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S.B. 29 Enrolled
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TRUTH IN TAXATION AMENDMENTS
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2008 GENERAL SESSION
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STATE OF UTAH
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Chief Sponsor: Wayne L. Niederhauser
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House Sponsor:
John Dougall
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LONG TITLE
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General Description:
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This bill amends provisions in the Minimum School Program Act and the Property Tax
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Act relating to property tax advertisement and hearing requirements.
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Highlighted Provisions:
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This bill:
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. amends certain exemptions from property tax advertisement and hearing
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requirements;
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. requires a school district to include a statement in its proposition submitted to its
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voters voting on the imposition or modification of a voted leeway program under
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certain circumstances;
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. provides that a school district may continue to receive the full amount of state
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guarantee money tied to the voted leeway program and board approved leeway for a
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period of five years if the school district's guarantee would have been reduced solely
21
due to changes in the school district's certified tax rate;
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. defines terms; and
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. makes technical changes.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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This bill takes effect on July 1, 2008.
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Utah Code Sections Affected:
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AMENDS:
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17-34-3, as last amended by Laws of Utah 2005, First Special Session, Chapter 9
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17C-1-408, as renumbered and amended by Laws of Utah 2006, Chapter 359
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53A-16-106, as last amended by Laws of Utah 1994, Chapter 12
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53A-17a-133, as last amended by Laws of Utah 2006, Chapter 26
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53A-17a-134, as last amended by Laws of Utah 2006, Chapter 26
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53A-19-102, as last amended by Laws of Utah 2007, Chapter 92
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53A-19-105, as last amended by Laws of Utah 2003, Chapter 122
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59-2-102, as last amended by Laws of Utah 2007, Chapters 107, 234, and 329
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59-2-505, as last amended by Laws of Utah 2003, Chapter 208
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59-2-908, as last amended by Laws of Utah 1995, Chapter 278
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59-2-913, as last amended by Laws of Utah 2007, Chapter 107
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59-2-914, as last amended by Laws of Utah 1995, Chapter 278
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59-2-918, as last amended by Laws of Utah 2006, Chapters 26 and 104
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59-2-918.5, as last amended by Laws of Utah 2000, Chapter 61
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59-2-918.6, as enacted by Laws of Utah 2007, Chapter 297
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59-2-919, as last amended by Laws of Utah 2006, Chapters 26 and 104
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59-2-924, as last amended by Laws of Utah 2007, Chapters 107 and 329
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59-2-1004, as last amended by Laws of Utah 2001, Chapter 106
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59-2-1330, as last amended by Laws of Utah 2002, Chapters 196 and 240
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ENACTS:
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59-2-919.1, Utah Code Annotated 1953
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59-2-924.2, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
17-34-3
is amended to read:
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17-34-3. Taxes or service charges.
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(1) (a) If a county furnishes the municipal-type services and functions described in
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Section
17-34-1
to areas of the county outside the limits of incorporated cities or towns, the
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entire cost of the services or functions so furnished shall be defrayed from funds that the county
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has derived from:
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(i) taxes that the county may lawfully levy or impose outside the limits of incorporated
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towns or cities;
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(ii) service charges or fees the county may impose upon the persons benefited in any
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way by the services or functions; or
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(iii) a combination of these sources.
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(b) As the taxes or service charges or fees are levied and collected, they shall be placed
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in a special revenue fund of the county and shall be disbursed only for the rendering of the
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services or functions established in Section
17-34-1
within the unincorporated areas of the
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county or as provided in Subsection
10-2-121
(2).
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(2) For the purpose of levying taxes, service charges, or fees provided in this section,
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the county legislative body may establish a district or districts in the unincorporated areas of the
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county.
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(3) Nothing contained in this chapter may be construed to authorize counties to impose
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or levy taxes not otherwise allowed by law.
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[(4) (a) A county required under Subsection
17-34-1
(4) to provide advanced life
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support and paramedic services to the unincorporated area of the county and that previously
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paid for those services through a countywide levy may increase its levy under Subsection
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(1)(a)(i) to generate in the unincorporated area of the county the same amount of revenue as the
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county loses from that area due to the required decrease in the countywide certified tax rate
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under Subsection
59-2-924
(2)(k)(i).]
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[(b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and
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hearing requirements of Sections
59-2-918
and
59-2-919
.]
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[(5)] (4) Notwithstanding any other provision of this chapter, a county providing fire,
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paramedic, and police protection services in a designated recreational area, as provided in
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Subsection
17-34-1
(5), may fund those services from the county general fund with revenues
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derived from both inside and outside the limits of cities and towns, and the funding of those
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services is not limited to unincorporated area revenues.
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Section 2.
Section
17C-1-408
is amended to read:
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17C-1-408. Base taxable value to be adjusted to reflect other changes.
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(1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
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(A) a decrease of more than 20% from the previous tax year's levy; or
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(B) a cumulative decrease over a consecutive five-year period of more than 100% from
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the levy in effect at the beginning of the five-year period.
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(ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
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fifth year of the five-year period.
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(b) If there is a qualifying decrease in the minimum basic school levy under Section
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59-2-902
that would result in a reduction of the amount of tax increment to be paid to an
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agency:
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(i) the base taxable value of taxable property within the project area shall be reduced in
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the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
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agency with approximately the same amount of tax increment that would have been paid to the
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agency each year had the qualifying decrease not occurred; and
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(ii) the amount of tax increment paid to the agency each year for the payment of bonds
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and indebtedness may not be less than what would have been paid to the agency if there had
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been no qualifying decrease.
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(2) (a) The amount of the base taxable value to be used in determining tax increment
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shall be:
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(i) increased or decreased by the amount of an increase or decrease that results from:
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(A) a statute enacted by the Legislature or by the people through an initiative;
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(B) a judicial decision;
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(C) an order from the State Tax Commission to a county to adjust or factor its
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assessment rate under Subsection
59-2-704
(2);
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(D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
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Section
59-2-103
; or
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(E) an increase or decrease in the percentage of fair market value, as defined under
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Section
59-2-102
; and
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(ii) reduced for any year to the extent necessary, even if below zero, to provide an
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agency with approximately the same amount of money the agency would have received without
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a reduction in the county's certified tax rate if:
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(A) in that year there is a decrease in the county's certified tax rate under Subsection
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[
59-2-924
(2)(c) or (d)(i)]
59-2-924.2
(2) or (3)(a);
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(B) the amount of the decrease is more than 20% of the county's certified tax rate of the
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previous year; and
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(C) the decrease would result in a reduction of the amount of tax increment to be paid
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to the agency.
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(b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
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increment paid to an agency each year for payment of bonds or other indebtedness may not be
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less than would have been paid to the agency each year if there had been no increase or decrease
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under Subsection (2)(a).
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Section 3.
Section
53A-16-106
is amended to read:
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53A-16-106. Annual certification of tax rate proposed by local school board --
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Inclusion of school district budget -- Modified filing date.
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(1) Prior to June 22 of each year, each local school board shall certify to the county
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legislative body in which the district is located, on forms prescribed by the State Tax
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Commission, the proposed tax rate approved by the local school board.
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(2) A copy of the district's budget, including items under Section
53A-19-101
, and a
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certified copy of the local school board's resolution which approved the budget and set the tax
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rate for the subsequent school year beginning July 1 shall accompany the tax rate.
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(3) If the tax rate approved by the board is in excess of the "certified tax rate" as
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defined under Subsection
59-2-924[(2)](3)
(a), the date for filing the tax rate and budget
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adopted by the board shall be that established under Section
59-2-919
.
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Section 4.
Section
53A-17a-133
is amended to read:
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53A-17a-133. State-supported voted leeway program authorized -- Election
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requirements -- State guarantee -- Reconsideration of the program.
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(1) An election to consider adoption or modification of a voted leeway program is
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required if initiative petitions signed by 10% of the number of electors who voted at the last
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preceding general election are presented to the local school board or by action of the board.
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(2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
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voting at an election in the manner set forth in Section
53A-16-110
must vote in favor of a
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special tax.
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(ii) The tax rate may not exceed .002 per dollar of taxable value.
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(b) The district may maintain a school program which exceeds the cost of the program
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referred to in Section
53A-17a-145
with this voted leeway.
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(c) In order to receive state support the first year, a district must receive voter approval
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no later than December 1 of the year prior to implementation.
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(3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
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to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
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taxable value.
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(b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
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of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized in
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Section
53A-17a-134
, so that the guarantee shall apply up to a total of .002 per dollar of
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taxable value if a school district levies a tax rate under both programs.
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(c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
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shall be indexed each year to the value of the weighted pupil unit by making the value of the
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guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
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(ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
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pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of the
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prior year's weighted pupil unit.
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(d) (i) The amount of state guarantee money to which a school district would otherwise
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be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
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levy is reduced as a consequence of changes in the certified tax rate under Section
59-2-924
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pursuant to changes in property valuation.
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(ii) Subsection (3)(d)(i) applies for a period of [two] five years following any such
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change in the certified tax rate.
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(4) (a) An election to modify an existing voted leeway program is not a reconsideration
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of the existing program unless the proposition submitted to the electors expressly so states.
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(b) A majority vote opposing a modification does not deprive the district of authority to
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continue an existing program.
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(c) If adoption of a leeway program is contingent upon an offset reducing other local
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school board levies, the board must allow the electors, in an election, to consider modifying or
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discontinuing the program prior to a subsequent increase in other levies that would increase the
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total local school board levy.
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(d) Nothing contained in this section terminates, without an election, the authority of a
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school district to continue an existing voted leeway program previously authorized by the
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voters.
