is
802 brought into the state and is required to be registered in Utah shall, as a condition of

803 registration, be subject to the uniform fee unless all property taxes or uniform fees imposed by
804 the state of origin have been paid for the current calendar year.
805 (5) (a) [The] Forty-five percent of the revenues collected in [each] a county from the
806 uniform fee shall be distributed by the county to each taxing entity that is not a school district
807 in which the property described in Subsection (2) is located in the same proportion in which
808 revenue collected from ad valorem real property tax is distributed.
809 (b) [Each] A taxing entity that is not a school district shall distribute the revenues
810 received under Subsection (5)(a) in the same proportion in which revenue collected from ad
811 valorem real property tax is distributed.
812 (c) Fifty-five percent of the revenues collected in a county from the uniform fee shall
813 be distributed by the county to each school district within the county in proportion to the school
814 district's percentage of the total current year enrollment in all of the school districts within the
815 county, as of the October 1 enrollment counts.
816 Section 17. Section 59-2-405.2 is amended to read:
817 59-2-405.2. Definitions -- Uniform statewide fee on certain tangible personal
818 property -- Distribution of revenues -- Rulemaking authority -- Determining the length of
819 a vessel.
820 (1) As used in this section:
821 (a) (i) Except as provided in Subsection (1)(a)(ii), "all-terrain vehicle" means a motor
822 vehicle that:
823 (A) is an:
824 (I) all-terrain type I vehicle as defined in Section 41-22-2 ; or
825 (II) all-terrain type II vehicle as defined in Section 41-22-2 ;
826 (B) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
827 Vehicles; and
828 (C) has:
829 (I) an engine with more than 150 cubic centimeters displacement;
830 (II) a motor that produces more than five horsepower; or
831 (III) an electric motor; and
832 (ii) notwithstanding Subsection (1)(a)(i), "all-terrain vehicle" does not include a
833 snowmobile.

834 (b) "Camper" means a camper:
835 (i) as defined in Section 41-1a-102 ; and
836 (ii) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
837 Registration.
838 (c) (i) "Canoe" means a vessel that:
839 (A) is long and narrow;
840 (B) has curved sides; and
841 (C) is tapered:
842 (I) to two pointed ends; or
843 (II) to one pointed end and is blunt on the other end; and
844 (ii) "canoe" includes:
845 (A) a collapsible inflatable canoe;
846 (B) a kayak;
847 (C) a racing shell; or
848 (D) a rowing scull.
849 (d) "Dealer" is as defined in Section 41-1a-102 .
850 (e) "Jon boat" means a vessel that:
851 (i) has a square bow; and
852 (ii) has a flat bottom.
853 (f) "Motor vehicle" is as defined in Section 41-22-2 .
854 (g) "Other motorcycle" means a motor vehicle that:
855 (i) is:
856 (A) a motorcycle as defined in Section 41-1a-102 ; and
857 (B) designed primarily for use and operation over unimproved terrain;
858 (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
859 Registration; and
860 (iii) has:
861 (A) an engine with more than 150 cubic centimeters displacement; or
862 (B) a motor that produces more than five horsepower.
863 (h) (i) "Other trailer" means a portable vehicle without motive power that is primarily
864 used:

865 (A) to transport tangible personal property; and
866 (B) for a purpose other than a commercial purpose; and
867 (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
868 purposes of Subsection (1)(h)(i)(B), the commission may by rule define what constitutes a
869 purpose other than a commercial purpose.
870 (i) "Outboard motor" is as defined in Section 41-1a-102 .
871 (j) "Personal watercraft" means a personal watercraft:
872 (i) as defined in Section 73-18-2 ; and
873 (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
874 Boating Act.
875 (k) (i) "Pontoon" means a vessel that:
876 (A) is:
877 (I) supported by one or more floats; and
878 (II) propelled by either inboard or outboard power; and
879 (B) is not:
880 (I) a houseboat; or
881 (II) a collapsible inflatable vessel; and
882 (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
883 commission may by rule define the term "houseboat".
884 (l) "Qualifying adjustment, exemption, or reduction" means an adjustment, exemption,
885 or reduction:
886 (i) of all or a portion of a qualifying payment;
887 (ii) granted by a county during the refund period; and
888 (iii) received by a qualifying person.
889 (m) (i) "Qualifying payment" means the payment made:
890 (A) of a uniform statewide fee in accordance with this section:
891 (I) by a qualifying person;
892 (II) to a county; and
893 (III) during the refund period; and
894 (B) on an item of qualifying tangible personal property; and
895 (ii) if a qualifying person received a qualifying adjustment, exemption, or reduction for

