Fourth Substitute S.B. 48

Senator Dan R. Eastman proposes the following substitute bill:

1 EQUALIZATION OF SCHOOL CAPITAL
2 OUTLAY FUNDING
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Dan R. Eastman
6 House Sponsor: Aaron Tilton
7
8 LONG TITLE
9 General Description:
10 This bill makes changes to school capital outlay funding.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . requires certain divided school districts to impose a capital outlay levy at a specified
15 rate and allocates the revenue generated under the capital outlay levy to school
16 districts located within the qualifying divided school district;
17 . changes the allocation methodology for the Capital Outlay Foundation Program;
18 . appropriates additional ongoing funding to the State Board of Education for the
19 Capital Outlay Foundation Program and the Capital Outlay Enrollment Growth
20 Program;
21 . adjusts school district property tax certified tax rates to offset state capital outlay
22 funding changes;
23 . requires each school district in a county of the first class to levy a capital outlay
24 property tax at a specified rate and allocates the revenue generated under the capital
25 outlay levy to school districts located in a county of the first class;

26 . amends truth in taxation notice and hearing requirements for school districts
27 imposing the mandatory portion of the capital outlay levy;
28 . amends the calculation of the certified tax rate with respect to the capital outlay
29 levy; and
30 . makes technical corrections.
31 Monies Appropriated in this Bill:
32 This bill appropriates:
33 . as an ongoing appropriation subject to future budget constraints, $56,000,000 from
34 the Uniform School Fund for fiscal year 2008-09 to the State Board of Education.
35 Other Special Clauses:
36 This bill provides effective dates and provides for retrospective operation.
37 This bill coordinates with H.B. 1, Minimum School Program Base Budget
38 Amendments, by providing superseding amendments.
39 Utah Code Sections Affected:
40 AMENDS:
41 11-13-302, as last amended by Laws of Utah 2007, Chapter 108
42 17-34-3, as last amended by Laws of Utah 2005, First Special Session, Chapter 9
43 17C-1-408, as renumbered and amended by Laws of Utah 2006, Chapter 359
44 53A-2-103, as last amended by Laws of Utah 2002, Chapter 301
45 53A-2-114, as last amended by Laws of Utah 1996, Chapter 326
46 53A-2-115, as last amended by Laws of Utah 1996, Chapter 326
47 53A-2-117, as last amended by Laws of Utah 2007, Chapters 215 and 297
48 53A-16-106, as last amended by Laws of Utah 1994, Chapter 12
49 53A-16-107, as last amended by Laws of Utah 1999, Chapter 332
50 53A-16-110, as last amended by Laws of Utah 2004, Chapter 371
51 53A-17a-133, as last amended by Laws of Utah 2006, Chapter 26
52 53A-19-102, as last amended by Laws of Utah 2007, Chapter 92
53 53A-19-105, as last amended by Laws of Utah 2003, Chapter 122
54 53A-21-102, as last amended by Laws of Utah 2003, Chapters 199 and 320
55 59-2-908, as last amended by Laws of Utah 1995, Chapter 278
56 59-2-913, as last amended by Laws of Utah 2007, Chapter 107

57 59-2-914, as last amended by Laws of Utah 1995, Chapter 278
58 59-2-918, as last amended by Laws of Utah 2006, Chapters 26 and 104
59 59-2-924, as last amended by Laws of Utah 2007, Chapters 107 and 329
60 59-2-1330, as last amended by Laws of Utah 2002, Chapters 196 and 240
61 ENACTS:
62 53A-2-118.3, Utah Code Annotated 1953
63 53A-16-107.1, Utah Code Annotated 1953
64 53A-21-101.5, Utah Code Annotated 1953
65 53A-21-201, Utah Code Annotated 1953
66 53A-21-202, Utah Code Annotated 1953
67 53A-21-301, Utah Code Annotated 1953
68 53A-21-302, Utah Code Annotated 1953
69 59-2-924.2, Utah Code Annotated 1953
70 59-2-924.3, Utah Code Annotated 1953
71 59-2-924.4, Utah Code Annotated 1953
72 59-2-924.5, Utah Code Annotated 1953
73 RENUMBERS AND AMENDS:
74 53A-21-401, (Renumbered from 53A-21-104, as last amended by Laws of Utah 2007,
75 Chapter 344)
76 53A-21-501, (Renumbered from 53A-21-105, as last amended by Laws of Utah 2007,
77 Chapter 2)
78 REPEALS:
79 53A-21-103, as last amended by Laws of Utah 2003, Chapter 320
80 53A-21-103.5, as last amended by Laws of Utah 2005, Chapters 171 and 184
81
82 Be it enacted by the Legislature of the state of Utah:
83 Section 1. Section 11-13-302 is amended to read:
84 11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
85 suppliers -- Method of calculating -- Collection -- Extent of tax lien.
86 (1) (a) Each project entity created under this chapter that owns a project and that sells
87 any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible

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

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

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

181 (5) (a) The responsibility of the project entity to make payment of the annual fees is
182 limited to the extent that there is legally available to the project entity, from bond proceeds or
183 revenues, monies to make these payments, and the obligation to make payments of the annual
184 fees is not otherwise a general obligation or liability of the project entity.
185 (b) No tax lien may attach upon any property or money of the project entity by virtue of
186 any failure to pay all or any part of an annual fee.
187 (c) The project entity or any purchaser may contest the validity of an annual fee to the
188 same extent as if the payment was a payment of the ad valorem property tax itself.
189 (d) The payments of an annual fee shall be reduced to the extent that any contest is
190 successful.
191 (6) (a) The annual fee described in Subsection (1):
192 (i) shall be paid by a public agency that:
193 (A) is not a project entity; and
194 (B) owns an interest in a facility providing additional project capacity if the interest is
195 otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
196 (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
197 accordance with Subsection (6)(b).
198 (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
199 rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
200 (i) the fee base or value of the facility providing additional project capacity located
201 within the jurisdiction;
202 (ii) the percentage of the ownership interest of the public agency in the facility; and
203 (iii) the portion, expressed as a percentage, of the public agency's ownership interest
204 that is attributable to the capacity, service, or other benefit from the facility that is sold by the
205 public agency to an energy supplier or suppliers whose tangible property is not exempted by
206 Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
207 (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
208 obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
209 to its ownership interest as though it were a project entity.
210 Section 2. Section 17-34-3 is amended to read:
211 17-34-3. Taxes or service charges.

212 (1) (a) If a county furnishes the municipal-type services and functions described in
213 Section 17-34-1 to areas of the county outside the limits of incorporated cities or towns, the
214 entire cost of the services or functions so furnished shall be defrayed from funds that the county
215 has derived from:
216 (i) taxes that the county may lawfully levy or impose outside the limits of incorporated
217 towns or cities;
218 (ii) service charges or fees the county may impose upon the persons benefited in any
219 way by the services or functions; or
220 (iii) a combination of these sources.
221 (b) As the taxes or service charges or fees are levied and collected, they shall be placed
222 in a special revenue fund of the county and shall be disbursed only for the rendering of the
223 services or functions established in Section 17-34-1 within the unincorporated areas of the
224 county or as provided in Subsection 10-2-121 (2).
225 (2) For the purpose of levying taxes, service charges, or fees provided in this section,
226 the county legislative body may establish a district or districts in the unincorporated areas of
227 the county.
228 (3) Nothing contained in this chapter may be construed to authorize counties to impose
229 or levy taxes not otherwise allowed by law.
230 [(4) (a) A county required under Subsection 17-34-1 (4) to provide advanced life
231 support and paramedic services to the unincorporated area of the county and that previously
232 paid for those services through a countywide levy may increase its levy under Subsection
233 (1)(a)(i) to generate in the unincorporated area of the county the same amount of revenue as the
234 county loses from that area due to the required decrease in the countywide certified tax rate
235 under Subsection 59-2-924 (2)(k)(i).]
236 [(b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and
237 hearing requirements of Sections 59-2-918 and 59-2-919 .]
238 [(5)] (4) Notwithstanding any other provision of this chapter, a county providing fire,
239 paramedic, and police protection services in a designated recreational area, as provided in
240 Subsection 17-34-1 (5), may fund those services from the county general fund with revenues
241 derived from both inside and outside the limits of cities and towns, and the funding of those
242 services is not limited to unincorporated area revenues.