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(5) Notwithstanding Section
59-2-918
, a school district may budget an increased
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amount of ad valorem property tax revenue derived from a voted leeway imposed under this
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section in addition to revenue from new growth as defined in Subsection
59-2-924
[(2)](4),
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without having to comply with the advertisement requirements of Section
59-2-918
, if:
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(a) the voted leeway is approved:
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[(a)] (i) in accordance with Section
53A-16-110
on or after January 1, 2003; and
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[(b)] (ii) within the four-year period immediately preceding the year in which the school
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district seeks to budget an increased amount of ad valorem property tax revenue derived from
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the voted leeway[.]; and
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(b) for a voted leeway approved or modified in accordance with this section on or after
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January 1, 2009, the school district complies with the requirements of Subsection (7).
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(6) Notwithstanding Section
59-2-919
, a school district may levy a tax rate under this
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section that exceeds the certified tax rate without having to comply with the advertisement
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requirements of Section
59-2-919
if:
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(a) the levy exceeds the certified tax rate as the result of a school district budgeting an
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increased amount of ad valorem property tax revenue derived from a voted leeway imposed
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under this section; [and]
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(b) if the voted leeway was approved:
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(i) in accordance with Section
53A-16-110
on or after January 1, 2003; and
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(ii) within the four-year period immediately preceding the year in which the school
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district seeks to budget an increased amount of ad valorem property tax revenue derived from
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the voted leeway[.]; and
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(c) for a voted leeway approved or modified in accordance with this section on or after
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January 1, 2009, the school district complies with requirements of Subsection (7).
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(7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
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electors regarding the adoption or modification of a voted leeway program shall contain the
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following statement:
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"A vote in favor of this tax means that (name of the school district) may increase
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revenue from this property tax without advertising the increase for the next five years."
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Section 5.
Section
53A-17a-134
is amended to read:
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53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
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(1) Each local school board may levy a tax rate of up to .0004 per dollar of taxable
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value to maintain a school program above the cost of the basic school program as follows:
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(a) a local school board shall use the monies generated by the tax for class size
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reduction within the school district;
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(b) if a local school board determines that the average class size in the school district is
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not excessive, it may use the monies for other school purposes but only if the board has
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declared the use for other school purposes in a public meeting prior to levying the tax rate; and
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(c) a district may not use the monies for other school purposes under Subsection (1)(b)
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until it has certified in writing that its class size needs are already being met and has identified
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the other school purposes for which the monies will be used to the State Board of Education
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and the state board has approved their use for other school purposes.
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(2) (a) The state shall contribute an amount sufficient to guarantee $17.54 per weighted
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pupil unit for each .0001 per dollar of taxable value.
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(b) The guarantee shall increase in the same manner as provided for the voted leeway
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guarantee in Subsections
53A-17a-133
(3)(c)(i) and (ii).
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(c) (i) The amount of state guarantee money to which a school district would otherwise
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be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
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levy is reduced as a consequence of changes in the certified tax rate under Section
59-2-924
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pursuant to changes in property valuation.
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(ii) Subsection (2)(c)(i) applies for a period of [two] five years following any such
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change in the certified tax rate.
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(3) The levy authorized under this section is not in addition to the maximum rate of
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.002 authorized in Section
53A-17a-133
, but is a board-authorized component of the total tax
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rate under that section.
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(4) As an exception to Section
53A-17a-133
, the board-authorized levy does not
241
require voter approval, but the board may require voter approval if requested by a majority of
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the board.
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(5) An election to consider disapproval of the board-authorized levy is required, if
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within 60 days after the levy is established by the board, referendum petitions signed by the
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number of legal voters required in Section
20A-7-301
, who reside within the school district, are
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filed with the school district.
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(6) (a) A local school board shall establish its board-approved levy by April 1 to have
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the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
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election is required under this section, the levy applies to the fiscal year beginning July 1 of the
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next calendar year.
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(b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
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occur at a general election in even-numbered years, except that a vote required under this
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section in odd-numbered years shall occur at a special election held on a day in odd-numbered
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years that corresponds to the general election date. The school district shall pay for the cost of
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a special election.
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(7) (a) Modification or termination of a voter-approved leeway rate authorized under
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this section is governed by Section
53A-17a-133
.
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(b) A board-authorized leeway rate may be modified or terminated by a majority vote of
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the board subject to disapproval procedures specified in this section.
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(8) A board levy election does not require publication of a voter information pamphlet.
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Section 6.
Section
53A-19-102
is amended to read:
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53A-19-102. Local school boards budget procedures.
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(1) Prior to June 22 of each year, each local school board shall adopt a budget and
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make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
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certified tax rate defined in [Subsection] Section
59-2-924
[(2)], the board shall comply with
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Sections
59-2-918
and
59-2-919
in adopting the budget, except as provided by Section
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53A-17a-133
.
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(2) Prior to the adoption of a budget containing a tax rate which does not exceed the
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certified tax rate, the board shall hold a public hearing, as defined in Section
10-9a-103
, on the
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proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
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Act, in regards to the hearing, the board shall do the following:
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(a) publish the required newspaper notice at least ten days prior to the hearing; and
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(b) file a copy of the proposed budget with the board's business administrator for public
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inspection at least ten days prior to the hearing.
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(3) The board shall file a copy of the adopted budget with the state auditor and the
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State Board of Education.
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Section 7.
Section
53A-19-105
is amended to read:
278
53A-19-105. School district interfund transfers.
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(1) A school district shall spend revenues only within the fund for which they were
280
originally authorized, levied, collected, or appropriated.
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(2) Except as otherwise provided in this section, school district interfund transfers of
282
residual equity are prohibited.
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(3) The State Board of Education may authorize school district interfund transfers of
284
residual equity when a district states its intent to create a new fund or expand, contract, or
285
liquidate an existing fund.
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(4) The State Board of Education may also authorize school district interfund transfers
287
of residual equity for a financially distressed district if the board determines the following:
288
(a) the district has a significant deficit in its maintenance and operations fund caused by
289
circumstances not subject to the administrative decisions of the district;
290
(b) the deficit cannot be reasonably reduced under Section
53A-19-104
; and
291
(c) without the transfer, the school district will not be capable of meeting statewide
292
educational standards adopted by the State Board of Education.
293
(5) The board shall develop standards for defining and aiding financially distressed
294
school districts under this section in accordance with Title 63, Chapter 46a, Utah Administrative
295
Rulemaking Act.
296
(6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
297
and reported in the debt service fund.
298
(b) Debt service levies under Subsection
59-2-924
[(2)(a)(v)(C)](3)(e)(iii) that are not
299
subject to the certified tax rate hearing requirements of Sections
59-2-918
and
59-2-919
may
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not be used for any purpose other than retiring general obligation debt.
301
(c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
302
year shall be used in subsequent years for general obligation debt retirement.
303
(d) Any amounts left in the debt service fund after all general obligation debt has been
304
retired may be transferred to the capital projects fund upon completion of the budgetary hearing
305
process required under Section
53A-19-102
.
306
Section 8.
Section
59-2-102
is amended to read:
307
59-2-102. Definitions.
308
As used in this chapter and title:
309
(1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
310
engaging in dispensing activities directly affecting agriculture or horticulture with an
311
airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
312
rotorcraft's use for agricultural and pest control purposes.
313
(2) "Air charter service" means an air carrier operation which requires the customer to
314
hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
315
trip.
316
(3) "Air contract service" means an air carrier operation available only to customers
317
who engage the services of the carrier through a contractual agreement and excess capacity on
318
any trip and is not available to the public at large.
319
(4) "Aircraft" is as defined in Section
72-10-102
.
320
(5) "Airline" means any air carrier operating interstate routes on a scheduled basis
321
which offers to fly passengers or cargo on the basis of available capacity on regularly scheduled
322
routes.
323
(6) "Assessment roll" means a permanent record of the assessment of property as
324
assessed by the county assessor and the commission and may be maintained manually or as a
325
computerized file as a consolidated record or as multiple records by type, classification, or
326
categories.
327
(7) (a) "Certified revenue levy" means a property tax levy that provides the same
328
amount of ad valorem property tax revenue as was collected for the prior year, plus new
329
growth, but exclusive of revenue from collections from redemptions, interest, and penalties.
330
(b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
331
include property tax revenue received by a taxing entity from personal property that is:
332
(i) assessed by a county assessor in accordance with Part 3, County Assessment; and
333
(ii) semiconductor manufacturing equipment.
334
(8) "County-assessed commercial vehicle" means:
335
(a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
336
Section
41-1a-301
and is not operated interstate to transport the vehicle owner's goods or
337
property in furtherance of the owner's commercial enterprise;
338
(b) any passenger vehicle owned by a business and used by its employees for
339
transportation as a company car or vanpool vehicle; and
340
(c) vehicles which are:
341
(i) especially constructed for towing or wrecking, and which are not otherwise used to
342
transport goods, merchandise, or people for compensation;
343
(ii) used or licensed as taxicabs or limousines;
344
(iii) used as rental passenger cars, travel trailers, or motor homes;
345
(iv) used or licensed in this state for use as ambulances or hearses;
346
(v) especially designed and used for garbage and rubbish collection; or
347
(vi) used exclusively to transport students or their instructors to or from any private,
348
public, or religious school or school activities.
349
(9) (a) Except as provided in Subsection (9)(b), for purposes of Section
59-2-801
,
350
"designated tax area" means a tax area created by the overlapping boundaries of only the
351
following taxing entities:
352
(i) a county; and
353
(ii) a school district.
354
(b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
355
by the overlapping boundaries of:
356
(i) the taxing entities described in Subsection (9)(a); and
357
(ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
358
and the boundaries of the city or town are identical; or
359
(B) a special service district if the boundaries of the school district under Subsection
360
(9)(a) are located entirely within the special service district.
361
(10) "Eligible judgment" means a final and unappealable judgment or order under
362
Section
59-2-1330
:
363
(a) that became a final and unappealable judgment or order no more than 14 months
364
prior to the day on which the notice required by [Subsection
59-2-919
(4)] Section
59-2-919.1
is
365
required to be mailed; and
366
(b) for which a taxing entity's share of the final and unappealable judgment or order is
367
greater than or equal to the lesser of:
368
(i) $5,000; or
369
(ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
370
previous fiscal year.