896 an item of qualifying tangible personal property, the qualifying payment for that qualifying
897 tangible personal property is equal to the difference between:
898 (A) the payment described in this Subsection (1)(m) for that item of qualifying tangible
899 personal property; and
900 (B) the amount of the qualifying adjustment, exemption, or reduction.
901 (n) "Qualifying person" means a person that paid a uniform statewide fee:
902 (i) during the refund period;
903 (ii) in accordance with this section; and
904 (iii) on an item of qualifying tangible personal property.
905 (o) "Qualifying tangible personal property" means a:
906 (i) qualifying vehicle; or
907 (ii) qualifying watercraft.
908 (p) "Qualifying vehicle" means:
909 (i) an all-terrain vehicle with an engine displacement that is 100 or more cubic
910 centimeters but 150 or less cubic centimeters;
911 (ii) an other motorcycle with an engine displacement that is 100 or more cubic
912 centimeters but 150 or less cubic centimeters;
913 (iii) a small motor vehicle with an engine displacement that is 100 or more cubic
914 centimeters but 150 or less cubic centimeters;
915 (iv) a snowmobile with an engine displacement that is 100 or more cubic centimeters
916 but 150 or less cubic centimeters; or
917 (v) a street motorcycle with an engine displacement that is 100 or more cubic
918 centimeters but 150 or less cubic centimeters.
919 (q) "Qualifying watercraft" means a:
920 (i) canoe;
921 (ii) collapsible inflatable vessel;
922 (iii) jon boat;
923 (iv) pontoon;
924 (v) sailboat; or
925 (vi) utility boat.
926 (r) "Refund period" means the time period:

927 (i) beginning on January 1, 2006; and
928 (ii) ending on December 29, 2006.
929 (s) "Sailboat" means a sailboat as defined in Section 73-18-2 .
930 (t) (i) "Small motor vehicle" means a motor vehicle that:
931 (A) is required to be registered in accordance with Title 41, Motor Vehicles; and
932 (B) has:
933 (I) an engine with 150 or less cubic centimeters displacement; or
934 (II) a motor that produces five or less horsepower; and
935 (ii) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
936 commission may by rule develop a process for an owner of a motor vehicle to certify whether
937 the motor vehicle has:
938 (A) an engine with 150 or less cubic centimeters displacement; or
939 (B) a motor that produces five or less horsepower.
940 (u) "Snowmobile" means a motor vehicle that:
941 (i) is a snowmobile as defined in Section 41-22-2 ;
942 (ii) is required to be registered in accordance with Title 41, Chapter 22, Off-Highway
943 Vehicles; and
944 (iii) has:
945 (A) an engine with more than 150 cubic centimeters displacement; or
946 (B) a motor that produces more than five horsepower.
947 (v) "Street motorcycle" means a motor vehicle that:
948 (i) is:
949 (A) a motorcycle as defined in Section 41-1a-102 ; and
950 (B) designed primarily for use and operation on highways;
951 (ii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
952 Registration; and
953 (iii) has:
954 (A) an engine with more than 150 cubic centimeters displacement; or
955 (B) a motor that produces more than five horsepower.
956 (w) "Tangible personal property owner" means a person that owns an item of
957 qualifying tangible personal property.

958 (x) "Tent trailer" means a portable vehicle without motive power that:
959 (i) is constructed with collapsible side walls that:
960 (A) fold for towing by a motor vehicle; and
961 (B) unfold at a campsite;
962 (ii) is designed as a temporary dwelling for travel, recreational, or vacation use;
963 (iii) is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
964 Registration; and
965 (iv) does not require a special highway movement permit when drawn by a
966 self-propelled motor vehicle.
967 (y) (i) Except as provided in Subsection (1)(y)(ii), "travel trailer" means a travel trailer:
968 (A) as defined in Section 41-1a-102 ; and
969 (B) that is required to be registered in accordance with Title 41, Chapter 1a, Part 2,
970 Registration; and
971 (ii) notwithstanding Subsection (1)(y)(i), "travel trailer" does not include:
972 (A) a camper; or
973 (B) a tent trailer.
974 (z) (i) "Utility boat" means a vessel that:
975 (A) has:
976 (I) two or three bench seating;
977 (II) an outboard motor; and
978 (III) a hull made of aluminum, fiberglass, or wood; and
979 (B) does not have:
980 (I) decking;
981 (II) a permanent canopy; or
982 (III) a floor other than the hull; and
983 (ii) notwithstanding Subsection (1)(z)(i), "utility boat" does not include a collapsible
984 inflatable vessel.
985 (aa) "Vessel" means a vessel:
986 (i) as defined in Section 73-18-2 , including an outboard motor of the vessel; and
987 (ii) that is required to be registered in accordance with Title 73, Chapter 18, State
988 Boating Act.

