Download Zipped Amended WordPerfect HB0055.ZIP
[Introduced][Status][Bill Documents][Fiscal Note][Bills Directory]

H.B. 55

This document includes House Committee Amendments incorporated into the bill on Thu, Mar 7, 2013 at 9:16 AM by lerror. -->              1     

AMENDMENTS RELATED TO EDUCATION FUNDING

             2     
2013 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Joel K. Briscoe

             5     
Senate Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes to tax and education provisions to provide for education
             10      funding.
             11      Highlighted Provisions:
             12          This bill:
             13          .    establishes a set tax rate for the minimum basic tax rate, subject to the rate
             14      generating a specified revenue amount;
             15          .    eliminates an advertising requirement related to the minimum basic tax rate;
             16          .    changes the personal exemption component of the individual income tax credit
             17      calculation from a percentage of the federal personal exemption to a fixed dollar
             18      amount per exemption; and
             19          .    makes technical and conforming changes.
             20      Money Appropriated in this Bill:
             21          None
             22      Other Special Clauses:
             23          This bill provides for retrospective operation.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26          53A-17a-103, as last amended by Laws of Utah 2011, Chapter 371
             27          53A-17a-135, as last amended by Laws of Utah 2012, Chapters 4 and 421


             28          59-2-102, as last amended by Laws of Utah 2012, Chapter 240
             29          59-2-926, as last amended by Laws of Utah 2009, Chapter 388
             30          59-10-1018, as last amended by Laws of Utah 2012, Chapter 295
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 53A-17a-103 is amended to read:
             34           53A-17a-103. Definitions.
             35          As used in this chapter:
             36          (1) "Basic state-supported school program" or "basic program" means public education
             37      programs for kindergarten, elementary, and secondary school students that are operated and
             38      maintained for the amount derived by multiplying the number of weighted pupil units for each
             39      school district or charter school by the value established each year in statute, except as
             40      otherwise provided in this chapter.
             41          (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
             42      ad valorem property tax revenue equal to the sum of:
             43          (i) the amount of ad valorem property tax revenue to be generated statewide in the
             44      previous year from imposing a minimum basic tax rate, as specified in [Subsection] Section
             45      53A-17a-135 [(1)(a)]; and
             46          (ii) the product of:
             47          (A) new growth, as defined in:
             48          (I) Section 59-2-924 ; and
             49          (II) rules of the State Tax Commission; and
             50          (B) the minimum basic tax rate certified by the State Tax Commission for the previous
             51      year.
             52          (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
             53      include property tax revenue received statewide from personal property that is:
             54          (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
             55      Assessment; and
             56          (ii) semiconductor manufacturing equipment.
             57          (c) For purposes of calculating the certified revenue levy described in this Subsection
             58      (2), the State Tax Commission shall use:


             59          (i) the taxable value of real property assessed by a county assessor contained on the
             60      assessment roll;
             61          (ii) the taxable value of real and personal property assessed by the State Tax
             62      Commission; and
             63          (iii) the taxable year end value of personal property assessed by a county assessor
             64      contained on the prior year's assessment roll.
             65          (3) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
             66          (4) (a) "State-supported minimum school program" or "Minimum School Program"
             67      means public school programs for kindergarten, elementary, and secondary schools as
             68      described in this Subsection (4).
             69          (b) The minimum school program established in school districts and charter schools
             70      shall include the equivalent of a school term of nine months as determined by the State Board
             71      of Education.
             72          (c) (i) The board shall establish the number of days or equivalent instructional hours
             73      that school is held for an academic school year.
             74          (ii) Education, enhanced by utilization of technologically enriched delivery systems,
             75      when approved by local school boards or charter school governing boards, shall receive full
             76      support by the State Board of Education as it pertains to fulfilling the attendance requirements,
             77      excluding time spent viewing commercial advertising.
             78          (d) The Minimum School Program includes a program or allocation funded by a line
             79      item appropriation or other appropriation designated as follows:
             80          (i) Basic School Program;
             81          (ii) Related to Basic Programs;
             82          (iii) Voted and Board Levy Programs; or
             83          (iv) Minimum School Program.
             84          (5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
             85      factors that is computed in accordance with this chapter for the purpose of determining the
             86      costs of a program on a uniform basis for each district.
             87          Section 2. Section 53A-17a-135 is amended to read:
             88           53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
             89          (1) (a) In order to qualify for receipt of the state contribution toward the basic program


