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H.B. 292
This document includes House Committee Amendments incorporated into the bill on Thu, Mar 4, 2010 at 9:18 AM by jeyring. --> 1
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8 LONG TITLE
9 General Description:
10 This bill provides for equalization of property tax revenues when a school district
11 division takes place.
12 Highlighted Provisions:
13 This bill:
14 . creates the divided school district levy;
15 . requires equalization of school property taxes at a certain amount per student when
16 a school district is divided;
17 . sets the rate for the divided school district levy;
18 . requires the state superintendent to report certain information;
19 . requires county officials to perform certain functions;
20 . modifies the notice and public hearing requirements for property tax increases
21 related to the equalization of school property taxes in a divided school district;
22 . defines terms; and
23 . makes technical changes.
24 Monies Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 This bill has retrospective operation for a taxable year beginning on or after January 1,
28 2010.
29 Utah Code Sections Affected:
30 AMENDS:
31 53A-2-118.3, as enacted by Laws of Utah 2008, Chapter 236
32 59-2-924.4, as last amended by Laws of Utah 2009, Chapter 204
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34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 53A-2-118.3 is amended to read:
36 53A-2-118.3. Imposition of the divided school district levy in qualifying divided
37 school districts.
38 (1) For purposes of this section:
39 (a) "Capital outlay increment" is as defined in Section 59-2-924.3 .
40 (b) "Contributing divided school district" is as defined in Section 59-2-924.4 .
41 (c) "Divided school district levy" means a property tax levy imposed in accordance
42 with this section.
43 (d) "Equalized property tax revenues per enrolled student" means:
44 (i) the total amount of property tax, including fee-in-lieu revenues, imposed by a
45 qualifying divided school district in the calendar year preceding a qualifying taxable year; less
46 (ii) revenue generated by:
47 (A) the minimum basic tax rate imposed under Section 53A-17a-135 ; and
48 (B) a levy for bonded indebtedness imposed under Title 11, Chapter 14, Local
49 Government Bonding Act; divided by
50 (iii) the qualifying divided school district enrollment for the year preceding the
51 qualifying taxable year, as of the October 1 enrollment count.
52 [
52a H. [
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54 created under Section 53A-2-118.1 that begins to provide educational services on or after July
55 1, 2008.
56 [
57 district begins to provide educational services.
58 (g) "Receiving divided school district" is as defined in Section 59-2-924.4 .
58a H. (h) "Total equalized property tax revenues" means the equalized property tax revenues
58b per enrolled student multiplied by the total enrollment within the qualifying divided school
58c district, as of the October 1 counts in the preceding calendar year. .H
59 (2) When a new school district is created pursuant to Section 53A-2-118.1 , the state
60 superintendent shall:
61 (a) (i) determine the amount of equalized property tax revenues per enrolled student
62 generated in the qualifying divided school district during the calendar year preceding the
63 qualifying taxable year; and
64 (ii) notify the affected districts within a qualifying divided school district and the
65 county auditor of the superintendent's:
66 (A) initial estimate of the equalized property tax revenues per enrolled student by
67 January 1 of the calendar year preceding the qualifying taxable year; and
68 (B) final estimate of the equalized property tax revenues per enrolled student by June 1
69 of the calendar year preceding the qualifying taxable year; and
70 (b) annually calculate and notify the affected school districts within a qualifying
71 divided school district and the county auditor of the superintendent's:
72 (i) initial estimate of the total equalized property tax revenues by January 1 of the
73 calendar year preceding the qualifying taxable year; and
74 (ii) final estimate of the total equalized property tax revenues by June 1 of the calendar
75 year preceding the qualifying taxable year.
76 (3) (a) The county auditor of a county with a qualifying divided school district shall
77 determine the property tax rates described in Subsections (3)(b) and (c) by July 1 of each
78 taxable year beginning with the qualifying taxable year.
79 (b) Except as provided in Subsection (3)(c), the tax rate for a qualifying school
80 district's divided school district levy is a tax rate that generates an amount of property tax
81 revenues equal to the qualifying divided school district's total equalized property tax revenues.
82 (c) If the qualifying divided school district is located within a county of the first class,
83 the tax rate for a qualifying divided school district's divided school district levy is a tax rate that
84 generates an amount of property tax revenues equal to:
85 (i) the qualifying divided school district's total equalized property tax revenues; minus
86 (ii) the sum of the capital outlay increments of all receiving divided school districts
87 located within the qualifying divided school district.
88 [
89 the state contribution toward the minimum school program described in Section 53A-17a-104 ,
90 a school district within a qualifying divided school district shall impose a [
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92 district levy at the rate calculated by the county auditor under Subsection (3).
93 [
94 distribute revenues generated by the [
95 levy required in Subsection [
96 boundaries of the qualifying divided school district [
97 district's proportion of total current year enrollment within the qualifying divided school
98 district, as of the October 1 enrollment counts in the calendar year in which the levy is
99 imposed.