989 (2) (a) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6),
990 beginning on January 1, 2006, the tangible personal property described in Subsection (2)(b) is:
991 (i) exempt from the tax imposed by Section 59-2-103 ; and
992 (ii) in lieu of the tax imposed by Section 59-2-103 , subject to uniform statewide fees as
993 provided in this section.
994 (b) The following tangible personal property applies to Subsection (2)(a) if that
995 tangible personal property is required to be registered with the state:
996 (i) an all-terrain vehicle;
997 (ii) a camper;
998 (iii) an other motorcycle;
999 (iv) an other trailer;
1000 (v) a personal watercraft;
1001 (vi) a small motor vehicle;
1002 (vii) a snowmobile;
1003 (viii) a street motorcycle;
1004 (ix) a tent trailer;
1005 (x) a travel trailer; and
1006 (xi) a vessel if that vessel is less than 31 feet in length as determined under Subsection
1007 (6).
1008 (3) For purposes of this section, the uniform statewide fees are:
1009 (a) for an all-terrain vehicle, an other motorcycle, or a snowmobile:
1010 Age of All-Terrain Vehicle, Other Motorcycle, or Snowmobile Uniform Statewide Fee
1011 12 or more years $10
1012 9 or more years but less than 12 years $20
1013 6 or more years but less than 9 years $30
1014 3 or more years but less than 6 years $35
1015 Less than 3 years $45
1016 (b) for a camper or a tent trailer:
1017 Age of Camper or Tent Trailer Uniform Statewide Fee
1018 12 or more years $10
1019 9 or more years but less than 12 years $25

1020 6 or more years but less than 9 years $35
1021 3 or more years but less than 6 years $50
1022 Less than 3 years $70
1023 (c) for an other trailer:
1024 Age of Other Trailer Uniform Statewide Fee
1025 12 or more years $10
1026 9 or more years but less than 12 years $15
1027 6 or more years but less than 9 years $20
1028 3 or more years but less than 6 years $25
1029 Less than 3 years $30
1030 (d) for a personal watercraft:
1031 Age of Personal Watercraft Uniform Statewide Fee
1032 12 or more years $10
1033 9 or more years but less than 12 years $25
1034 6 or more years but less than 9 years $35
1035 3 or more years but less than 6 years $45
1036 Less than 3 years $55
1037 (e) for a small motor vehicle:
1038 Age of Small Motor Vehicle Uniform Statewide Fee
1039 6 or more years $10
1040 3 or more years but less than 6 years $15
1041 Less than 3 years $25
1042 (f) for a street motorcycle:
1043 Age of Street Motorcycle Uniform Statewide Fee
1044 12 or more years $10
1045 9 or more years but less than 12 years $35
1046 6 or more years but less than 9 years $50
1047 3 or more years but less than 6 years $70
1048 Less than 3 years $95
1049 (g) for a travel trailer:
1050 Age of Travel Trailer Uniform Statewide Fee

1051 12 or more years $20
1052 9 or more years but less than 12 years $65
1053 6 or more years but less than 9 years $90
1054 3 or more years but less than 6 years $135
1055 Less than 3 years $175
1056 (h) $10 regardless of the age of the vessel if the vessel is:
1057 (i) less than 15 feet in length;
1058 (ii) a canoe;
1059 (iii) a jon boat; or
1060 (iv) a utility boat;
1061 (i) for a collapsible inflatable vessel, pontoon, or sailboat, regardless of age:
1062 Length of Vessel Uniform Statewide Fee
1063 15 feet or more in length but less than 19 feet in length $15
1064 19 feet or more in length but less than 23 feet in length $25
1065 23 feet or more in length but less than 27 feet in length $40
1066 27 feet or more in length but less than 31 feet in length $75
1067 (j) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
1068 sailboat, or utility boat, that is 15 feet or more in length but less than 19 feet in length:
1069 Age of Vessel Uniform Statewide Fee
1070 12 or more years $25
1071 9 or more years but less than 12 years $65
1072 6 or more years but less than 9 years $80
1073 3 or more years but less than 6 years $110
1074 Less than 3 years $150
1075 (k) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
1076 sailboat, or utility boat, that is 19 feet or more in length but less than 23 feet in length:
1077 Age of Vessel Uniform Statewide Fee
1078 12 or more years $50
1079 9 or more years but less than 12 years $120
1080 6 or more years but less than 9 years $175
1081 3 or more years but less than 6 years $220

1082 Less than 3 years $275
1083 (l) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
1084 sailboat, or utility boat, that is 23 feet or more in length but less than 27 feet in length:
1085 Age of Vessel Uniform Statewide Fee
1086 12 or more years $100
1087 9 or more years but less than 12 years $180
1088 6 or more years but less than 9 years $240
1089 3 or more years but less than 6 years $310
1090 Less than 3 years $400
1091 (m) for a vessel, other than a canoe, collapsible inflatable vessel, jon boat, pontoon,
1092 sailboat, or utility boat, that is 27 feet or more in length but less than 31 feet in length:
1093 Age of Vessel Uniform Statewide Fee
1094 12 or more years $120
1095 9 or more years but less than 12 years $250
1096 6 or more years but less than 9 years $350
1097 3 or more years but less than 6 years $500
1098 Less than 3 years $700
1099 (4) Notwithstanding Section 59-2-407 , tangible personal property subject to the
1100 uniform statewide fees imposed by this section that is brought into the state shall, as a
1101 condition of registration, be subject to the uniform statewide fees unless all property taxes or
1102 uniform fees imposed by the state of origin have been paid for the current calendar year.
1103 (5) (a) [The] Forty-five percent of the revenues collected in [each] a county from the
1104 uniform statewide fees imposed by this section shall be distributed by the county to each taxing
1105 entity that is not a school district in which each item of tangible personal property subject to the
1106 uniform statewide fees is located in the same proportion in which revenues collected from the
1107 ad valorem property tax are distributed.
1108 (b) [Each] A taxing entity described in Subsection (5)(a) that receives revenues from
1109 the uniform statewide fees imposed by this section shall distribute the revenues in the same
1110 proportion in which revenues collected from the ad valorem property tax are distributed.
1111 (c) Fifty-five percent of the revenues collected in a county from the uniform statewide
1112 fees imposed by this section shall be distributed by the county to each school district within the