243 Section 3. Section 17C-1-408 is amended to read:
244 17C-1-408. Base taxable value to be adjusted to reflect other changes.
245 (1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
246 (A) a decrease of more than 20% from the previous tax year's levy; or
247 (B) a cumulative decrease over a consecutive five-year period of more than 100% from
248 the levy in effect at the beginning of the five-year period.
249 (ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
250 fifth year of the five-year period.
251 (b) If there is a qualifying decrease in the minimum basic school levy under Section
252 59-2-902 that would result in a reduction of the amount of tax increment to be paid to an
253 agency:
254 (i) the base taxable value of taxable property within the project area shall be reduced in
255 the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
256 agency with approximately the same amount of tax increment that would have been paid to the
257 agency each year had the qualifying decrease not occurred; and
258 (ii) the amount of tax increment paid to the agency each year for the payment of bonds
259 and indebtedness may not be less than what would have been paid to the agency if there had
260 been no qualifying decrease.
261 (2) (a) The amount of the base taxable value to be used in determining tax increment
262 shall be:
263 (i) increased or decreased by the amount of an increase or decrease that results from:
264 (A) a statute enacted by the Legislature or by the people through an initiative;
265 (B) a judicial decision;
266 (C) an order from the State Tax Commission to a county to adjust or factor its
267 assessment rate under Subsection 59-2-704 (2);
268 (D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
269 Section 59-2-103 ; or
270 (E) an increase or decrease in the percentage of fair market value, as defined under
271 Section 59-2-102 ; and
272 (ii) reduced for any year to the extent necessary, even if below zero, to provide an
273 agency with approximately the same amount of money the agency would have received without

274 a reduction in the county's certified tax rate if:
275 (A) in that year there is a decrease in the county's certified tax rate under Subsection
276 [ 59-2-924 (2)(c) or (d)(i)] 59-2-924.2 (2) or (3)(a);
277 (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
278 previous year; and
279 (C) the decrease would result in a reduction of the amount of tax increment to be paid
280 to the agency.
281 (b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
282 increment paid to an agency each year for payment of bonds or other indebtedness may not be
283 less than would have been paid to the agency each year if there had been no increase or
284 decrease under Subsection (2)(a).
285 Section 4. Section 53A-2-103 is amended to read:
286 53A-2-103. Transfer of property to new school district -- Rights and obligations
287 of new school board -- Outstanding indebtedness -- Special tax.
288 (1) On July 1 following the approval of the creation of a new school district under
289 Section 53A-2-102 , the local school boards of the former districts shall convey and deliver all
290 school property to the local school board of the new district. Title vests in the new board. All
291 rights, claims, and causes of action to or for the property, for the use or the income from the
292 property, for conversion, disposition, or withholding of the property, or for any damage or
293 injury to the property vest at once in the new board.
294 (2) The new board may bring and maintain actions to recover, protect, and preserve the
295 property and rights of the district schools and to enforce contracts.
296 (3) The new board shall assume and be liable for all outstanding debts and obligations
297 of each of the former school districts.
298 (4) All of the bonded indebtedness, outstanding debts, and obligations of a former
299 district, which cannot be reasonably paid from the assets of the former district, shall be paid by
300 a special tax levied by the new board as needed. The tax shall be levied upon the property
301 within the former district which was liable for the indebtedness at the time of consolidation. If
302 bonds are approved in the new district under Section 53A-18-102 , the special tax shall be
303 discontinued and the bonded indebtedness paid as any other bonded indebtedness of the new
304 district.

305 (5) Bonded indebtedness of a former district which has been refunded shall be paid in
306 the same manner as that which the new district assumes under Section 53A-18-101 .
307 (6) State funds received by the new district under Section [ 53A-21-103 ] 53A-21-202
308 may be applied toward the payment of outstanding bonded indebtedness of a former district in
309 the same proportion as the bonded indebtedness of the territory within the former district bears
310 to the total bonded indebtedness of the districts combined.
311 Section 5. Section 53A-2-114 is amended to read:
312 53A-2-114. Additional levies -- School board options to abolish or continue after
313 consolidation.
314 (1) If a school district which has approved an additional levy under Section
315 53A-16-110 , 53A-17a-133 , 53A-17a-134 , or 53A-17a-145 [, or 53A-21-103 ] is consolidated
316 with a district which does not have such a levy, the board of education of the consolidated
317 district may choose to abolish the levy, or apply it in whole or in part to the entire consolidated
318 district.
319 (2) If the board chooses to apply any part of the levy to the entire district, the levy may
320 continue in force for no more than three years, unless approved by the electors of the
321 consolidated district in the manner set forth in Section 53A-16-110 .
322 Section 6. Section 53A-2-115 is amended to read:
323 53A-2-115. Additional levies in transferred territory -- Transferee board option
324 to abolish or continue.
325 If two or more districts undergo restructuring that results in a district receiving territory
326 that increases the population of the district by at least 25%, and if the transferred territory was,
327 at the time of transfer, subject to an additional levy under Section 53A-16-110 , 53A-17a-133 ,
328 53A-17a-134 , or 53A-17a-145 [, or 53A-21-103 ], the board of education of the transferee
329 district may abolish the levy or apply the levy in whole or in part to the entire restructured
330 district. Any such levy made applicable to the entire district may continue in force for no more
331 than five years, unless approved by the electors of the restructured district in the manner set
332 forth in Section 53A-16-110 .
333 Section 7. Section 53A-2-117 is amended to read:
334 53A-2-117. Definitions.
335 As used in Sections 53A-2-117 through 53A-2-121 :

336 (1) "Divided school district," "existing district," or "existing school district" means a
337 school district from which a new district is created.
338 (2) "New district" or "new school district" means a school district created under
339 Section 53A-2-118 or 53A-2-118.1 .
340 (3) "Remaining district" or "remaining school district" means an existing district after
341 the creation of a new district.
342 Section 8. Section 53A-2-118.3 is enacted to read:
343 53A-2-118.3. Imposition of the capital outlay levy in qualifying divided school
344 districts.
345 (1) For purposes of this section, "qualifying divided school district" means a divided
346 school district:
347 (a) located within a county of the second through sixth class; and
348 (b) with a new school district created under Section 53A-2-118.1 that begins to provide
349 educational services after July 1, 2008.
350 (2) In order to qualify for receipt of the state contribution toward the minimum school
351 program described in Section 53A-17a-104 , a school district within a qualifying divided school
352 district shall impose a capital outlay levy described in Section 53A-16-107 of at least .0006 per
353 dollar of taxable value.
354 (3) The county treasurer of a county with a qualifying divided school district shall
355 distribute revenues generated by the .0006 portion of the capital outlay levy required in
356 Subsection (2) to the school districts located within the boundaries of the qualifying divided
357 school district as follows:
358 (a) 25% of the revenues shall be distributed in proportion to a school district's
359 percentage of the total enrollment growth in all of the school districts within the qualifying
360 divided school district that have an increase in enrollment, calculated on the basis of the
361 average annual enrollment growth over the prior three years in all of the school districts within
362 the qualifying divided school district that have an increase in enrollment over the prior three
363 years, as of the October 1 enrollment counts; and
364 (b) 75% of the revenues shall be distributed in proportion to a school district's
365 percentage of the total current year enrollment in all of the school districts within the qualifying
366 divided school district, as of the October 1 enrollment counts.

367 (4) If a new school district is created or school district boundaries are adjusted, the
368 enrollment and average annual enrollment growth for each affected school district shall be
369 calculated on the basis of enrollment in school district schools located within that school
370 district's newly created or adjusted boundaries, as of October 1 enrollment counts.
371 (5) On or before December 31 of each year, the State Board of Education shall provide
372 a county treasurer with audited enrollment information from the fall enrollment audit necessary
373 to distribute revenues as required by this section.
374 (6) On or before March 31 of each year, a county treasurer in a county with a
375 qualifying divided school district shall distribute, in accordance with Subsection (3), the
376 revenue generated within the qualifying divided school district during the prior calendar year
377 from the capital outlay levy required in Subsection (2).
378 Section 9. Section 53A-16-106 is amended to read:
379 53A-16-106. Annual certification of tax rate proposed by local school board --
380 Inclusion of school district budget -- Modified filing date.
381 (1) Prior to June 22 of each year, each local school board shall certify to the county
382 legislative body in which the district is located, on forms prescribed by the State Tax
383 Commission, the proposed tax rate approved by the local school board.
384 (2) A copy of the district's budget, including items under Section 53A-19-101 , and a
385 certified copy of the local school board's resolution which approved the budget and set the tax
386 rate for the subsequent school year beginning July 1 shall accompany the tax rate.
387 (3) If the tax rate approved by the board is in excess of the "certified tax rate" as
388 defined under Subsection 59-2-924 [(2)] (3)(a), the date for filing the tax rate and budget
389 adopted by the board shall be that established under Section 59-2-919 .
390 Section 10. Section 53A-16-107 is amended to read:
391 53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority to
392 use proceeds of .0002 tax rate -- Restrictions and procedure.
393 (1) [(a) A] Subject to Subsection (3), a local school board may annually impose a
394 capital outlay levy [a tax not to exceed .0024 per dollar of taxable value for debt service and
395 capital outlay.] not to exceed .0024 per dollar of taxable value to be used for:
396 (a) capital outlay;
397 (b) debt service; and

