Download Zipped Introduced WordPerfect SB0029.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]
S.B. 29
1
TRUTH IN TAXATION AMENDMENTS
2
2008 GENERAL SESSION
3
STATE OF UTAH
4
Chief Sponsor: Wayne L. Niederhauser
5
House Sponsor:
John Dougall
6
7
LONG TITLE
8
Committee Note:
9
The Revenue and Taxation Interim Committee recommended this bill.
10
General Description:
11
This bill amends provisions in the Minimum School Program Act and the Property Tax
12
Act relating to property tax advertisement and hearing requirements.
13
Highlighted Provisions:
14
This bill:
15
. amends certain exemptions from property tax advertisement and hearing
16
requirements;
17
. requires a school district to include a statement in its proposition submitted to its
18
voters voting on the imposition or modification of a voted leeway program under
19
certain circumstances;
20
. requires a taxing entity to submit certain property tax levies to a vote of the people
21
prior to imposing those tax levies;
22
. provides procedures and requirements for imposing certain tax rates in excess of a
23
taxing entity's certified tax rate;
24
. defines terms; and
25
. makes technical changes.
26
Monies Appropriated in this Bill:
27
None
28
Other Special Clauses:
29
This bill takes effect on July 1, 2008.
30
Utah Code Sections Affected:
31
AMENDS:
32
17-34-3, as last amended by Laws of Utah 2005, First Special Session, Chapter 9
33
17C-1-408, as renumbered and amended by Laws of Utah 2006, Chapter 359
34
53A-16-106, as last amended by Laws of Utah 1994, Chapter 12
35
53A-17a-133, as last amended by Laws of Utah 2006, Chapter 26
36
53A-19-102, as last amended by Laws of Utah 2007, Chapter 92
37
53A-19-105, as last amended by Laws of Utah 2003, Chapter 122
38
59-2-102, as last amended by Laws of Utah 2007, Chapters 107, 234, and 329
39
59-2-505, as last amended by Laws of Utah 2003, Chapter 208
40
59-2-908, as last amended by Laws of Utah 1995, Chapter 278
41
59-2-913, as last amended by Laws of Utah 2007, Chapter 107
42
59-2-914, as last amended by Laws of Utah 1995, Chapter 278
43
59-2-918, as last amended by Laws of Utah 2006, Chapters 26 and 104
44
59-2-918.5, as last amended by Laws of Utah 2000, Chapter 61
45
59-2-918.6, as enacted by Laws of Utah 2007, Chapter 297
46
59-2-919, as last amended by Laws of Utah 2006, Chapters 26 and 104
47
59-2-924, as last amended by Laws of Utah 2007, Chapters 107 and 329
48
59-2-1004, as last amended by Laws of Utah 2001, Chapter 106
49
59-2-1330, as last amended by Laws of Utah 2002, Chapters 196 and 240
50
ENACTS:
51
59-2-919.1, Utah Code Annotated 1953
52
59-2-919.2, Utah Code Annotated 1953
53
59-2-924.2, Utah Code Annotated 1953
54
55
Be it enacted by the Legislature of the state of Utah:
56
Section 1.
Section
17-34-3
is amended to read:
57
17-34-3. Taxes or service charges.
58
(1) (a) If a county furnishes the municipal-type services and functions described in
59
Section
17-34-1
to areas of the county outside the limits of incorporated cities or towns, the
60
entire cost of the services or functions so furnished shall be defrayed from funds that the county
61
has derived from:
62
(i) taxes that the county may lawfully levy or impose outside the limits of incorporated
63
towns or cities;
64
(ii) service charges or fees the county may impose upon the persons benefited in any
65
way by the services or functions; or
66
(iii) a combination of these sources.
67
(b) As the taxes or service charges or fees are levied and collected, they shall be placed
68
in a special revenue fund of the county and shall be disbursed only for the rendering of the
69
services or functions established in Section
17-34-1
within the unincorporated areas of the
70
county or as provided in Subsection
10-2-121
(2).
71
(2) For the purpose of levying taxes, service charges, or fees provided in this section,
72
the county legislative body may establish a district or districts in the unincorporated areas of
73
the county.
74
(3) Nothing contained in this chapter may be construed to authorize counties to impose
75
or levy taxes not otherwise allowed by law.
76
[(4) (a) A county required under Subsection
17-34-1
(4) to provide advanced life
77
support and paramedic services to the unincorporated area of the county and that previously
78
paid for those services through a countywide levy may increase its levy under Subsection
79
(1)(a)(i) to generate in the unincorporated area of the county the same amount of revenue as the
80
county loses from that area due to the required decrease in the countywide certified tax rate
81
under Subsection
59-2-924
(2)(k)(i).]
82
[(b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and
83
hearing requirements of Sections
59-2-918
and
59-2-919
.]
84
[(5)] (4) Notwithstanding any other provision of this chapter, a county providing fire,
85
paramedic, and police protection services in a designated recreational area, as provided in
86
Subsection
17-34-1
(5), may fund those services from the county general fund with revenues
87
derived from both inside and outside the limits of cities and towns, and the funding of those
88
services is not limited to unincorporated area revenues.
89
Section 2.
Section
17C-1-408
is amended to read:
90
17C-1-408. Base taxable value to be adjusted to reflect other changes.
91
(1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
92
(A) a decrease of more than 20% from the previous tax year's levy; or
93
(B) a cumulative decrease over a consecutive five-year period of more than 100% from
94
the levy in effect at the beginning of the five-year period.
95
(ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
96
fifth year of the five-year period.
97
(b) If there is a qualifying decrease in the minimum basic school levy under Section
98
59-2-902
that would result in a reduction of the amount of tax increment to be paid to an
99
agency:
100
(i) the base taxable value of taxable property within the project area shall be reduced in
101
the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
102
agency with approximately the same amount of tax increment that would have been paid to the
103
agency each year had the qualifying decrease not occurred; and
104
(ii) the amount of tax increment paid to the agency each year for the payment of bonds
105
and indebtedness may not be less than what would have been paid to the agency if there had
106
been no qualifying decrease.
107
(2) (a) The amount of the base taxable value to be used in determining tax increment
108
shall be:
109
(i) increased or decreased by the amount of an increase or decrease that results from:
110
(A) a statute enacted by the Legislature or by the people through an initiative;
111
(B) a judicial decision;
112
(C) an order from the State Tax Commission to a county to adjust or factor its
113
assessment rate under Subsection
59-2-704
(2);
114
(D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
115
Section
59-2-103
; or
116
(E) an increase or decrease in the percentage of fair market value, as defined under
117
Section
59-2-102
; and
118
(ii) reduced for any year to the extent necessary, even if below zero, to provide an
119
agency with approximately the same amount of money the agency would have received without
120
a reduction in the county's certified tax rate if:
121
(A) in that year there is a decrease in the county's certified tax rate under Subsection
122
[
59-2-924
(2)(c) or (d)(i)]
59-2-924.2
(2) or (3)(a);
123
(B) the amount of the decrease is more than 20% of the county's certified tax rate of the
124
previous year; and
125
(C) the decrease would result in a reduction of the amount of tax increment to be paid
126
to the agency.
127
(b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
128
increment paid to an agency each year for payment of bonds or other indebtedness may not be
129
less than would have been paid to the agency each year if there had been no increase or
130
decrease under Subsection (2)(a).
131
Section 3.
Section
53A-16-106
is amended to read:
132
53A-16-106. Annual certification of tax rate proposed by local school board --
133
Inclusion of school district budget -- Modified filing date.
134
(1) Prior to June 22 of each year, each local school board shall certify to the county
135
legislative body in which the district is located, on forms prescribed by the State Tax
136
Commission, the proposed tax rate approved by the local school board.
137
(2) A copy of the district's budget, including items under Section
53A-19-101
, and a
138
certified copy of the local school board's resolution which approved the budget and set the tax
139
rate for the subsequent school year beginning July 1 shall accompany the tax rate.
140
(3) If the tax rate approved by the board is in excess of the "certified tax rate" as
141
defined under Subsection
59-2-924[(2)](3)
(a), the date for filing the tax rate and budget
142
adopted by the board shall be that established under Section
59-2-919
.
143
Section 4.
Section
53A-17a-133
is amended to read:
144
53A-17a-133. State-supported voted leeway program authorized -- Election
145
requirements -- State guarantee -- Reconsideration of the program.
146
(1) An election to consider adoption or modification of a voted leeway program is
147
required if initiative petitions signed by 10% of the number of electors who voted at the last
148
preceding general election are presented to the local school board or by action of the board.
149
(2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
150
voting at an election in the manner set forth in Section
53A-16-110
must vote in favor of a
151
special tax.
152
(ii) The tax rate may not exceed .002 per dollar of taxable value.
153
(b) The district may maintain a school program which exceeds the cost of the program
154
referred to in Section
53A-17a-145
with this voted leeway.
155
(c) In order to receive state support the first year, a district must receive voter approval
156
no later than December 1 of the year prior to implementation.
157
(3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
158
to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
159
taxable value.
160
(b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
161
of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
162
in Section
53A-17a-134
, so that the guarantee shall apply up to a total of .002 per dollar of
163
taxable value if a school district levies a tax rate under both programs.
164
(c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
165
shall be indexed each year to the value of the weighted pupil unit by making the value of the
166
guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
167
(ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
168
pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
169
the prior year's weighted pupil unit.
170
(d) (i) The amount of state guarantee money to which a school district would otherwise
171
be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
172
levy is reduced as a consequence of changes in the certified tax rate under Section
59-2-924
173
pursuant to changes in property valuation.
174
(ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
175
the certified tax rate.
176
(4) (a) An election to modify an existing voted leeway program is not a reconsideration
177
of the existing program unless the proposition submitted to the electors expressly so states.
178
(b) A majority vote opposing a modification does not deprive the district of authority to
179
continue an existing program.
180
(c) If adoption of a leeway program is contingent upon an offset reducing other local
181
school board levies, the board must allow the electors, in an election, to consider modifying or
182
discontinuing the program prior to a subsequent increase in other levies that would increase the
183
total local school board levy.