1113 county in proportion to the school district's percentage of the total current year enrollment in all
1114 of the school districts within the county, as of the October 1 enrollment counts.
1115 (6) (a) For purposes of the uniform statewide fee imposed by this section, the length of
1116 a vessel shall be determined as provided in this Subsection (6).
1117 (b) (i) Except as provided in Subsection (6)(b)(ii), the length of a vessel shall be
1118 measured as follows:
1119 (A) the length of a vessel shall be measured in a straight line; and
1120 (B) the length of a vessel is equal to the distance between the bow of the vessel and the
1121 stern of the vessel.
1122 (ii) Notwithstanding Subsection (6)(b)(i), the length of a vessel may not include the
1123 length of:
1124 (A) a swim deck;
1125 (B) a ladder;
1126 (C) an outboard motor; or
1127 (D) an appurtenance or attachment similar to Subsections (6)(b)(ii)(A) through (C) as
1128 determined by the commission by rule.
1129 (iii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1130 the commission may by rule define what constitutes an appurtenance or attachment similar to
1131 Subsections (6)(b)(ii)(A) through (C).
1132 (c) The length of a vessel:
1133 (i) (A) for a new vessel, is the length:
1134 (I) listed on the manufacturer's statement of origin if the length of the vessel measured
1135 under Subsection (6)(b) is equal to the length of the vessel listed on the manufacturer's
1136 statement of origin; or
1137 (II) listed on a form submitted to the commission by a dealer in accordance with
1138 Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b) is not equal to
1139 the length of the vessel listed on the manufacturer's statement of origin; or
1140 (B) for a vessel other than a new vessel, is the length:
1141 (I) corresponding to the model number if the length of the vessel measured under
1142 Subsection (6)(b) is equal to the length of the vessel determined by reference to the model
1143 number; or

1144 (II) listed on a form submitted to the commission by an owner of the vessel in
1145 accordance with Subsection (6)(d) if the length of the vessel measured under Subsection (6)(b)
1146 is not equal to the length of the vessel determined by reference to the model number; and
1147 (ii) (A) is determined at the time of the:
1148 (I) first registration as defined in Section 41-1a-102 that occurs on or after January 1,
1149 2006; or
1150 (II) first renewal of registration that occurs on or after January 1, 2006; and
1151 (B) may be determined after the time described in Subsection (6)(c)(ii)(A) only if the
1152 commission requests that a dealer or an owner submit a form to the commission in accordance
1153 with Subsection (6)(d).
1154 (d) (i) A form under Subsection (6)(c) shall:
1155 (A) be developed by the commission;
1156 (B) be provided by the commission to:
1157 (I) a dealer; or
1158 (II) an owner of a vessel;
1159 (C) provide for the reporting of the length of a vessel;
1160 (D) be submitted to the commission at the time the length of the vessel is determined in
1161 accordance with Subsection (6)(c)(ii);
1162 (E) be signed by:
1163 (I) if the form is submitted by a dealer, that dealer; or
1164 (II) if the form is submitted by an owner of the vessel, an owner of the vessel; and
1165 (F) include a certification that the information set forth in the form is true.
1166 (ii) A certification made under Subsection (6)(d)(i)(F) is considered as if made under
1167 oath and subject to the same penalties as provided by law for perjury.
1168 (iii) (A) A dealer or an owner that submits a form to the commission under Subsection
1169 (6)(c) is considered to have given the dealer's or owner's consent to an audit or review by:
1170 (I) the commission;
1171 (II) the county assessor; or
1172 (III) the commission and the county assessor.
1173 (B) The consent described in Subsection (6)(d)(iii)(A) is a condition to the acceptance
1174 of any form.