371
(11) (a) "Escaped property" means any property, whether personal, land, or any
372
improvements to the property, subject to taxation and is:
373
(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
374
to the wrong taxpayer by the assessing authority;
375
(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
376
comply with the reporting requirements of this chapter; or
377
(iii) undervalued because of errors made by the assessing authority based upon
378
incomplete or erroneous information furnished by the taxpayer.
379
(b) Property which is undervalued because of the use of a different valuation
380
methodology or because of a different application of the same valuation methodology is not
381
"escaped property."
382
(12) "Fair market value" means the amount at which property would change hands
383
between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
384
and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
385
market value" shall be determined using the current zoning laws applicable to the property in
386
question, except in cases where there is a reasonable probability of a change in the zoning laws
387
affecting that property in the tax year in question and the change would have an appreciable
388
influence upon the value.
389
(13) "Farm machinery and equipment," for purposes of the exemption provided under
390
Section
59-2-1101
, means tractors, milking equipment and storage and cooling facilities, feed
391
handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
392
tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
393
equipment used primarily for agricultural purposes; but does not include vehicles required to be
394
registered with the Motor Vehicle Division or vehicles or other equipment used for business
395
purposes other than farming.
396
(14) "Geothermal fluid" means water in any form at temperatures greater than 120
397
degrees centigrade naturally present in a geothermal system.
398
(15) "Geothermal resource" means:
399
(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
400
and
401
(b) the energy, in whatever form, including pressure, present in, resulting from, created
402
by, or which may be extracted from that natural heat, directly or through a material medium.
403
(16) (a) "Goodwill" means:
404
(i) acquired goodwill that is reported as goodwill on the books and records:
405
(A) of a taxpayer; and
406
(B) that are maintained for financial reporting purposes; or
407
(ii) the ability of a business to:
408
(A) generate income:
409
(I) that exceeds a normal rate of return on assets; and
410
(II) resulting from a factor described in Subsection (16)(b); or
411
(B) obtain an economic or competitive advantage resulting from a factor described in
412
Subsection (16)(b).
413
(b) The following factors apply to Subsection (16)(a)(ii):
414
(i) superior management skills;
415
(ii) reputation;
416
(iii) customer relationships;
417
(iv) patronage; or
418
(v) a factor similar to Subsections (16)(b)(i) through (iv).
419
(c) "Goodwill" does not include:
420
(i) the intangible property described in Subsection (20)(a) or (b);
421
(ii) locational attributes of real property, including:
422
(A) zoning;
423
(B) location;
424
(C) view;
425
(D) a geographic feature;
426
(E) an easement;
427
(F) a covenant;
428
(G) proximity to raw materials;
429
(H) the condition of surrounding property; or
430
(I) proximity to markets;
431
(iii) value attributable to the identification of an improvement to real property,
432
including:
433
(A) reputation of the designer, builder, or architect of the improvement;
434
(B) a name given to, or associated with, the improvement; or
435
(C) the historic significance of an improvement; or
436
(iv) the enhancement or assemblage value specifically attributable to the interrelation of
437
the existing tangible property in place working together as a unit.
438
(17) "Governing body" means:
439
(a) for a county, city, or town, the legislative body of the county, city, or town;
440
(b) for a local district under Title 17B, Limited Purpose Local Government Entities -
441
Local Districts, the local district's board of trustees;
442
(c) for a school district, the local board of education; or
443
(d) for a special service district under Title 17A, Chapter 2, Part 13, Utah Special
444
Service District Act:
445
(i) the legislative body of the county or municipality that created the special service
446
district, to the extent that the county or municipal legislative body has not delegated authority to
447
an administrative control board established under Section
17A-2-1326
; or
448
(ii) the administrative control board, to the extent that the county or municipal
449
legislative body has delegated authority to an administrative control board established under
450
Section
17A-2-1326
.
451
(18) (a) For purposes of Section
59-2-103
:
452
(i) "household" means the association of persons who live in the same dwelling, sharing
453
its furnishings, facilities, accommodations, and expenses; and
454
(ii) "household" includes married individuals, who are not legally separated, that have
455
established domiciles at separate locations within the state.
456
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
457
commission may make rules defining the term "domicile."
458
(19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
459
structure, fixture, fence, or other item that is permanently attached to land, regardless of
460
whether the title has been acquired to the land, if:
461
(i) (A) attachment to land is essential to the operation or use of the item; and
462
(B) the manner of attachment to land suggests that the item will remain attached to the
463
land in the same place over the useful life of the item; or
464
(ii) removal of the item would:
465
(A) cause substantial damage to the item; or
466
(B) require substantial alteration or repair of a structure to which the item is attached.
467
(b) "Improvement" includes:
468
(i) an accessory to an item described in Subsection (19)(a) if the accessory is:
469
(A) essential to the operation of the item described in Subsection (19)(a); and
470
(B) installed solely to serve the operation of the item described in Subsection (19)(a);
471
and
472
(ii) an item described in Subsection (19)(a) that:
473
(A) is temporarily detached from the land for repairs; and
474
(B) remains located on the land.
475
(c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
476
(i) an item considered to be personal property pursuant to rules made in accordance
477
with Section
59-2-107
;
478
(ii) a moveable item that is attached to land:
479
(A) for stability only; or
480
(B) for an obvious temporary purpose;
481
(iii) (A) manufacturing equipment and machinery; or
482
(B) essential accessories to manufacturing equipment and machinery;
483
(iv) an item attached to the land in a manner that facilitates removal without substantial
484
damage to:
485
(A) the land; or
486
(B) the item; or
487
(v) a transportable factory-built housing unit as defined in Section
59-2-1502
if that
488
transportable factory-built housing unit is considered to be personal property under Section
489
59-2-1503
.
490
(20) "Intangible property" means:
491
(a) property that is capable of private ownership separate from tangible property,
492
including:
493
(i) moneys;
494
(ii) credits;
495
(iii) bonds;
496
(iv) stocks;
497
(v) representative property;
498
(vi) franchises;
499
(vii) licenses;
500
(viii) trade names;
501
(ix) copyrights; and
502
(x) patents;
503
(b) a low-income housing tax credit; or
504
(c) goodwill.
505
(21) "Low-income housing tax credit" means:
506
(a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
507
or
508
(b) a low-income housing tax credit under:
509
(i) Section
59-7-607
; or
510
(ii) Section
59-10-1010
.
511
(22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
512
(23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous valuable
513
mineral.
514
(24) "Mining" means the process of producing, extracting, leaching, evaporating, or
515
otherwise removing a mineral from a mine.
516
(25) (a) "Mobile flight equipment" means tangible personal property that is:
517
(i) owned or operated by an:
518
(A) air charter service;
519
(B) air contract service; or
520
(C) airline; and
521
(ii) (A) capable of flight;
522
(B) attached to an aircraft that is capable of flight; or
523
(C) contained in an aircraft that is capable of flight if the tangible personal property is
524
intended to be used:
525
(I) during multiple flights;
526
(II) during a takeoff, flight, or landing; and
527
(III) as a service provided by an air charter service, air contract service, or airline.
528
(b) (i) "Mobile flight equipment" does not include a spare part other than a spare engine
529
that is rotated:
530
(A) at regular intervals; and
531
(B) with an engine that is attached to the aircraft.
532
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
533
commission may make rules defining the term "regular intervals."
534
(26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
535
sand, rock, gravel, and all carboniferous materials.
536
(27) "Personal property" includes:
537
(a) every class of property as defined in Subsection (28) which is the subject of
538
ownership and not included within the meaning of the terms "real estate" and "improvements";
539
(b) gas and water mains and pipes laid in roads, streets, or alleys;
540
(c) bridges and ferries;
541
(d) livestock which, for the purposes of the exemption provided under Section
542
59-2-1112
, means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
543
(e) outdoor advertising structures as defined in Section
72-7-502
.
544
(28) (a) "Property" means property that is subject to assessment and taxation according
545
to its value.
546
(b) "Property" does not include intangible property as defined in this section.
547
(29) "Public utility," for purposes of this chapter, means the operating property of a
548
railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
549
company, electrical corporation, telephone corporation, sewerage corporation, or heat
550
corporation where the company performs the service for, or delivers the commodity to, the
551
public generally or companies serving the public generally, or in the case of a gas corporation or
552
an electrical corporation, where the gas or electricity is sold or furnished to any member or
553
consumers within the state for domestic, commercial, or industrial use. Public utility also means
554
the operating property of any entity or person defined under Section
54-2-1
except water
555
corporations.
556
(30) "Real estate" or "real property" includes:
557
(a) the possession of, claim to, ownership of, or right to the possession of land;
558
(b) all mines, minerals, and quarries in and under the land, all timber belonging to
559
individuals or corporations growing or being on the lands of this state or the United States, and
560
all rights and privileges appertaining to these; and
561
(c) improvements.
562
(31) "Residential property," for the purposes of the reductions and adjustments under
563
this chapter, means any property used for residential purposes as a primary residence. It does
564
not include property used for transient residential use or condominiums used in rental pools.
565
(32) For purposes of Subsection
59-2-801
(1)(e), "route miles" means the number of
566
miles calculated by the commission that is:
567
(a) measured in a straight line by the commission; and
568
(b) equal to the distance between a geographical location that begins or ends:
569
(i) at a boundary of the state; and
570
(ii) where an aircraft:
571
(A) takes off; or
572
(B) lands.
573
(33) (a) "State-assessed commercial vehicle" means:
574
(i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
575
to transport passengers, freight, merchandise, or other property for hire; or
576
(ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
577
transports the vehicle owner's goods or property in furtherance of the owner's commercial
578
enterprise.
579
(b) "State-assessed commercial vehicle" does not include vehicles used for hire which
580
are specified in Subsection (8)(c) as county-assessed commercial vehicles.
581
(34) "Taxable value" means fair market value less any applicable reduction allowed for
582
residential property under Section
59-2-103
.
