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H.B. 67

             1     

PUBLIC HEARINGS ON PROPERTY TAX

             2     
INCREASES

             3     
2009 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Gage Froerer

             6     
Senate Sponsor: Wayne L. Niederhauser

             7     
             8      LONG TITLE
             9      Committee Note:
             10          The Revenue and Taxation Interim Committee recommended this bill.
             11      General Description:
             12          This bill modifies the Property Tax Act to address certain requirements for a taxing
             13      entity to provide notice of public hearings.
             14      Highlighted Provisions:
             15          This bill:
             16          .    amends the format of the "Truth in Taxation" newspaper advertisement;
             17          .    modifies the advertisement requirements for a taxing entity when the taxing entity's
             18      public hearing is advertised by the county auditor;
             19          .    requires certain taxing entities to notify a county auditor of public hearings related
             20      to tax increases;
             21          .    requires the county auditor to compile the notices of public hearings;
             22          .    requires publication of the compiled information;
             23          .    requires certain taxing entities to provide information to taxpayers;
             24          .    provides for the payment of costs;
             25          .    addresses the scope of the provision; and
             26          .    makes technical changes.
             27      Monies Appropriated in this Bill:


             28          None
             29      Other Special Clauses:
             30          This bill takes effect on January 1, 2010.
             31      Utah Code Sections Affected:
             32      AMENDS:
             33          59-2-918, as last amended by Laws of Utah 2008, Chapters 61, 231, and 236
             34          59-2-919, as last amended by Laws of Utah 2008, Chapters 231 and 301
             35      ENACTS:
             36          59-2-919.2, Utah Code Annotated 1953
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 59-2-918 is amended to read:
             40           59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
             41          (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
             42      increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
             43      in Subsection 59-2-924 (4) unless it advertises its intention to do so at the same time that it
             44      advertises its intention to fix its budget for the forthcoming fiscal year.
             45          (b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             46      advertisement or hearing requirements of this section if:
             47          (A) the taxing entity is expressly exempted by law from complying with the
             48      requirements of this section; or
             49          (B) the increased amount of ad valorem tax revenue results from a tax rate increase that
             50      is exempted under Subsection 59-2-919 (2)(a)(ii)(B) from the advertisement and hearing
             51      requirements of Section 59-2-919 .
             52          (ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             53      advertisement requirements of this section if:
             54          (A) Section 53A-17a-133 allows the taxing entity to budget an increased amount of ad
             55      valorem property tax revenue without having to comply with the advertisement requirements of
             56      this section; or
             57          (B) the taxing entity:
             58          (I) collected less than $20,000 in ad valorem tax revenues for the previous fiscal year;


             59      and
             60          (II) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
             61      revenues.
             62          (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
             63      advertisement required by this section may be combined with the advertisement required by
             64      Section 59-2-919 .
             65          (b) For taxing entities operating under a January 1 through December 31 fiscal year,
             66      the advertisement required by this section shall meet the size, type, placement, and frequency
             67      requirements established under Section 59-2-919 .
             68          (3) The form of the advertisement required by this section shall meet the size, type,
             69      placement, and frequency requirements established under Section 59-2-919 and shall be
             70      [substantially] as follows:
             71     
"NOTICE OF PROPOSED TAX INCREASE

             72     
(NAME OF TAXING ENTITY)

             73          The (name of the taxing entity) is proposing to increase its property tax revenue.
             74          [*    If the proposed budget is approved, this would be an increase of _____% above
             75      the (name of the taxing entity) property tax budgeted revenue for the prior year.]
             76          *    The (name of the taxing entity) tax on a (insert the average value of a residence
             77      in the taxing entity rounded to the nearest thousand dollars) residence would
             78      increase from $______ to $________, which is $_______ per year.
             79          *    The (name of the taxing entity) tax on a (insert the value of a business having
             80      the same value as the average value of a residence in the taxing entity) business
             81      would increase from $________ to $_______, which is $______ per year.
             82          *    If the proposed budget is approved, this would be an increase of _____% above
             83      the (name of the taxing entity) property tax budgeted revenue for the prior year.
             84          All concerned citizens are invited to a public hearing on the tax increase.
             85     
PUBLIC HEARING

             86          Date/Time:    (date) (time)
             87          Location:    (name of meeting place and address of meeting place)
             88          To obtain more information regarding the tax increase, citizens may contact the (name
             89      of the taxing entity) at (phone number of taxing entity)."