1175 (7) (a) A county that collected a qualifying payment from a qualifying person during
1176 the refund period shall issue a refund to the qualifying person as described in Subsection (7)(b)
1177 if:
1178 (i) the difference described in Subsection (7)(b) is $1 or more; and
1179 (ii) the qualifying person submitted a form in accordance with Subsections (7)(c) and
1180 (d).
1181 (b) The refund amount shall be calculated as follows:
1182 (i) for a qualifying vehicle, the refund amount is equal to the difference between:
1183 (A) the qualifying payment the qualifying person paid on the qualifying vehicle during
1184 the refund period; and
1185 (B) the amount of the statewide uniform fee:
1186 (I) for that qualifying vehicle; and
1187 (II) that the qualifying person would have been required to pay:
1188 (Aa) during the refund period; and
1189 (Bb) in accordance with this section had [Section 1, Chapter 3,] Laws of Utah 2006,
1190 Fifth Special Session, Chapter 3, Section1, been in effect during the refund period; and
1191 (ii) for a qualifying watercraft, the refund amount is equal to the difference between:
1192 (A) the qualifying payment the qualifying person paid on the qualifying watercraft
1193 during the refund period; and
1194 (B) the amount of the statewide uniform fee:
1195 (I) for that qualifying watercraft;
1196 (II) that the qualifying person would have been required to pay:
1197 (Aa) during the refund period; and
1198 (Bb) in accordance with this section had [Section 1, Chapter 3,] Laws of Utah 2006,
1199 Fifth Special Session, Section 1, Chapter 3, been in effect during the refund period.
1200 (c) Before the county issues a refund to the qualifying person in accordance with
1201 Subsection (7)(a) the qualifying person shall submit a form to the county to verify the
1202 qualifying person is entitled to the refund.
1203 (d) (i) A form under Subsection (7)(c) or (8) shall:
1204 (A) be developed by the commission;
1205 (B) be provided by the commission to the counties;

1206 (C) be provided by the county to the qualifying person or tangible personal property
1207 owner;
1208 (D) provide for the reporting of the following:
1209 (I) for a qualifying vehicle:
1210 (Aa) the type of qualifying vehicle; and
1211 (Bb) the amount of cubic centimeters displacement;
1212 (II) for a qualifying watercraft:
1213 (Aa) the length of the qualifying watercraft;
1214 (Bb) the age of the qualifying watercraft; and
1215 (Cc) the type of qualifying watercraft;
1216 (E) be signed by the qualifying person or tangible personal property owner; and
1217 (F) include a certification that the information set forth in the form is true.
1218 (ii) A certification made under Subsection (7)(d)(i)(F) is considered as if made under
1219 oath and subject to the same penalties as provided by law for perjury.
1220 (iii) (A) A qualifying person or tangible personal property owner that submits a form to
1221 a county under Subsection (7)(c) or (8) is considered to have given the qualifying person's
1222 consent to an audit or review by:
1223 (I) the commission;
1224 (II) the county assessor; or
1225 (III) the commission and the county assessor.
1226 (B) The consent described in Subsection (7)(d)(iii)(A) is a condition to the acceptance
1227 of any form.
1228 (e) The county shall make changes to the commission's records with the information
1229 received by the county from the form submitted in accordance with Subsection (7)(c).
1230 (8) A county shall change its records regarding an item of qualifying tangible personal
1231 property if the tangible personal property owner submits a form to the county in accordance
1232 with Subsection (7)(d).
1233 (9) (a) For purposes of this Subsection (9) "owner of tangible personal property" means
1234 a person that was required to pay a uniform statewide fee:
1235 (i) during the refund period;
1236 (ii) in accordance with this section; and

1237 (iii) on an item of tangible personal property subject to the uniform statewide fees
1238 imposed by this section.
1239 (b) A county that collected revenues from uniform statewide fees imposed by this
1240 section during the refund period shall notify an owner of tangible personal property:
1241 (i) of the tangible personal property classification changes made to this section
1242 pursuant to [Section 1, Chapter 3,] Laws of Utah 2006, Fifth Special Session, Section 1,
1243 Chapter 3;
1244 (ii) that the owner of tangible personal property may obtain and file a form to modify
1245 the county's records regarding the owner's tangible personal property; and
1246 (iii) that the owner may be entitled to a refund pursuant to Subsection (7).
1247 Section 18. Section 59-2-405.3 is amended to read:
1248 59-2-405.3. Uniform statewide fee on motor homes -- Distribution of revenues.
1249 (1) For purposes of this section, "motor home" means:
1250 (a) a motor home, as defined in Section 13-14-102 , that is required to be registered
1251 with the state; or
1252 (b) a self-propelled vehicle that is:
1253 (i) modified for primary use as a temporary dwelling for travel, recreational, or
1254 vacation use; and
1255 (ii) required to be registered with the state.
1256 (2) In accordance with Utah Constitution Article XIII, Section 2, Subsection (6),
1257 beginning on January 1, 2006, a motor home is:
1258 (a) exempt from the tax imposed by Section 59-2-103 ; and
1259 (b) in lieu of the tax imposed by Section 59-2-103 , subject to a uniform statewide fee
1260 as provided in Subsection (3).
1261 (3) The uniform statewide fee described in Subsection (2)(b) is:
1262 (a) beginning on January 1, 2006, and ending December 31, 2007, 1.25% of the fair
1263 market value of the motor home, as established by the commission; and
1264 (b) beginning on January 1, 2008, 1% of the fair market value of the motor home, as
1265 established by the commission.
1266 (4) Notwithstanding Section 59-2-407 , a motor home subject to the uniform statewide
1267 fee imposed by this section that is brought into the state shall, as a condition of registration, be