583
(35) "Tax area" means a geographic area created by the overlapping boundaries of one
584
or more taxing entities.
585
(36) "Taxing entity" means any county, city, town, school district, special taxing
586
district, local district under Title 17B, Limited Purpose Local Government Entities - Local
587
Districts, or other political subdivision of the state with the authority to levy a tax on property.
588
(37) "Tax roll" means a permanent record of the taxes charged on property, as extended
589
on the assessment roll and may be maintained on the same record or records as the assessment
590
roll or may be maintained on a separate record properly indexed to the assessment roll. It
591
includes tax books, tax lists, and other similar materials.
592
Section 9.
Section
59-2-505
is amended to read:
593
59-2-505. Indicia of value for agricultural use assessment -- Inclusion of fair
594
market value on certain property tax notices.
595
(1) (a) The county assessor shall consider only those indicia of value that the land has
596
for agricultural use as determined by the commission when assessing land:
597
(i) that meets the requirements of Section
59-2-503
to be assessed under this part; and
598
(ii) for which the owner has:
599
(A) made a timely application in accordance with Section
59-2-508
for assessment
600
under this part for the tax year for which the land is being assessed; and
601
(B) obtained approval of the application described in Subsection (1)(a)(ii)(A) from the
602
county assessor.
603
(b) If land that becomes subject to a conservation easement created in accordance with
604
Title 57, Chapter 18, Land Conservation Easement Act, meets the requirements of Subsection
605
(1)(a) for assessment under this part, the county assessor shall consider only those indicia of
606
value that the land has for agricultural use in accordance with Subsection (1)(a) when assessing
607
the land.
608
(2) In addition to the value determined in accordance with Subsection (1), the fair
609
market value assessment shall be included on the notices described in:
610
(a) [Subsection
59-2-919
(4)] Section
59-2-919.1
; and
611
(b) Section
59-2-1317
.
612
(3) The county board of equalization shall review the agricultural use value and fair
613
market value assessments each year as provided under Section
59-2-1001
.
614
Section 10.
Section
59-2-908
is amended to read:
615
59-2-908. Single aggregate limitation -- Maximum levy.
616
(1) Except as provided in Subsection (2), each county shall have a single aggregate
617
limitation on the property tax levied for all purposes by the county. Except as provided in
618
Section
59-2-911
, this limitation may not exceed the maximum set forth in this section. The
619
maximum is:
620
(a) .0032 per dollar of taxable value in all counties with a total taxable value of more
621
than $100,000,000; and
622
(b) .0036 per dollar of taxable value in all counties with a total taxable value of less than
623
$100,000,000.
624
(2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
625
limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
626
generates revenues for the county in an amount that is less than the revenues that would be
627
generated by the county under the certified tax rate established in [Subsection] Section
628
59-2-924
[(2)].
629
(b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that
630
does not exceed the certified tax rate established in [Subsection] Section
59-2-924
[(2)].
631
Section 11.
Section
59-2-913
is amended to read:
632
59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
633
statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
634
establishing tax levies -- Format of statement.
635
(1) As used in this section, "budgeted property tax revenues" does not include property
636
tax revenue received by a taxing entity from personal property that is:
637
(a) assessed by a county assessor in accordance with Part 3, County Assessment; and
638
(b) semiconductor manufacturing equipment.
639
(2) (a) The legislative body of each taxing entity shall file a statement as provided in this
640
section with the county auditor of the county in which the taxing entity is located.
641
(b) The auditor shall annually transmit the statement to the commission:
642
(i) before June 22; or
643
(ii) with the approval of the commission, on a subsequent date prior to the date
644
established under Section
59-2-1317
for mailing tax notices.
645
(c) The statement shall contain the amount and purpose of each levy fixed by the
646
legislative body of the taxing entity.
647
(3) For purposes of establishing the levy set for each of a taxing entity's applicable
648
funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
649
the budgeted property tax revenues, specified in a budget which has been adopted and approved
650
prior to setting the levy, by the amount calculated under Subsections
59-2-924
[(2)(a)(iii)(B)(I)
651
through (III)](3)(c)(ii)(A) through (C).
652
(4) The format of the statement under this section shall:
653
(a) be determined by the commission; and
654
(b) cite any applicable statutory provisions that:
655
(i) require a specific levy; or
656
(ii) limit the property tax levy for any taxing entity.
657
(5) The commission may require certification that the information submitted on a
658
statement under this section is true and correct.
659
Section 12.
Section
59-2-914
is amended to read:
660
59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement
661
adjusted levies to county auditor.
662
(1) If the commission determines that a levy established for a taxing entity set under
663
Section
59-2-913
is in excess of the maximum levy permitted by law, the commission shall:
664
(a) lower the levy so that it is set at the maximum level permitted by law;
665
(b) notify the taxing entity which set the excessive rate that the rate has been lowered;
666
and
667
(c) notify the county auditor of the county or counties in which the taxing entity is
668
located to implement the rate established by the commission.
669
(2) A levy set for a taxing entity by the commission under this section shall be the
670
official levy for that taxing entity unless:
671
(a) the taxing entity lowers the levy established by the commission; or
672
(b) the levy is subsequently modified by a court order.
673
(3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
674
a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the rate
675
established by the taxing entity for the current year generates revenues for the taxing entity in an
676
amount that is less than the revenues that would be generated by the taxing entity under the
677
certified tax rate established in [Subsection] Section
59-2-924
[(2)].
678
(b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax rate
679
that does not exceed the certified rate established in [Subsection] Section
59-2-924
[(2)].
680
Section 13.
Section
59-2-918
is amended to read:
681
59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
682
(1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
683
increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
684
in Subsection
59-2-924
[(2)](4) unless it advertises its intention to do so at the same time that it
685
advertises its intention to fix its budget for the forthcoming fiscal year.
686
(b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
687
advertisement or hearing requirements of this section if:
688
[(A) the taxing entity:]
689
[(I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
690
or]
691
[(II)] (A) the taxing entity is expressly exempted by law from complying with the
692
requirements of this section; or
693
(B) the increased amount of ad valorem tax revenue results from a tax rate increase that
694
is exempted under Subsection
59-2-919
[(1)](2)(a)(ii)(B) from the advertisement and hearing
695
requirements of Section
59-2-919
.
696
(ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
697
advertisement requirements of this section if:
698
(A) Section
53A-17a-133
allows the taxing entity to budget an increased amount of ad
699
valorem property tax revenue without having to comply with the advertisement requirements of
700
this section[.]; or
701
(B) the taxing entity:
702
(I) collected less than $20,000 in ad valorem tax revenues for the previous fiscal year;
703
and
704
(II) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
705
revenues.
706
(2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
707
advertisement required by this section may be combined with the advertisement required by
708
Section
59-2-919
.
709
(b) For taxing entities operating under a January 1 through December 31 fiscal year, the
710
advertisement required by this section shall meet the size, type, placement, and frequency
711
requirements established under Section
59-2-919
.
712
(3) The form of the advertisement required by this section shall meet the size, type,
713
placement, and frequency requirements established under Section
59-2-919
and shall be
714
substantially as follows:
715
"NOTICE OF PROPOSED TAX INCREASE
716
(NAME OF TAXING ENTITY)
717
The (name of the taxing entity) is proposing to increase its property tax revenue.
718
* If the proposed budget is approved, this would be an increase of _____% above
719
the (name of the taxing entity) property tax budgeted revenue for the prior year.
720
* The (name of the taxing entity) tax on a (insert the average value of a residence
721
in the taxing entity rounded to the nearest thousand dollars) residence would
722
increase from $______ to $________, which is $_______ per year.
723
* The (name of the taxing entity) tax on a (insert the value of a business having the
724
same value as the average value of a residence in the taxing entity) business
725
would increase from $________ to $_______, which is $______ per year.
726
All concerned citizens are invited to a public hearing on the tax increase.
727
PUBLIC HEARING
728
Date/Time: (date) (time)
729
Location: (name of meeting place and address of meeting place)
730
To obtain more information regarding the tax increase, citizens may contact the (name
731
of the taxing entity) at (phone number of taxing entity)."
732
(4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
733
revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
734
announce at the public hearing the scheduled time and place for consideration and adoption of
735
the proposed budget increase.
736
(5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
737
year shall by March 1 notify the county of the date, time, and place of the public hearing at
738
which the budget for the following fiscal year will be considered.
739
(b) The county shall include the information described in Subsection (5)(a) with the tax
740
notice.
741
(6) A taxing entity shall hold a public hearing under this section beginning at or after 6
742
p.m.
743
Section 14.
Section
59-2-918.5
is amended to read:
744
59-2-918.5. Hearings on judgment levies -- Advertisement.
745
(1) A taxing entity may not impose a judgment levy unless it first advertises its intention
746
to do so and holds a public hearing in accordance with the requirements of this section.
747
(2) (a) The advertisement required by this section may be combined with the
748
advertisement required by either Section
59-2-918
or Section
59-2-919
.
749
(b) The advertisement shall be at least 1/8 of a page in size and shall meet the type,
750
placement, and frequency requirements established under Section
59-2-919
.
751
(c) (i) For taxing entities operating under a July 1 through June 30 fiscal year the public
752
hearing shall be held at the same time as the hearing at which the annual budget is adopted.
753
(ii) For taxing entities operating under a January 1 through December 31 fiscal year:
754
(A) for eligible judgments issued from June 1 through December 15, the public hearing
755
shall be held at the same time as the hearing at which the annual budget is adopted; and
756
(B) for eligible judgments issued from December 16 through May 31, the public hearing
757
shall be held at the same time as the hearing at which property tax levies are set.
758
(3) The advertisement shall specify the date, time, and location of the public hearing at
759
which the levy will be considered and shall set forth the total amount of the eligible judgment
760
and the tax impact on an average residential and business property located within the taxing
761
entity.
