H.B. 397

1

PROPERTY TAX INCREASE AMENDMENTS
2 2013 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Jim Nielson
5 Senate Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill establishes requirements related to an increase in property taxes.
10 Highlighted Provisions:
11 This bill:
12 . defines terms;
13 . requires an opinion question vote, which meets certain requirements, prior to certain
14 property tax increases by a taxing entity;
15 . authorizes a taxing entity to enact certain property tax increases if a majority of
16 voters voting on the opinion question approve the property tax increase; and
17 . makes technical and conforming changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 This bill takes effect on January 1, 2014.
22 Utah Code Sections Affected:
23 AMENDS:
24 59-2-919, as last amended by Laws of Utah 2010, Chapter 90
25 ENACTS:
26 59-2-919.3, Utah Code Annotated 1953
27

28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 59-2-919 is amended to read:
30 59-2-919. Notice, public hearing, resolution, and voter approval requirements for
31 certain tax increases -- Exceptions -- Applicability of provisions.
32 (1) As used in this section:
33 (a) "Ad valorem tax revenue" means ad valorem property tax revenue not including
34 revenue from new growth as defined in Section 59-2-924 .
35 (b) "Calendar year taxing entity" means a taxing entity that operates under a fiscal year
36 that begins on January 1 and ends on December 31.
37 (c) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year
38 that begins on July 1 and ends on June 30.
39 (2) (a) A taxing entity may not levy a tax rate that exceeds the taxing entity's certified
40 tax rate unless the taxing entity:
41 [(a)] (i) to the extent required by this section, meets the:
42 [(i)] (A) notice requirements of this section; and
43 [(ii)] (B) public hearing requirements of this section; and
44 [(b)] (ii) adopts a resolution in accordance with this section.
45 (b) A taxing entity may not budget ad valorem property tax revenue that exceeds the
46 nonvoted property tax revenue limit, as defined in Section 59-2-919.3 , unless the taxing entity
47 meets the requirements of Section 59-2-919.3 .
48 (3) (a) Except as provided in Subsection (5), a calendar year taxing entity may levy a
49 tax rate that exceeds the calendar year taxing entity's certified tax rate if the calendar year
50 taxing entity:
51 (i) (A) provides notice by meeting the advertisement requirements of Subsections (6)
52 and (7) before the calendar year taxing entity conducts the public hearing at which the calendar
53 year taxing entity's annual budget is adopted; and
54 (B) before the calendar year taxing entity levies a tax rate that exceeds the calendar
55 year taxing entity's certified tax rate:
56 (I) provides notice by meeting the advertisement requirements of Subsections (6) and
57 (7); or
58 (II) provides a notice by mail:

59 (Aa) on or no earlier than 14 days before the date the treasurer furnishes the notice
60 required by Section 59-2-1317 for the calendar year immediately preceding the calendar year
61 for which the calendar year taxing entity seeks to levy a tax rate that exceeds the calendar year
62 taxing entity's certified tax rate;
63 (Bb) before the calendar year taxing entity conducts the public meeting at which the
64 calendar year taxing entity's annual budget is adopted; and
65 (Cc) as provided in Subsection (3)(b); and
66 (ii) conducts a public hearing in accordance with Subsections (8) and (9):
67 (A) on or before the calendar year taxing entity conducts the public meeting at which
68 the calendar year taxing entity's annual budget is adopted; and
69 (B) if the calendar year taxing entity provides the notice described in Subsection
70 (3)(a)(i)(B)(I), before the calendar year taxing entity levies a tax rate that exceeds the calendar
71 year taxing entity's certified tax rate.
72 (b) For a calendar year taxing entity that provides the notice described in Subsection
73 (3)(a)(i)(B)(II), the notice:
74 (i) shall be mailed to each owner of property:
75 (A) within the calendar year taxing entity; and
76 (B) listed on the assessment roll;
77 (ii) shall be printed on a form:
78 (A) developed by the commission; and
79 (B) that, as determined by the commission, may be combined with:
80 (I) a notice described in Subsection (3)(a)(i)(B)(II) provided by one or more other
81 calendar year taxing entities; or
82 (II) the notice required by Section 59-2-1317 ;
83 (iii) shall contain for each property described in Subsection (3)(b)(i):
84 (A) the value of the property for the calendar year immediately preceding the calendar
85 year for which the calendar year taxing entity seeks to levy a tax rate that exceeds the calendar
86 year taxing entity's certified tax rate;
87 (B) the tax on the property for the calendar year immediately preceding the calendar
88 year for which the calendar year taxing entity seeks to levy a tax rate that exceeds the calendar
89 year taxing entity's certified tax rate; and