398 (c) subject to Subsection (2), school facility maintenance.
399 [(b) Each] (2) (a) A local school board may utilize the proceeds of a maximum of
400 .0002 per dollar of taxable value of [its] the local school board's annual capital outlay levy for
401 the maintenance of school [plants] facilities in [its] the school district.
402 [(2)] (b) A local school board that uses the option provided under Subsection [(1)(b)
403 must do the following] (2)(a) shall:
404 [(a)] (i) maintain the same level of expenditure for maintenance in the current year as it
405 did in the preceding year, plus the annual average percentage increase applied to the
406 maintenance and operation budget for the current year; and
407 [(b)] (ii) identify the expenditure of capital outlay funds for maintenance by a district
408 project number to ensure that the funds [were] are expended in the manner intended.
409 [(3)] (c) The State Board of Education shall establish by rule the expenditure
410 classification for maintenance under this program using a standard classification system.
411 (3) In order to qualify for receipt of the state contribution toward the minimum school
412 program described in Section 53A-17a-104 , a local school board in a county of the first class
413 shall impose a capital outlay levy of at least .0006 per dollar of taxable value.
414 (4) (a) The county treasurer of a county of the first class shall distribute revenues
415 generated by the .0006 portion of the capital outlay levy required in Subsection (3) to school
416 districts within the county in accordance with Section 53A-16-107.1 .
417 (b) If a school district in a county of the first class imposes a capital outlay levy
418 pursuant to this section which exceeds .0006 per dollar of taxable value, the county treasurer of
419 a county of the first class shall distribute revenues generated by the portion of the capital outlay
420 levy which exceeds .0006 to the school district imposing the levy.
421 Section 11. Section 53A-16-107.1 is enacted to read:
422 53A-16-107.1. School capital outlay in counties of the first class -- Allocation.
423 (1) The county treasurer of a county of the first class shall distribute revenues
424 generated by the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3)
425 to school districts located within the county of the first class as follows:
426 (a) 25% of the revenues shall be distributed in proportion to a school district's
427 percentage of the total enrollment growth in all of the school districts within the county that
428 have an increase in enrollment, calculated on the basis of the average annual enrollment growth

429 over the prior three years in all of the school districts within the county that have an increase in
430 enrollment over the prior three years, as of the October 1 enrollment counts; and
431 (b) 75% of the revenues shall be distributed in proportion to a school district's
432 percentage of the total current year enrollment in all of the school districts within the county, as
433 of the October 1 enrollment counts.
434 (2) If a new school district is created or school district boundaries are adjusted, the
435 enrollment and average annual enrollment growth for each affected school district shall be
436 calculated on the basis of enrollment in school district schools located within that school
437 district's newly created or adjusted boundaries, as of October 1 enrollment counts.
438 (3) On or before December 31 of each year, the State Board of Education shall provide
439 a county treasurer with audited enrollment information from the fall enrollment audit necessary
440 to distribute revenues as required by this section.
441 (4) On or before March 31 of each year, a county treasurer in a county of the first class
442 shall distribute the revenue generated within the county of the first class during the prior
443 calendar year from the capital outlay levy described in Section 53A-16-107 .
444 Section 12. Section 53A-16-110 is amended to read:
445 53A-16-110. Special tax to buy school building sites, build and furnish
446 schoolhouses, or improve school property.
447 (1) (a) A local school board may, by following the process for special elections
448 established in Sections 20A-1-203 and 20A-1-204 , call a special election to determine whether
449 a special property tax should be levied for one or more years to buy building sites, build and
450 furnish schoolhouses, or improve the school property under its control.
451 (b) The tax may not exceed .2% of the taxable value of all taxable property in the
452 district in any one year.
453 (2) The board shall give reasonable notice of the election and follow the same
454 procedure used in elections for the issuance of bonds.
455 (3) If a majority of those voting on the proposition vote in favor of the tax, it is levied
456 in addition to [those] a levy authorized under [Sections] Section 53A-17a-145 [and
457 53A-21-103 ] and computed on the valuation of the county assessment roll for that year.
458 (4) (a) Within 20 days after the election, the board shall certify the amount of the
459 approved tax to the governing body of the county in which the school district is located.

460 (b) The governing body shall acknowledge receipt of the certification and levy and
461 collect the special tax.
462 (c) It shall then distribute the collected taxes to the business administrator of the school
463 district at the end of each calendar month.
464 (5) The special tax becomes due and delinquent and attaches to and becomes a lien on
465 real and personal property at the same time as state and county taxes.
466 Section 13. Section 53A-17a-133 is amended to read:
467 53A-17a-133. State-supported voted leeway program authorized -- Election
468 requirements -- State guarantee -- Reconsideration of the program.
469 (1) An election to consider adoption or modification of a voted leeway program is
470 required if initiative petitions signed by 10% of the number of electors who voted at the last
471 preceding general election are presented to the local school board or by action of the board.
472 (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
473 voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
474 special tax.
475 (ii) The tax rate may not exceed .002 per dollar of taxable value.
476 (b) The district may maintain a school program which exceeds the cost of the program
477 referred to in Section 53A-17a-145 with this voted leeway.
478 (c) In order to receive state support the first year, a district must receive voter approval
479 no later than December 1 of the year prior to implementation.
480 (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
481 to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
482 taxable value.
483 (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
484 of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
485 in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
486 taxable value if a school district levies a tax rate under both programs.
487 (c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
488 shall be indexed each year to the value of the weighted pupil unit by making the value of the
489 guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
490 (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted

491 pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
492 the prior year's weighted pupil unit.
493 (d) (i) The amount of state guarantee money to which a school district would otherwise
494 be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
495 levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
496 pursuant to changes in property valuation.
497 (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
498 the certified tax rate.
499 (4) (a) An election to modify an existing voted leeway program is not a reconsideration
500 of the existing program unless the proposition submitted to the electors expressly so states.
501 (b) A majority vote opposing a modification does not deprive the district of authority to
502 continue an existing program.
503 (c) If adoption of a leeway program is contingent upon an offset reducing other local
504 school board levies, the board must allow the electors, in an election, to consider modifying or
505 discontinuing the program prior to a subsequent increase in other levies that would increase the
506 total local school board levy.
507 (d) Nothing contained in this section terminates, without an election, the authority of a
508 school district to continue an existing voted leeway program previously authorized by the
509 voters.
510 (5) Notwithstanding Section 59-2-918 , a school district may budget an increased
511 amount of ad valorem property tax revenue derived from a voted leeway imposed under this
512 section in addition to revenue from new growth as defined in Subsection 59-2-924 [(2)] (4),
513 without having to comply with the advertisement requirements of Section 59-2-918 , if the
514 voted leeway is approved:
515 (a) in accordance with Section 53A-16-110 on or after January 1, 2003; and
516 (b) within the four-year period immediately preceding the year in which the school
517 district seeks to budget an increased amount of ad valorem property tax revenue derived from
518 the voted leeway.
519 (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
520 section that exceeds the certified tax rate without having to comply with the advertisement
521 requirements of Section 59-2-919 if:

522 (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
523 increased amount of ad valorem property tax revenue derived from a voted leeway imposed
524 under this section; and
525 (b) if the voted leeway was approved:
526 (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
527 (ii) within the four-year period immediately preceding the year in which the school
528 district seeks to budget an increased amount of ad valorem property tax revenue derived from
529 the voted leeway.
530 Section 14. Section 53A-19-102 is amended to read:
531 53A-19-102. Local school boards budget procedures.
532 (1) Prior to June 22 of each year, each local school board shall adopt a budget and
533 make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
534 certified tax rate defined in [Subsection] Section 59-2-924 [(2)], the board shall comply with
535 Sections 59-2-918 and 59-2-919 in adopting the budget, except as provided by Section
536 53A-17a-133 .
537 (2) Prior to the adoption of a budget containing a tax rate which does not exceed the
538 certified tax rate, the board shall hold a public hearing, as defined in Section 10-9a-103 , on the
539 proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
540 Act, in regards to the hearing, the board shall do the following:
541 (a) publish the required newspaper notice at least ten days prior to the hearing; and
542 (b) file a copy of the proposed budget with the board's business administrator for public
543 inspection at least ten days prior to the hearing.
544 (3) The board shall file a copy of the adopted budget with the state auditor and the
545 State Board of Education.
546 Section 15. Section 53A-19-105 is amended to read:
547 53A-19-105. School district interfund transfers.
548 (1) A school district shall spend revenues only within the fund for which they were
549 originally authorized, levied, collected, or appropriated.
550 (2) Except as otherwise provided in this section, school district interfund transfers of
551 residual equity are prohibited.
552 (3) The State Board of Education may authorize school district interfund transfers of

553 residual equity when a district states its intent to create a new fund or expand, contract, or
554 liquidate an existing fund.
555 (4) The State Board of Education may also authorize school district interfund transfers
556 of residual equity for a financially distressed district if the board determines the following:
557 (a) the district has a significant deficit in its maintenance and operations fund caused
558 by circumstances not subject to the administrative decisions of the district;
559 (b) the deficit cannot be reasonably reduced under Section 53A-19-104 ; and
560 (c) without the transfer, the school district will not be capable of meeting statewide
561 educational standards adopted by the State Board of Education.
562 (5) The board shall develop standards for defining and aiding financially distressed
563 school districts under this section in accordance with Title 63, Chapter 46a, Utah
564 Administrative Rulemaking Act.
565 (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
566 and reported in the debt service fund.
567 (b) Debt service levies under Subsection 59-2-924 [(2)(a)(v)(C)] (3)(e)(iii) that are not
568 subject to the certified tax rate hearing requirements of Sections 59-2-918 and 59-2-919 may
569 not be used for any purpose other than retiring general obligation debt.
570 (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
571 year shall be used in subsequent years for general obligation debt retirement.
572 (d) Any amounts left in the debt service fund after all general obligation debt has been
573 retired may be transferred to the capital projects fund upon completion of the budgetary hearing
574 process required under Section 53A-19-102 .
575 Section 16. Section 53A-21-101.5 is enacted to read:
576 Part 1. General Provisions
577 53A-21-101.5. Definitions.
578 As used in this chapter:
579 (1) "Combined capital levy rate" means a rate that includes the sum of the following
580 property tax levies:
581 (a) the capital outlay levy authorized in Section 53A-16-107 ;
582 (b) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
583 budgeted for debt service or capital outlay;