184
(d) Nothing contained in this section terminates, without an election, the authority of a
185
school district to continue an existing voted leeway program previously authorized by the
186
voters.
187
(5) Notwithstanding Section
59-2-918
, a school district may budget an increased
188
amount of ad valorem property tax revenue derived from a voted leeway imposed under this
189
section in addition to revenue from new growth as defined in Subsection
59-2-924
[(2)](4),
190
without having to comply with the advertisement requirements of Section
59-2-918
, if:
191
(a) the voted leeway is approved:
192
[(a)] (i) in accordance with Section
53A-16-110
on or after January 1, 2003; and
193
[(b)] (ii) within the four-year period immediately preceding the year in which the
194
school district seeks to budget an increased amount of ad valorem property tax revenue derived
195
from the voted leeway[.]; and
196
(b) for a voted leeway approved or modified in accordance with Section
53A-16-116
197
on or after January 1, 2009, the school district complies with the requirements of Subsection
198
(7).
199
(6) Notwithstanding Section
59-2-919
, a school district may levy a tax rate under this
200
section that exceeds the certified tax rate without having to comply with the advertisement
201
requirements of Section
59-2-919
if:
202
(a) the levy exceeds the certified tax rate as the result of a school district budgeting an
203
increased amount of ad valorem property tax revenue derived from a voted leeway imposed
204
under this section; [and]
205
(b) if the voted leeway was approved:
206
(i) in accordance with Section
53A-16-110
on or after January 1, 2003; and
207
(ii) within the four-year period immediately preceding the year in which the school
208
district seeks to budget an increased amount of ad valorem property tax revenue derived from
209
the voted leeway[.]; and
210
(c) for a voted leeway approved or modified in accordance with Section
53A-16-116
211
on or after January 1, 2009, the school district complies with requirements of Subsection (7).
212
(7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
213
electors regarding the adoption or modification of a voted leeway program shall contain the
214
following statement:
215
"A vote in favor of imposing this levy means that this levy will be exempt from the
216
public advertisement requirements for the next five years, which means an advertisement will
217
not be published if the school district proposes to increase its budget over and above the
218
revenues received the previous year."
219
Section 5.
Section
53A-19-102
is amended to read:
220
53A-19-102. Local school boards budget procedures.
221
(1) Prior to June 22 of each year, each local school board shall adopt a budget and
222
make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
223
certified tax rate defined in [Subsection] Section
59-2-924
[(2)], the board shall comply with
224
Sections
59-2-918
and
59-2-919
in adopting the budget, except as provided by Section
225
53A-17a-133
.
226
(2) Prior to the adoption of a budget containing a tax rate which does not exceed the
227
certified tax rate, the board shall hold a public hearing, as defined in Section
10-9a-103
, on the
228
proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
229
Act, in regards to the hearing, the board shall do the following:
230
(a) publish the required newspaper notice at least ten days prior to the hearing; and
231
(b) file a copy of the proposed budget with the board's business administrator for public
232
inspection at least ten days prior to the hearing.
233
(3) The board shall file a copy of the adopted budget with the state auditor and the
234
State Board of Education.
235
Section 6.
Section
53A-19-105
is amended to read:
236
53A-19-105. School district interfund transfers.
237
(1) A school district shall spend revenues only within the fund for which they were
238
originally authorized, levied, collected, or appropriated.
239
(2) Except as otherwise provided in this section, school district interfund transfers of
240
residual equity are prohibited.
241
(3) The State Board of Education may authorize school district interfund transfers of
242
residual equity when a district states its intent to create a new fund or expand, contract, or
243
liquidate an existing fund.
244
(4) The State Board of Education may also authorize school district interfund transfers
245
of residual equity for a financially distressed district if the board determines the following:
246
(a) the district has a significant deficit in its maintenance and operations fund caused
247
by circumstances not subject to the administrative decisions of the district;
248
(b) the deficit cannot be reasonably reduced under Section
53A-19-104
; and
249
(c) without the transfer, the school district will not be capable of meeting statewide
250
educational standards adopted by the State Board of Education.
251
(5) The board shall develop standards for defining and aiding financially distressed
252
school districts under this section in accordance with Title 63, Chapter 46a, Utah
253
Administrative Rulemaking Act.
254
(6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
255
and reported in the debt service fund.
256
(b) Debt service levies under Subsection
59-2-924
[(2)(a)(v)(C)](3)(e)(iii) that are not
257
subject to the certified tax rate hearing requirements of Sections
59-2-918
and
59-2-919
may
258
not be used for any purpose other than retiring general obligation debt.
259
(c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
260
year shall be used in subsequent years for general obligation debt retirement.
261
(d) Any amounts left in the debt service fund after all general obligation debt has been
262
retired may be transferred to the capital projects fund upon completion of the budgetary hearing
263
process required under Section
53A-19-102
.
264
Section 7.
Section
59-2-102
is amended to read:
265
59-2-102. Definitions.
266
As used in this chapter and title:
267
(1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
268
engaging in dispensing activities directly affecting agriculture or horticulture with an
269
airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
270
rotorcraft's use for agricultural and pest control purposes.
271
(2) "Air charter service" means an air carrier operation which requires the customer to
272
hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
273
trip.
274
(3) "Air contract service" means an air carrier operation available only to customers
275
who engage the services of the carrier through a contractual agreement and excess capacity on
276
any trip and is not available to the public at large.
277
(4) "Aircraft" is as defined in Section
72-10-102
.
278
(5) "Airline" means any air carrier operating interstate routes on a scheduled basis
279
which offers to fly passengers or cargo on the basis of available capacity on regularly scheduled
280
routes.
281
(6) "Assessment roll" means a permanent record of the assessment of property as
282
assessed by the county assessor and the commission and may be maintained manually or as a
283
computerized file as a consolidated record or as multiple records by type, classification, or
284
categories.
285
(7) (a) "Certified revenue levy" means a property tax levy that provides the same
286
amount of ad valorem property tax revenue as was collected for the prior year, plus new
287
growth, but exclusive of revenue from collections from redemptions, interest, and penalties.
288
(b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
289
include property tax revenue received by a taxing entity from personal property that is:
290
(i) assessed by a county assessor in accordance with Part 3, County Assessment; and
291
(ii) semiconductor manufacturing equipment.
292
(8) "County-assessed commercial vehicle" means:
293
(a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
294
Section
41-1a-301
and is not operated interstate to transport the vehicle owner's goods or
295
property in furtherance of the owner's commercial enterprise;
296
(b) any passenger vehicle owned by a business and used by its employees for
297
transportation as a company car or vanpool vehicle; and
298
(c) vehicles which are:
299
(i) especially constructed for towing or wrecking, and which are not otherwise used to
300
transport goods, merchandise, or people for compensation;
301
(ii) used or licensed as taxicabs or limousines;
302
(iii) used as rental passenger cars, travel trailers, or motor homes;
303
(iv) used or licensed in this state for use as ambulances or hearses;
304
(v) especially designed and used for garbage and rubbish collection; or
305
(vi) used exclusively to transport students or their instructors to or from any private,
306
public, or religious school or school activities.
307
(9) (a) Except as provided in Subsection (9)(b), for purposes of Section
59-2-801
,
308
"designated tax area" means a tax area created by the overlapping boundaries of only the
309
following taxing entities:
310
(i) a county; and
311
(ii) a school district.
312
(b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
313
by the overlapping boundaries of:
314
(i) the taxing entities described in Subsection (9)(a); and
315
(ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
316
and the boundaries of the city or town are identical; or
317
(B) a special service district if the boundaries of the school district under Subsection
318
(9)(a) are located entirely within the special service district.
319
(10) "Eligible judgment" means a final and unappealable judgment or order under
320
Section
59-2-1330
:
321
(a) that became a final and unappealable judgment or order no more than 14 months
322
prior to the day on which the notice required by [Subsection
59-2-919
(4)] Section
59-2-919.1
is
323
required to be mailed; and
324
(b) for which a taxing entity's share of the final and unappealable judgment or order is
325
greater than or equal to the lesser of:
326
(i) $5,000; or
327
(ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
328
previous fiscal year.
329
(11) (a) "Escaped property" means any property, whether personal, land, or any
330
improvements to the property, subject to taxation and is:
331
(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
332
to the wrong taxpayer by the assessing authority;
333
(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
334
comply with the reporting requirements of this chapter; or
335
(iii) undervalued because of errors made by the assessing authority based upon
336
incomplete or erroneous information furnished by the taxpayer.
337
(b) Property which is undervalued because of the use of a different valuation
338
methodology or because of a different application of the same valuation methodology is not
339
"escaped property."
340
(12) "Fair market value" means the amount at which property would change hands
341
between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
342
and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
343
market value" shall be determined using the current zoning laws applicable to the property in
344
question, except in cases where there is a reasonable probability of a change in the zoning laws
345
affecting that property in the tax year in question and the change would have an appreciable
346
influence upon the value.
347
(13) "Farm machinery and equipment," for purposes of the exemption provided under
348
Section
59-2-1101
, means tractors, milking equipment and storage and cooling facilities, feed
349
handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
350
tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
351
equipment used primarily for agricultural purposes; but does not include vehicles required to be
352
registered with the Motor Vehicle Division or vehicles or other equipment used for business
353
purposes other than farming.
354
(14) "Geothermal fluid" means water in any form at temperatures greater than 120
355
degrees centigrade naturally present in a geothermal system.
356
(15) "Geothermal resource" means:
357
(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
358
and
359
(b) the energy, in whatever form, including pressure, present in, resulting from, created
360
by, or which may be extracted from that natural heat, directly or through a material medium.
361
(16) (a) "Goodwill" means:
362
(i) acquired goodwill that is reported as goodwill on the books and records:
363
(A) of a taxpayer; and
364
(B) that are maintained for financial reporting purposes; or
365
(ii) the ability of a business to:
366
(A) generate income:
367
(I) that exceeds a normal rate of return on assets; and
368
(II) resulting from a factor described in Subsection (16)(b); or
369
(B) obtain an economic or competitive advantage resulting from a factor described in
370
Subsection (16)(b).
