H.B. 23

1

CERTIFIED TAX RATE AMENDMENTS
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Fred R. Hunsaker
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 Committee Note:
9 The Revenue and Taxation Interim Committee recommended this bill.
10 General Description:
11 This bill amends provisions in the Property Tax Act relating to the calculation of a
12 taxing entity's certified tax rate.
13 Highlighted Provisions:
14 This bill:
15 . includes the revenue a taxing entity collects from redemptions as "ad valorem
16 property tax revenues" for purposes of calculating the taxing entity's certified tax
17 rate;
18 . defines terms; and
19 . makes technical changes.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill has retrospective operation for taxable years beginning on or after January 1,
24 2009.
25 Utah Code Sections Affected:
26 AMENDS:
27 59-2-924, as last amended by Laws of Utah 2008, Chapters 61, 118, 231, 236, 330, 360,

28 and 382
29
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 59-2-924 is amended to read:
32 59-2-924. Report of valuation of property to county auditor and commission --
33 Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
34 tax rate -- Rulemaking authority -- Adoption of tentative budget.
35 (1) Before June 1 of each year, the county assessor of each county shall deliver to the
36 county auditor and the commission the following statements:
37 (a) a statement containing the aggregate valuation of all taxable real property assessed
38 by a county assessor in accordance with Part 3, County Assessment, for each taxing entity; and
39 (b) a statement containing the taxable value of all personal property assessed by a
40 county assessor in accordance with Part 3, County Assessment, from the prior year end values.
41 (2) The county auditor shall, on or before June 8, transmit to the governing body of
42 each taxing entity:
43 (a) the statements described in Subsections (1)(a) and (b);
44 (b) an estimate of the revenue from personal property;
45 (c) the certified tax rate; and
46 (d) all forms necessary to submit a tax levy request.
47 (3) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
48 property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
49 year.
50 (b) For purposes of this Subsection (3):
51 (i) "Ad valorem property tax revenues" do not include:
52 [(A) collections from redemptions;]
53 [(B)] (A) interest;
54 [(C)] (B) penalties; and
55 [(D)] (C) revenue received by a taxing entity from personal property that is:
56 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
57 (II) semiconductor manufacturing equipment.
58 (ii) "Aggregate taxable value of all property taxed" means:

59 (A) the aggregate taxable value of all real property assessed by a county assessor in
60 accordance with Part 3, County Assessment, for the current year;
61 (B) the aggregate taxable year end value of all personal property assessed by a county
62 assessor in accordance with Part 3, County Assessment, for the prior year; and
63 (C) the aggregate taxable value of all real and personal property assessed by the
64 commission in accordance with Part 2, Assessment of Property, for the current year.
65 (c) (i) Except as otherwise provided in this section, the certified tax rate shall be
66 calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
67 taxing entity by the amount calculated under Subsection (3)(c)(ii).
68 (ii) For purposes of Subsection (3)(c)(i), the legislative body of a taxing entity shall
69 calculate an amount as follows:
70 (A) calculate for the taxing entity the difference between:
71 (I) the aggregate taxable value of all property taxed; and
72 (II) any redevelopment adjustments for the current calendar year;
73 (B) after making the calculation required by Subsection (3)(c)(ii)(A), calculate an
74 amount determined by increasing or decreasing the amount calculated under Subsection
75 (3)(c)(ii)(A) by the average of the percentage net change in the value of taxable property for the
76 equalization period for the three calendar years immediately preceding the current calendar
77 year;
78 (C) after making the calculation required by Subsection (3)(c)(ii)(B), calculate the
79 product of:
80 (I) the amount calculated under Subsection (3)(c)(ii)(B); and
81 (II) the percentage of property taxes collected for the five calendar years immediately
82 preceding the current calendar year; and
83 (D) after making the calculation required by Subsection (3)(c)(ii)(C), calculate an
84 amount determined by subtracting from the amount calculated under Subsection (3)(c)(ii)(C)
85 any new growth as defined in this section:
86 (I) within the taxing entity; and
87 (II) for the following calendar year:
88 (Aa) for new growth from real property assessed by a county assessor in accordance
89 with Part 3, County Assessment and all property assessed by the commission in accordance

90 with Section 59-2-201 , the current calendar year; and
91 (Bb) for new growth from personal property assessed by a county assessor in
92 accordance with Part 3, County Assessment, the prior calendar year.
93 (iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all
94 property taxed:
95 (A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in
96 Subsection (3)(b)(ii);
97 (B) does not include the total taxable value of personal property contained on the tax
98 rolls of the taxing entity that is:
99 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
100 (II) semiconductor manufacturing equipment; and
101 (C) for personal property assessed by a county assessor in accordance with Part 3,
102 County Assessment, the taxable value of personal property is the year end value of the personal
103 property contained on the prior year's tax rolls of the entity.
104 (iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
105 January 1, 2007, the value of taxable property does not include the value of personal property
106 that is:
107 (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
108 County Assessment; and
109 (B) semiconductor manufacturing equipment.
110 (v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or after
111 January 1, 2007, the percentage of property taxes collected does not include property taxes
112 collected from personal property that is:
113 (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
114 County Assessment; and
115 (B) semiconductor manufacturing equipment.
116 (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
117 January 1, 2009, the value of taxable property does not include the value of personal property
118 that is within the taxing entity assessed by a county assessor in accordance with Part 3, County
119 Assessment.
120 (vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,