584 (c) the debt service levy authorized in Section 11-14-310 ; and
585 (d) the voted capital outlay leeway authorized in Section 53A-16-110 .
586 (2) "Derived net taxable value" means the quotient of:
587 (a) the total current property tax collections from April 1 through the following March
588 31 for a school district; divided by
589 (b) the school district's total tax rate for the calendar year preceding the March 31
590 referenced in Subsection (2)(a).
591 (3) "Property tax yield per enrolled student" means:
592 (a) the product of:
593 (i) a school district's derived net taxable value; and
594 (ii) .0030; divided by
595 (b) the school district's enrollment for the fiscal year of the March 31 referenced in
596 Subsection (2)(a).
597 Section 17. Section 53A-21-102 is amended to read:
598 53A-21-102. Capital outlay programs -- Use of funds.
599 [(1) The Capital Outlay Foundation Program and the Enrollment Growth Program are
600 established to provide revenues to school districts for the purposes of capital outlay bonding,
601 construction, and renovation.]
602 [(2) The Capital Outlay Loan Program is established to provide:]
603 [(a) short-term help to school districts to meet district needs for school building
604 construction and renovation; and]
605 [(b) assistance to charter schools to meet school building construction and renovation
606 needs.]
607 [(3) School districts shall] A school district may only use the monies provided [to
608 them] under [the programs established by this section solely] this chapter for school district
609 capital outlay and debt service purposes.
610 Section 18. Section 53A-21-201 is enacted to read:
611 Part 2. Capital Outlay Foundation Program
612 53A-21-201. Capital Outlay Foundation Program -- Creation -- Definitions.
613 (1) There is created the Capital Outlay Foundation Program to provide capital outlay
614 funding to a school district based on a district's local property tax effort and property tax yield

615 per student compared to a foundation guarantee funding level.
616 (2) As used in this part:
617 (a) "Foundation guarantee level per enrolled student" means a minimum revenue
618 amount per enrolled student generated by a combined capital levy rate of .0030 per dollar of
619 taxable value, including the following:
620 (i) the revenue generated locally from a school district's combined capital levy rate; and
621 (ii) the revenue allocated to a school district by the State Board of Education in
622 accordance with Section 53A-21-202 .
623 (b) "Qualifying school district" means a school district with a property tax yield per
624 enrolled student less than the foundation guarantee level per enrolled student.
625 Section 19. Section 53A-21-202 is enacted to read:
626 53A-21-202. Capital Outlay Foundation Program -- Distribution formulas --
627 Allocations.
628 (1) (a) For fiscal years beginning on or after July 1, 2008, the State Board of Education
629 shall determine the foundation guarantee level per enrolled student that fully allocates the funds
630 appropriated to the State Board of Education for distribution under this section.
631 (b) By May 1, a county treasurer shall report to the State Board of Education the actual
632 collections of property taxes in the school districts located within the county treasurer's county
633 for the period beginning April 1 through the following March 31 immediately preceding that
634 May 1.
635 (c) By June 1, the State Board of Education shall notify a qualifying school district of
636 the amount of funding the district will receive under the program in the fiscal year beginning
637 the July 1 immediately following the June 1 described in this subsection.
638 (2) If a qualifying school district imposes a prior year combined capital levy rate of at
639 least .0030 per dollar of taxable value, the State Board of Education shall allocate to the
640 qualifying school district an amount equal to the product of the following:
641 (a) the qualifying school district's prior year enrollment; and
642 (b) an amount equal to the difference between the following:
643 (i) the foundation guarantee level per enrolled student for that fiscal year, as
644 determined in accordance with Subsection (1); and
645 (ii) the qualifying school district's prior year property tax yield per enrolled student.

646 (3) Except as provided in Subsection (4), if a qualifying school district imposes a prior
647 year combined capital levy rate less than .0030 per dollar of taxable value, the State Board of
648 Education shall allocate to the qualifying school district an amount equal to the product of the
649 following:
650 (a) the qualifying school district's prior year enrollment;
651 (b) an amount equal to the difference between the following:
652 (i) the foundation guarantee level per enrolled student for that fiscal year, as
653 determined in accordance with Subsection (1); and
654 (ii) the qualifying school district's prior year property tax yield per enrolled student;
655 and
656 (c) a percentage equal to:
657 (i) the qualifying school district's prior year combined capital levy rate; divided by
658 (ii) .0030.
659 (4) Notwithstanding Subsection (3), if a qualifying school district imposes a combined
660 capital levy rate less than .0030 per dollar of taxable value, the State Board of Education shall
661 allocate funds to the qualifying school district in accordance with the allocation methodology
662 under Subsection (2) if:
663 (a) the qualifying school district imposed a combined capital levy rate of at least .0030
664 in either of the prior two years; and
665 (b) the qualifying school district imposes a combined capital levy rate less than .0030
666 solely due to a decrease in the qualifying school district's certified tax rate, calculated pursuant
667 to Section 59-2-924 , due to increases in the value of taxable property located within the
668 qualifying school district.
669 Section 20. Section 53A-21-301 is enacted to read:
670 Part 3. Capital Outlay Enrollment Growth Program
671 53A-21-301. Capital Outlay Enrollment Growth Program - Definitions.
672 (1) There is created the Capital Outlay Enrollment Growth Program to provide capital
673 outlay funding to school districts experiencing net enrollment increases.
674 (2) As used in this part:
675 (a) "Average annual net enrollment increase" means the quotient of:
676 (i) (A) enrollment in the prior year, based on October 1 enrollment counts; minus

677 (B) enrollment in the year three years prior, based on October 1 enrollment counts;
678 divided by
679 (ii) three.
680 (b) "Eligible district" or "eligible school district" means a school district that:
681 (i) has an average annual net enrollment increase; and
682 (ii) a prior year property tax base per student that is less than two times the prior year
683 statewide average property tax base per student.
684 (c) "Property tax base per student" means the quotient of:
685 (i) a school district's derived net taxable value; divided by
686 (ii) the school district's enrollment.
687 (d) "Statewide average property tax base per student" means the quotient of:
688 (i) the sum of all school districts' derived net taxable value; divided by
689 (ii) the sum of total school district enrollment statewide for the same year.
690 Section 21. Section 53A-21-302 is enacted to read:
691 53A-21-302. Capital Outlay Enrollment Growth Program -- Distribution
692 Formulas -- Allocations.
693 (1) For fiscal years beginning on or after July 1, 2008, the State Board of Education
694 shall annually:
695 (a) allocate appropriated funds to eligible school districts in accordance with
696 Subsection (2); and
697 (b) notify each eligible school district by June 1 of the amount the district will receive
698 under the program in the fiscal year beginning the July 1 immediately following the June 1
699 described in this subsection.
700 (2) The State Board of Education shall allocate to an eligible school district an amount
701 equal to the product of:
702 (a) the quotient of:
703 (i) the eligible school district's average annual net enrollment increase; divided by
704 (ii) the statewide average annual net enrollment increase in all eligible school districts;
705 and
706 (b) the total amount appropriated for the Capital Outlay Enrollment Growth Program in
707 that fiscal year.

708 Section 22. Section 53A-21-401 , which is renumbered from Section 53A-21-104 is
709 renumbered and amended to read:
710 Part 4. Capital Outlay Loan Program
711 [53A-21-104]. 53A-21-401. Capital Outlay Loan Program -- School
712 Building Revolving Account -- Access to the account.
713 (1) There is created:
714 (a) the "Capital Outlay Loan Program" to provide:
715 (i) short-term help to school districts to meet district needs for school building
716 construction and renovation; and
717 (ii) assistance to charter schools to meet school building construction and renovation
718 needs; and
719 (b) a nonlapsing "School Building Revolving Account" administered within the
720 Uniform School Fund by the state superintendent of public instruction in accordance with rules
721 adopted by the State Board of Education.
722 (2) [Monies received by a school district] The State Board of Education may not
723 allocate funds from the School Building Revolving Account [may not] that exceed [the] a
724 school district's bonding limit minus its outstanding bonds.
725 (3) In order to receive monies from the account, a school district [must do the
726 following] shall:
727 (a) levy a [tax of] combined capital levy rate of at least .0024 [for capital outlay and
728 debt service];
729 (b) contract with the state superintendent of public instruction to repay the monies,
730 with interest at a rate established by the state superintendent, within five years of [their] receipt,
731 using future state [building monies or] capital outlay allocations, local revenues, or both;
732 (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan
733 repayments, unless the state superintendent of public instruction alters the payment schedule to
734 improve a hardship situation; and
735 (d) meet any other condition established by the State Board of Education pertinent to
736 the loan.
737 (4) (a) The state superintendent shall establish a committee, including representatives
738 from state and local education entities, to:

739 (i) review requests by school districts for loans under this section; and
740 (ii) make recommendations regarding approval or disapproval of the loan applications
741 to the state superintendent.
742 (b) If the committee recommends approval of a loan application under Subsection
743 (4)(a)(ii), the committee's recommendation shall include:
744 (i) the recommended amount of the loan;
745 (ii) the payback schedule; and
746 (iii) the interest rate to be charged.
747 (5) (a) There is established within the School Building Revolving Account the Charter
748 School Building Subaccount administered by the State Board of Education, in consultation
749 with the State Charter School Board, in accordance with rules adopted by the State Board of
750 Education.
751 (b) The Charter School Building Subaccount shall consist of:
752 (i) money appropriated to the subaccount by the Legislature;
753 (ii) money received from the repayment of loans made from the subaccount; and
754 (iii) interest earned on monies in the subaccount.
755 (c) The state superintendent of public instruction shall make loans to charter schools
756 from the Charter School Building Subaccount to pay for the costs of:
757 (i) planning expenses;
758 (ii) constructing or renovating charter school buildings;
759 (iii) equipment and supplies; or
760 (iv) other start-up or expansion expenses.
761 (d) Loans to new charter schools or charter schools with urgent facility needs may be
762 given priority.
763 (6) (a) The State Board of Education shall establish a committee, which shall include
764 individuals who have expertise or experience in finance, real estate, and charter school
765 administration, one of whom shall be nominated by the governor to:
766 (i) review requests by charter schools for loans under this section; and
767 (ii) make recommendations regarding approval or disapproval of the loan applications
768 to the State Charter School Board and the State Board of Education.
769 (b) If the committee recommends approval of a loan application under Subsection

770 (6)(a)(ii), the committee's recommendation shall include:
771 (i) the recommended amount of the loan;
772 (ii) the payback schedule; and
773 (iii) the interest rate to be charged.
774 (c) The committee members may not:
775 (i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or
776 (ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
777 or entity that contracts with a loan applicant.
778 (7) The State Board of Education, in consultation with the State Charter School Board,
779 shall approve all loans to a charter [schools] school under this section.
780 (8) [Loans] The term of a loan to a charter [schools] school under this section may not
781 exceed [a term of] five years.
782 (9) The State Board of Education may not approve loans to charter schools under this
783 section that exceed a total of $2,000,000 in any year.
784 Section 23. Section 53A-21-501 , which is renumbered from Section 53A-21-105 is
785 renumbered and amended to read:
786 Part 5. Fiscal Matters
787 [53A-21-105]. 53A-21-501. State contribution to capital outlay programs.
788 (1) As an ongoing appropriation subject to future budget constraints, there is
789 appropriated from the Uniform School Fund for fiscal year [2007-08, $27,288,900] 2008-09,
790 $56,000,000 to the State Board of Education for the capital outlay programs created in [Section
791 53A-21-102 ] this chapter.
792 (2) Of the monies appropriated in Subsection (1), the State Board of Education shall
793 distribute:
794 (a) [$24,358,000] $33,000,000 in accordance with the Capital Outlay Foundation
795 Program [described in Section 53A-21-103 ] pursuant to Section 53A-21-202 ; and
796 (b) [$2,930,900] $23,000,000 in accordance with the Capital Outlay Enrollment
797 Growth Program [described in Section 53A-21-103.5 ] pursuant to Section 53A-21-302 .
798 Section 24. Section 59-2-908 is amended to read:
799 59-2-908. Single aggregate limitation -- Maximum levy.
800 (1) Except as provided in Subsection (2), each county shall have a single aggregate

801 limitation on the property tax levied for all purposes by the county. Except as provided in
802 Section 59-2-911 , this limitation may not exceed the maximum set forth in this section. The
803 maximum is:
804 (a) .0032 per dollar of taxable value in all counties with a total taxable value of more
805 than $100,000,000; and
806 (b) .0036 per dollar of taxable value in all counties with a total taxable value of less
807 than $100,000,000.
808 (2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
809 limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
810 generates revenues for the county in an amount that is less than the revenues that would be
811 generated by the county under the certified tax rate established in [Subsection] Section
812 59-2-924 [(2)].
813 (b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that
814 does not exceed the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
815 Section 25. Section 59-2-913 is amended to read:
816 59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
817 statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
818 establishing tax levies -- Format of statement.
819 (1) As used in this section, "budgeted property tax revenues" does not include property
820 tax revenue received by a taxing entity from personal property that is:
821 (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
822 (b) semiconductor manufacturing equipment.
823 (2) (a) The legislative body of each taxing entity shall file a statement as provided in
824 this section with the county auditor of the county in which the taxing entity is located.
825 (b) The auditor shall annually transmit the statement to the commission:
826 (i) before June 22; or
827 (ii) with the approval of the commission, on a subsequent date prior to the date
828 established under Section 59-2-1317 for mailing tax notices.
829 (c) The statement shall contain the amount and purpose of each levy fixed by the
830 legislative body of the taxing entity.
831 (3) For purposes of establishing the levy set for each of a taxing entity's applicable

832 funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
833 the budgeted property tax revenues, specified in a budget which has been adopted and
834 approved prior to setting the levy, by the amount calculated under Subsections
835 59-2-924 [(2)(a)(iii)(B)(I) through (III)] (3)(c)(ii)(A) through (C).
836 (4) The format of the statement under this section shall:
837 (a) be determined by the commission; and
838 (b) cite any applicable statutory provisions that:
839 (i) require a specific levy; or
840 (ii) limit the property tax levy for any taxing entity.
841 (5) The commission may require certification that the information submitted on a
842 statement under this section is true and correct.
843 Section 26. Section 59-2-914 is amended to read:
844 59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement
845 adjusted levies to county auditor.
846 (1) If the commission determines that a levy established for a taxing entity set under
847 Section 59-2-913 is in excess of the maximum levy permitted by law, the commission shall:
848 (a) lower the levy so that it is set at the maximum level permitted by law;
849 (b) notify the taxing entity which set the excessive rate that the rate has been lowered;
850 and
851 (c) notify the county auditor of the county or counties in which the taxing entity is
852 located to implement the rate established by the commission.
853 (2) A levy set for a taxing entity by the commission under this section shall be the
854 official levy for that taxing entity unless:
855 (a) the taxing entity lowers the levy established by the commission; or
856 (b) the levy is subsequently modified by a court order.
857 (3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
858 a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the
859 rate established by the taxing entity for the current year generates revenues for the taxing entity
860 in an amount that is less than the revenues that would be generated by the taxing entity under
861 the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
862 (b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax

863 rate that does not exceed the certified rate established in [Subsection] Section 59-2-924 [(2)].
864 Section 27. Section 59-2-918 is amended to read:
865 59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
866 (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
867 increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
868 in Subsection 59-2-924 [(2)] (4) unless it advertises its intention to do so at the same time that it
869 advertises its intention to fix its budget for the forthcoming fiscal year.
870 (b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
871 advertisement or hearing requirements of this section if:
872 (A) the taxing entity:
873 (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
874 or
875 (II) is expressly exempted by law from complying with the requirements of this
876 section; or
877 (B) the increased amount of ad valorem tax revenue results from a tax rate increase that
878 is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and hearing
879 requirements of Section 59-2-919 .
880 (ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
881 advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
882 budget an increased amount of ad valorem property tax revenue without having to comply with
883 the advertisement requirements of this section.
884 (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
885 advertisement required by this section may be combined with the advertisement required by
886 Section 59-2-919 .
887 (b) For taxing entities operating under a January 1 through December 31 fiscal year,
888 the advertisement required by this section shall meet the size, type, placement, and frequency
889 requirements established under Section 59-2-919 .
890 (3) The form of the advertisement required by this section shall meet the size, type,
891 placement, and frequency requirements established under Section 59-2-919 and shall be
892 substantially as follows:
893 "NOTICE OF PROPOSED TAX INCREASE

894 (NAME OF TAXING ENTITY)
895 The (name of the taxing entity) is proposing to increase its property tax revenue.
896 * If the proposed budget is approved, this would be an increase of _____% above
897 the (name of the taxing entity) property tax budgeted revenue for the prior year.
898 * The (name of the taxing entity) tax on a (insert the average value of a residence
899 in the taxing entity rounded to the nearest thousand dollars) residence would
900 increase from $______ to $________, which is $_______ per year.
901 * The (name of the taxing entity) tax on a (insert the value of a business having
902 the same value as the average value of a residence in the taxing entity) business
903 would increase from $________ to $_______, which is $______ per year.
904 All concerned citizens are invited to a public hearing on the tax increase.
905 PUBLIC HEARING
906 Date/Time: (date) (time)
907 Location: (name of meeting place and address of meeting place)
908 To obtain more information regarding the tax increase, citizens may contact the (name
909 of the taxing entity) at (phone number of taxing entity)."
910 (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
911 revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
912 announce at the public hearing the scheduled time and place for consideration and adoption of
913 the proposed budget increase.
914 (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
915 year shall by March 1 notify the county of the date, time, and place of the public hearing at
916 which the budget for the following fiscal year will be considered.
917 (b) The county shall include the information described in Subsection (5)(a) with the tax
918 notice.
919 (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
920 p.m.
921 Section 28. Section 59-2-924 is amended to read:
922 59-2-924. Report of valuation of property to county auditor and commission --
923 Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
924 tax rate -- Rulemaking authority -- Adoption of tentative budget.