371
(b) The following factors apply to Subsection (16)(a)(ii):
372
(i) superior management skills;
373
(ii) reputation;
374
(iii) customer relationships;
375
(iv) patronage; or
376
(v) a factor similar to Subsections (16)(b)(i) through (iv).
377
(c) "Goodwill" does not include:
378
(i) the intangible property described in Subsection (20)(a) or (b);
379
(ii) locational attributes of real property, including:
380
(A) zoning;
381
(B) location;
382
(C) view;
383
(D) a geographic feature;
384
(E) an easement;
385
(F) a covenant;
386
(G) proximity to raw materials;
387
(H) the condition of surrounding property; or
388
(I) proximity to markets;
389
(iii) value attributable to the identification of an improvement to real property,
390
including:
391
(A) reputation of the designer, builder, or architect of the improvement;
392
(B) a name given to, or associated with, the improvement; or
393
(C) the historic significance of an improvement; or
394
(iv) the enhancement or assemblage value specifically attributable to the interrelation
395
of the existing tangible property in place working together as a unit.
396
(17) "Governing body" means:
397
(a) for a county, city, or town, the legislative body of the county, city, or town;
398
(b) for a local district under Title 17B, Limited Purpose Local Government Entities -
399
Local Districts, the local district's board of trustees;
400
(c) for a school district, the local board of education; or
401
(d) for a special service district under Title 17A, Chapter 2, Part 13, Utah Special
402
Service District Act:
403
(i) the legislative body of the county or municipality that created the special service
404
district, to the extent that the county or municipal legislative body has not delegated authority
405
to an administrative control board established under Section
17A-2-1326
; or
406
(ii) the administrative control board, to the extent that the county or municipal
407
legislative body has delegated authority to an administrative control board established under
408
Section
17A-2-1326
.
409
(18) (a) For purposes of Section
59-2-103
:
410
(i) "household" means the association of persons who live in the same dwelling,
411
sharing its furnishings, facilities, accommodations, and expenses; and
412
(ii) "household" includes married individuals, who are not legally separated, that have
413
established domiciles at separate locations within the state.
414
(b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
415
commission may make rules defining the term "domicile."
416
(19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
417
structure, fixture, fence, or other item that is permanently attached to land, regardless of
418
whether the title has been acquired to the land, if:
419
(i) (A) attachment to land is essential to the operation or use of the item; and
420
(B) the manner of attachment to land suggests that the item will remain attached to the
421
land in the same place over the useful life of the item; or
422
(ii) removal of the item would:
423
(A) cause substantial damage to the item; or
424
(B) require substantial alteration or repair of a structure to which the item is attached.
425
(b) "Improvement" includes:
426
(i) an accessory to an item described in Subsection (19)(a) if the accessory is:
427
(A) essential to the operation of the item described in Subsection (19)(a); and
428
(B) installed solely to serve the operation of the item described in Subsection (19)(a);
429
and
430
(ii) an item described in Subsection (19)(a) that:
431
(A) is temporarily detached from the land for repairs; and
432
(B) remains located on the land.
433
(c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
434
(i) an item considered to be personal property pursuant to rules made in accordance
435
with Section
59-2-107
;
436
(ii) a moveable item that is attached to land:
437
(A) for stability only; or
438
(B) for an obvious temporary purpose;
439
(iii) (A) manufacturing equipment and machinery; or
440
(B) essential accessories to manufacturing equipment and machinery;
441
(iv) an item attached to the land in a manner that facilitates removal without substantial
442
damage to:
443
(A) the land; or
444
(B) the item; or
445
(v) a transportable factory-built housing unit as defined in Section
59-2-1502
if that
446
transportable factory-built housing unit is considered to be personal property under Section
447
59-2-1503
.
448
(20) "Intangible property" means:
449
(a) property that is capable of private ownership separate from tangible property,
450
including:
451
(i) moneys;
452
(ii) credits;
453
(iii) bonds;
454
(iv) stocks;
455
(v) representative property;
456
(vi) franchises;
457
(vii) licenses;
458
(viii) trade names;
459
(ix) copyrights; and
460
(x) patents;
461
(b) a low-income housing tax credit; or
462
(c) goodwill.
463
(21) "Low-income housing tax credit" means:
464
(a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
465
or
466
(b) a low-income housing tax credit under:
467
(i) Section
59-7-607
; or
468
(ii) Section
59-10-1010
.
469
(22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
470
(23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
471
valuable mineral.
472
(24) "Mining" means the process of producing, extracting, leaching, evaporating, or
473
otherwise removing a mineral from a mine.
474
(25) (a) "Mobile flight equipment" means tangible personal property that is:
475
(i) owned or operated by an:
476
(A) air charter service;
477
(B) air contract service; or
478
(C) airline; and
479
(ii) (A) capable of flight;
480
(B) attached to an aircraft that is capable of flight; or
481
(C) contained in an aircraft that is capable of flight if the tangible personal property is
482
intended to be used:
483
(I) during multiple flights;
484
(II) during a takeoff, flight, or landing; and
485
(III) as a service provided by an air charter service, air contract service, or airline.
486
(b) (i) "Mobile flight equipment" does not include a spare part other than a spare
487
engine that is rotated:
488
(A) at regular intervals; and
489
(B) with an engine that is attached to the aircraft.
490
(ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
491
the commission may make rules defining the term "regular intervals."
492
(26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
493
sand, rock, gravel, and all carboniferous materials.
494
(27) "Personal property" includes:
495
(a) every class of property as defined in Subsection (28) which is the subject of
496
ownership and not included within the meaning of the terms "real estate" and "improvements";
497
(b) gas and water mains and pipes laid in roads, streets, or alleys;
498
(c) bridges and ferries;
499
(d) livestock which, for the purposes of the exemption provided under Section
500
59-2-1112
, means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
501
(e) outdoor advertising structures as defined in Section
72-7-502
.
502
(28) (a) "Property" means property that is subject to assessment and taxation according
503
to its value.
504
(b) "Property" does not include intangible property as defined in this section.
505
(29) "Public utility," for purposes of this chapter, means the operating property of a
506
railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
507
company, electrical corporation, telephone corporation, sewerage corporation, or heat
508
corporation where the company performs the service for, or delivers the commodity to, the
509
public generally or companies serving the public generally, or in the case of a gas corporation
510
or an electrical corporation, where the gas or electricity is sold or furnished to any member or
511
consumers within the state for domestic, commercial, or industrial use. Public utility also
512
means the operating property of any entity or person defined under Section
54-2-1
except water
513
corporations.
514
(30) "Real estate" or "real property" includes:
515
(a) the possession of, claim to, ownership of, or right to the possession of land;
516
(b) all mines, minerals, and quarries in and under the land, all timber belonging to
517
individuals or corporations growing or being on the lands of this state or the United States, and
518
all rights and privileges appertaining to these; and
519
(c) improvements.
520
(31) "Residential property," for the purposes of the reductions and adjustments under
521
this chapter, means any property used for residential purposes as a primary residence. It does
522
not include property used for transient residential use or condominiums used in rental pools.
523
(32) For purposes of Subsection
59-2-801
(1)(e), "route miles" means the number of
524
miles calculated by the commission that is:
525
(a) measured in a straight line by the commission; and
526
(b) equal to the distance between a geographical location that begins or ends:
527
(i) at a boundary of the state; and
528
(ii) where an aircraft:
529
(A) takes off; or
530
(B) lands.
531
(33) (a) "State-assessed commercial vehicle" means:
532
(i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
533
to transport passengers, freight, merchandise, or other property for hire; or
534
(ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
535
transports the vehicle owner's goods or property in furtherance of the owner's commercial
536
enterprise.
537
(b) "State-assessed commercial vehicle" does not include vehicles used for hire which
538
are specified in Subsection (8)(c) as county-assessed commercial vehicles.
539
(34) "Taxable value" means fair market value less any applicable reduction allowed for
540
residential property under Section
59-2-103
.
541
(35) "Tax area" means a geographic area created by the overlapping boundaries of one
542
or more taxing entities.
543
(36) "Taxing entity" means any county, city, town, school district, special taxing
544
district, local district under Title 17B, Limited Purpose Local Government Entities - Local
545
Districts, or other political subdivision of the state with the authority to levy a tax on property.
546
(37) "Tax roll" means a permanent record of the taxes charged on property, as extended
547
on the assessment roll and may be maintained on the same record or records as the assessment
548
roll or may be maintained on a separate record properly indexed to the assessment roll. It
549
includes tax books, tax lists, and other similar materials.
550
Section 8.
Section
59-2-505
is amended to read:
551
59-2-505. Indicia of value for agricultural use assessment -- Inclusion of fair
552
market value on certain property tax notices.
553
(1) (a) The county assessor shall consider only those indicia of value that the land has
554
for agricultural use as determined by the commission when assessing land:
555
(i) that meets the requirements of Section
59-2-503
to be assessed under this part; and
556
(ii) for which the owner has:
557
(A) made a timely application in accordance with Section
59-2-508
for assessment
558
under this part for the tax year for which the land is being assessed; and
559
(B) obtained approval of the application described in Subsection (1)(a)(ii)(A) from the
560
county assessor.
561
(b) If land that becomes subject to a conservation easement created in accordance with
562
Title 57, Chapter 18, Land Conservation Easement Act, meets the requirements of Subsection
563
(1)(a) for assessment under this part, the county assessor shall consider only those indicia of
564
value that the land has for agricultural use in accordance with Subsection (1)(a) when assessing
565
the land.
566
(2) In addition to the value determined in accordance with Subsection (1), the fair
567
market value assessment shall be included on the notices described in:
568
(a) [Subsection
59-2-919
(4)] Section
59-2-919.1
; and
569
(b) Section
59-2-1317
.
570
(3) The county board of equalization shall review the agricultural use value and fair
571
market value assessments each year as provided under Section
59-2-1001
.
572
Section 9.
Section
59-2-908
is amended to read:
573
59-2-908. Single aggregate limitation -- Maximum levy.