             90          (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
             91      revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
             92      announce at the public hearing the scheduled time and place for consideration and adoption of
             93      the proposed budget increase.
             94          (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
             95      year shall by March 1 notify the county of the date, time, and place of the public hearing at
             96      which the budget for the following fiscal year will be considered.
             97          (b) The county shall include the information described in Subsection (5)(a) with the tax
             98      notice.
             99          (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
             100      p.m.
             101          Section 2. Section 59-2-919 is amended to read:
             102           59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of
             103      proposed tax increase -- Personal mailed notice in addition to advertisement -- Contents
             104      of personal mailed notice -- Hearing -- Dates.
             105          (1) A tax rate in excess of the certified tax rate may not be levied until a resolution has
             106      been approved by the taxing entity in accordance with this section.
             107          (2) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a
             108      newspaper or combination of newspapers of general circulation in the taxing entity.
             109          (ii) Notwithstanding Subsection (2)(a)(i), a taxing entity is not required to meet the
             110      advertisement or hearing requirements of this section if:
             111          (A) the taxing entity is expressly exempted by law from complying with the
             112      requirements of this section; or
             113          (B) (I) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,
             114      Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
             115      emergency, and emergency medical services;
             116          (II) the tax rate increase is approved by the taxing entity's voters at an election held for
             117      that purpose on or before December 31, 2010;
             118          (III) the purpose of the tax rate increase is to pay for fire protection, emergency, and
             119      emergency medical services provided by the interlocal entity; and
             120          (IV) at least 30 days before its annual budget hearing, the taxing entity:


             121          (Aa) adopts a resolution certifying that the taxing entity will dedicate all revenue from
             122      the tax rate increase exclusively to pay for fire protection, emergency, and emergency medical
             123      services provided by the interlocal entity and that the amount of other revenues, independent of
             124      the revenue generated from the tax rate increase, that the taxing entity spends for fire
             125      protection, emergency, and emergency medical services each year after the tax rate increase
             126      will not decrease below the amount spent by the taxing entity during the year immediately
             127      before the tax rate increase without a corresponding decrease in the taxing entity's property tax
             128      revenues used in calculating the taxing entity's certified tax rate; and
             129          (Bb) sends a copy of the resolution to the commission.
             130          (iii) The exception under Subsection (2)(a)(ii)(B) from the advertisement and hearing
             131      requirements of this section does not apply to an increase in a taxing entity's tax rate that occurs
             132      after December 31, 2010, even if the tax rate increase is approved by the taxing entity's voters
             133      before that date.
             134          (iv) Notwithstanding Subsection (2)(a)(i), a taxing entity is not required to meet the
             135      advertisement requirements of this section if:
             136          (A) Section 53A-17a-133 allows the taxing entity to levy a tax rate that exceeds that
             137      certified tax rate without having to comply with the advertisement requirements of this section;
             138      or
             139          (B) the taxing entity:
             140          (I) collected less than $20,000 in ad valorem tax revenues for the previous fiscal year;
             141      and
             142          (II) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
             143      revenues.
             144          (b) The advertisement described in this section shall:
             145          (i) be no less than 1/4 page in size;
             146          (ii) use type no smaller than 18 point; and
             147          (iii) be surrounded by a 1/4-inch border.
             148          (c) The advertisement described in this section may not be placed in that portion of the
             149      newspaper where legal notices and classified advertisements appear.
             150          (d) It is the intent of the Legislature that:
             151          (i) whenever possible, the advertisement described in this section appear in a