925 (1) [(a)] Before June 1 of each year, the county assessor of each county shall deliver to
926 the county auditor and the commission the following statements:
927 [(i)] (a) a statement containing the aggregate valuation of all taxable property in each
928 taxing entity; and
929 [(ii)] (b) a statement containing the taxable value of any additional personal property
930 estimated by the county assessor to be subject to taxation in the current year.
931 [(b)] (2) The county auditor shall, on or before June 8, transmit to the governing body
932 of each taxing entity:
933 [(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
934 [(ii)] (b) an estimate of the revenue from personal property;
935 [(iii)] (c) the certified tax rate; and
936 [(iv)] (d) all forms necessary to submit a tax levy request.
937 [(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad
938 valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
939 prior year.
940 [(ii)] (b) For purposes of this Subsection [(2)](3), "ad valorem property tax revenues"
941 do not include:
942 [(A)] (i) collections from redemptions;
943 [(B)] (ii) interest;
944 [(C)] (iii) penalties; and
945 [(D)] (iv) revenue received by a taxing entity from personal property that is:
946 [(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
947 and
948 [(II)] (B) semiconductor manufacturing equipment.
949 [(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
950 be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
951 the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
952 [(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
953 taxing entity shall calculate an amount as follows:
954 [(I)] (A) calculate for the taxing entity the difference between:
955 [(Aa)] (I) the aggregate taxable value of all property taxed; and

956 [(Bb)] (II) any redevelopment adjustments for the current calendar year;
957 [(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]
958 (3)(c)(ii)(A), calculate an amount determined by increasing or decreasing the amount
959 calculated under Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A) by the average of the percentage net
960 change in the value of taxable property for the equalization period for the three calendar years
961 immediately preceding the current calendar year;
962 [(III)] (C) after making the calculation required by Subsection [(2)(a)(iii)(B)(II)]
963 (3)(c)(ii)(B), calculate the product of:
964 [(Aa)] (I) the amount calculated under Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B); and
965 [(Bb)] (II) the percentage of property taxes collected for the five calendar years
966 immediately preceding the current calendar year; and
967 [(IV)] (D) after making the calculation required by Subsection [(2)(a)(iii)(B)(III)]
968 (3)(c)(ii)(C), calculate an amount determined by subtracting from the amount calculated under
969 Subsection [(2)(a)(iii)(B)(III)] (3)(c)(ii)(C) any new growth as defined in this section:
970 [(Aa)] (I) within the taxing entity; and
971 [(Bb)] (II) for the current calendar year.
972 [(C)] (iii) For purposes of Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A), the aggregate
973 taxable value of all property taxed:
974 [(I)] (A) except as provided in Subsection [(2)(a)(iii)(C)(II)] (3)(c)(iii)(B), includes the
975 total taxable value of the real and personal property contained on the tax rolls of the taxing
976 entity; and
977 [(II)] (B) does not include the total taxable value of personal property contained on the
978 tax rolls of the taxing entity that is:
979 [(Aa)] (I) assessed by a county assessor in accordance with Part 3, County Assessment;
980 and
981 [(Bb)] (II) semiconductor manufacturing equipment.
982 [(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
983 beginning on or after January 1, 2007, the value of taxable property does not include the value
984 of personal property that is:
985 [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
986 3, County Assessment; and

987 [(II)] (B) semiconductor manufacturing equipment.
988 [(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
989 calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
990 does not include property taxes collected from personal property that is:
991 [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
992 3, County Assessment; and
993 [(II)] (B) semiconductor manufacturing equipment.
994 [(F)] (vi) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
995 Act, the commission may prescribe rules for calculating redevelopment adjustments for a
996 calendar year.
997 [(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
998 Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
999 property tax revenues budgeted by a taxing entity.
1000 [(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
1001 revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted
1002 property tax revenues are calculated for purposes of Section 59-2-913 .
1003 [(v)] (e) The certified tax rates for the taxing entities described in this Subsection
1004 [(2)(a)(v)] (3)(e) shall be calculated as follows:
1005 [(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
1006 entities the certified tax rate is zero;
1007 [(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax
1008 rate is:
1009 [(I)] (A) in a county of the first, second, or third class, the levy imposed for
1010 municipal-type services under Sections 17-34-1 and 17-36-9 ; and
1011 [(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
1012 county purposes and such other levies imposed solely for the municipal-type services identified
1013 in Section 17-34-1 and Subsection 17-36-3 (22); and
1014 [(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
1015 actual levy imposed by that section, except that the certified tax rates for the following levies
1016 shall be calculated in accordance with Section 59-2-913 and this section:
1017 [(I)] (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 ,

1018 [ 53A-17a-125 ,] 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , and 53A-17a-145 [,
1019 and 53A-21-103 ]; and
1020 [(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
1021 administrative orders under Section 59-2-906.3 .
1022 [(vi) (A)] (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall
1023 be established at that rate which is sufficient to generate only the revenue required to satisfy
1024 one or more eligible judgments, as defined in Section 59-2-102 .
1025 [(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
1026 be considered in establishing the taxing entity's aggregate certified tax rate.
1027 (g) The ad valorem property tax revenue generated by the capital outlay levy described
1028 in Section 53A-16-107 within a taxing entity in a county of the first class:
1029 (i) may not be considered in establishing the school district's aggregate certified tax
1030 rate; and
1031 (ii) shall be included by the commission in establishing a certified tax rate for that
1032 capital outlay levy determined in accordance with the calculation described in Subsection
1033 59-2-913 (3).
1034 [(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
1035 shall use the taxable value of property on the assessment roll.
1036 [(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
1037 property on the assessment roll does not include:
1038 [(A)] (i) new growth as defined in Subsection [(2)(b)(iii); or] (4)(c); or
1039 [(B)] (ii) the total taxable value of personal property contained on the tax rolls of the
1040 taxing entity that is:
1041 [(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
1042 and
1043 [(II)] (B) semiconductor manufacturing equipment.
1044 [(iii)] (c) "New growth" means:
1045 [(A)] (i) the difference between the increase in taxable value of the taxing entity from
1046 the previous calendar year to the current year; minus
1047 [(B)] (ii) the amount of an increase in taxable value described in Subsection [(2)(b)(v)]
1048 (4)(e).

1049 [(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of the
1050 taxing entity does not include the taxable value of personal property that is:
1051 [(A)] (i) contained on the tax rolls of the taxing entity if that property is assessed by a
1052 county assessor in accordance with Part 3, County Assessment; and
1053 [(B)] (ii) semiconductor manufacturing equipment.
1054 [(v)] (e) Subsection [(2)(b)(iii)(B)] (4)(c)(ii) applies to the following increases in
1055 taxable value:
1056 [(A)] (i) the amount of increase to locally assessed real property taxable values
1057 resulting from factoring, reappraisal, or any other adjustments; or
1058 [(B)] (ii) the amount of an increase in the taxable value of property assessed by the
1059 commission under Section 59-2-201 resulting from a change in the method of apportioning the
1060 taxable value prescribed by:
1061 [(I)] (A) the Legislature;
1062 [(II)] (B) a court;
1063 [(III)] (C) the commission in an administrative rule; or
1064 [(IV)] (D) the commission in an administrative order.
1065 [(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1066 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
1067 59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
1068 12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1069 rate to offset the increased revenues.]
1070 [(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1071 Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:]
1072 [(A) decreased on a one-time basis by the amount of the estimated sales and use tax
1073 revenue to be distributed to the county under Subsection 59-12-1102 (3); and]
1074 [(B) increased by the amount necessary to offset the county's reduction in revenue
1075 from uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
1076 59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
1077 (2)(d)(i)(A).]
1078 [(ii) The commission shall determine estimates of sales and use tax distributions for
1079 purposes of Subsection (2)(d)(i).]