574
(1) Except as provided in Subsection (2), each county shall have a single aggregate
575
limitation on the property tax levied for all purposes by the county. Except as provided in
576
Section
59-2-911
, this limitation may not exceed the maximum set forth in this section. The
577
maximum is:
578
(a) .0032 per dollar of taxable value in all counties with a total taxable value of more
579
than $100,000,000; and
580
(b) .0036 per dollar of taxable value in all counties with a total taxable value of less
581
than $100,000,000.
582
(2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
583
limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
584
generates revenues for the county in an amount that is less than the revenues that would be
585
generated by the county under the certified tax rate established in [Subsection] Section
586
59-2-924
[(2)].
587
(b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that
588
does not exceed the certified tax rate established in [Subsection] Section
59-2-924
[(2)].
589
Section 10.
Section
59-2-913
is amended to read:
590
59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
591
statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
592
establishing tax levies -- Format of statement.
593
(1) As used in this section, "budgeted property tax revenues" does not include property
594
tax revenue received by a taxing entity from personal property that is:
595
(a) assessed by a county assessor in accordance with Part 3, County Assessment; and
596
(b) semiconductor manufacturing equipment.
597
(2) (a) The legislative body of each taxing entity shall file a statement as provided in
598
this section with the county auditor of the county in which the taxing entity is located.
599
(b) The auditor shall annually transmit the statement to the commission:
600
(i) before June 22; or
601
(ii) with the approval of the commission, on a subsequent date prior to the date
602
established under Section
59-2-1317
for mailing tax notices.
603
(c) The statement shall contain the amount and purpose of each levy fixed by the
604
legislative body of the taxing entity.
605
(3) For purposes of establishing the levy set for each of a taxing entity's applicable
606
funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
607
the budgeted property tax revenues, specified in a budget which has been adopted and
608
approved prior to setting the levy, by the amount calculated under Subsections
609
59-2-924
[(2)(a)(iii)(B)(I) through (III)](3)(c)(ii)(A) through (C).
610
(4) The format of the statement under this section shall:
611
(a) be determined by the commission; and
612
(b) cite any applicable statutory provisions that:
613
(i) require a specific levy; or
614
(ii) limit the property tax levy for any taxing entity.
615
(5) The commission may require certification that the information submitted on a
616
statement under this section is true and correct.
617
Section 11.
Section
59-2-914
is amended to read:
618
59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement
619
adjusted levies to county auditor.
620
(1) If the commission determines that a levy established for a taxing entity set under
621
Section
59-2-913
is in excess of the maximum levy permitted by law, the commission shall:
622
(a) lower the levy so that it is set at the maximum level permitted by law;
623
(b) notify the taxing entity which set the excessive rate that the rate has been lowered;
624
and
625
(c) notify the county auditor of the county or counties in which the taxing entity is
626
located to implement the rate established by the commission.
627
(2) A levy set for a taxing entity by the commission under this section shall be the
628
official levy for that taxing entity unless:
629
(a) the taxing entity lowers the levy established by the commission; or
630
(b) the levy is subsequently modified by a court order.
631
(3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
632
a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the
633
rate established by the taxing entity for the current year generates revenues for the taxing entity
634
in an amount that is less than the revenues that would be generated by the taxing entity under
635
the certified tax rate established in [Subsection] Section
59-2-924
[(2)].
636
(b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax
637
rate that does not exceed the certified rate established in [Subsection] Section
59-2-924
[(2)].
638
Section 12.
Section
59-2-918
is amended to read:
639
59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
640
(1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
641
increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
642
in Subsection
59-2-924
[(2)](4) unless it advertises its intention to do so at the same time that it
643
advertises its intention to fix its budget for the forthcoming fiscal year.
644
(b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
645
advertisement or hearing requirements of this section if:
646
[(A) the taxing entity:]
647
[(I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
648
or]
649
[(II)] (A) the taxing entity is expressly exempted by law from complying with the
650
requirements of this section; or
651
(B) the increased amount of ad valorem tax revenue results from a tax rate increase that
652
is exempted under Subsection
59-2-919
[(1)](2)(a)(ii)(B) from the advertisement and hearing
653
requirements of Section
59-2-919
.
654
(ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
655
advertisement requirements of this section if:
656
(A) Section
53A-17a-133
allows the taxing entity to budget an increased amount of ad
657
valorem property tax revenue without having to comply with the advertisement requirements of
658
this section[.]; or
659
(B) the taxing entity:
660
(I) collected less than $20,000 in ad valorem tax revenues for the previous fiscal year;
661
and
662
(II) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
663
revenues.
664
(2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
665
advertisement required by this section may be combined with the advertisement required by
666
Section
59-2-919
.
667
(b) For taxing entities operating under a January 1 through December 31 fiscal year,
668
the advertisement required by this section shall meet the size, type, placement, and frequency
669
requirements established under Section
59-2-919
.
670
(3) The form of the advertisement required by this section shall meet the size, type,
671
placement, and frequency requirements established under Section
59-2-919
and shall be
672
substantially as follows:
673
"NOTICE OF PROPOSED TAX INCREASE
674
(NAME OF TAXING ENTITY)
675
The (name of the taxing entity) is proposing to increase its property tax revenue.
676
* If the proposed budget is approved, this would be an increase of _____% above
677
the (name of the taxing entity) property tax budgeted revenue for the prior year.
678
* The (name of the taxing entity) tax on a (insert the average value of a residence
679
in the taxing entity rounded to the nearest thousand dollars) residence would increase from
680
$______ to $________, which is $_______ per year.
681
* The (name of the taxing entity) tax on a (insert the value of a business having
682
the same value as the average value of a residence in the taxing entity) business
683
would increase from $________ to $_______, which is $______ per year.
684
All concerned citizens are invited to a public hearing on the tax increase.
685
PUBLIC HEARING
686
Date/Time: (date) (time)
687
Location: (name of meeting place and address of meeting place)
688
To obtain more information regarding the tax increase, citizens may contact the (name
689
of the taxing entity) at (phone number of taxing entity)."
690
(4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
691
revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
692
announce at the public hearing the scheduled time and place for consideration and adoption of
693
the proposed budget increase.
694
(5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
695
year shall by March 1 notify the county of the date, time, and place of the public hearing at
696
which the budget for the following fiscal year will be considered.
697
(b) The county shall include the information described in Subsection (5)(a) with the tax
698
notice.
699
(6) A taxing entity shall hold a public hearing under this section beginning at or after 6
700
p.m.
701
Section 13.
Section
59-2-918.5
is amended to read:
702
59-2-918.5. Hearings on judgment levies -- Advertisement.
703
(1) A taxing entity may not impose a judgment levy unless it first advertises its
704
intention to do so and holds a public hearing in accordance with the requirements of this
705
section.
706
(2) (a) The advertisement required by this section may be combined with the
707
advertisement required by either Section
59-2-918
or Section
59-2-919
.
708
(b) The advertisement shall be at least 1/8 of a page in size and shall meet the type,
709
placement, and frequency requirements established under Section
59-2-919
.
710
(c) (i) For taxing entities operating under a July 1 through June 30 fiscal year the public
711
hearing shall be held at the same time as the hearing at which the annual budget is adopted.
712
(ii) For taxing entities operating under a January 1 through December 31 fiscal year:
713
(A) for eligible judgments issued from June 1 through December 15, the public hearing
714
shall be held at the same time as the hearing at which the annual budget is adopted; and
715
(B) for eligible judgments issued from December 16 through May 31, the public
716
hearing shall be held at the same time as the hearing at which property tax levies are set.
717
(3) The advertisement shall specify the date, time, and location of the public hearing at
718
which the levy will be considered and shall set forth the total amount of the eligible judgment
719
and the tax impact on an average residential and business property located within the taxing
720
entity.
721
(4) If a final decision regarding the judgment levy is not made at the public hearing, the
722
taxing entity shall announce at the public hearing the scheduled time and place for
723
consideration and adoption of the judgment levy.
724
(5) The date, time, and place of public hearings required by Subsections
725
59-2-918.5
(2)(c)(i) and
59-2-918.5
(2)(c)(ii)(B) shall be included on the notice mailed to
726
property owners pursuant to [Subsection
59-2-919
(4)] Section
59-2-919.1
.
727
Section 14.
Section
59-2-918.6
is amended to read:
728
59-2-918.6. New and remaining school district budgets -- Advertisement -- Public
729
hearing.
730
(1) As used in this section, "existing school district," "new school district," and
731
"remaining school district" are as defined in Section
53A-2-117
.
732
(2) For the first fiscal year in which a new school district created under Section
733
53A-2-118.1
assumes responsibility for providing student instruction, the new school district
734
and the remaining school district or districts may not impose a property tax unless the district
735
imposing the tax:
736
(a) advertises its intention to do so in accordance with Subsection (3); and
737
(b) holds a public hearing in accordance with Subsection (4).
738
(3) The advertisement required by this section:
739
(a) may be combined with the advertisement required by either Section
59-2-918
or
740
59-2-919
;
741
(b) shall be at least 1/4 of a page in size and shall meet the type, placement, and
742
frequency requirements established under Section
59-2-919
; and
743
(c) shall specify the date, time, and location of the public hearing at which the levy will
744
be considered and shall set forth the total amount of the district's proposed property tax levy
745
and the tax impact on an average residential and business property located within the taxing
746
entity compared to the property tax levy imposed in the prior year by the existing school
747
district.
748
(4) (a) The date, time, and place of public hearings required by this section shall be
749
included on the notice mailed to property owners pursuant to [Subsection
59-2-919
(4)] Section
750
59-2-919.1
.
751
(b) If a final decision regarding the property tax levy is not made at the public hearing,
752
the school district shall announce at the public hearing the scheduled time and place for
753
consideration and adoption of the budget and property tax levies.
754
Section 15.
Section
59-2-919
is amended to read:
755
59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of
756
proposed tax increase -- Hearing -- Dates.
