S.B. 219

1

USE OF SEVERANCE TAX REVENUES WHEN
2 A SCHOOL DISTRICT DIVISION OCCURS
3 2008 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Michael G. Waddoups
6 House Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill allocates severance taxes for school capital outlay under certain circumstances.
11 Highlighted Provisions:
12 This bill:
13 . creates a School District Division Capital Equalization Fund;
14 . allocates a portion of mining severance tax revenues to the fund; and
15 . requires the State Board of Education to make allocations, for a certain period of
16 time, to the remaining portion of a school district that has been divided.
17 Monies Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 This bill takes effect on July 1, 2008.
21 This bill coordinates with S.B. 104, State Capital Facility Board - Creation and
22 Oversight, by substantively modifying language.
23 Utah Code Sections Affected:
24 AMENDS:
25 59-5-215, as enacted by Laws of Utah 1988, Chapter 4
26 ENACTS:
27 53A-21-601, Utah Code Annotated 1953

28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 53A-21-601 is enacted to read:
31 Part 6. School District Division Capital Equalization Fund
32 53A-21-601. School District Division Capital Equalization Fund -- Severance tax
33 -- Allocations.
34 (1) As used in this section:
35 (a) "New school district" and "remaining school district" are as defined in Section
36 53A-2-117 .
37 (b) "Qualifying school district" means a remaining school district whose school district
38 division occurred in the previous ten years.
39 (2) (a) There is created a restricted special revenue fund known as the School District
40 Division Capital Equalization Fund.
41 (b) Any interest earned on the fund shall be deposited into the General Fund.
42 (3) When a school district division occurs pursuant to Section 53A-2-118.1 , for the
43 fiscal year in which the new school district assumes responsibility for providing educational
44 services and the following nine years:
45 (a) 25% of the average annual revenues generated under Section 59-5-202 over the
46 prior three years, not to exceed the amount of current fiscal year revenues, shall be deposited
47 into the School District Division Capital Equalization Fund; and
48 (b) the State Board of Education shall allocate the funds deposited under Subsection
49 (3)(a) in accordance with Subsection (4).
50 (4) (a) The State Board of Education shall allocate funds deposited into the School
51 District Division Capital Equalization Fund to a qualifying school district or qualifying school
52 districts, to be used only for capital outlay purposes.
53 (b) If more than one qualifying school district is affected by one or more school district
54 divisions that occur pursuant to Section 53A-2-118.1 , the State Board of Education shall
55 allocate funds deposited into the fund pursuant to Subsection (3)(a) by:
56 (i) equally dividing 10% of available funds among each qualifying school district; and
57 (ii) allocating the remaining 90% to the qualifying school district or qualifying school
58 districts most in need, after considering the following factors:

59 (A) student enrollment growth and new building needs;
60 (B) the extent to which the district division has reduced the property tax base available
61 to fund facilities in the qualifying school district;
62 (C) property tax taxable base per student;
63 (D) property tax effort; and
64 (E) capacity and renovation needs in existing facilities.
65 (c) The State Board of Education may only allocate funds pursuant to this section to a
66 qualifying school district for ten years following the school district division pursuant to Section
67 53A-2-118.1 .
68 Section 2. Section 59-5-215 is amended to read:
69 59-5-215. Disposition of taxes collected -- Credit to General Fund.
70 All taxes imposed and collected under Section 59-5-202 shall be:
71 (1) paid to the commission[, and];
72 (2) promptly remitted to the state treasurer[, to be]; and
73 (3) except those taxes otherwise allocated under Section 53A-21-601 , credited to the
74 General Fund.
75 Section 3. Effective date.
76 This bill takes effect on July 1, 2008.
77 Section 4. Coordinating S.B. 219 with S.B. 104 -- Substantive changes.
78 If this S.B. 219 and S.B. 104, State Capital Facility Board - Creation and Oversight,
79 both pass, it is the intent of the Legislature that the Office of Legislative Research and General
80 Counsel, in preparing the Utah Code database for publication, replace the references in Section
81 53A-21-601 to "State Board of Education" with "Utah School Facilities Board".




Legislative Review Note
as of 2-6-08 3:58 PM

Office of Legislative Research and General Counsel