762
(4) If a final decision regarding the judgment levy is not made at the public hearing, the
763
taxing entity shall announce at the public hearing the scheduled time and place for consideration
764
and adoption of the judgment levy.
765
(5) The date, time, and place of public hearings required by Subsections
766
59-2-918.5
(2)(c)(i) and
59-2-918.5
(2)(c)(ii)(B) shall be included on the notice mailed to
767
property owners pursuant to [Subsection
59-2-919
(4)] Section
59-2-919.1
.
768
Section 15.
Section
59-2-918.6
is amended to read:
769
59-2-918.6. New and remaining school district budgets -- Advertisement -- Public
770
hearing.
771
(1) As used in this section, "existing school district," "new school district," and
772
"remaining school district" are as defined in Section
53A-2-117
.
773
(2) For the first fiscal year in which a new school district created under Section
774
53A-2-118.1
assumes responsibility for providing student instruction, the new school district
775
and the remaining school district or districts may not impose a property tax unless the district
776
imposing the tax:
777
(a) advertises its intention to do so in accordance with Subsection (3); and
778
(b) holds a public hearing in accordance with Subsection (4).
779
(3) The advertisement required by this section:
780
(a) may be combined with the advertisement required by either Section
59-2-918
or
781
59-2-919
;
782
(b) shall be at least 1/4 of a page in size and shall meet the type, placement, and
783
frequency requirements established under Section
59-2-919
; and
784
(c) shall specify the date, time, and location of the public hearing at which the levy will
785
be considered and shall set forth the total amount of the district's proposed property tax levy
786
and the tax impact on an average residential and business property located within the taxing
787
entity compared to the property tax levy imposed in the prior year by the existing school
788
district.
789
(4) (a) The date, time, and place of public hearings required by this section shall be
790
included on the notice mailed to property owners pursuant to [Subsection
59-2-919
(4)] Section
791
59-2-919.1
.
792
(b) If a final decision regarding the property tax levy is not made at the public hearing,
793
the school district shall announce at the public hearing the scheduled time and place for
794
consideration and adoption of the budget and property tax levies.
795
Section 16.
Section
59-2-919
is amended to read:
796
59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of
797
proposed tax increase -- Hearing -- Dates.
798
(1) A tax rate in excess of the certified tax rate may not be levied until a resolution has
799
been approved by the taxing entity in accordance [with the following procedure:] with this
800
section.
801
[(1)] (2) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate
802
in a newspaper or combination of newspapers of general circulation in the taxing entity.
803
(ii) Notwithstanding Subsection [(1)] (2)(a)(i), a taxing entity is not required to meet
804
the advertisement or hearing requirements of this section if:
805
[(A) the taxing entity:]
806
[(I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
807
or]
808
[(II)] (A) the taxing entity is expressly exempted by law from complying with the
809
requirements of this section; or
810
(B) (I) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,
811
Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
812
emergency, and emergency medical services;
813
(II) the tax rate increase is approved by the taxing entity's voters at an election held for
814
that purpose on or before December 31, 2010;
815
(III) the purpose of the tax rate increase is to pay for fire protection, emergency, and
816
emergency medical services provided by the interlocal entity; and
817
(IV) at least 30 days before its annual budget hearing, the taxing entity:
818
(Aa) adopts a resolution certifying that the taxing entity will dedicate all revenue from
819
the tax rate increase exclusively to pay for fire protection, emergency, and emergency medical
820
services provided by the interlocal entity and that the amount of other revenues, independent of
821
the revenue generated from the tax rate increase, that the taxing entity spends for fire
822
protection, emergency, and emergency medical services each year after the tax rate increase will
823
not decrease below the amount spent by the taxing entity during the year immediately before the
824
tax rate increase without a corresponding decrease in the taxing entity's property tax revenues
825
used in calculating the taxing entity's certified tax rate; and
826
(Bb) sends a copy of the resolution to the commission.
827
(iii) The exception under Subsection [(1)] (2)(a)(ii)(B) from the advertisement and
828
hearing requirements of this section does not apply to an increase in a taxing entity's tax rate
829
that occurs after December 31, 2010, even if the tax rate increase is approved by the taxing
830
entity's voters before that date.
831
(iv) Notwithstanding Subsection [(1)] (2)(a)(i), a taxing entity is not required to meet
832
the advertisement requirements of this section if:
833
(A) Section
53A-17a-133
allows the taxing entity to levy a tax rate that exceeds that
834
certified tax rate without having to comply with the advertisement requirements of this
835
section[.]; or
836
(B) the taxing entity:
837
(I) collected less than $20,000 in ad valorem tax revenues for the previous fiscal year;
838
and
839
(II) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
840
revenues.
841
(b) The advertisement described in this section shall:
842
(i) be no less than 1/4 page in size;
843
(ii) use type no smaller than 18 point; and
844
(iii) be surrounded by a 1/4-inch border.
845
(c) The advertisement described in this section may not be placed in that portion of the
846
newspaper where legal notices and classified advertisements appear.
847
(d) It is the intent of the Legislature that:
848
(i) whenever possible, the advertisement described in this section appear in a newspaper
849
that is published at least one day per week; and
850
(ii) the newspaper or combination of newspapers selected:
851
(A) be of general interest and readership in the taxing entity; and
852
(B) not be of limited subject matter.
853
(e) The advertisement described in this section shall:
854
(i) be run once each week for the two weeks preceding the adoption of the final budget;
855
and
856
(ii) state that the taxing entity will meet on a certain day, time, and place fixed in the
857
advertisement, which shall be not less than seven days after the day the first advertisement is
858
published, for the purpose of hearing comments regarding any proposed increase and to explain
859
the reasons for the proposed increase.
860
(f) The meeting on the proposed increase may coincide with the hearing on the
861
proposed budget of the taxing entity.
862
[(2)] (3) The form and content of the notice shall be substantially as follows:
863
"NOTICE OF PROPOSED TAX INCREASE
864
(NAME OF TAXING ENTITY)
865
The (name of the taxing entity) is proposing to increase its property tax revenue.
866
* If the proposed budget is approved, this would be an increase of _____% above
867
the (name of the taxing entity) property tax budgeted revenue for the prior year.
868
* The (name of the taxing entity) tax on a (insert the average value of a residence
869
in the taxing entity rounded to the nearest thousand dollars) residence would
870
increase from $______ to $________, which is $_______ per year.
871
* The (name of the taxing entity) tax on a (insert the value of a business having the
872
same value as the average value of a residence in the taxing entity) business
873
would increase from $________ to $_______, which is $______ per year.
874
(Name of taxing entity) property tax revenue from new growth and other sources will
875
increase from $_______________ to $______________.
876
All concerned citizens are invited to a public hearing on the tax increase.
877
PUBLIC HEARING
878
Date/Time: (date) (time)
879
Location: (name of meeting place and address of meeting place)
880
To obtain more information regarding the tax increase, citizens may contact the (name
881
of the taxing entity) at (phone number of taxing entity)."
882
[(3)] (4) The commission:
883
(a) shall adopt rules governing the joint use of one advertisement under this section or
884
Section
59-2-918
by two or more taxing entities; and
885
(b) may, upon petition by any taxing entity, authorize either:
886
(i) the use of weekly newspapers in counties having both daily and weekly newspapers
887
where the weekly newspaper would provide equal or greater notice to the taxpayer; or
888
(ii) the use of a commission-approved direct notice to each taxpayer if the:
889
(A) cost of the advertisement would cause undue hardship; and
890
(B) direct notice is different and separate from that provided for in Subsection [(4)] (5).
891
[(4) (a) In addition to providing the notice required by Subsections (1) and (2), the
892
county auditor, on or before July 22 of each year, shall notify, by mail, each owner of real estate
893
as defined in Section
59-2-102
who is listed on the assessment roll.]
894
[(b) The notice described in Subsection (4)(a) shall:]
895
[(i) be sent to all owners of real property by mail not less than ten days before the day
896
on which:]
897
[(A) the county board of equalization meets; and]
898
[(B) the taxing entity holds a public hearing on the proposed increase in the certified tax
899
rate;]
900
[(ii) be printed on a form that is:]
901
[(A) approved by the commission; and]
902
[(B) uniform in content in all counties in the state; and]
903
[(iii) contain for each property:]
904
[(A) the value of the property;]
905
[(B) the date the county board of equalization will meet to hear complaints on the
906
valuation;]
907
[(C) itemized tax information for all taxing entities, including a separate statement for
908
the minimum school levy under Section
53A-17a-135
stating:]
909
[(I) the dollar amount the taxpayer would have paid based on last year's rate; and]
910
[(II) the amount of the taxpayer's liability under the current rate;]
911
[(D) the tax impact on the property;]
912
[(E) the time and place of the required public hearing for each entity;]
913
[(F) property tax information pertaining to:]
914
[(I) taxpayer relief;]
915
[(II) options for payment of taxes; and]
916
[(III) collection procedures;]
917
[(G) information specifically authorized to be included on the notice under Title 59,
918
Chapter 2, Property Tax Act; and]
919
[(H) other property tax information approved by the commission.]
920
(5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt a
921
resolution levying a tax rate in excess of the certified tax rate.
922
(b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
923
the scheduled time and place for consideration and adoption of the resolution shall be
924
announced at the public hearing.
925
(c) If a resolution adopting a tax rate is to be considered at a day and time that is more
926
than two weeks after the public hearing described in Subsection [(4)(b)(iii)(E)]
927
59-2-919.1
(2)(c)(v), a taxing entity, other than a taxing entity described in Subsection [(1)]
928
(2)(a)(ii), shall advertise the date of the proposed adoption of the resolution in the same manner
929
as provided under Subsections [(1)] (2) and [(2)] (3).
930
(6) (a) All hearings described in this section shall be open to the public.
931
(b) The governing body of a taxing entity conducting a hearing shall permit all
932
interested parties desiring to be heard an opportunity to present oral testimony within
933
reasonable time limits.