757
(1) A tax rate in excess of the certified tax rate may not be levied until a resolution has
758
been approved by the taxing entity in accordance [with the following procedure:] with this
759
section.
760
[(1)] (2) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate
761
in a newspaper or combination of newspapers of general circulation in the taxing entity.
762
(ii) Notwithstanding Subsection [(1)] (2)(a)(i), a taxing entity is not required to meet
763
the advertisement or hearing requirements of this section if:
764
[(A) the taxing entity:]
765
[(I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
766
or]
767
[(II)] (A) the taxing entity is expressly exempted by law from complying with the
768
requirements of this section; or
769
(B) (I) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,
770
Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
771
emergency, and emergency medical services;
772
(II) the tax rate increase is approved by the taxing entity's voters at an election held for
773
that purpose on or before December 31, 2010;
774
(III) the purpose of the tax rate increase is to pay for fire protection, emergency, and
775
emergency medical services provided by the interlocal entity; and
776
(IV) at least 30 days before its annual budget hearing, the taxing entity:
777
(Aa) adopts a resolution certifying that the taxing entity will dedicate all revenue from
778
the tax rate increase exclusively to pay for fire protection, emergency, and emergency medical
779
services provided by the interlocal entity and that the amount of other revenues, independent of
780
the revenue generated from the tax rate increase, that the taxing entity spends for fire
781
protection, emergency, and emergency medical services each year after the tax rate increase
782
will not decrease below the amount spent by the taxing entity during the year immediately
783
before the tax rate increase without a corresponding decrease in the taxing entity's property tax
784
revenues used in calculating the taxing entity's certified tax rate; and
785
(Bb) sends a copy of the resolution to the commission.
786
(iii) The exception under Subsection [(1)] (2)(a)(ii)(B) from the advertisement and
787
hearing requirements of this section does not apply to an increase in a taxing entity's tax rate
788
that occurs after December 31, 2010, even if the tax rate increase is approved by the taxing
789
entity's voters before that date.
790
(iv) Notwithstanding Subsection [(1)] (2)(a)(i), a taxing entity is not required to meet
791
the advertisement requirements of this section if:
792
(A) Section
53A-17a-133
allows the taxing entity to levy a tax rate that exceeds that
793
certified tax rate without having to comply with the advertisement requirements of this
794
section[.]; or
795
(B) the taxing entity:
796
(I) collected less than $20,000 in ad valorem tax revenues for the previous fiscal year;
797
and
798
(II) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
799
revenues.
800
(b) The advertisement described in this section shall:
801
(i) be no less than 1/4 page in size;
802
(ii) use type no smaller than 18 point; and
803
(iii) be surrounded by a 1/4-inch border.
804
(c) The advertisement described in this section may not be placed in that portion of the
805
newspaper where legal notices and classified advertisements appear.
806
(d) It is the intent of the Legislature that:
807
(i) whenever possible, the advertisement described in this section appear in a
808
newspaper that is published at least one day per week; and
809
(ii) the newspaper or combination of newspapers selected:
810
(A) be of general interest and readership in the taxing entity; and
811
(B) not be of limited subject matter.
812
(e) The advertisement described in this section shall:
813
(i) be run once each week for the two weeks preceding the adoption of the final budget;
814
and
815
(ii) state that the taxing entity will meet on a certain day, time, and place fixed in the
816
advertisement, which shall be not less than seven days after the day the first advertisement is
817
published, for the purpose of hearing comments regarding any proposed increase and to explain
818
the reasons for the proposed increase.
819
(f) The meeting on the proposed increase may coincide with the hearing on the
820
proposed budget of the taxing entity.
821
[(2)] (3) The form and content of the notice shall be substantially as follows:
822
"NOTICE OF PROPOSED TAX INCREASE
823
(NAME OF TAXING ENTITY)
824
The (name of the taxing entity) is proposing to increase its property tax revenue.
825
* If the proposed budget is approved, this would be an increase of _____% above
826
the (name of the taxing entity) property tax budgeted revenue for the prior year.
827
* The (name of the taxing entity) tax on a (insert the average value of a residence
828
in the taxing entity rounded to the nearest thousand dollars) residence would
829
increase from $______ to $________, which is $_______ per year.
830
* The (name of the taxing entity) tax on a (insert the value of a business having
831
the same value as the average value of a residence in the taxing entity) business
832
would increase from $________ to $_______, which is $______ per year.
833
(Name of taxing entity) property tax revenue from new growth and other sources will
834
increase from $_______________ to $______________.
835
All concerned citizens are invited to a public hearing on the tax increase.
836
PUBLIC HEARING
837
Date/Time: (date) (time)
838
Location: (name of meeting place and address of meeting place)
839
To obtain more information regarding the tax increase, citizens may contact the (name
840
of the taxing entity) at (phone number of taxing entity)."
841
[(3)] (4) The commission:
842
(a) shall adopt rules governing the joint use of one advertisement under this section or
843
Section
59-2-918
by two or more taxing entities; and
844
(b) may, upon petition by any taxing entity, authorize either:
845
(i) the use of weekly newspapers in counties having both daily and weekly newspapers
846
where the weekly newspaper would provide equal or greater notice to the taxpayer; or
847
(ii) the use of a commission-approved direct notice to each taxpayer if the:
848
(A) cost of the advertisement would cause undue hardship; and
849
(B) direct notice is different and separate from that provided for in Subsection [(4)] (5).
850
[(4) (a) In addition to providing the notice required by Subsections (1) and (2), the
851
county auditor, on or before July 22 of each year, shall notify, by mail, each owner of real
852
estate as defined in Section
59-2-102
who is listed on the assessment roll.]
853
[(b) The notice described in Subsection (4)(a) shall:]
854
[(i) be sent to all owners of real property by mail not less than ten days before the day
855
on which:]
856
[(A) the county board of equalization meets; and]
857
[(B) the taxing entity holds a public hearing on the proposed increase in the certified
858
tax rate;]
859
[(ii) be printed on a form that is:]
860
[(A) approved by the commission; and]
861
[(B) uniform in content in all counties in the state; and]
862
[(iii) contain for each property:]
863
[(A) the value of the property;]
864
[(B) the date the county board of equalization will meet to hear complaints on the
865
valuation;]
866
[(C) itemized tax information for all taxing entities, including a separate statement for
867
the minimum school levy under Section
53A-17a-135
stating:]
868
[(I) the dollar amount the taxpayer would have paid based on last year's rate; and]
869
[(II) the amount of the taxpayer's liability under the current rate;]
870
[(D) the tax impact on the property;]
871
[(E) the time and place of the required public hearing for each entity;]
872
[(F) property tax information pertaining to:]
873
[(I) taxpayer relief;]
874
[(II) options for payment of taxes; and]
875
[(III) collection procedures;]
876
[(G) information specifically authorized to be included on the notice under Title 59,
877
Chapter 2, Property Tax Act; and]
878
[(H) other property tax information approved by the commission.]
879
(5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt
880
a resolution levying a tax rate in excess of the certified tax rate.
881
(b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
882
the scheduled time and place for consideration and adoption of the resolution shall be
883
announced at the public hearing.
884
(c) If a resolution adopting a tax rate is to be considered at a day and time that is more
885
than two weeks after the public hearing described in Subsection [(4)(b)(iii)(E)]
886
59-2-919.1
(2)(c)(v), a taxing entity, other than a taxing entity described in Subsection [(1)]
887
(2)(a)(ii), shall advertise the date of the proposed adoption of the resolution in the same manner
888
as provided under Subsections [(1)] (2) and [(2)] (3).
889
(6) (a) All hearings described in this section shall be open to the public.
890
(b) The governing body of a taxing entity conducting a hearing shall permit all
891
interested parties desiring to be heard an opportunity to present oral testimony within
892
reasonable time limits.
893
(7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
894
year of the date, time, and place a public hearing is held by the taxing entity pursuant to this
895
section.
896
(b) A taxing entity may not schedule a hearing described in this section at the same
897
time as another overlapping taxing entity in the same county, but all taxing entities in which the
898
power to set tax levies is vested in the same governing board or authority may consolidate the
899
required hearings into one hearing.
900
(c) The county legislative body shall resolve any conflicts in hearing dates and times
901
after consultation with each affected taxing entity.
902
(8) A taxing entity shall hold a public hearing under this section beginning at or after 6
903
p.m.
904
Section 16.
Section
59-2-919.1
is enacted to read:
905
59-2-919.1. Property tax notice requirement -- Content of notice.
906
(1) On or before July 22 of each year, the county auditor shall notify, by mail, each
907
owner of real estate as defined in Section
59-2-102
who is listed on the assessment roll.
908
(2) The notice described in Subsection (1) shall:
909
(a) be sent to all owners of real property by mail not less than ten days before the day
910
on which:
911
(i) the county board of equalization meets; and
912
(ii) a taxing entity holds a public hearing on a proposed increase in the certified tax
913
rate;
914
(b) be printed on a form that is:
915
(i) approved by the commission; and
916
(ii) uniform in content in all counties in the state; and
917
(c) contain for each property:
918
(i) the value of the property;
919
(ii) the date the county board of equalization will meet to hear complaints on the
920
valuation;
921
(iii) itemized tax information for all taxing entities, including a separate statement for
922
the minimum school levy under Section
53A-17a-135
stating:
923
(A) the dollar amount the taxpayer would have paid based on last year's rate; and
924
(B) the amount of the taxpayer's liability under the current rate;
925
(iv) the tax impact on the property;
926
(v) the time and place of a required public hearing for each entity;
927
(vi) property tax information pertaining to:
928
(A) taxpayer relief;
929
(B) options for payment of taxes; and
930
(C) collection procedures;
931
(vii) information specifically authorized to be included on the notice under Title 59,
932
Chapter 2, Property Tax Act; and
933
(viii) other property tax information approved by the commission.
934
Section 17.
Section
59-2-919.2
is enacted to read:
935
59-2-919.2. Voting requirements for certain property tax increases.