1080 [(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
1081 communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
1082 decreased on a one-time basis by the amount necessary to offset the first 12 months of
1083 estimated revenue from the additional resort communities sales and use tax imposed under
1084 Section 59-12-402 .]
1085 [(f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
1086 Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
1087 unincorporated area of the county shall be decreased by the amount necessary to reduce
1088 revenues in that fiscal year by an amount equal to the difference between the amount the county
1089 budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
1090 countywide and the amount the county spent during fiscal year 2000 for those services,
1091 excluding amounts spent from a municipal services fund for those services.]
1092 [(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
1093 (2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
1094 year by the amount that the county spent during fiscal year 2000 for advanced life support and
1095 paramedic services countywide, excluding amounts spent from a municipal services fund for
1096 those services.]
1097 [(ii) (A) A city or town located within a county of the first class to which Subsection
1098 (2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
1099 the city or town the same amount of revenues as the county would collect from that city or
1100 town if the decrease under Subsection (2)(f)(i) did not occur.]
1101 [(B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal
1102 year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
1103 of Sections 59-2-918 and 59-2-919 .]
1104 [(g) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
1105 provide detective investigative services to the unincorporated area of the county shall be
1106 decreased:]
1107 [(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
1108 by at least $4,400,000; and]
1109 [(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
1110 by an amount equal to the difference between $9,258,412 and the amount of the reduction in

1111 revenues under Subsection (2)(g)(i)(A).]
1112 [(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
1113 county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
1114 within the city or town the same amount of revenue as the county would have collected during
1115 county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).]
1116 [(II) Beginning with municipal fiscal year 2003, a city or town located within a county
1117 to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
1118 city or town the same amount of revenue as the county would have collected during county
1119 fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).]
1120 [(B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
1121 town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
1122 or spread over multiple fiscal years, is subject to the notice and hearing requirements of
1123 Sections 59-2-918 and 59-2-919 .]
1124 [(II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does
1125 not exceed the same amount of revenue as the county would have collected except for
1126 Subsection (2)(g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the
1127 city or town:]
1128 [(Aa) publishes a notice that meets the size, type, placement, and frequency
1129 requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
1130 by the county to one imposed by the city or town, and explains how the revenues from the tax
1131 increase will be used; and]
1132 [(Bb) holds a public hearing on the tax shift that may be held in conjunction with the
1133 city or town's regular budget hearing.]
1134 [(h) (i) This Subsection (2)(h) applies to each county that:]
1135 [(A) establishes a countywide special service district under Title 17A, Chapter 2, Part
1136 13, Utah Special Service District Act, to provide jail service, as provided in Subsection
1137 17A-2-1304 (1)(a)(x); and]
1138 [(B) levies a property tax on behalf of the special service district under Section
1139 17A-2-1322 .]
1140 [(ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
1141 shall be decreased by the amount necessary to reduce county revenues by the same amount of

1142 revenues that will be generated by the property tax imposed on behalf of the special service
1143 district.]
1144 [(B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
1145 the levy on behalf of the special service district under Section 17A-2-1322 .]
1146 [(i) (i) As used in this Subsection (2)(i):]
1147 [(A) "Annexing county" means a county whose unincorporated area is included within
1148 a fire district by annexation.]
1149 [(B) "Annexing municipality" means a municipality whose area is included within a
1150 fire district by annexation.]
1151 [(C) "Equalized fire protection tax rate" means the tax rate that results from:]
1152 [(I) calculating, for each participating county and each participating municipality, the
1153 property tax revenue necessary to cover all of the costs associated with providing fire
1154 protection, paramedic, and emergency services:]
1155 [(Aa) for a participating county, in the unincorporated area of the county; and]
1156 [(Bb) for a participating municipality, in the municipality; and]
1157 [(II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
1158 participating counties and all participating municipalities and then dividing that sum by the
1159 aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :]
1160 [(Aa) for participating counties, in the unincorporated area of all participating counties;
1161 and]
1162 [(Bb) for participating municipalities, in all the participating municipalities.]
1163 [(D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1164 Area Act, in the creation of which an election was not required under Subsection
1165 17B-1-214 (3)(c).]
1166 [(E) "Fire protection tax rate" means:]
1167 [(I) for an annexing county, the property tax rate that, when applied to taxable property
1168 in the unincorporated area of the county, generates enough property tax revenue to cover all the
1169 costs associated with providing fire protection, paramedic, and emergency services in the
1170 unincorporated area of the county; and]
1171 [(II) for an annexing municipality, the property tax rate that generates enough property
1172 tax revenue in the municipality to cover all the costs associated with providing fire protection,

1173 paramedic, and emergency services in the municipality.]
1174 [(F) "Participating county" means a county whose unincorporated area is included
1175 within a fire district at the time of the creation of the fire district.]
1176 [(G) "Participating municipality" means a municipality whose area is included within a
1177 fire district at the time of the creation of the fire district.]
1178 [(ii) In the first year following creation of a fire district, the certified tax rate of each
1179 participating county and each participating municipality shall be decreased by the amount of
1180 the equalized fire protection tax rate.]
1181 [(iii) In the first year following annexation to a fire district, the certified tax rate of each
1182 annexing county and each annexing municipality shall be decreased by the fire protection tax
1183 rate.]
1184 [(iv) Each tax levied under this section by a fire district shall be considered to be levied
1185 by:]
1186 [(A) each participating county and each annexing county for purposes of the county's
1187 tax limitation under Section 59-2-908 ; and]
1188 [(B) each participating municipality and each annexing municipality for purposes of
1189 the municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
1190 city.]
1191 [(j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1192 entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
1193 certified tax rate that may result from excluding the following from the certified tax rate under
1194 Subsection (2)(a) enacted by the Legislature during the 2007 General Session:]
1195 [(i) personal property tax revenue:]
1196 [(A) received by a taxing entity;]
1197 [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1198 [(C) for personal property that is semiconductor manufacturing equipment; or]
1199 [(ii) the taxable value of personal property:]
1200 [(A) contained on the tax rolls of a taxing entity;]
1201 [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1202 [(C) that is semiconductor manufacturing equipment.]
1203 [(3)] (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative

1204 budget.
1205 (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
1206 auditor of:
1207 (i) its intent to exceed the certified tax rate; and
1208 (ii) the amount by which it proposes to exceed the certified tax rate.
1209 (c) The county auditor shall notify all property owners of any intent to exceed the
1210 certified tax rate in accordance with Subsection 59-2-919 [(2)] (3).
1211 [(4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
1212 reduced for any year to the extent necessary to provide a community development and renewal
1213 agency established under Title 17C, Limited Purpose Local Government Entities - Community
1214 Development and Renewal Agencies, with approximately the same amount of money the
1215 agency would have received without a reduction in the county's certified tax rate if:]
1216 [(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
1217 (2)(d)(i);]
1218 [(ii) the amount of the decrease is more than 20% of the county's certified tax rate of
1219 the previous year; and]
1220 [(iii) the decrease results in a reduction of the amount to be paid to the agency under
1221 Section 17C-1-403 or 17C-1-404 .]
1222 [(b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
1223 year to the extent necessary to provide a community development and renewal agency with
1224 approximately the same amount of money as the agency would have received without an
1225 increase in the certified tax rate that year if:]
1226 [(i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
1227 a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and]
1228 [(ii) The certified tax rate of a city, school district, local district, or special service
1229 district increases independent of the adjustment to the taxable value of the base year.]
1230 [(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
1231 (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
1232 development and renewal agency established under Title 17C, Limited Purpose Local
1233 Government Entities - Community Development and Renewal Agencies, for the payment of
1234 bonds or other contract indebtedness, but not for administrative costs, may not be less than that

1235 amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
1236 (2)(d)(i).]
1237 Section 29. Section 59-2-924.2 is enacted to read:
1238 59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
1239 (1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
1240 in accordance with Section 59-2-924 .
1241 (2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1242 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
1243 59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
1244 12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1245 rate to offset the increased revenues.
1246 (3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1247 Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
1248 (i) decreased on a one-time basis by the amount of the estimated sales and use tax
1249 revenue to be distributed to the county under Subsection 59-12-1102 (3); and
1250 (ii) increased by the amount necessary to offset the county's reduction in revenue from
1251 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
1252 59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
1253 (3)(a)(i).
1254 (b) The commission shall determine estimates of sales and use tax distributions for
1255 purposes of Subsection (3)(a).
1256 (4) Beginning January 1, 1998, if a municipality has imposed an additional resort
1257 communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
1258 decreased on a one-time basis by the amount necessary to offset the first 12 months of
1259 estimated revenue from the additional resort communities sales and use tax imposed under
1260 Section 59-12-402 .
1261 (5) (a) This Subsection (5) applies to each county that:
1262 (i) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
1263 Utah Special Service District Act, to provide jail service, as provided in Subsection
1264 17A-2-1304 (1)(a)(x); and
1265 (ii) levies a property tax on behalf of the special service district under Section

1266 17A-2-1322 .
1267 (b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
1268 decreased by the amount necessary to reduce county revenues by the same amount of revenues
1269 that will be generated by the property tax imposed on behalf of the special service district.
1270 (ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
1271 levy on behalf of the special service district under Section 17A-2-1322 .
1272 (6) (a) As used in this Subsection (6):
1273 (i) "Annexing county" means a county whose unincorporated area is included within a
1274 fire district by annexation.
1275 (ii) "Annexing municipality" means a municipality whose area is included within a fire
1276 district by annexation.
1277 (iii) "Equalized fire protection tax rate" means the tax rate that results from:
1278 (A) calculating, for each participating county and each participating municipality, the
1279 property tax revenue necessary to cover all of the costs associated with providing fire
1280 protection, paramedic, and emergency services:
1281 (I) for a participating county, in the unincorporated area of the county; and
1282 (II) for a participating municipality, in the municipality; and
1283 (B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
1284 participating counties and all participating municipalities and then dividing that sum by the
1285 aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
1286 (I) for participating counties, in the unincorporated area of all participating counties;
1287 and
1288 (II) for participating municipalities, in all the participating municipalities.
1289 (iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1290 Area Act, in the creation of which an election was not required under Subsection
1291 17B-1-214 (3)(c).
1292 (v) "Fire protection tax rate" means:
1293 (A) for an annexing county, the property tax rate that, when applied to taxable property
1294 in the unincorporated area of the county, generates enough property tax revenue to cover all the
1295 costs associated with providing fire protection, paramedic, and emergency services in the
1296 unincorporated area of the county; and