934
(7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
935
year of the date, time, and place a public hearing is held by the taxing entity pursuant to this
936
section.
937
(b) A taxing entity may not schedule a hearing described in this section at the same time
938
as another overlapping taxing entity in the same county, but all taxing entities in which the
939
power to set tax levies is vested in the same governing board or authority may consolidate the
940
required hearings into one hearing.
941
(c) The county legislative body shall resolve any conflicts in hearing dates and times
942
after consultation with each affected taxing entity.
943
(8) A taxing entity shall hold a public hearing under this section beginning at or after 6
944
p.m.
945
Section 17.
Section
59-2-919.1
is enacted to read:
946
59-2-919.1. Property tax notice requirement -- Content of notice.
947
(1) On or before July 22 of each year, the county auditor shall notify, by mail, each
948
owner of real estate as defined in Section
59-2-102
who is listed on the assessment roll.
949
(2) The notice described in Subsection (1) shall:
950
(a) be sent to all owners of real property by mail not less than ten days before the day
951
on which:
952
(i) the county board of equalization meets; and
953
(ii) a taxing entity holds a public hearing on a proposed increase in the certified tax rate;
954
(b) be printed on a form that is:
955
(i) approved by the commission; and
956
(ii) uniform in content in all counties in the state; and
957
(c) contain for each property:
958
(i) the value of the property;
959
(ii) the date the county board of equalization will meet to hear complaints on the
960
valuation;
961
(iii) itemized tax information for all taxing entities, including a separate statement for
962
the minimum school levy under Section
53A-17a-135
stating:
963
(A) the dollar amount the taxpayer would have paid based on last year's rate; and
964
(B) the amount of the taxpayer's liability under the current rate;
965
(iv) the tax impact on the property;
966
(v) the time and place of a required public hearing for each entity;
967
(vi) property tax information pertaining to:
968
(A) taxpayer relief;
969
(B) options for payment of taxes; and
970
(C) collection procedures;
971
(vii) information specifically authorized to be included on the notice under Title 59,
972
Chapter 2, Property Tax Act; and
973
(viii) other property tax information approved by the commission.
974
Section 18.
Section
59-2-924
is amended to read:
975
59-2-924. Report of valuation of property to county auditor and commission --
976
Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
977
tax rate -- Rulemaking authority -- Adoption of tentative budget.
978
(1) [(a)] Before June 1 of each year, the county assessor of each county shall deliver to
979
the county auditor and the commission the following statements:
980
[(i)] (a) a statement containing the aggregate valuation of all taxable property in each
981
taxing entity; and
982
[(ii)] (b) a statement containing the taxable value of any additional personal property
983
estimated by the county assessor to be subject to taxation in the current year.
984
[(b)] (2) The county auditor shall, on or before June 8, transmit to the governing body
985
of each taxing entity:
986
[(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
987
[(ii)] (b) an estimate of the revenue from personal property;
988
[(iii)] (c) the certified tax rate; and
989
[(iv)] (d) all forms necessary to submit a tax levy request.
990
[(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad
991
valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
992
prior year.
993
[(ii)] (b) For purposes of this Subsection [(2)] (3), "ad valorem property tax revenues"
994
do not include:
995
[(A)] (i) collections from redemptions;
996
[(B)] (ii) interest;
997
[(C)] (iii) penalties; and
998
[(D)] (iv) revenue received by a taxing entity from personal property that is:
999
[(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
1000
and
1001
[(II)] (B) semiconductor manufacturing equipment.
1002
[(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
1003
be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
1004
the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
1005
[(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
1006
taxing entity shall calculate an amount as follows:
1007
[(I)] (A) calculate for the taxing entity the difference between:
1008
[(Aa)] (I) the aggregate taxable value of all property taxed; and
1009
[(Bb)] (II) any redevelopment adjustments for the current calendar year;
1010
[(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]
1011
(3)(c)(ii)(A), calculate an amount determined by increasing or decreasing the amount calculated
1012
under Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A) by the average of the percentage net change in
1013
the value of taxable property for the equalization period for the three calendar years
1014
immediately preceding the current calendar year;
1015
[(III)] (C) after making the calculation required by Subsection [(2)(a)(iii)(B)(II)]
1016
(3)(c)(ii)(B), calculate the product of:
1017
[(Aa)] (I) the amount calculated under Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B); and
1018
[(Bb)] (II) the percentage of property taxes collected for the five calendar years
1019
immediately preceding the current calendar year; and
1020
[(IV)] (D) after making the calculation required by Subsection [(2)(a)(iii)(B)(III)]
1021
(3)(c)(ii)(C), calculate an amount determined by subtracting from the amount calculated under
1022
Subsection [(2)(a)(iii)(B)(III)] (3)(c)(ii)(C) any new growth as defined in this section:
1023
[(Aa)] (I) within the taxing entity; and
1024
[(Bb)] (II) for the current calendar year.
1025
[(C)] (iii) For purposes of Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A), the aggregate
1026
taxable value of all property taxed:
1027
[(I)] (A) except as provided in Subsection [(2)(a)(iii)(C)(II)] (3)(c)(iii)(B), includes the
1028
total taxable value of the real and personal property contained on the tax rolls of the taxing
1029
entity; and
1030
[(II)] (B) does not include the total taxable value of personal property contained on the
1031
tax rolls of the taxing entity that is:
1032
[(Aa)] (I) assessed by a county assessor in accordance with Part 3, County Assessment;
1033
and
1034
[(Bb)] (II) semiconductor manufacturing equipment.
1035
[(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
1036
beginning on or after January 1, 2007, the value of taxable property does not include the value
1037
of personal property that is:
1038
[(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
1039
3, County Assessment; and
1040
[(II)] (B) semiconductor manufacturing equipment.
1041
[(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
1042
calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
1043
does not include property taxes collected from personal property that is:
1044
[(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
1045
3, County Assessment; and
1046
[(II)] (B) semiconductor manufacturing equipment.
1047
[(F)] (vi) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
1048
Act, the commission may prescribe rules for calculating redevelopment adjustments for a
1049
calendar year.
1050
[(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
1051
Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
1052
property tax revenues budgeted by a taxing entity.
1053
[(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
1054
revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted
1055
property tax revenues are calculated for purposes of Section
59-2-913
.
1056
[(v)] (e) The certified tax rates for the taxing entities described in this Subsection
1057
[(2)(a)(v)] (3)(e) shall be calculated as follows:
1058
[(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
1059
entities the certified tax rate is zero;
1060
[(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax
1061
rate is:
1062
[(I)] (A) in a county of the first, second, or third class, the levy imposed for
1063
municipal-type services under Sections
17-34-1
and
17-36-9
; and
1064
[(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
1065
county purposes and such other levies imposed solely for the municipal-type services identified
1066
in Section
17-34-1
and Subsection
17-36-3
(22); and
1067
[(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
1068
actual levy imposed by that section, except that the certified tax rates for the following levies
1069
shall be calculated in accordance with Section
59-2-913
and this section:
1070
[(I)] (A) school leeways provided for under Sections
11-2-7
,
53A-16-110
,
1071
[
53A-17a-125
,]
53A-17a-127
,
53A-17a-133
,
53A-17a-134
,
53A-17a-143
, and
53A-17a-145
[,
1072
and
53A-21-103
]; and
1073
[(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
1074
administrative orders under Section
59-2-906.3
.
1075
[(vi) (A)] (f) (i) A judgment levy imposed under Section
59-2-1328
or
59-2-1330
shall
1076
be established at that rate which is sufficient to generate only the revenue required to satisfy one
1077
or more eligible judgments, as defined in Section
59-2-102
.
1078
[(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
1079
be considered in establishing the taxing entity's aggregate certified tax rate.
1080
[(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
1081
shall use the taxable value of property on the assessment roll.
1082
[(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
1083
property on the assessment roll does not include:
1084
[(A)] (i) new growth as defined in Subsection [(2)(b)(iii); or] (4)(c); or
1085
[(B)] (ii) the total taxable value of personal property contained on the tax rolls of the
1086
taxing entity that is:
1087
[(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
1088
and
1089
[(II)] (B) semiconductor manufacturing equipment.
1090
[(iii)] (c) "New growth" means:
1091
[(A)] (i) the difference between the increase in taxable value of the taxing entity from
1092
the previous calendar year to the current year; minus
1093
[(B)] (ii) the amount of an increase in taxable value described in Subsection [(2)(b)(v)]
1094
(4)(e).
1095
[(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of the
1096
taxing entity does not include the taxable value of personal property that is:
1097
[(A)] (i) contained on the tax rolls of the taxing entity if that property is assessed by a
1098
county assessor in accordance with Part 3, County Assessment; and
1099
[(B)] (ii) semiconductor manufacturing equipment.
1100
[(v)] (e) Subsection [(2)(b)(iii)(B)] (4)(c)(ii) applies to the following increases in
1101
taxable value:
1102
[(A)] (i) the amount of increase to locally assessed real property taxable values resulting
1103
from factoring, reappraisal, or any other adjustments; or
1104
[(B)] (ii) the amount of an increase in the taxable value of property assessed by the
1105
commission under Section
59-2-201
resulting from a change in the method of apportioning the
1106
taxable value prescribed by:
1107
[(I)] (A) the Legislature;
1108
[(II)] (B) a court;
1109
[(III)] (C) the commission in an administrative rule; or
1110
[(IV)] (D) the commission in an administrative order.
1111
[(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1112
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1113
59-2-405.2
, or
59-2-405.3
as a result of any county imposing a sales and use tax under Chapter
1114
12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1115
rate to offset the increased revenues.]
1116
[(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1117
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:]
1118
[(A) decreased on a one-time basis by the amount of the estimated sales and use tax
1119
revenue to be distributed to the county under Subsection
59-12-1102
(3); and]
1120
[(B) increased by the amount necessary to offset the county's reduction in revenue from
1121
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1122
59-2-405.2
, or
59-2-405.3
as a result of the decrease in the certified tax rate under Subsection
1123
(2)(d)(i)(A).]