936
(1) For purposes of this section:
937
(a) "Adjusted certified tax rate" means a rate that will provide:
938
(i) the same amount of revenue as the amount of revenue generated under the certified
939
tax rate; plus
940
(ii) the amount of revenue equal to the product of:
941
(A) the amount of revenue described in Subsection (1)(a)(i); and
942
(B) the consumer price index increase.
943
(b) "Certified tax rate" means a taxing entity's certified tax rate calculated in
944
accordance with Section
59-2-924
.
945
(c) (i) "Consumer price index increase" means a percentage equal to the percentage
946
difference between the consumer price index for the calendar year immediately preceding the
947
current calendar year and the consumer price index for the calendar year two years before the
948
current calendar year.
949
(ii) For purposes of this Subsection (1)(c), the commission shall calculate the consumer
950
price index as provided in Sections (1)(f)(4) and 1(f)(5), Internal Revenue Code.
951
(iii) If the percentage difference under Subsection (1)(c)(i) is zero or a negative
952
percentage, the consumer price index increase for the year is zero.
953
(2) After fulfilling the requirements of Sections
59-2-918
and
59-2-919
, a taxing entity
954
may levy a tax rate on or after January 1, 2009, that exceeds the adjusted certified tax rate if the
955
taxing entity complies with Subsections (3) and (4).
956
(3) (a) Before imposing a property tax levy, a taxing entity shall submit an opinion
957
question to the taxing entity's registered voters voting on the imposition of the tax rate so that
958
each registered voter has the opportunity to express the registered voter's opinion on whether
959
the tax rate should be imposed if:
960
(i) the taxing entity's proposed tax rate exceeds the taxing entity's adjusted certified tax
961
rate; and
962
(ii) the property tax levy is imposed on or after January 1, 2009.
963
(b) The election required by this Subsection (3) shall be held:
964
(i) at a regular general election conducted in accordance with the procedures and
965
requirements of Title 20A, Election Code, governing regular elections; or
966
(ii) at a municipal general election conducted in accordance with the procedures and
967
requirements of Section
20A-1-202
.
968
(4) (a) If a taxing entity determines that a majority of the taxing entity's registered
969
voters voting on the imposition of the tax rate have voted in favor of the imposition of the tax
970
rate in accordance with Subsection (3), the taxing entity may impose the tax rate.
971
(b) If a taxing entity determines that a majority of the taxing entity's registered voters
972
voting on the imposition of the tax rate have voted against the imposition of the tax rate in
973
accordance with Subsection (3), the taxing entity may impose a tax rate that is less than or
974
equal to the adjusted certified tax rate.
975
Section 18.
Section
59-2-924
is amended to read:
976
59-2-924. Report of valuation of property to county auditor and commission --
977
Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
978
tax rate -- Rulemaking authority -- Adoption of tentative budget.
979
(1) [(a)] Before June 1 of each year, the county assessor of each county shall deliver to
980
the county auditor and the commission the following statements:
981
[(i)] (a) a statement containing the aggregate valuation of all taxable property in each
982
taxing entity; and
983
[(ii)] (b) a statement containing the taxable value of any additional personal property
984
estimated by the county assessor to be subject to taxation in the current year.
985
[(b)] (2) The county auditor shall, on or before June 8, transmit to the governing body
986
of each taxing entity:
987
[(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
988
[(ii)] (b) an estimate of the revenue from personal property;
989
[(iii)] (c) the certified tax rate; and
990
[(iv)] (d) all forms necessary to submit a tax levy request.
991
[(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad
992
valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
993
prior year.
994
[(ii)] (b) For purposes of this Subsection [(2)](3), "ad valorem property tax revenues"
995
do not include:
996
[(A)] (i) collections from redemptions;
997
[(B)] (ii) interest;
998
[(C)] (iii) penalties; and
999
[(D)] (iv) revenue received by a taxing entity from personal property that is:
1000
[(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
1001
and
1002
[(II)] (B) semiconductor manufacturing equipment.
1003
[(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
1004
be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
1005
the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
1006
[(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
1007
taxing entity shall calculate an amount as follows:
1008
[(I)] (A) calculate for the taxing entity the difference between:
1009
[(Aa)] (I) the aggregate taxable value of all property taxed; and
1010
[(Bb)] (II) any redevelopment adjustments for the current calendar year;
1011
[(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]
1012
(3)(c)(ii)(A), calculate an amount determined by increasing or decreasing the amount
1013
calculated under Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A) by the average of the percentage net
1014
change in the value of taxable property for the equalization period for the three calendar years
1015
immediately preceding the current calendar year;
1016
[(III)] (C) after making the calculation required by Subsection [(2)(a)(iii)(B)(II)]
1017
(3)(c)(ii)(B), calculate the product of:
1018
[(Aa)] (I) the amount calculated under Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B); and
1019
[(Bb)] (II) the percentage of property taxes collected for the five calendar years
1020
immediately preceding the current calendar year; and
1021
[(IV)] (D) after making the calculation required by Subsection [(2)(a)(iii)(B)(III)]
1022
(3)(c)(ii)(C), calculate an amount determined by subtracting from the amount calculated under
1023
Subsection [(2)(a)(iii)(B)(III)] (3)(c)(ii)(C) any new growth as defined in this section:
1024
[(Aa)] (I) within the taxing entity; and
1025
[(Bb)] (II) for the current calendar year.
1026
[(C)] (iii) For purposes of Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A), the aggregate
1027
taxable value of all property taxed:
1028
[(I)] (A) except as provided in Subsection [(2)(a)(iii)(C)(II)] (3)(c)(iii)(B), includes the
1029
total taxable value of the real and personal property contained on the tax rolls of the taxing
1030
entity; and
1031
[(II)] (B) does not include the total taxable value of personal property contained on the
1032
tax rolls of the taxing entity that is:
1033
[(Aa)] (I) assessed by a county assessor in accordance with Part 3, County Assessment;
1034
and
1035
[(Bb)] (II) semiconductor manufacturing equipment.
1036
[(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
1037
beginning on or after January 1, 2007, the value of taxable property does not include the value
1038
of personal property that is:
1039
[(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
1040
3, County Assessment; and
1041
[(II)] (B) semiconductor manufacturing equipment.
1042
[(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
1043
calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
1044
does not include property taxes collected from personal property that is:
1045
[(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
1046
3, County Assessment; and
1047
[(II)] (B) semiconductor manufacturing equipment.
1048
[(F)] (vi) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
1049
Act, the commission may prescribe rules for calculating redevelopment adjustments for a
1050
calendar year.
1051
[(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
1052
Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
1053
property tax revenues budgeted by a taxing entity.
1054
[(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
1055
revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted
1056
property tax revenues are calculated for purposes of Section
59-2-913
.
1057
[(v)] (e) The certified tax rates for the taxing entities described in this Subsection
1058
[(2)(a)(v)] (3)(e) shall be calculated as follows:
1059
[(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
1060
entities the certified tax rate is zero;
1061
[(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax
1062
rate is:
1063
[(I)] (A) in a county of the first, second, or third class, the levy imposed for
1064
municipal-type services under Sections
17-34-1
and
17-36-9
; and
1065
[(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
1066
county purposes and such other levies imposed solely for the municipal-type services identified
1067
in Section
17-34-1
and Subsection
17-36-3
(22); and
1068
[(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
1069
actual levy imposed by that section, except that the certified tax rates for the following levies
1070
shall be calculated in accordance with Section
59-2-913
and this section:
1071
[(I)] (A) school leeways provided for under Sections
11-2-7
,
53A-16-110
,
1072
53A-17a-125
,
53A-17a-127
,
53A-17a-133
,
53A-17a-134
,
53A-17a-143
,
53A-17a-145
, and
1073
53A-21-103
; and
1074
[(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
1075
administrative orders under Section
59-2-906.3
.
1076
[(vi) (A)] (f) (i) A judgment levy imposed under Section
59-2-1328
or
59-2-1330
shall
1077
be established at that rate which is sufficient to generate only the revenue required to satisfy
1078
one or more eligible judgments, as defined in Section
59-2-102
.
1079
[(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
1080
be considered in establishing the taxing entity's aggregate certified tax rate.
1081
[(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
1082
shall use the taxable value of property on the assessment roll.
1083
[(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
1084
property on the assessment roll does not include:
1085
[(A)] (i) new growth as defined in Subsection [(2)(b)(iii); or] (4)(c); or
1086
[(B)] (ii) the total taxable value of personal property contained on the tax rolls of the
1087
taxing entity that is:
1088
[(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
1089
and
1090
[(II)] (B) semiconductor manufacturing equipment.
1091
[(iii)] (c) "New growth" means:
1092
[(A)] (i) the difference between the increase in taxable value of the taxing entity from
1093
the previous calendar year to the current year; minus
1094
[(B)] (ii) the amount of an increase in taxable value described in Subsection [(2)(b)(v)]
1095
(4)(e).
1096
[(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of the
1097
taxing entity does not include the taxable value of personal property that is:
1098
[(A)] (i) contained on the tax rolls of the taxing entity if that property is assessed by a
1099
county assessor in accordance with Part 3, County Assessment; and
1100
[(B)] (ii) semiconductor manufacturing equipment.
1101
[(v)] (e) Subsection [(2)(b)(iii)(B)] (4)(c)(ii) applies to the following increases in
1102
taxable value:
1103
[(A)] (i) the amount of increase to locally assessed real property taxable values
1104
resulting from factoring, reappraisal, or any other adjustments; or
1105
[(B)] (ii) the amount of an increase in the taxable value of property assessed by the
1106
commission under Section
59-2-201
resulting from a change in the method of apportioning the
1107
taxable value prescribed by:
1108
[(I)] (A) the Legislature;
1109
[(II)] (B) a court;
1110
[(III)] (C) the commission in an administrative rule; or
1111
[(IV)] (D) the commission in an administrative order.
1112
[(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1113
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1114
59-2-405.2
, or
59-2-405.3
as a result of any county imposing a sales and use tax under Chapter
1115
12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1116
rate to offset the increased revenues.]