             152      newspaper that is published at least one day per week; and
             153          (ii) the newspaper or combination of newspapers selected:
             154          (A) be of general interest and readership in the taxing entity; and
             155          (B) not be of limited subject matter.
             156          (e) The advertisement described in this section shall:
             157          (i) except as provided in Subsection (2)(g), be run once each week for the two weeks
             158      preceding the adoption of the taxing entity's:
             159          (A) final budget; [and] or
             160          (B) final tax rate; and
             161          (ii) state that the taxing entity will meet on a certain day, time, and place fixed in the
             162      advertisement, which shall be not less than seven days after the day the first advertisement is
             163      published, for the purpose of hearing comments regarding any proposed increase and to explain
             164      the reasons for the proposed increase.
             165          (f) The meeting on the proposed increase may coincide with the hearing on the
             166      proposed budget of the taxing entity.
             167          (g) If a taxing entity's public hearing information is published by the county auditor in
             168      accordance with Section 59-2-919.2 , the taxing entity is not subject to the requirement to run
             169      the advertisement twice, as required in Subsection (2)(e)(i), but shall run the advertisement
             170      once during the week preceding the adoption of the taxing entity's:
             171          (i) final budget; or
             172          (ii) final tax rate.
             173          (3) The form and content of the notice shall be [substantially] as follows:
             174     
"NOTICE OF PROPOSED TAX INCREASE

             175     
(NAME OF TAXING ENTITY)

             176          The (name of the taxing entity) is proposing to increase its property tax revenue.
             177          [*    If the proposed budget is approved, this would be an increase of _____% above
             178      the (name of the taxing entity) property tax budgeted revenue for the prior year.]
             179          *    The (name of the taxing entity) tax on a (insert the average value of a residence
             180      in the taxing entity rounded to the nearest thousand dollars) residence would
             181      increase from $______ to $________, which is $_______ per year.
             182          *    The (name of the taxing entity) tax on a (insert the value of a business having


             183      the same value as the average value of a residence in the taxing entity) business would increase
             184      from $________ to $_______, which is $______ per year.
             185          *    If the proposed budget is approved, this would be an increase of _____% above
             186      the (name of the taxing entity) property tax budgeted revenue for the prior year.
             187          (Name of taxing entity) property tax revenue from new growth and other sources will
             188      increase from $_______________ to $______________.
             189          All concerned citizens are invited to a public hearing on the tax increase.
             190     
PUBLIC HEARING

             191          Date/Time:    (date) (time)
             192          Location:    (name of meeting place and address of meeting place)
             193          To obtain more information regarding the tax increase, citizens may contact the (name
             194      of the taxing entity) at (phone number of taxing entity)."
             195          (4) The commission:
             196          (a) shall adopt rules governing the joint use of one advertisement under this section or
             197      Section 59-2-918 by two or more taxing entities; and
             198          (b) may, upon petition by any taxing entity, authorize either:
             199          (i) the use of weekly newspapers in counties having both daily and weekly newspapers
             200      where the weekly newspaper would provide equal or greater notice to the taxpayer; or
             201          (ii) the use of a commission-approved direct notice to each taxpayer if the:
             202          (A) cost of the advertisement would cause undue hardship; and
             203          (B) direct notice is different and separate from that provided for in Section 59-2-919.1 .
             204          (5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt
             205      a resolution levying a tax rate in excess of the certified tax rate.
             206          (b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
             207      the scheduled time and place for consideration and adoption of the resolution shall be
             208      announced at the public hearing.
             209          (c) If a resolution adopting a tax rate is to be considered at a day and time that is more
             210      than two weeks after the public hearing described in Subsection 59-2-919.1 (2)(c)(v), a taxing
             211      entity, other than a taxing entity described in Subsection (2)(a)(ii), shall advertise the date of
             212      the proposed adoption of the resolution in the same manner as provided under Subsections (2)
             213      and (3).