             90      and as its contribution toward its costs of the basic program, each school district shall impose a
             91      minimum basic tax rate per dollar of taxable value [that generates $289,021,900 in revenues
             92      statewide] in accordance with this section.
             93          (b) [The preliminary estimate for the 2012-13] Beginning on January 1, 2013, the
             94      minimum basic tax rate is [.001665.] the greater of:
             95          (i) H. [ .001651 ] .001691 .H ; or
             96          (ii) the certified revenue levy.
             97          (c) The State Tax Commission shall certify on or before June 22 the [rate that
             98      generates $289,021,900 in revenues statewide] minimum basic tax rate to be imposed under
             99      Subsection (1)(b).
             100          [(d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
             101      Section 53A-17a-103 , the state is subject to the notice requirements of Section 59-2-926 .]
             102          (2) (a) The state shall contribute to each district toward the cost of the basic program in
             103      the district that portion which exceeds the proceeds of the levy authorized under Subsection
             104      (1).
             105          (b) In accord with the state strategic plan for public education and to fulfill its
             106      responsibility for the development and implementation of that plan, the Legislature instructs
             107      the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
             108      of the coming five years to develop budgets that will fully fund student enrollment growth.
             109          (3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
             110      cost of the basic program in a school district, no state contribution shall be made to the basic
             111      program.
             112          (b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
             113      the basic program shall be paid into the Uniform School Fund as provided by law.
             114          Section 3. Section 59-2-102 is amended to read:
             115           59-2-102. Definitions.
             116          As used in this chapter and title:
             117          (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
             118      engaging in dispensing activities directly affecting agriculture or horticulture with an
             119      airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
             120      rotorcraft's use for agricultural and pest control purposes.


             121          (2) "Air charter service" means an air carrier operation which requires the customer to
             122      hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
             123      trip.
             124          (3) "Air contract service" means an air carrier operation available only to customers
             125      who engage the services of the carrier through a contractual agreement and excess capacity on
             126      any trip and is not available to the public at large.
             127          (4) "Aircraft" is as defined in Section 72-10-102 .
             128          (5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
             129          (i) operates:
             130          (A) on an interstate route; and
             131          (B) on a scheduled basis; and
             132          (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
             133      regularly scheduled route.
             134          (b) "Airline" does not include an:
             135          (i) air charter service; or
             136          (ii) air contract service.
             137          (6) "Assessment roll" means a permanent record of the assessment of property as
             138      assessed by the county assessor and the commission and may be maintained manually or as a
             139      computerized file as a consolidated record or as multiple records by type, classification, or
             140      categories.
             141          (7) (a) "Certified revenue levy" means a property tax levy that provides an amount of
             142      ad valorem property tax revenue equal to the sum of:
             143          (i) the amount of ad valorem property tax revenue to be generated statewide in the
             144      previous year from imposing a school minimum basic tax rate, as specified in [Subsection]
             145      Section 53A-17a-135 [(1)(a)], or multicounty assessing and collecting levy, as specified in
             146      Section 59-2-1602 ; and
             147          (ii) the product of:
             148          (A) new growth, as defined in:
             149          (I) Section 59-2-924 ; and
             150          (II) rules of the commission; and
             151          (B) the school minimum basic tax rate, as specified in Section 53A-17a-135 , or


             152      multicounty assessing and collecting levy, as specified in Section 59-2-1602 certified by the
             153      commission for the previous year.
             154          (b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
             155      include property tax revenue received by a taxing entity from personal property that is:
             156          (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
             157          (ii) semiconductor manufacturing equipment.
             158          (c) For purposes of calculating the certified revenue levy described in this Subsection
             159      (7), the commission 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          (8) "County-assessed commercial vehicle" means:
             166          (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
             167      Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
             168      property in furtherance of the owner's commercial enterprise;
             169          (b) any passenger vehicle owned by a business and used by its employees for
             170      transportation as a company car or vanpool vehicle; and
             171          (c) vehicles which are:
             172          (i) especially constructed for towing or wrecking, and which are not otherwise used to
             173      transport goods, merchandise, or people for compensation;
             174          (ii) used or licensed as taxicabs or limousines;
             175          (iii) used as rental passenger cars, travel trailers, or motor homes;
             176          (iv) used or licensed in this state for use as ambulances or hearses;
             177          (v) especially designed and used for garbage and rubbish collection; or
             178          (vi) used exclusively to transport students or their instructors to or from any private,
             179      public, or religious school or school activities.
             180          (9) (a) Except as provided in Subsection (9)(b), for purposes of Section 59-2-801 ,
             181      "designated tax area" means a tax area created by the overlapping boundaries of only the
             182      following taxing entities:


             183          (i) a county; and
             184          (ii) a school district.
             185          (b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
             186      by the overlapping boundaries of:
             187          (i) the taxing entities described in Subsection (9)(a); and
             188          (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
             189      and the boundaries of the city or town are identical; or
             190          (B) a special service district if the boundaries of the school district under Subsection
             191      (9)(a) are located entirely within the special service district.
             192          (10) "Eligible judgment" means a final and unappealable judgment or order under
             193      Section 59-2-1330 :
             194          (a) that became a final and unappealable judgment or order no more than 14 months
             195      prior to the day on which the notice required by Section 59-2-919.1 is required to be mailed;
             196      and
             197          (b) for which a taxing entity's share of the final and unappealable judgment or order is
             198      greater than or equal to the lesser of:
             199          (i) $5,000; or
             200          (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
             201      previous fiscal year.
             202          (11) (a) "Escaped property" means any property, whether personal, land, or any
             203      improvements to the property, subject to taxation and is:
             204          (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
             205      to the wrong taxpayer by the assessing authority;
             206          (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
             207      comply with the reporting requirements of this chapter; or
             208          (iii) undervalued because of errors made by the assessing authority based upon
             209      incomplete or erroneous information furnished by the taxpayer.
             210          (b) Property which is undervalued because of the use of a different valuation
             211      methodology or because of a different application of the same valuation methodology is not
             212      "escaped property."
             213          (12) "Fair market value" means the amount at which property would change hands


             214      between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
             215      and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
             216      market value" shall be determined using the current zoning laws applicable to the property in
             217      question, except in cases where there is a reasonable probability of a change in the zoning laws
             218      affecting that property in the tax year in question and the change would have an appreciable
             219      influence upon the value.
             220          (13) "Farm machinery and equipment," for purposes of the exemption provided under
             221      Section 59-2-1101 , means tractors, milking equipment and storage and cooling facilities, feed
             222      handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
             223      tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
             224      equipment used primarily for agricultural purposes; but does not include vehicles required to be
             225      registered with the Motor Vehicle Division or vehicles or other equipment used for business
             226      purposes other than farming.
             227          (14) "Geothermal fluid" means water in any form at temperatures greater than 120
             228      degrees centigrade naturally present in a geothermal system.
             229          (15) "Geothermal resource" means:
             230          (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
             231      and
             232          (b) the energy, in whatever form, including pressure, present in, resulting from, created
             233      by, or which may be extracted from that natural heat, directly or through a material medium.
             234          (16) (a) "Goodwill" means:
             235          (i) acquired goodwill that is reported as goodwill on the books and records:
             236          (A) of a taxpayer; and
             237          (B) that are maintained for financial reporting purposes; or
             238          (ii) the ability of a business to:
             239          (A) generate income:
             240          (I) that exceeds a normal rate of return on assets; and
             241          (II) resulting from a factor described in Subsection (16)(b); or
             242          (B) obtain an economic or competitive advantage resulting from a factor described in
             243      Subsection (16)(b).
             244          (b) The following factors apply to Subsection (16)(a)(ii):