1268 subject to the uniform statewide fee unless all property taxes or uniform fees imposed by the
1269 state of origin have been paid for the current calendar year.
1270 (5) (a) [Each] A county shall distribute 45% of the revenue collected by the county
1271 from the uniform statewide fee imposed by this section to each taxing entity that is not a school
1272 district in which each motor home subject to the uniform statewide fee is located in the same
1273 proportion in which revenue collected from the ad valorem property tax is distributed.
1274 (b) [Each] A taxing entity described in Subsection (5)(a) that receives revenue from the
1275 uniform statewide fee imposed by this section shall distribute the revenue in the same
1276 proportion in which revenue collected from the ad valorem property tax is distributed.
1277 (c) Fifty-five percent of the revenues collected in a county from the uniform statewide
1278 fee imposed by this section shall be distributed by the county to each school district within the
1279 county in proportion to the school district's percentage of the total current year enrollment in all
1280 of the school districts within the county, as of the October 1 enrollment counts.
1281 (6) An appeal relating to the uniform statewide fee imposed on a motor home by this
1282 section shall be filed pursuant to Section 59-2-1005 .
1283 Section 19. Section 59-2-919 is amended to read:
1284 59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of
1285 proposed tax increase -- Personal mailed notice in addition to advertisement -- Contents
1286 of personal mailed notice -- Hearing -- Dates.
1287 A tax rate in excess of the certified tax rate may not be levied until a resolution has
1288 been approved by the taxing entity in accordance with the following procedure:
1289 (1) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a
1290 newspaper or combination of newspapers of general circulation in the taxing entity.
1291 (ii) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
1292 advertisement or hearing requirements of this section if:
1293 (A) the taxing entity:
1294 (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
1295 or
1296 (II) is expressly exempted by law from complying with the requirements of this
1297 section; or
1298 (B) (I) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,

1299 Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
1300 emergency, and emergency medical services;
1301 (II) the tax rate increase is approved by the taxing entity's voters at an election held for
1302 that purpose on or before December 31, 2010;
1303 (III) the purpose of the tax rate increase is to pay for fire protection, emergency, and
1304 emergency medical services provided by the interlocal entity; and
1305 (IV) at least 30 days before its annual budget hearing, the taxing entity:
1306 (Aa) adopts a resolution certifying that the taxing entity will dedicate all revenue from
1307 the tax rate increase exclusively to pay for fire protection, emergency, and emergency medical
1308 services provided by the interlocal entity and that the amount of other revenues, independent of
1309 the revenue generated from the tax rate increase, that the taxing entity spends for fire
1310 protection, emergency, and emergency medical services each year after the tax rate increase
1311 will not decrease below the amount spent by the taxing entity during the year immediately
1312 before the tax rate increase without a corresponding decrease in the taxing entity's property tax
1313 revenues used in calculating the taxing entity's certified tax rate; and
1314 (Bb) sends a copy of the resolution to the commission.
1315 (iii) The exception under Subsection (1)(a)(ii)(B) from the advertisement and hearing
1316 requirements of this section does not apply to an increase in a taxing entity's tax rate that occurs
1317 after December 31, 2010, even if the tax rate increase is approved by the taxing entity's voters
1318 before that date.
1319 [(iv) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
1320 advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
1321 levy a tax rate that exceeds that certified tax rate without having to comply with the
1322 advertisement requirements of this section.]
1323 (b) The advertisement described in this section shall:
1324 (i) be no less than 1/4 page in size;
1325 (ii) use type no smaller than 18 point; and
1326 (iii) be surrounded by a 1/4-inch border.
1327 (c) The advertisement described in this section may not be placed in that portion of the
1328 newspaper where legal notices and classified advertisements appear.
1329 (d) It is the intent of the Legislature that:

1330 (i) whenever possible, the advertisement described in this section appear in a
1331 newspaper that is published at least one day per week; and
1332 (ii) the newspaper or combination of newspapers selected:
1333 (A) be of general interest and readership in the taxing entity; and
1334 (B) not be of limited subject matter.
1335 (e) The advertisement described in this section shall:
1336 (i) be run once each week for the two weeks preceding the adoption of the final budget;
1337 and
1338 (ii) state that the taxing entity will meet on a certain day, time, and place fixed in the
1339 advertisement, which shall be not less than seven days after the day the first advertisement is
1340 published, for the purpose of hearing comments regarding any proposed increase and to explain
1341 the reasons for the proposed increase.
1342 (f) The meeting on the proposed increase may coincide with the hearing on the
1343 proposed budget of the taxing entity.
1344 (2) The form and content of the notice shall be substantially as follows:
1345 "NOTICE OF PROPOSED TAX INCREASE
1346 (NAME OF TAXING ENTITY)
1347 The (name of the taxing entity) is proposing to increase its property tax revenue.
1348 * If the proposed budget is approved, this would be an increase of _____% above
1349 the (name of the taxing entity) property tax budgeted revenue for the prior year.
1350 * The (name of the taxing entity) tax on a (insert the average value of a residence
1351 in the taxing entity rounded to the nearest thousand dollars) residence would
1352 increase from $______ to $________, which is $_______ per year.
1353 * The (name of the taxing entity) tax on a (insert the value of a business having
1354 the same value as the average value of a residence in the taxing entity) business
1355 would increase from $________ to $_______, which is $______ per year.
1356 (Name of taxing entity) property tax revenue from new growth and other sources will
1357 increase from $_______________ to $______________.
1358 All concerned citizens are invited to a public hearing on the tax increase.
1359 PUBLIC HEARING
1360 Date/Time: (date) (time)

1361 Location: (name of meeting place and address of meeting place)
1362 To obtain more information regarding the tax increase, citizens may contact the (name
1363 of the taxing entity) at (phone number of taxing entity)."
1364 (3) The commission:
1365 (a) shall adopt rules governing the joint use of one advertisement under this section or
1366 Section 59-2-918 by two or more taxing entities; and
1367 (b) may, upon petition by any taxing entity, authorize either:
1368 (i) the use of weekly newspapers in counties having both daily and weekly newspapers
1369 where the weekly newspaper would provide equal or greater notice to the taxpayer; or
1370 (ii) the use of a commission-approved direct notice to each taxpayer if the:
1371 (A) cost of the advertisement would cause undue hardship; and
1372 (B) direct notice is different and separate from that provided for in Subsection (4).
1373 (4) (a) In addition to providing the notice required by Subsections (1) and (2), the
1374 county auditor, on or before July 22 of each year, shall notify, by mail, each owner of real
1375 estate as defined in Section 59-2-102 who is listed on the assessment roll.
1376 (b) The notice described in Subsection (4)(a) shall:
1377 (i) be sent to all owners of real property by mail not less than ten days before the day
1378 on which:
1379 (A) the county board of equalization meets; and
1380 (B) the taxing entity holds a public hearing on the proposed increase in the certified tax
1381 rate;
1382 (ii) be printed on a form that is:
1383 (A) approved by the commission; and
1384 (B) uniform in content in all counties in the state; and
1385 (iii) contain for each property:
1386 (A) the value of the property;
1387 (B) the date the county board of equalization will meet to hear complaints on the
1388 valuation;
1389 (C) itemized tax information for all taxing entities, including a separate statement for
1390 the minimum school levy under Section 53A-17a-135 stating:
1391 (I) the dollar amount the taxpayer would have paid based on last year's rate; and

1392 (II) the amount of the taxpayer's liability under the current rate;
1393 (D) the tax impact on the property;
1394 (E) the time and place of the required public hearing for each entity;
1395 (F) property tax information pertaining to:
1396 (I) taxpayer relief;
1397 (II) options for payment of taxes; and
1398 (III) collection procedures;
1399 (G) information specifically authorized to be included on the notice under Title 59,
1400 Chapter 2, Property Tax Act; and
1401 (H) other property tax information approved by the commission.
1402 (5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt
1403 a resolution levying a tax rate in excess of the certified tax rate.
1404 (b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
1405 the scheduled time and place for consideration and adoption of the resolution shall be
1406 announced at the public hearing.
1407 (c) If a resolution adopting a tax rate is to be considered at a day and time that is more
1408 than two weeks after the public hearing described in Subsection (4)(b)(iii)(E), a taxing entity,
1409 other than a taxing entity described in Subsection (1)(a)(ii), shall advertise the date of the
1410 proposed adoption of the resolution in the same manner as provided under Subsections (1) and
1411 (2).
1412 (6) (a) All hearings described in this section shall be open to the public.
1413 (b) The governing body of a taxing entity conducting a hearing shall permit all
1414 interested parties desiring to be heard an opportunity to present oral testimony within
1415 reasonable time limits.
1416 (7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
1417 year of the date, time, and place a public hearing is held by the taxing entity pursuant to this
1418 section.
1419 (b) A taxing entity may not schedule a hearing described in this section at the same
1420 time as another overlapping taxing entity in the same county, but all taxing entities in which the
1421 power to set tax levies is vested in the same governing board or authority may consolidate the
1422 required hearings into one hearing.