121 the commission may prescribe rules for calculating redevelopment adjustments for a calendar
122 year.
123 (d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
124 the commission shall make rules determining the calculation of ad valorem property tax
125 revenues budgeted by a taxing entity.
126 (ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted by
127 a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
128 calculated for purposes of Section 59-2-913 .
129 (e) The certified tax rates for the taxing entities described in this Subsection (3)(e) shall
130 be calculated as follows:
131 (i) except as provided in Subsection (3)(e)(ii), for new taxing entities the certified tax
132 rate is zero;
133 (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
134 (A) in a county of the first, second, or third class, the levy imposed for municipal-type
135 services under Sections 17-34-1 and 17-36-9 ; and
136 (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
137 purposes and such other levies imposed solely for the municipal-type services identified in
138 Section 17-34-1 and Subsection 17-36-3 (22); and
139 (iii) for debt service voted on by the public, the certified tax rate shall be the actual
140 levy imposed by that section, except that the certified tax rates for the following levies shall be
141 calculated in accordance with Section 59-2-913 and this section:
142 (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 , [53A-17a-125 ,]
143 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , and 53A-17a-145 [, and
144 53A-21-103 ]; and
145 (B) levies to pay for the costs of state legislative mandates or judicial or administrative
146 orders under Section 59-2-1604 .
147 (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
148 established at that rate which is sufficient to generate only the revenue required to satisfy one
149 or more eligible judgments, as defined in Section 59-2-102 .
150 (ii) The ad valorem property tax revenue generated by the judgment levy shall not be
151 considered in establishing the taxing entity's aggregate certified tax rate.

152 (g) The ad valorem property tax revenue generated by the capital outlay levy described
153 in Section 53A-16-107 within a taxing entity in a county of the first class:
154 (i) may not be considered in establishing the school district's aggregate certified tax
155 rate; and
156 (ii) shall be included by the commission in establishing a certified tax rate for that
157 capital outlay levy determined in accordance with the calculation described in Subsection
158 59-2-913 (3).
159 (4) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
160 (i) the taxable value of real property assessed by a county assessor contained on the
161 assessment roll;
162 (ii) the taxable value of real and personal property assessed by the commission; and
163 (iii) the taxable year end value of personal property assessed by a county assessor
164 contained on the prior year's assessment roll.
165 (b) For purposes of Subsection (4)(a)(i), the taxable value of real property on the
166 assessment roll does not include new growth as defined in Subsection (4)(c).
167 (c) "New growth" means:
168 (i) the difference between the increase in taxable value of the following property of the
169 taxing entity from the previous calendar year to the current year:
170 (A) real property assessed by a county assessor in accordance with Part 3, County
171 Assessment; and
172 (B) property assessed by the commission under Section 59-2-201 ; plus
173 (ii) the difference between the increase in taxable year end value of personal property
174 of the taxing entity from the year prior to the previous calendar year to the previous calendar
175 year; minus
176 (iii) the amount of an increase in taxable value described in Subsection (4)(e).
177 (d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
178 taxing entity does not include the taxable value of personal property that is:
179 (i) contained on the tax rolls of the taxing entity if that property is assessed by a county
180 assessor in accordance with Part 3, County Assessment; and
181 (ii) semiconductor manufacturing equipment.
182 (e) Subsection (4)(c)(iii) applies to the following increases in taxable value:

183 (i) the amount of increase to locally assessed real property taxable values resulting
184 from factoring, reappraisal, or any other adjustments; or
185 (ii) the amount of an increase in the taxable value of property assessed by the
186 commission under Section 59-2-201 resulting from a change in the method of apportioning the
187 taxable value prescribed by:
188 (A) the Legislature;
189 (B) a court;
190 (C) the commission in an administrative rule; or
191 (D) the commission in an administrative order.
192 (f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
193 property on the prior year's assessment roll does not include:
194 (i) new growth as defined in Subsection (4)(c); or
195 (ii) the total taxable year end value of personal property contained on the prior year's
196 tax rolls of the taxing entity that is:
197 (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
198 (B) semiconductor manufacturing equipment.
199 (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
200 (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
201 auditor of:
202 (i) its intent to exceed the certified tax rate; and
203 (ii) the amount by which it proposes to exceed the certified tax rate.
204 (c) The county auditor shall notify all property owners of any intent to exceed the
205 certified tax rate in accordance with Subsection 59-2-919 (3).
206 Section 2. Retrospective operation.
207 This bill has retrospective operation for a taxable year beginning on or after January 1,
208 2009.




Legislative Review Note
as of 8-27-08 12:42 PM

Office of Legislative Research and General Counsel