             245          (i) superior management skills;
             246          (ii) reputation;
             247          (iii) customer relationships;
             248          (iv) patronage; or
             249          (v) a factor similar to Subsections (16)(b)(i) through (iv).
             250          (c) "Goodwill" does not include:
             251          (i) the intangible property described in Subsection (20)(a) or (b);
             252          (ii) locational attributes of real property, including:
             253          (A) zoning;
             254          (B) location;
             255          (C) view;
             256          (D) a geographic feature;
             257          (E) an easement;
             258          (F) a covenant;
             259          (G) proximity to raw materials;
             260          (H) the condition of surrounding property; or
             261          (I) proximity to markets;
             262          (iii) value attributable to the identification of an improvement to real property,
             263      including:
             264          (A) reputation of the designer, builder, or architect of the improvement;
             265          (B) a name given to, or associated with, the improvement; or
             266          (C) the historic significance of an improvement; or
             267          (iv) the enhancement or assemblage value specifically attributable to the interrelation
             268      of the existing tangible property in place working together as a unit.
             269          (17) "Governing body" means:
             270          (a) for a county, city, or town, the legislative body of the county, city, or town;
             271          (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
             272      Local Districts, the local district's board of trustees;
             273          (c) for a school district, the local board of education; or
             274          (d) for a special service district under Title 17D, Chapter 1, Special Service District
             275      Act:


             276          (i) the legislative body of the county or municipality that created the special service
             277      district, to the extent that the county or municipal legislative body has not delegated authority
             278      to an administrative control board established under Section 17D-1-301 ; or
             279          (ii) the administrative control board, to the extent that the county or municipal
             280      legislative body has delegated authority to an administrative control board established under
             281      Section 17D-1-301 .
             282          (18) (a) For purposes of Section 59-2-103 :
             283          (i) "household" means the association of persons who live in the same dwelling,
             284      sharing its furnishings, facilities, accommodations, and expenses; and
             285          (ii) "household" includes married individuals, who are not legally separated, that have
             286      established domiciles at separate locations within the state.
             287          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             288      commission may make rules defining the term "domicile."
             289          (19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
             290      structure, fixture, fence, or other item that is permanently attached to land, regardless of
             291      whether the title has been acquired to the land, if:
             292          (i) (A) attachment to land is essential to the operation or use of the item; and
             293          (B) the manner of attachment to land suggests that the item will remain attached to the
             294      land in the same place over the useful life of the item; or
             295          (ii) removal of the item would:
             296          (A) cause substantial damage to the item; or
             297          (B) require substantial alteration or repair of a structure to which the item is attached.
             298          (b) "Improvement" includes:
             299          (i) an accessory to an item described in Subsection (19)(a) if the accessory is:
             300          (A) essential to the operation of the item described in Subsection (19)(a); and
             301          (B) installed solely to serve the operation of the item described in Subsection (19)(a);
             302      and
             303          (ii) an item described in Subsection (19)(a) that:
             304          (A) is temporarily detached from the land for repairs; and
             305          (B) remains located on the land.
             306          (c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:


             307          (i) an item considered to be personal property pursuant to rules made in accordance
             308      with Section 59-2-107 ;
             309          (ii) a moveable item that is attached to land:
             310          (A) for stability only; or
             311          (B) for an obvious temporary purpose;
             312          (iii) (A) manufacturing equipment and machinery; or
             313          (B) essential accessories to manufacturing equipment and machinery;
             314          (iv) an item attached to the land in a manner that facilitates removal without substantial
             315      damage to:
             316          (A) the land; or
             317          (B) the item; or
             318          (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
             319      transportable factory-built housing unit is considered to be personal property under Section
             320      59-2-1503 .
             321          (20) "Intangible property" means:
             322          (a) property that is capable of private ownership separate from tangible property,
             323      including:
             324          (i) money;
             325          (ii) credits;
             326          (iii) bonds;
             327          (iv) stocks;
             328          (v) representative property;
             329          (vi) franchises;
             330          (vii) licenses;
             331          (viii) trade names;
             332          (ix) copyrights; and
             333          (x) patents;
             334          (b) a low-income housing tax credit;
             335          (c) goodwill; or
             336          (d) a renewable energy tax credit or incentive, including:
             337          (i) a federal renewable energy production tax credit under Section 45, Internal Revenue