1423 (c) The county legislative body shall resolve any conflicts in hearing dates and times
1424 after consultation with each affected taxing entity.
1425 (8) A taxing entity shall hold a public hearing under this section beginning at or after 6
1426 p.m.
1427 Section 20. Section 59-2-919.1 is enacted to read:
1428 59-2-919.1. Property tax increases prohibited.
1429 (1) For purposes of this section:
1430 (a) "Calendar year taxing entity" means a taxing entity that operates under a January 1
1431 through December 31 fiscal year.
1432 (b) "Certified tax rate" means a taxing entity's certified tax rate calculated in
1433 accordance with Section 59-2-924 .
1434 (c) "Fiscal year taxing entity" means a taxing entity that operates under a July 1
1435 through June 30 fiscal year.
1436 (2) For taxable years beginning on or after January 1, 2008, and ending on or before
1437 December 31, 2010, a fiscal year taxing entity may not levy a tax rate that exceeds the fiscal
1438 year taxing entity's certified tax rate.
1439 (3) For taxable years beginning on or after January 1, 2009, and ending on or before
1440 December 31, 2011, a calendar year taxing entity may not levy a tax rate that exceeds the
1441 calendar year taxing entity's certified tax rate.
1442 Section 21. Section 59-2-924 is amended to read:
1443 59-2-924. Report of valuation of property to county auditor and commission --
1444 Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
1445 tax rate -- Rulemaking authority -- Adoption of tentative budget.
1446 (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to
1447 the county auditor and the commission the following statements:
1448 (i) a statement containing the aggregate valuation of all taxable property in each taxing
1449 entity; and
1450 (ii) a statement containing the taxable value of any additional personal property
1451 estimated by the county assessor to be subject to taxation in the current year.
1452 (b) The county auditor shall, on or before June 8, transmit to the governing body of
1453 each taxing entity:

1454 (i) the statements described in Subsections (1)(a)(i) and (ii);
1455 (ii) an estimate of the revenue from personal property;
1456 (iii) the certified tax rate; and
1457 (iv) all forms necessary to submit a tax levy request.
1458 (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad
1459 valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
1460 prior year.
1461 (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
1462 include:
1463 (A) collections from redemptions;
1464 (B) interest;
1465 (C) penalties; and
1466 (D) revenue received by a taxing entity from personal property that is:
1467 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
1468 (II) semiconductor manufacturing equipment.
1469 (iii) (A) Except as otherwise provided in this section, the certified tax rate shall be
1470 calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
1471 taxing entity by the amount calculated under Subsection (2)(a)(iii)(B).
1472 (B) For purposes of Subsection (2)(a)(iii)(A), the legislative body of a taxing entity
1473 shall calculate an amount as follows:
1474 (I) calculate for the taxing entity the difference between:
1475 (Aa) the aggregate taxable value of all property taxed; and
1476 (Bb) any redevelopment adjustments for the current calendar year;
1477 (II) after making the calculation required by Subsection (2)(a)(iii)(B)(I), calculate an
1478 amount determined by increasing or decreasing the amount calculated under Subsection
1479 (2)(a)(iii)(B)(I) by the average of the percentage net change in the value of taxable property for
1480 the equalization period for the three calendar years immediately preceding the current calendar
1481 year;
1482 (III) after making the calculation required by Subsection (2)(a)(iii)(B)(II), calculate the
1483 product of:
1484 (Aa) the amount calculated under Subsection (2)(a)(iii)(B)(II); and

1485 (Bb) the percentage of property taxes collected for the five calendar years immediately
1486 preceding the current calendar year; and
1487 (IV) after making the calculation required by Subsection (2)(a)(iii)(B)(III), calculate an
1488 amount determined by subtracting from the amount calculated under Subsection
1489 (2)(a)(iii)(B)(III) any new growth as defined in this section:
1490 (Aa) within the taxing entity; and
1491 (Bb) for the current calendar year.
1492 (C) For purposes of Subsection (2)(a)(iii)(B)(I), the aggregate taxable value of all
1493 property taxed:
1494 (I) except as provided in Subsection (2)(a)(iii)(C)(II), includes the total taxable value of
1495 the real and personal property contained on the tax rolls of the taxing entity; and
1496 (II) does not include the total taxable value of personal property contained on the tax
1497 rolls of the taxing entity that is:
1498 (Aa) assessed by a county assessor in accordance with Part 3, County Assessment; and
1499 (Bb) semiconductor manufacturing equipment.
1500 (D) For purposes of Subsection (2)(a)(iii)(B)(II), for calendar years beginning on or
1501 after January 1, 2007, the value of taxable property does not include the value of personal
1502 property that is:
1503 (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
1504 County Assessment; and
1505 (II) semiconductor manufacturing equipment.
1506 (E) For purposes of Subsection (2)(a)(iii)(B)(III)(Bb), for calendar years beginning on
1507 or after January 1, 2007, the percentage of property taxes collected does not include property
1508 taxes collected from personal property that is:
1509 (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
1510 County Assessment; and
1511 (II) semiconductor manufacturing equipment.
1512 (F) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
1513 the commission may prescribe rules for calculating redevelopment adjustments for a calendar
1514 year.
1515 (iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking

1516 Act, the commission shall make rules determining the calculation of ad valorem property tax
1517 revenues budgeted by a taxing entity.
1518 (B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues
1519 budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax
1520 revenues are calculated for purposes of Section 59-2-913 .