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110 the enrollment [
111 calculated on the basis of enrollment in school district schools located within that school
112 district's newly created or adjusted boundaries, as of October 1 enrollment counts.
113 [
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117 qualifying divided school district shall distribute, in accordance with Subsection [
118 revenue generated within the qualifying divided school district during the prior calendar year
119 from the [
120 Section 2. Section 59-2-924.4 is amended to read:
121 59-2-924.4. Adjustment of the calculation of the certified tax rate for certain
122 divided school districts -- Aggregate tax rate limitation.
123 (1) As used in this section:
124 [
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130 (a) "Aggregate tax rate" means a tax rate that equals the sum of the tax rates of the
131 following levies:
132 (i) Section 11-2-7 ;
133 (ii) Section 53A-2-118.3 ;
134 (iii) Section 53A-16-107 ;
135 (iv) Section 53A-16-111 ;
136 (v) Section 53A-17a-127 ;
137 (vi) Section 53A-17a-133 ;
138 (vii) Section 53A-17a-134 ;
139 (viii) Section 53A-17a-143 ;
140 (ix) Section 53A-17a-145 ;
141 (x) Section 53A-17a-151 ; and
142 (xi) Section 63-7-704 .
143 (b) "Contributing divided school district" means a school district located within a
144 qualifying divided school district that in a fiscal year receives less revenue from the distribution
145 described in [
146 fiscal year from [
147 the imposition of the divided school district levy within the contributing divided school district.
148 (c) "Divided school district" means a school district from which a new school district is
149 created.
150 (d) "Divided school district increment" means the amount of revenue equal to the
151 difference between:
152 (i) the amount of revenue generated by the imposition of the divided school district
153 levy within a qualifying divided school district during a fiscal year; and
154 (ii) the amount of revenue the qualifying divided school district received during the
155 same fiscal year from the distribution described in Section 53A-2-118.3 (5).
156 (e) "Divided school district levy" means a property tax levy imposed in accordance
157 with Section 53A-2-118.3 .
158 [
159 (i) created under Section 53A-2-118.1 ;
160 (ii) that begins to provide educational services after July 1, 2008; and
161 (iii) located in a qualifying divided school district.
162 [
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164 created under Section 53A-2-118.1 that begins to provide educational services after July 1,
165 2008.
166 [
167 begins to provide educational services.
168 [
169 qualifying divided school district that in a fiscal year receives more revenue from the
170 distribution described in [
171 during the same fiscal year from [
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173 school district.
174 (2) For the qualifying fiscal year, a contributing school district is exempt from the
175 notice and public hearing provisions of Section 59-2-919 if the contributing school district
176 budgets an amount of ad valorem property tax revenue for the contributing school district's
177 aggregate tax rate in an amount equal to or less than the sum of the following:
178 (a) an amount of revenue equal to:
179 (i) the amount of revenue generated by the contributing school district's aggregate tax
180 rate for the prior year; and
181 (ii) revenue from new growth as defined in Subsection 59-2-924 (4); and
182 (b) an amount equal to the contributing school district's estimated divided school
183 district increment for the qualifying fiscal year.
184 (3) For the qualifying fiscal year, a receiving school district is exempt from the notice
185 and public hearing provisions of Section 59-2-919 if the receiving school district budgets an
186 amount of ad valorem property tax revenue for the receiving school district's aggregate tax rate
187 in an amount equal to or less than the difference of the following:
188 (a) an amount of revenue equal to:
189 (i) the amount of revenue generated by the contributing school district's aggregate tax
190 rate for the prior year; and
191 (ii) revenue from new growth as defined in Subsection 59-2-924 (4); and
192 (b) an amount equal to the receiving school district's estimated divided school district
193 increment for the qualifying fiscal year.
194 [
195 divided school district shall decrease its certified tax rate calculated in accordance with Section
196 59-2-924 by the amount required to offset the receiving divided school district's [
197 divided school district increment for the prior fiscal year.
198 [
199 divided school district is exempt from the notice and public hearing provisions of Section
200 59-2-919 for the contributing divided school district's certified tax rate calculated pursuant to
201 Section 59-2-924 if:
202 (a) the contributing divided school district budgets an increased amount of ad valorem
203 property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
204 [
205 (b) the increased amount of ad valorem property tax revenue described in Subsection
206 (3)(a) is less than or equal to that contributing divided school district's [
207 school district increment for the prior year.
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222 from the [
223 53A-2-118.3 , the revenue generated within the school district from the [
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225 considered to be budgeted ad valorem property tax revenues of the school district that levies
226 the [
227 the school district's certified tax rate in accordance with Section 59-2-924 .
228 (7) Notwithstanding the statutory property tax rate caps allowed by statute, beginning
229 with the qualifying fiscal year, the aggregate tax rate of a school district located in a qualifying
230 divided school district may not exceed .0062 per dollar of taxable value.
231 Section 3. Retrospective operation.
232 This bill has retrospective operation for a taxable year beginning on or after January 1,
233 2010.
Legislative Review Note
as of 11-18-09 1:40 PM