             338      Code;
             339          (ii) a federal energy credit for qualified renewable electricity production facilities under
             340      Section 48, Internal Revenue Code;
             341          (iii) a federal grant for a renewable energy property under American Recovery and
             342      Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
             343          (iv) a tax credit under Subsection 59-7-614 (2)(c).
             344          (21) "Low-income housing tax credit" means:
             345          (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
             346      or
             347          (b) a low-income housing tax credit under:
             348          (i) Section 59-7-607 ; or
             349          (ii) Section 59-10-1010 .
             350          (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
             351          (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
             352      valuable mineral.
             353          (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
             354      otherwise removing a mineral from a mine.
             355          (25) (a) "Mobile flight equipment" means tangible personal property that is:
             356          (i) owned or operated by an:
             357          (A) air charter service;
             358          (B) air contract service; or
             359          (C) airline; and
             360          (ii) (A) capable of flight;
             361          (B) attached to an aircraft that is capable of flight; or
             362          (C) contained in an aircraft that is capable of flight if the tangible personal property is
             363      intended to be used:
             364          (I) during multiple flights;
             365          (II) during a takeoff, flight, or landing; and
             366          (III) as a service provided by an air charter service, air contract service, or airline.
             367          (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
             368      engine that is rotated:


             369          (A) at regular intervals; and
             370          (B) with an engine that is attached to the aircraft.
             371          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             372      commission may make rules defining the term "regular intervals."
             373          (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
             374      sand, rock, gravel, and all carboniferous materials.
             375          (27) "Personal property" includes:
             376          (a) every class of property as defined in Subsection (28) which is the subject of
             377      ownership and not included within the meaning of the terms "real estate" and "improvements";
             378          (b) gas and water mains and pipes laid in roads, streets, or alleys;
             379          (c) bridges and ferries;
             380          (d) livestock which, for the purposes of the exemption provided under Section
             381      59-2-1112 , means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
             382          (e) outdoor advertising structures as defined in Section 72-7-502 .
             383          (28) (a) "Property" means property that is subject to assessment and taxation according
             384      to its value.
             385          (b) "Property" does not include intangible property as defined in this section.
             386          (29) "Public utility," for purposes of this chapter, means the operating property of a
             387      railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
             388      company, electrical corporation, telephone corporation, sewerage corporation, or heat
             389      corporation where the company performs the service for, or delivers the commodity to, the
             390      public generally or companies serving the public generally, or in the case of a gas corporation
             391      or an electrical corporation, where the gas or electricity is sold or furnished to any member or
             392      consumers within the state for domestic, commercial, or industrial use. Public utility also
             393      means the operating property of any entity or person defined under Section 54-2-1 except water
             394      corporations.
             395          (30) "Real estate" or "real property" includes:
             396          (a) the possession of, claim to, ownership of, or right to the possession of land;
             397          (b) all mines, minerals, and quarries in and under the land, all timber belonging to
             398      individuals or corporations growing or being on the lands of this state or the United States, and
             399      all rights and privileges appertaining to these; and


             400          (c) improvements.
             401          (31) "Residential property," for the purposes of the reductions and adjustments under
             402      this chapter, means any property used for residential purposes as a primary residence. It does
             403      not include property used for transient residential use or condominiums used in rental pools.
             404          (32) (a) "State-assessed commercial vehicle" means:
             405          (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
             406      to transport passengers, freight, merchandise, or other property for hire; or
             407          (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
             408      transports the vehicle owner's goods or property in furtherance of the owner's commercial
             409      enterprise.
             410          (b) "State-assessed commercial vehicle" does not include vehicles used for hire which
             411      are specified in Subsection (8)(c) as county-assessed commercial vehicles.
             412          (33) "Taxable value" means fair market value less any applicable reduction allowed for
             413      residential property under Section 59-2-103 .
             414          (34) "Tax area" means a geographic area created by the overlapping boundaries of one
             415      or more taxing entities.
             416          (35) "Taxing entity" means any county, city, town, school district, special taxing
             417      district, local district under Title 17B, Limited Purpose Local Government Entities - Local
             418      Districts, or other political subdivision of the state with the authority to levy a tax on property.
             419          (36) "Tax roll" means a permanent record of the taxes charged on property, as extended
             420      on the assessment roll and may be maintained on the same record or records as the assessment
             421      roll or may be maintained on a separate record properly indexed to the assessment roll. It
             422      includes tax books, tax lists, and other similar materials.
             423          Section 4. Section 59-2-926 is amended to read:
             424           59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
             425          If the state authorizes a levy pursuant to [Section 53A-17a-135 that exceeds the
             426      certified revenue levy as defined in Section 53A-17a-103 or authorizes a levy pursuant to]
             427      Section 59-2-1602 that exceeds the certified revenue levy as defined in Section 59-2-102 , the
             428      state shall publish a notice no later than 10 days after the last day of the annual legislative
             429      general session that meets the following requirements:
             430          (1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state