1297 (B) for an annexing municipality, the property tax rate that generates enough property
1298 tax revenue in the municipality to cover all the costs associated with providing fire protection,
1299 paramedic, and emergency services in the municipality.
1300 (vi) "Participating county" means a county whose unincorporated area is included
1301 within a fire district at the time of the creation of the fire district.
1302 (vii) "Participating municipality" means a municipality whose area is included within a
1303 fire district at the time of the creation of the fire district.
1304 (b) In the first year following creation of a fire district, the certified tax rate of each
1305 participating county and each participating municipality shall be decreased by the amount of
1306 the equalized fire protection tax rate.
1307 (c) In the first year following annexation to a fire district, the certified tax rate of each
1308 annexing county and each annexing municipality shall be decreased by the fire protection tax
1309 rate.
1310 (d) Each tax levied under this section by a fire district shall be considered to be levied
1311 by:
1312 (i) each participating county and each annexing county for purposes of the county's tax
1313 limitation under Section 59-2-908 ; and
1314 (ii) each participating municipality and each annexing municipality for purposes of the
1315 municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
1316 city.
1317 (7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1318 entity's certified tax rate, calculated in accordance with Section 59-2-924 , shall be adjusted by
1319 the amount necessary to offset any change in the certified tax rate that may result from
1320 excluding the following from the certified tax rate under Subsection 59-2-924 (3) enacted by the
1321 Legislature during the 2007 General Session:
1322 (a) personal property tax revenue:
1323 (i) received by a taxing entity;
1324 (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1325 (iii) for personal property that is semiconductor manufacturing equipment; or
1326 (b) the taxable value of personal property:
1327 (i) contained on the tax rolls of a taxing entity;

1328 (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1329 (iii) that is semiconductor manufacturing equipment.
1330 (8) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
1331 reduced for any year to the extent necessary to provide a community development and renewal
1332 agency established under Title 17C, Limited Purpose Local Government Entities - Community
1333 Development and Renewal Agencies, with approximately the same amount of money the
1334 agency would have received without a reduction in the county's certified tax rate, calculated in
1335 accordance with Section 59-2-924 , if:
1336 (i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
1337 (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
1338 previous year; and
1339 (iii) the decrease results in a reduction of the amount to be paid to the agency under
1340 Section 17C-1-403 or 17C-1-404 .
1341 (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
1342 year to the extent necessary to provide a community development and renewal agency with
1343 approximately the same amount of money as the agency would have received without an
1344 increase in the certified tax rate that year if:
1345 (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
1346 a decrease in the certified tax rate under Subsection (2) or (3)(a); and
1347 (ii) the certified tax rate of a city, school district, local district, or special service
1348 district increases independent of the adjustment to the taxable value of the base year.
1349 (c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
1350 the amount of money allocated and, when collected, paid each year to a community
1351 development and renewal agency established under Title 17C, Limited Purpose Local
1352 Government Entities - Community Development and Renewal Agencies, for the payment of
1353 bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1354 amount would have been without a decrease in the certified tax rate under Subsection (2) or
1355 (3)(a).
1356 Section 30. Section 59-2-924.3 is enacted to read:
1357 59-2-924.3. Adjustment of the calculation of the certified tax rate for a school
1358 district imposing a capital outlay levy in a county of the first class.

1359 (1) As used in this section:
1360 (a) "Capital outlay increment" means the amount of revenue equal to the difference
1361 between:
1362 (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1363 within a school district during a fiscal year; and
1364 (ii) the amount of revenue the school district received during the same fiscal year from
1365 the distribution described in Subsection 53A-16-107.1 (1).
1366 (b) "Contributing school district" means a school district in a county of the first class
1367 that in a fiscal year receives less revenue from the distribution described in Subsection
1368 53A-16-107.1 (1) than it would have received during the same fiscal year from a levy imposed
1369 within the school district of .0006 per dollar of taxable value.
1370 (c) "Receiving school district" means a school district in a county of the first class that
1371 in a fiscal year receives more revenue from the distribution described in Subsection
1372 53A-16-107.1 (1) than it would have received during the same fiscal year from a levy imposed
1373 within the school district of .0006 per dollar of taxable value.
1374 (2) For fiscal year 2009-10, a receiving school district shall decrease its capital outlay
1375 certified tax rate under Subsection 59-2-924 (3)(g)(ii) an amount required to offset the receiving
1376 school district's estimated capital outlay increment for the current fiscal year.
1377 (3) Beginning with fiscal year 2010-11, a receiving school district shall decrease its
1378 capital outlay certified tax rate under Subsection 59-2-924 (3)(g)(ii) by the amount required to
1379 offset the receiving school district's capital outlay increment for the prior fiscal year.
1380 (4) For fiscal year 2009-10, a contributing school district is exempt from the public
1381 notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school district's
1382 capital outlay levy certified tax rate calculated pursuant to Subsection 59-2-924 (3)(g)(ii) if:
1383 (a) the contributing school district budgets an increased amount of ad valorem property
1384 tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
1385 outlay levy described in Section 53A-16-107 ; and
1386 (b) the increased amount of ad valorem property tax revenue described in Subsection
1387 (4)(a) is less than or equal to that contributing school district's estimated capital outlay
1388 increment for the current fiscal year.
1389 (5) Beginning with fiscal year 2010-11, a contributing school district is exempt from

1390 the public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
1391 district's capital outlay levy certified tax rate calculated pursuant to Subsection
1392 59-2-924 (3)(g)(ii) if:
1393 (a) the contributing school district budgets an increased amount of ad valorem property
1394 tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
1395 outlay levy described in Section 53A-16-107 ; and
1396 (b) the increased amount of ad valorem property tax revenue described in Subsection
1397 (5)(a) is less than or equal to that contributing school district's capital outlay increment for the
1398 prior year.
1399 (6) Beginning with fiscal year 2011-12, a contributing school district is exempt from
1400 the public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
1401 district's capital outlay levy certified tax rate calculated pursuant to Subsection
1402 59-2-924 (3)(g)(ii) if:
1403 (a) the contributing school district budgets an increased amount of ad valorem property
1404 tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
1405 outlay levy described in Section 53A-16-107 ; and
1406 (b) the increased amount of ad valorem property tax revenue described in Subsection
1407 (6)(a) is less than or equal to the difference between:
1408 (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1409 imposed within the contributing school district during the current taxable year; and
1410 (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1411 imposed within the contributing school district during the prior taxable year.
1412 (7) Regardless of the amount a school district receives from the revenue collected from
1413 the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3), the revenue
1414 generated within the school district from the .0006 portion of the capital outlay levy required in
1415 Subsection 53A-16-107 (3) shall be considered to be budgeted ad valorem property tax
1416 revenues of the school district that levies the .0006 portion of the capital outlay levy for
1417 purposes of calculating the school district's certified tax rate in accordance with Subsection
1418 59-2-924 (3)(g)(ii).
1419 Section 31. Section 59-2-924.4 is enacted to read:
1420 59-2-924.4. Adjustment to certified tax rate of school districts receiving funds

1421 from state capital outlay programs.
1422 (1) For purposes of this section:
1423 (a) "New ongoing funding increment" means:
1424 (i) for the taxable year beginning on January 1, 2008, an amount equal to:
1425 (A) allocations to a receiving school district from the ongoing appropriation made in
1426 Section 53A-21-501 only, for fiscal year 2008-09; minus
1427 (B) allocations to a receiving school district from the ongoing appropriation made in
1428 Section 53A-21-105 only, for fiscal year 2007-08; and
1429 (ii) for a taxable year beginning on or after January 1, 2009, an amount equal to:
1430 (A) allocations to a school district from the ongoing appropriation made in Section
1431 53A-21-501 only, for the current fiscal year; and
1432 (B) allocations to a school district from the ongoing appropriation made in Section
1433 53A-21-501 only, for the prior fiscal year.
1434 (b) "Receiving school district" means a school district that receives funding under
1435 Section 53A-21-501 .
1436 (2) For each taxable year beginning on or after January 1, 2008:
1437 (a) a receiving school district with a positive new ongoing funding increment shall
1438 decrease its certified tax rate calculated in accordance with Section 59-2-924 by an amount
1439 equal to the receiving school district's new ongoing funding increment; and
1440 (b) a receiving school district with a negative new ongoing funding is exempt from the
1441 public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
1442 district's certified tax rate calculated in accordance with Section 59-2-924 if:
1443 (i) the receiving school district budgets an increased amount of ad valorem property tax
1444 revenue exclusive of new growth as defined in Subsection 59-2-924 (4); and
1445 (ii) the increased amount of ad valorem property tax revenue described in Subsection
1446 (2)(b)(i) is less than or equal to the receiving school district's new ongoing funding increment.
1447 Section 32. Section 59-2-924.5 is enacted to read:
1448 59-2-924.5. Adjustment of the calculation of the certified tax rate for certain