1117
[(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1118
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:]
1119
[(A) decreased on a one-time basis by the amount of the estimated sales and use tax
1120
revenue to be distributed to the county under Subsection
59-12-1102
(3); and]
1121
[(B) increased by the amount necessary to offset the county's reduction in revenue
1122
from uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1123
59-2-405.2
, or
59-2-405.3
as a result of the decrease in the certified tax rate under Subsection
1124
(2)(d)(i)(A).]
1125
[(ii) The commission shall determine estimates of sales and use tax distributions for
1126
purposes of Subsection (2)(d)(i).]
1127
[(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
1128
communities sales tax under Section
59-12-402
, the municipality's certified tax rate shall be
1129
decreased on a one-time basis by the amount necessary to offset the first 12 months of
1130
estimated revenue from the additional resort communities sales and use tax imposed under
1131
Section
59-12-402
.]
1132
[(f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
1133
Subsection
17-34-1
(4)(a) to provide advanced life support and paramedic services to the
1134
unincorporated area of the county shall be decreased by the amount necessary to reduce
1135
revenues in that fiscal year by an amount equal to the difference between the amount the county
1136
budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
1137
countywide and the amount the county spent during fiscal year 2000 for those services,
1138
excluding amounts spent from a municipal services fund for those services.]
1139
[(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
1140
(2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
1141
year by the amount that the county spent during fiscal year 2000 for advanced life support and
1142
paramedic services countywide, excluding amounts spent from a municipal services fund for
1143
those services.]
1144
[(ii) (A) A city or town located within a county of the first class to which Subsection
1145
(2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
1146
the city or town the same amount of revenues as the county would collect from that city or
1147
town if the decrease under Subsection (2)(f)(i) did not occur.]
1148
[(B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal
1149
year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
1150
of Sections
59-2-918
and
59-2-919
.]
1151
[(g) (i) The certified tax rate of each county required under Subsection
17-34-1
(4)(b) to
1152
provide detective investigative services to the unincorporated area of the county shall be
1153
decreased:]
1154
[(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
1155
by at least $4,400,000; and]
1156
[(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
1157
by an amount equal to the difference between $9,258,412 and the amount of the reduction in
1158
revenues under Subsection (2)(g)(i)(A).]
1159
[(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
1160
county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
1161
within the city or town the same amount of revenue as the county would have collected during
1162
county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).]
1163
[(II) Beginning with municipal fiscal year 2003, a city or town located within a county
1164
to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
1165
city or town the same amount of revenue as the county would have collected during county
1166
fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).]
1167
[(B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
1168
town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
1169
or spread over multiple fiscal years, is subject to the notice and hearing requirements of
1170
Sections
59-2-918
and
59-2-919
.]
1171
[(II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does
1172
not exceed the same amount of revenue as the county would have collected except for
1173
Subsection (2)(g)(i), the requirements of Sections
59-2-918
and
59-2-919
do not apply if the
1174
city or town:]
1175
[(Aa) publishes a notice that meets the size, type, placement, and frequency
1176
requirements of Section
59-2-919
, reflects that the increase is a shift of a tax from one imposed
1177
by the county to one imposed by the city or town, and explains how the revenues from the tax
1178
increase will be used; and]
1179
[(Bb) holds a public hearing on the tax shift that may be held in conjunction with the
1180
city or town's regular budget hearing.]
1181
[(h) (i) This Subsection (2)(h) applies to each county that:]
1182
[(A) establishes a countywide special service district under Title 17A, Chapter 2, Part
1183
13, Utah Special Service District Act, to provide jail service, as provided in Subsection
1184
17A-2-1304
(1)(a)(x); and]
1185
[(B) levies a property tax on behalf of the special service district under Section
1186
17A-2-1322
.]
1187
[(ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
1188
shall be decreased by the amount necessary to reduce county revenues by the same amount of
1189
revenues that will be generated by the property tax imposed on behalf of the special service
1190
district.]
1191
[(B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
1192
the levy on behalf of the special service district under Section
17A-2-1322
.]
1193
[(i) (i) As used in this Subsection (2)(i):]
1194
[(A) "Annexing county" means a county whose unincorporated area is included within
1195
a fire district by annexation.]
1196
[(B) "Annexing municipality" means a municipality whose area is included within a
1197
fire district by annexation.]
1198
[(C) "Equalized fire protection tax rate" means the tax rate that results from:]
1199
[(I) calculating, for each participating county and each participating municipality, the
1200
property tax revenue necessary to cover all of the costs associated with providing fire
1201
protection, paramedic, and emergency services:]
1202
[(Aa) for a participating county, in the unincorporated area of the county; and]
1203
[(Bb) for a participating municipality, in the municipality; and]
1204
[(II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
1205
participating counties and all participating municipalities and then dividing that sum by the
1206
aggregate taxable value of the property, as adjusted in accordance with Section
59-2-913
:]
1207
[(Aa) for participating counties, in the unincorporated area of all participating counties;
1208
and]
1209
[(Bb) for participating municipalities, in all the participating municipalities.]
1210
[(D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1211
Area Act, in the creation of which an election was not required under Subsection
1212
17B-1-214
(3)(c).]
1213
[(E) "Fire protection tax rate" means:]
1214
[(I) for an annexing county, the property tax rate that, when applied to taxable property
1215
in the unincorporated area of the county, generates enough property tax revenue to cover all the
1216
costs associated with providing fire protection, paramedic, and emergency services in the
1217
unincorporated area of the county; and]
1218
[(II) for an annexing municipality, the property tax rate that generates enough property
1219
tax revenue in the municipality to cover all the costs associated with providing fire protection,
1220
paramedic, and emergency services in the municipality.]
1221
[(F) "Participating county" means a county whose unincorporated area is included
1222
within a fire district at the time of the creation of the fire district.]
1223
[(G) "Participating municipality" means a municipality whose area is included within a
1224
fire district at the time of the creation of the fire district.]
1225
[(ii) In the first year following creation of a fire district, the certified tax rate of each
1226
participating county and each participating municipality shall be decreased by the amount of
1227
the equalized fire protection tax rate.]
1228
[(iii) In the first year following annexation to a fire district, the certified tax rate of each
1229
annexing county and each annexing municipality shall be decreased by the fire protection tax
1230
rate.]
1231
[(iv) Each tax levied under this section by a fire district shall be considered to be levied
1232
by:]
1233
[(A) each participating county and each annexing county for purposes of the county's
1234
tax limitation under Section
59-2-908
; and]
1235
[(B) each participating municipality and each annexing municipality for purposes of
1236
the municipality's tax limitation under Section
10-5-112
, for a town, or Section
10-6-133
, for a
1237
city.]
1238
[(j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1239
entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
1240
certified tax rate that may result from excluding the following from the certified tax rate under
1241
Subsection (2)(a) enacted by the Legislature during the 2007 General Session:]
1242
[(i) personal property tax revenue:]
1243
[(A) received by a taxing entity;]
1244
[(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1245
[(C) for personal property that is semiconductor manufacturing equipment; or]
1246
[(ii) the taxable value of personal property:]
1247
[(A) contained on the tax rolls of a taxing entity;]
1248
[(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1249
[(C) that is semiconductor manufacturing equipment.]
1250
[(3)] (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative
1251
budget.
1252
(b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
1253
auditor of:
1254
(i) its intent to exceed the certified tax rate; and
1255
(ii) the amount by which it proposes to exceed the certified tax rate.
1256
(c) The county auditor shall notify all property owners of any intent to exceed the
1257
certified tax rate in accordance with Subsection
59-2-919
[(2)] (3).
1258
[(4) (a) The taxable value for the base year under Subsection
17C-1-102
(6) shall be
1259
reduced for any year to the extent necessary to provide a community development and renewal
1260
agency established under Title 17C, Limited Purpose Local Government Entities - Community
1261
Development and Renewal Agencies, with approximately the same amount of money the
1262
agency would have received without a reduction in the county's certified tax rate if:]
1263
[(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
1264
(2)(d)(i);]
1265
[(ii) the amount of the decrease is more than 20% of the county's certified tax rate of
1266
the previous year; and]
1267
[(iii) the decrease results in a reduction of the amount to be paid to the agency under
1268
Section
17C-1-403
or
17C-1-404
.]
1269
[(b) The base taxable value under Subsection
17C-1-102
(6) shall be increased in any
1270
year to the extent necessary to provide a community development and renewal agency with
1271
approximately the same amount of money as the agency would have received without an
1272
increase in the certified tax rate that year if:]
1273
[(i) in that year the base taxable value under Subsection
17C-1-102
(6) is reduced due to
1274
a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and]
1275
[(ii) The certified tax rate of a city, school district, local district, or special service
1276
district increases independent of the adjustment to the taxable value of the base year.]
1277
[(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
1278
(2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
1279
development and renewal agency established under Title 17C, Limited Purpose Local
1280
Government Entities - Community Development and Renewal Agencies, for the payment of
1281
bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1282
amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
1283
(2)(d)(i).]
1284
Section 19.
Section
59-2-924.2
is enacted to read:
1285
59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
1286
(1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
1287
in accordance with Section
59-2-924
.
1288
(2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1289
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1290
59-2-405.2
, or
59-2-405.3
as a result of any county imposing a sales and use tax under Chapter
1291
12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1292
rate to offset the increased revenues.
1293
(3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1294
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
1295
(i) decreased on a one-time basis by the amount of the estimated sales and use tax
1296
revenue to be distributed to the county under Subsection
59-12-1102
(3); and
1297
(ii) increased by the amount necessary to offset the county's reduction in revenue from
1298
uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
,
59-2-405.1
,
1299
59-2-405.2
, or
59-2-405.3
as a result of the decrease in the certified tax rate under Subsection
1300
(3)(a)(i).
1301
(b) The commission shall determine estimates of sales and use tax distributions for
1302
purposes of Subsection (3)(a).
1303
(4) Beginning January 1, 1998, if a municipality has imposed an additional resort
1304
communities sales tax under Section
59-12-402
, the municipality's certified tax rate shall be
1305
decreased on a one-time basis by the amount necessary to offset the first 12 months of
1306
estimated revenue from the additional resort communities sales and use tax imposed under
1307
Section
59-12-402
.