             431      authorized a levy that generates revenue in excess of the previous year's ad valorem tax
             432      revenue, plus new growth, but exclusive of revenue from collections from redemptions,
             433      interest, and penalties:
             434          (i) in a newspaper of general circulation in the state; and
             435          (ii) as required in Section 45-1-101 .
             436          (b) Except an advertisement published on a website, the advertisement described in
             437      Subsection (1)(a):
             438          (i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
             439      point, and surrounded by a 1/4-inch border[:];
             440          (ii) may not be placed in that portion of the newspaper where legal notices and
             441      classified advertisements appear; and
             442          (iii) shall be run once.
             443          (2) The form and content of the notice shall be substantially as follows:
             444     
"NOTICE OF TAX INCREASE

             445          The state has budgeted an increase in its property tax revenue from $__________ to
             446      $__________ or ____%. The increase in property tax revenues will come from the following
             447      sources (include all of the following provisions):
             448          (a) $__________ of the increase will come from (provide an explanation of the cause
             449      of adjustment or increased revenues, such as reappraisals or factoring orders);
             450          (b) $__________ of the increase will come from natural increases in the value of the
             451      tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
             452          (c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
             453      the basic state-supported school program, levy for the Property Tax Valuation Agency Fund, or
             454      both) paid $____________ in property taxes would pay the following:
             455          (i) $__________ if the state of Utah did not budget an increase in property tax revenue
             456      exclusive of new growth; and
             457          (ii) $__________ under the increased property tax revenues exclusive of new growth
             458      budgeted by the state of Utah."
             459          Section 5. Section 59-10-1018 is amended to read:
             460           59-10-1018. Definitions -- Nonrefundable taxpayer tax credits.
             461          (1) As used in this section:


             462          (a) "Dependent adult with a disability" means an individual who:
             463          (i) a claimant claims as a dependent under Section 151, Internal Revenue Code, on the
             464      claimant's federal individual income tax return for the taxable year;
             465          (ii) is not the claimant or the claimant's spouse; and
             466          (iii) is:
             467          (A) 18 years of age or older;
             468          (B) eligible for services under Title 62A, Chapter 5, Services for People with
             469      Disabilities; and
             470          (C) not enrolled in an education program for students with disabilities that is
             471      authorized under Section 53A-15-301 .
             472          (b) "Dependent child with a disability" means an individual 21 years of age or younger
             473      who:
             474          (i) a claimant claims as a dependent under Section 151, Internal Revenue Code, on the
             475      claimant's federal individual income tax return for the taxable year;
             476          (ii) is not the claimant or the claimant's spouse; and
             477          (iii) is:
             478          (A) an eligible student with a disability; or
             479          (B) identified under guidelines of the Department of Health as qualified for Early
             480      Intervention or Infant Development Services.
             481          (c) "Eligible student with a disability" means an individual who is:
             482          (i) diagnosed by a school district representative under rules the State Board of
             483      Education adopts in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             484      Act, as having a disability classified as autism, deafness, preschool developmental delay, dual
             485      sensory impairment, hearing impairment, intellectual disability, multidisability, orthopedic
             486      impairment, other health impairment, traumatic brain injury, or visual impairment;
             487          (ii) not receiving residential services from the Division of Services for People with
             488      Disabilities created under Section 62A-5-102 or a school established under Title 53A, Chapter
             489      25b, Utah Schools for the Deaf and the Blind; and
             490          (iii) (A) enrolled in an education program for students with disabilities that is
             491      authorized under Section 53A-15-301 ; or
             492          (B) a recipient of a scholarship awarded under Title 53A, Chapter 1a, Part 7, Carson