1124
[(ii) The commission shall determine estimates of sales and use tax distributions for
1125
purposes of Subsection (2)(d)(i).]
1126
[(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
1127
communities sales tax under Section
59-12-402
, the municipality's certified tax rate shall be
1128
decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
1129
revenue from the additional resort communities sales and use tax imposed under Section
1130
59-12-402
.]
1131
[(f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
1132
Subsection
17-34-1
(4)(a) to provide advanced life support and paramedic services to the
1133
unincorporated area of the county shall be decreased by the amount necessary to reduce
1134
revenues in that fiscal year by an amount equal to the difference between the amount the county
1135
budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
1136
countywide and the amount the county spent during fiscal year 2000 for those services,
1137
excluding amounts spent from a municipal services fund for those services.]
1138
[(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
1139
(2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
1140
year by the amount that the county spent during fiscal year 2000 for advanced life support and
1141
paramedic services countywide, excluding amounts spent from a municipal services fund for
1142
those services.]
1143
[(ii) (A) A city or town located within a county of the first class to which Subsection
1144
(2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
1145
the city or town the same amount of revenues as the county would collect from that city or
1146
town if the decrease under Subsection (2)(f)(i) did not occur.]
1147
[(B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal year
1148
or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
1149
Sections
59-2-918
and
59-2-919
.]
1150
[(g) (i) The certified tax rate of each county required under Subsection
17-34-1
(4)(b) to
1151
provide detective investigative services to the unincorporated area of the county shall be
1152
decreased:]
1153
[(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
1154
by at least $4,400,000; and]
1155
[(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
1156
by an amount equal to the difference between $9,258,412 and the amount of the reduction in
1157
revenues under Subsection (2)(g)(i)(A).]
1158
[(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
1159
county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
1160
within the city or town the same amount of revenue as the county would have collected during
1161
county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).]
1162
[(II) Beginning with municipal fiscal year 2003, a city or town located within a county
1163
to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
1164
city or town the same amount of revenue as the county would have collected during county
1165
fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).]
1166
[(B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
1167
town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
1168
or spread over multiple fiscal years, is subject to the notice and hearing requirements of Sections
1169
59-2-918
and
59-2-919
.]
1170
[(II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does
1171
not exceed the same amount of revenue as the county would have collected except for
1172
Subsection (2)(g)(i), the requirements of Sections
59-2-918
and
59-2-919
do not apply if the
1173
city or town:]
1174
[(Aa) publishes a notice that meets the size, type, placement, and frequency
1175
requirements of Section
59-2-919
, reflects that the increase is a shift of a tax from one imposed
1176
by the county to one imposed by the city or town, and explains how the revenues from the tax
1177
increase will be used; and]
1178
[(Bb) holds a public hearing on the tax shift that may be held in conjunction with the
1179
city or town's regular budget hearing.]
1180
[(h) (i) This Subsection (2)(h) applies to each county that:]
1181
[(A) establishes a countywide special service district under Title 17A, Chapter 2, Part
1182
13, Utah Special Service District Act, to provide jail service, as provided in Subsection
1183
17A-2-1304
(1)(a)(x); and]
1184
[(B) levies a property tax on behalf of the special service district under Section
1185
17A-2-1322
.]
1186
[(ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
1187
shall be decreased by the amount necessary to reduce county revenues by the same amount of
1188
revenues that will be generated by the property tax imposed on behalf of the special service
1189
district.]
1190
[(B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
1191
the levy on behalf of the special service district under Section
17A-2-1322
.]
1192
[(i) (i) As used in this Subsection (2)(i):]
1193
[(A) "Annexing county" means a county whose unincorporated area is included within a
1194
fire district by annexation.]
1195
[(B) "Annexing municipality" means a municipality whose area is included within a fire
1196
district by annexation.]
1197
[(C) "Equalized fire protection tax rate" means the tax rate that results from:]
1198
[(I) calculating, for each participating county and each participating municipality, the
1199
property tax revenue necessary to cover all of the costs associated with providing fire
1200
protection, paramedic, and emergency services:]
1201
[(Aa) for a participating county, in the unincorporated area of the county; and]
1202
[(Bb) for a participating municipality, in the municipality; and]
1203
[(II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
1204
participating counties and all participating municipalities and then dividing that sum by the
1205
aggregate taxable value of the property, as adjusted in accordance with Section
59-2-913
:]
1206
[(Aa) for participating counties, in the unincorporated area of all participating counties;
1207
and]
1208
[(Bb) for participating municipalities, in all the participating municipalities.]
1209
[(D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1210
Area Act, in the creation of which an election was not required under Subsection
1211
17B-1-214
(3)(c).]
1212
[(E) "Fire protection tax rate" means:]
1213
[(I) for an annexing county, the property tax rate that, when applied to taxable property
1214
in the unincorporated area of the county, generates enough property tax revenue to cover all the
1215
costs associated with providing fire protection, paramedic, and emergency services in the
1216
unincorporated area of the county; and]
1217
[(II) for an annexing municipality, the property tax rate that generates enough property
1218
tax revenue in the municipality to cover all the costs associated with providing fire protection,
1219
paramedic, and emergency services in the municipality.]
1220
[(F) "Participating county" means a county whose unincorporated area is included
1221
within a fire district at the time of the creation of the fire district.]
1222
[(G) "Participating municipality" means a municipality whose area is included within a
1223
fire district at the time of the creation of the fire district.]
1224
[(ii) In the first year following creation of a fire district, the certified tax rate of each
1225
participating county and each participating municipality shall be decreased by the amount of the
1226
equalized fire protection tax rate.]
1227
[(iii) In the first year following annexation to a fire district, the certified tax rate of each
1228
annexing county and each annexing municipality shall be decreased by the fire protection tax
1229
rate.]
1230
[(iv) Each tax levied under this section by a fire district shall be considered to be levied
1231
by:]
1232
[(A) each participating county and each annexing county for purposes of the county's
1233
tax limitation under Section
59-2-908
; and]
1234
[(B) each participating municipality and each annexing municipality for purposes of the
1235
municipality's tax limitation under Section
10-5-112
, for a town, or Section
10-6-133
, for a
1236
city.]
1237
[(j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1238
entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
1239
certified tax rate that may result from excluding the following from the certified tax rate under
1240
Subsection (2)(a) enacted by the Legislature during the 2007 General Session:]
1241
[(i) personal property tax revenue:]
1242
[(A) received by a taxing entity;]
1243
[(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1244
[(C) for personal property that is semiconductor manufacturing equipment; or]
1245
[(ii) the taxable value of personal property:]
1246
[(A) contained on the tax rolls of a taxing entity;]
1247
[(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1248
[(C) that is semiconductor manufacturing equipment.]
1249
[(3)] (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative
1250
budget.
1251
(b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
1252
auditor of:
1253
(i) its intent to exceed the certified tax rate; and
1254
(ii) the amount by which it proposes to exceed the certified tax rate.
1255
(c) The county auditor shall notify all property owners of any intent to exceed the
1256
certified tax rate in accordance with Subsection
59-2-919
[(2)] (3).
1257
[(4) (a) The taxable value for the base year under Subsection
17C-1-102
(6) shall be
1258
reduced for any year to the extent necessary to provide a community development and renewal
1259
agency established under Title 17C, Limited Purpose Local Government Entities - Community
1260
Development and Renewal Agencies, with approximately the same amount of money the agency
1261
would have received without a reduction in the county's certified tax rate if:]
1262
[(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
1263
(2)(d)(i);]
1264
[(ii) the amount of the decrease is more than 20% of the county's certified tax rate of
1265
the previous year; and]
1266
[(iii) the decrease results in a reduction of the amount to be paid to the agency under
1267
Section
17C-1-403
or
17C-1-404
.]
1268
[(b) The base taxable value under Subsection
17C-1-102
(6) shall be increased in any
1269
year to the extent necessary to provide a community development and renewal agency with
1270
approximately the same amount of money as the agency would have received without an
1271
increase in the certified tax rate that year if:]
1272
[(i) in that year the base taxable value under Subsection
17C-1-102
(6) is reduced due to
1273
a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and]
1274
[(ii) The certified tax rate of a city, school district, local district, or special service
1275
district increases independent of the adjustment to the taxable value of the base year.]
1276
[(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
1277
(2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
1278
development and renewal agency established under Title 17C, Limited Purpose Local
1279
Government Entities - Community Development and Renewal Agencies, for the payment of
1280
bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1281
amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
1282
(2)(d)(i).]
1283
Section 19.
Section
59-2-924.2
is enacted to read:
1284
59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
1285
(1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
1286
in accordance with Section
59-2-924
.
1287
(2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1288
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1289
59-2-405.2
, or
59-2-405.3
as a result of any county imposing a sales and use tax under Chapter
1290
12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1291
rate to offset the increased revenues.
1292
(3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1293
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
1294
(i) decreased on a one-time basis by the amount of the estimated sales and use tax
1295
revenue to be distributed to the county under Subsection
59-12-1102
(3); and
1296
(ii) increased by the amount necessary to offset the county's reduction in revenue from
1297
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1298
59-2-405.2
, or
59-2-405.3
as a result of the decrease in the certified tax rate under Subsection
1299
(3)(a)(i).
1300
(b) The commission shall determine estimates of sales and use tax distributions for
1301
purposes of Subsection (3)(a).
1302
(4) Beginning January 1, 1998, if a municipality has imposed an additional resort
1303
communities sales and use tax under Section
59-12-402
, the municipality's certified tax rate
1304
shall be decreased on a one-time basis by the amount necessary to offset the first 12 months of
1305
estimated revenue from the additional resort communities sales and use tax imposed under
1306
Section
59-12-402
.