             214          (6) (a) All hearings described in this section shall be open to the public.
             215          (b) The governing body of a taxing entity conducting a hearing shall permit all
             216      interested parties desiring to be heard an opportunity to present oral testimony within
             217      reasonable time limits.
             218          (7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
             219      year of the date, time, and place a public hearing is held by the taxing entity pursuant to this
             220      section.
             221          (b) A taxing entity may not schedule a hearing described in this section at the same
             222      time as another overlapping taxing entity in the same county, but all taxing entities in which the
             223      power to set tax levies is vested in the same governing board or authority may consolidate the
             224      required hearings into one hearing.
             225          (c) The county legislative body shall resolve any conflicts in hearing dates and times
             226      after consultation with each affected taxing entity.
             227          (8) A taxing entity shall hold a public hearing under this section beginning at or after 6
             228      p.m.
             229          Section 3. Section 59-2-919.2 is enacted to read:
             230          59-2-919.2. Consolidated advertisement of public hearings.
             231          (1) (a) Except as provided in Subsection (1)(b), on the same day on which a taxing
             232      entity provides the notice to the county required under Subsection 59-2-919 (7), the taxing
             233      entity shall provide to the county auditor the information required by Subsection 59-2-919 (7).
             234          (b) A taxing entity is not required to notify the county auditor of the taxing entity's
             235      public hearing in accordance with Subsection (1)(a) if the taxing entity is exempt from the
             236      advertisement requirements of Section 59-2-919 .
             237          (2) If as of July 22, two or more taxing entities notify the county auditor under
             238      Subsection (1), the county auditor shall by no later than July 22 of each year:
             239          (a) compile a list of the taxing entities that notify the county auditor under Subsection
             240      (1);
             241          (b) include on the list described in Subsection (2)(a), the following information for
             242      each taxing entity on the list:
             243          (i) the name of the taxing entity;
             244          (ii) the date, time, and location of the public hearing required under Section 59-2-919 ;


             245          (iii) the average dollar increase on a residence in the taxing entity that the proposed tax
             246      increase would generate; and
             247          (iv) the average dollar increase on a business in the taxing entity that the proposed tax
             248      increase would generate;
             249          (c) provide a copy of the list described in Subsection (2)(a) to each taxing entity that
             250      notifies the county auditor under Subsection (1); and
             251          (d) in addition to the requirements of Subsection (3), if the county has a webpage,
             252      publish a copy of the list described in Subsection (2)(a) on the county's webpage until
             253      December 31.
             254          (3) (a) At least two weeks before any public hearing included in the list under
             255      Subsection (2) is held, the county auditor shall publish:
             256          (i) the list compiled under Subsection (2); and
             257          (ii) a statement that:
             258          (A) the list is for informational purposes only;
             259          (B) the list should not be relied on to determine a person's tax liability under this
             260      chapter; and
             261          (C) for specific information related to the tax liability of a taxpayer, the taxpayer
             262      should review the taxpayer's tax notice received under Section 59-2-919.1 .
             263          (b) The information described in Subsection (3)(a) shall be published:
             264          (i) in no less than 1/4 page in size;
             265          (ii) in type no smaller than 18 point; and
             266          (iii) surrounded by a 1/4-inch border.
             267          (c) The published information described in Subsection (3)(a) may not be placed in the
             268      portion of a newspaper where a legal notice or classified advertisement appears.
             269          (d) A county auditor shall publish the information described in Subsection (3)(a):
             270          (i) in a newspaper or combination of newspapers that are:
             271          (A) published at least one day per week;
             272          (B) of general interest and readership in the county; and
             273          (C) not of limited subject matter; and
             274          (ii) once each week for the two weeks preceding the first hearing included in the list
             275      compiled under Subsection (2).


             276          (4) A taxing entity that notifies the county auditor under Subsection (1) shall provide
             277      the list described in Subsection (2)(c) to a person:
             278          (a) who attends a public hearing of the taxing entity held in accordance with the
             279      requirements of Section 59-2-919 ; or
             280          (b) who requests a copy of the list.
             281          (5) (a) A county auditor shall by no later than 30 days of the day on which the last
             282      publication of the information required by Subsection (3)(a) is made:
             283          (i) determine the costs of compiling and publishing the list; and
             284          (ii) charge each taxing entity included on the list an amount calculated by dividing the
             285      amount determined under Subsection (5)(a) by the number of taxing entities on the list.
             286          (b) A taxing entity shall pay the county auditor the amount charged under Subsection
             287      (5)(a).
             288          (6) The publication of the list under this section does not remove or change the
             289      requirements for advertisements by a taxing entity under Section 59-2-918 or 59-2-919 .
             290          Section 4. Effective date.
             291          This bill takes effect on January 1, 2010.




Legislative Review Note
    as of 12-16-08 1:26 PM


Office of Legislative Research and General Counsel


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