1308
(5) (a) This Subsection (5) applies to each county that:
1309
(i) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
1310
Utah Special Service District Act, to provide jail service, as provided in Subsection
1311
17A-2-1304
(1)(a)(x); and
1312
(ii) levies a property tax on behalf of the special service district under Section
1313
17A-2-1322
.
1314
(b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
1315
decreased by the amount necessary to reduce county revenues by the same amount of revenues
1316
that will be generated by the property tax imposed on behalf of the special service district.
1317
(ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
1318
levy on behalf of the special service district under Section
17A-2-1322
.
1319
(6) (a) As used in this Subsection (6):
1320
(i) "Annexing county" means a county whose unincorporated area is included within a
1321
fire district by annexation.
1322
(ii) "Annexing municipality" means a municipality whose area is included within a fire
1323
district by annexation.
1324
(iii) "Equalized fire protection tax rate" means the tax rate that results from:
1325
(A) calculating, for each participating county and each participating municipality, the
1326
property tax revenue necessary to cover all of the costs associated with providing fire
1327
protection, paramedic, and emergency services:
1328
(I) for a participating county, in the unincorporated area of the county; and
1329
(II) for a participating municipality, in the municipality; and
1330
(B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
1331
participating counties and all participating municipalities and then dividing that sum by the
1332
aggregate taxable value of the property, as adjusted in accordance with Section
59-2-913
:
1333
(I) for participating counties, in the unincorporated area of all participating counties;
1334
and
1335
(II) for participating municipalities, in all the participating municipalities.
1336
(iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1337
Area Act, in the creation of which an election was not required under Subsection
1338
17B-1-214
(3)(c).
1339
(v) "Fire protection tax rate" means:
1340
(A) for an annexing county, the property tax rate that, when applied to taxable property
1341
in the unincorporated area of the county, generates enough property tax revenue to cover all the
1342
costs associated with providing fire protection, paramedic, and emergency services in the
1343
unincorporated area of the county; and
1344
(B) for an annexing municipality, the property tax rate that generates enough property
1345
tax revenue in the municipality to cover all the costs associated with providing fire protection,
1346
paramedic, and emergency services in the municipality.
1347
(vi) "Participating county" means a county whose unincorporated area is included
1348
within a fire district at the time of the creation of the fire district.
1349
(vii) "Participating municipality" means a municipality whose area is included within a
1350
fire district at the time of the creation of the fire district.
1351
(b) In the first year following creation of a fire district, the certified tax rate of each
1352
participating county and each participating municipality shall be decreased by the amount of
1353
the equalized fire protection tax rate.
1354
(c) In the first year following annexation to a fire district, the certified tax rate of each
1355
annexing county and each annexing municipality shall be decreased by the fire protection tax
1356
rate.
1357
(d) Each tax levied under this section by a fire district shall be considered to be levied
1358
by:
1359
(i) each participating county and each annexing county for purposes of the county's tax
1360
limitation under Section
59-2-908
; and
1361
(ii) each participating municipality and each annexing municipality for purposes of the
1362
municipality's tax limitation under Section
10-5-112
, for a town, or Section
10-6-133
, for a
1363
city.
1364
(7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1365
entity's certified tax rate, calculated in accordance with Section
59-2-924
, shall be adjusted by
1366
the amount necessary to offset any change in the certified tax rate that may result from
1367
excluding the following from the certified tax rate under Subsection
59-2-924
(3) enacted by the
1368
Legislature during the 2007 General Session:
1369
(a) personal property tax revenue:
1370
(i) received by a taxing entity;
1371
(ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1372
(iii) for personal property that is semiconductor manufacturing equipment; or
1373
(b) the taxable value of personal property:
1374
(i) contained on the tax rolls of a taxing entity;
1375
(ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1376
(iii) that is semiconductor manufacturing equipment.
1377
(8) (a) The taxable value for the base year under Subsection
17C-1-102
(6) shall be
1378
reduced for any year to the extent necessary to provide a community development and renewal
1379
agency established under Title 17C, Limited Purpose Local Government Entities - Community
1380
Development and Renewal Agencies, with approximately the same amount of money the
1381
agency would have received without a reduction in the county's certified tax rate, calculated in
1382
accordance with Section
59-2-924
, if:
1383
(i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
1384
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
1385
previous year; and
1386
(iii) the decrease results in a reduction of the amount to be paid to the agency under
1387
Section
17C-1-403
or
17C-1-404
.
1388
(b) The base taxable value under Subsection
17C-1-102
(6) shall be increased in any
1389
year to the extent necessary to provide a community development and renewal agency with
1390
approximately the same amount of money as the agency would have received without an
1391
increase in the certified tax rate that year if:
1392
(i) in that year the base taxable value under Subsection
17C-1-102
(6) is reduced due to
1393
a decrease in the certified tax rate under Subsection (2) or (3)(a); and
1394
(ii) the certified tax rate of a city, school district, local district, or special service
1395
district increases independent of the adjustment to the taxable value of the base year.
1396
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
1397
the amount of money allocated and, when collected, paid each year to a community
1398
development and renewal agency established under Title 17C, Limited Purpose Local
1399
Government Entities - Community Development and Renewal Agencies, for the payment of
1400
bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1401
amount would have been without a decrease in the certified tax rate under Subsection (2) or
1402
(3)(a).
1403
Section 20.
Section
59-2-1004
is amended to read:
1404
59-2-1004. Appeal to county board of equalization -- Real property -- Time
1405
period for appeal -- Decision of board -- Extensions approved by commission -- Appeal to
1406
commission.
1407
(1) (a) A taxpayer dissatisfied with the valuation or the equalization of the taxpayer's
1408
real property may make an application to appeal by:
1409
(i) filing the application with the county board of equalization within the time period
1410
described in Subsection (2); or
1411
(ii) making an application by telephone or other electronic means within the time period
1412
described in Subsection (2) if the county legislative body passes a resolution under Subsection
1413
(5) authorizing applications to be made by telephone or other electronic means.
1414
(b) The contents of the application shall be prescribed by rule of the county board of
1415
equalization.
1416
(2) (a) Except as provided in Subsection (2)(b), for purposes of Subsection (1), a
1417
taxpayer shall make an application to appeal the valuation or the equalization of the taxpayer's
1418
real property on or before the later of:
1419
(i) September 15 of the current calendar year; or
1420
(ii) the last day of a 45-day period beginning on the day on which the county auditor
1421
mails the notice under [Subsection
59-2-919
(4)] Section
59-2-919.1
.
1422
(b) Notwithstanding Subsection (2)(a), in accordance with Title 63, Chapter 46a, Utah
1423
Administrative Rulemaking Act, the commission shall make rules providing for circumstances
1424
under which the county board of equalization is required to accept an application to appeal that
1425
is filed after the time period prescribed in Subsection (2)(a).
1426
(3) The owner shall include in the application under Subsection (1)(a)(i) the owner's
1427
estimate of the fair market value of the property and any evidence which may indicate that the
1428
assessed valuation of the owner's property is improperly equalized with the assessed valuation
1429
of comparable properties.
1430
(4) (a) The county board of equalization shall meet and hold public hearings as
1431
prescribed in Section
59-2-1001
.
1432
(b) The county board of equalization shall make a decision on each appeal filed in
1433
accordance with this section within a 60-day period after the day on which the application is
1434
made.
1435
(c) The commission may approve the extension of a time period provided for in
1436
Subsection (4)(b) for a county board of equalization to make a decision on an appeal.
1437
(d) The decision of the board shall contain a determination of the valuation of the
1438
property based on fair market value, and a conclusion that the fair market value is properly
1439
equalized with the assessed value of comparable properties.
1440
(e) If no evidence is presented before the county board of equalization, it will be
1441
presumed that the equalization issue has been met.
1442
(f) (i) If the fair market value of the property that is the subject of the appeal deviates
1443
plus or minus 5% from the assessed value of comparable properties, the valuation of the
1444
appealed property shall be adjusted to reflect a value equalized with the assessed value of
1445
comparable properties.
1446
(ii) The equalized value established under Subsection (4)(f)(i) shall be the assessed
1447
value for property tax purposes until the county assessor is able to evaluate and equalize the
1448
assessed value of all comparable properties to bring them all into conformity with full fair
1449
market value.
1450
(5) If any taxpayer is dissatisfied with the decision of the county board of equalization,
1451
the taxpayer may file an appeal with the commission as prescribed in Section
59-2-1006
.
1452
(6) A county legislative body may pass a resolution authorizing taxpayers owing taxes
1453
on property assessed by that county to file property tax appeals applications under this section
1454
by telephone or other electronic means.
1455
Section 21.
Section
59-2-1330
is amended to read:
1456
59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
1457
entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
1458
Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
1459
commission -- Time periods for making payments to taxpayer.
1460
(1) Unless otherwise specifically provided by statute, property taxes shall be paid
1461
directly to the county assessor or the county treasurer:
1462
(a) on the date that the property taxes are due; and
1463
(b) as provided in this chapter.
1464
(2) A taxpayer shall receive payment as provided in this section if a reduction in the
1465
amount of any tax levied against any property for which the taxpayer paid a tax or any portion
1466
of a tax under this chapter for a calendar year is required by a final and unappealable judgment
1467
or order described in Subsection (3) issued by:
1468
(a) a county board of equalization;
1469
(b) the commission; or
1470
(c) a court of competent jurisdiction.
1471
(3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
1472
property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
1473
shall pay the taxpayer if:
1474
(i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
1475
authorized officer of the:
1476
(A) county; or
1477
(B) state;
1478
(ii) the taxpayer obtains a final and unappealable judgment or order:
1479
(A) from:
1480
(I) a county board of equalization;
1481
(II) the commission; or
1482
(III) a court of competent jurisdiction;
1483
(B) against:
1484
(I) the taxing entity or an authorized officer of the taxing entity; or
1485
(II) the state or an authorized officer of the state; and
1486
(C) ordering a reduction in the amount of any tax levied against any property for which
1487
a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
1488
(b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
1489