1307
(5) (a) This Subsection (5) applies to each county that:
1308
(i) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
1309
Utah Special Service District Act, to provide jail service, as provided in Subsection
1310
17A-2-1304
(1)(a)(x); and
1311
(ii) levies a property tax on behalf of the special service district under Section
1312
17A-2-1322
.
1313
(b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
1314
decreased by the amount necessary to reduce county revenues by the same amount of revenues
1315
that will be generated by the property tax imposed on behalf of the special service district.
1316
(ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
1317
levy on behalf of the special service district under Section
17A-2-1322
.
1318
(6) (a) As used in this Subsection (6):
1319
(i) "Annexing county" means a county whose unincorporated area is included within a
1320
fire district by annexation.
1321
(ii) "Annexing municipality" means a municipality whose area is included within a fire
1322
district by annexation.
1323
(iii) "Equalized fire protection tax rate" means the tax rate that results from:
1324
(A) calculating, for each participating county and each participating municipality, the
1325
property tax revenue necessary to cover all of the costs associated with providing fire
1326
protection, paramedic, and emergency services:
1327
(I) for a participating county, in the unincorporated area of the county; and
1328
(II) for a participating municipality, in the municipality; and
1329
(B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
1330
participating counties and all participating municipalities and then dividing that sum by the
1331
aggregate taxable value of the property, as adjusted in accordance with Section
59-2-913
:
1332
(I) for participating counties, in the unincorporated area of all participating counties;
1333
and
1334
(II) for participating municipalities, in all the participating municipalities.
1335
(iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1336
Area Act, in the creation of which an election was not required under Subsection
1337
17B-1-214
(3)(c).
1338
(v) "Fire protection tax rate" means:
1339
(A) for an annexing county, the property tax rate that, when applied to taxable property
1340
in the unincorporated area of the county, generates enough property tax revenue to cover all the
1341
costs associated with providing fire protection, paramedic, and emergency services in the
1342
unincorporated area of the county; and
1343
(B) for an annexing municipality, the property tax rate that generates enough property
1344
tax revenue in the municipality to cover all the costs associated with providing fire protection,
1345
paramedic, and emergency services in the municipality.
1346
(vi) "Participating county" means a county whose unincorporated area is included
1347
within a fire district at the time of the creation of the fire district.
1348
(vii) "Participating municipality" means a municipality whose area is included within a
1349
fire district at the time of the creation of the fire district.
1350
(b) In the first year following creation of a fire district, the certified tax rate of each
1351
participating county and each participating municipality shall be decreased by the amount of the
1352
equalized fire protection tax rate.
1353
(c) In the first year following annexation to a fire district, the certified tax rate of each
1354
annexing county and each annexing municipality shall be decreased by the fire protection tax
1355
rate.
1356
(d) Each tax levied under this section by a fire district shall be considered to be levied
1357
by:
1358
(i) each participating county and each annexing county for purposes of the county's tax
1359
limitation under Section
59-2-908
; and
1360
(ii) each participating municipality and each annexing municipality for purposes of the
1361
municipality's tax limitation under Section
10-5-112
, for a town, or Section
10-6-133
, for a city.
1362
(7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1363
entity's certified tax rate, calculated in accordance with Section
59-2-924
, shall be adjusted by
1364
the amount necessary to offset any change in the certified tax rate that may result from
1365
excluding the following from the certified tax rate under Subsection
59-2-924
(3) enacted by the
1366
Legislature during the 2007 General Session:
1367
(a) personal property tax revenue:
1368
(i) received by a taxing entity;
1369
(ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1370
(iii) for personal property that is semiconductor manufacturing equipment; or
1371
(b) the taxable value of personal property:
1372
(i) contained on the tax rolls of a taxing entity;
1373
(ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1374
(iii) that is semiconductor manufacturing equipment.
1375
(8) (a) The taxable value for the base year under Subsection
17C-1-102
(6) shall be
1376
reduced for any year to the extent necessary to provide a community development and renewal
1377
agency established under Title 17C, Limited Purpose Local Government Entities - Community
1378
Development and Renewal Agencies, with approximately the same amount of money the agency
1379
would have received without a reduction in the county's certified tax rate, calculated in
1380
accordance with Section
59-2-924
, if:
1381
(i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
1382
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
1383
previous year; and
1384
(iii) the decrease results in a reduction of the amount to be paid to the agency under
1385
Section
17C-1-403
or
17C-1-404
.
1386
(b) The base taxable value under Subsection
17C-1-102
(6) shall be increased in any
1387
year to the extent necessary to provide a community development and renewal agency with
1388
approximately the same amount of money as the agency would have received without an
1389
increase in the certified tax rate that year if:
1390
(i) in that year the base taxable value under Subsection
17C-1-102
(6) is reduced due to
1391
a decrease in the certified tax rate under Subsection (2) or (3)(a); and
1392
(ii) the certified tax rate of a city, school district, local district, or special service district
1393
increases independent of the adjustment to the taxable value of the base year.
1394
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
1395
the amount of money allocated and, when collected, paid each year to a community
1396
development and renewal agency established under Title 17C, Limited Purpose Local
1397
Government Entities - Community Development and Renewal Agencies, for the payment of
1398
bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1399
amount would have been without a decrease in the certified tax rate under Subsection (2) or
1400
(3)(a).
1401
Section 20.
Section
59-2-1004
is amended to read:
1402
59-2-1004. Appeal to county board of equalization -- Real property -- Time
1403
period for appeal -- Decision of board -- Extensions approved by commission -- Appeal to
1404
commission.
1405
(1) (a) A taxpayer dissatisfied with the valuation or the equalization of the taxpayer's
1406
real property may make an application to appeal by:
1407
(i) filing the application with the county board of equalization within the time period
1408
described in Subsection (2); or
1409
(ii) making an application by telephone or other electronic means within the time period
1410
described in Subsection (2) if the county legislative body passes a resolution under Subsection
1411
(5) authorizing applications to be made by telephone or other electronic means.
1412
(b) The contents of the application shall be prescribed by rule of the county board of
1413
equalization.
1414
(2) (a) Except as provided in Subsection (2)(b), for purposes of Subsection (1), a
1415
taxpayer shall make an application to appeal the valuation or the equalization of the taxpayer's
1416
real property on or before the later of:
1417
(i) September 15 of the current calendar year; or
1418
(ii) the last day of a 45-day period beginning on the day on which the county auditor
1419
mails the notice under [Subsection
59-2-919
(4)] Section
59-2-919.1
.
1420
(b) Notwithstanding Subsection (2)(a), in accordance with Title 63, Chapter 46a, Utah
1421
Administrative Rulemaking Act, the commission shall make rules providing for circumstances
1422
under which the county board of equalization is required to accept an application to appeal that
1423
is filed after the time period prescribed in Subsection (2)(a).
1424
(3) The owner shall include in the application under Subsection (1)(a)(i) the owner's
1425
estimate of the fair market value of the property and any evidence which may indicate that the
1426
assessed valuation of the owner's property is improperly equalized with the assessed valuation
1427
of comparable properties.
1428
(4) (a) The county board of equalization shall meet and hold public hearings as
1429
prescribed in Section
59-2-1001
.
1430
(b) The county board of equalization shall make a decision on each appeal filed in
1431
accordance with this section within a 60-day period after the day on which the application is
1432
made.
1433
(c) The commission may approve the extension of a time period provided for in
1434
Subsection (4)(b) for a county board of equalization to make a decision on an appeal.
1435
(d) The decision of the board shall contain a determination of the valuation of the
1436
property based on fair market value, and a conclusion that the fair market value is properly
1437
equalized with the assessed value of comparable properties.
1438
(e) If no evidence is presented before the county board of equalization, it will be
1439
presumed that the equalization issue has been met.
1440
(f) (i) If the fair market value of the property that is the subject of the appeal deviates
1441
plus or minus 5% from the assessed value of comparable properties, the valuation of the
1442
appealed property shall be adjusted to reflect a value equalized with the assessed value of
1443
comparable properties.
1444
(ii) The equalized value established under Subsection (4)(f)(i) shall be the assessed
1445
value for property tax purposes until the county assessor is able to evaluate and equalize the
1446
assessed value of all comparable properties to bring them all into conformity with full fair
1447
market value.
1448
(5) If any taxpayer is dissatisfied with the decision of the county board of equalization,
1449
the taxpayer may file an appeal with the commission as prescribed in Section
59-2-1006
.
1450
(6) A county legislative body may pass a resolution authorizing taxpayers owing taxes
1451
on property assessed by that county to file property tax appeals applications under this section
1452
by telephone or other electronic means.
1453
Section 21.
Section
59-2-1330
is amended to read:
1454
59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
1455
entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
1456
Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
1457
commission -- Time periods for making payments to taxpayer.
1458
(1) Unless otherwise specifically provided by statute, property taxes shall be paid
1459
directly to the county assessor or the county treasurer:
1460
(a) on the date that the property taxes are due; and
1461
(b) as provided in this chapter.
1462
(2) A taxpayer shall receive payment as provided in this section if a reduction in the
1463
amount of any tax levied against any property for which the taxpayer paid a tax or any portion
1464
of a tax under this chapter for a calendar year is required by a final and unappealable judgment
1465
or order described in Subsection (3) issued by:
1466
(a) a county board of equalization;
1467
(b) the commission; or
1468
(c) a court of competent jurisdiction.
1469
(3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
1470
property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
1471
shall pay the taxpayer if:
1472
(i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
1473
authorized officer of the:
1474
(A) county; or
1475
(B) state;
1476
(ii) the taxpayer obtains a final and unappealable judgment or order:
1477
(A) from:
1478
(I) a county board of equalization;
1479
(II) the commission; or
1480
(III) a court of competent jurisdiction;
1481
(B) against:
1482
(I) the taxing entity or an authorized officer of the taxing entity; or
1483
(II) the state or an authorized officer of the state; and
1484
(C) ordering a reduction in the amount of any tax levied against any property for which
1485
a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
1486
(b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
1487
in accordance with Subsections (4) through (7).
1488