             493      Smith Scholarships for Students with Special Needs Act.
             494          (d) "Head of household filing status" means a head of household, as defined in Section
             495      2(b), Internal Revenue Code, who files a single federal individual income tax return for the
             496      taxable year.
             497          (e) "Joint filing status" means:
             498          (i) a husband and wife who file a single return jointly under this chapter for a taxable
             499      year; or
             500          (ii) a surviving spouse, as defined in Section 2(a), Internal Revenue Code, who files a
             501      single federal individual income tax return for the taxable year.
             502          (f) "Single filing status" means:
             503          (i) a single individual who files a single federal individual income tax return for the
             504      taxable year; or
             505          (ii) a married individual who:
             506          (A) does not file a single federal individual income tax return jointly with that married
             507      individual's spouse for the taxable year; and
             508          (B) files a single federal individual income tax return for the taxable year.
             509          (2) Except as provided in Section 59-10-1002.2 , and subject to Subsections (3) through
             510      (5), a claimant may claim a nonrefundable tax credit against taxes otherwise due under this part
             511      equal to the sum of:
             512          (a) (i) for a claimant that deducts the standard deduction on the claimant's federal
             513      individual income tax return for the taxable year, 6% of the amount the claimant deducts as
             514      allowed as the standard deduction on the claimant's federal individual income tax return for
             515      that taxable year; or
             516          (ii) for a claimant that itemizes deductions on the claimant's federal individual income
             517      tax return for the taxable year, the product of:
             518          (A) the difference between:
             519          (I) the amount the claimant deducts as allowed as an itemized deduction on the
             520      claimant's federal individual income tax return for that taxable year; and
             521          (II) any amount of state or local income taxes the claimant deducts as allowed as an
             522      itemized deduction on the claimant's federal individual income tax return for that taxable year;
             523      and


             524          (B) 6%; and
             525          (b) the product of:
             526          (i) [75% of the total amount] $2,850 multiplied by the number of personal exemptions
             527      the claimant [deducts] claims as allowed as a personal exemption [deduction] on the claimant's
             528      federal individual income tax return for that taxable year, plus an additional [75% of the
             529      amount] $2,850 multiplied by the number of personal exemptions the claimant [deducts]
             530      claims as allowed as a personal exemption [deduction] on the claimant's federal individual
             531      income tax return for that taxable year with respect to each dependent adult with a disability or
             532      dependent child with a disability; and
             533          (ii) 6%.
             534          (3) A claimant may not carry forward or carry back a tax credit under this section.
             535          (4) The tax credit allowed by Subsection (2) shall be reduced by $.013 for each dollar
             536      by which a claimant's state taxable income exceeds:
             537          (a) for a claimant who has a single filing status, $12,000;
             538          (b) for a claimant who has a head of household filing status, $18,000; or
             539          (c) for a claimant who has a joint filing status, $24,000.
             540          (5) (a) For taxable years beginning on or after January 1, 2009, the commission shall
             541      increase or decrease the following dollar amounts by a percentage equal to the percentage
             542      difference between the consumer price index for the preceding calendar year and the consumer
             543      price index for calendar year 2007:
             544          (i) the dollar amount listed in Subsection (4)(a); and
             545          (ii) the dollar amount listed in Subsection (4)(b).
             546          (b) After the commission increases or decreases the dollar amounts listed in Subsection
             547      (5)(a), the commission shall round those dollar amounts listed in Subsection (5)(a) to the
             548      nearest whole dollar.
             549          (c) After the commission rounds the dollar amounts as required by Subsection (5)(b),
             550      the commission shall increase or decrease the dollar amount listed in Subsection (4)(c) so that
             551      the dollar amount listed in Subsection (4)(c) is equal to the product of:
             552          (i) the dollar amount listed in Subsection (4)(a); and
             553          (ii) two.
             554          (d) For purposes of Subsection (5)(a), the commission shall calculate the consumer


             555      price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
             556          Section 6. Retrospective operation.
             557          (1) The amendments to the following sections have retrospective operation to January
             558      1, 2013:
             559          (a) Section 53A-17a-103 ;
             560          (b) Section 53A-17a-135 ;
             561          (c) Section 59-2-102 ; and
             562          (d) Section 59-2-926 .
             563          (2) The amendments to Section 59-10-1018 have retrospective operation for a taxable
             564      year beginning on or after January 1, 2013.




Legislative Review Note
    as of 9-27-12 11:17 AM


Office of Legislative Research and General Counsel


[Bill Documents][Bills Directory]