90 (C) the estimated tax on the property:
91 (I) for the calendar year for which the calendar year taxing entity seeks to levy a tax
92 rate that exceeds the calendar year taxing entity's certified tax rate; and
93 (II) calculated on the basis of data for the calendar year immediately preceding the
94 calendar year for which the calendar year taxing entity seeks to levy a tax rate that exceeds the
95 calendar year taxing entity's certified tax rate;
96 (iv) shall contain the following statement:
97 "[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar
98 year]. This notice contains estimates of the tax on your property and the proposed tax increase
99 on your property as a result of this tax increase. These estimates are calculated on the basis of
100 [insert previous applicable calendar year] data. The actual tax on your property and proposed
101 tax increase on your property may vary from this estimate.";
102 (v) shall state the date, time, and place of the public hearing that will be held to discuss
103 the calendar year taxing entity's annual budget; and
104 (vi) may contain other property tax information approved by the commission.
105 (4) Except as provided in Subsection (5), a fiscal year taxing entity may levy a tax rate
106 that exceeds the fiscal year taxing entity's certified tax rate if the fiscal year taxing entity:
107 (a) provides notice by meeting the advertisement requirements of Subsections (6) and
108 (7) before the fiscal year taxing entity conducts the public meeting at which the fiscal year
109 taxing entity's annual budget is adopted; and
110 (b) conducts a public hearing in accordance with Subsections (8) and (9) before the
111 fiscal year taxing entity's annual budget is adopted.
112 (5) (a) A taxing entity is not required to meet the notice or public hearing requirements
113 of Subsection (3) or (4) if the taxing entity is expressly exempted by law from complying with
114 the requirements of this section.
115 (b) (i) Except as provided in Subsection (5)(b)(ii), a taxing entity is not required to
116 meet the notice or public hearing requirements of Subsection (3) or (4) if:
117 (A) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,
118 Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
119 emergency, and emergency medical services;
120 (B) the tax rate increase is approved by the taxing entity's voters at an election held for

121 that purpose on or before December 31, 2010;
122 (C) the purpose of the tax rate increase is to pay for fire protection, emergency, and
123 emergency medical services provided by the interlocal entity; and
124 (D) at least 30 days before the taxing entity's annual budget hearing, the taxing entity:
125 (I) adopts a resolution certifying that:
126 (Aa) the taxing entity will dedicate all revenue from the tax rate increase exclusively to
127 pay for fire protection, emergency, and emergency medical services provided by the interlocal
128 entity; and
129 (Bb) the amount of other revenues, independent of the revenue generated from the tax
130 rate increase, that the taxing entity spends for fire protection, emergency, and emergency
131 medical services each year after the tax rate increase will not decrease below the amount spent
132 by the taxing entity during the year immediately before the tax rate increase without a
133 corresponding decrease in the taxing entity's property tax revenues used in calculating the
134 taxing entity's certified tax rate; and
135 (II) sends a copy of the resolution to the commission.
136 (ii) The exception under Subsection (5)(b)(i) from the notice and public hearing
137 requirements of Subsection (3) or (4) does not apply to an increase in a taxing entity's tax rate
138 that occurs after December 31, 2010, even if the tax rate increase is approved by the taxing
139 entity's voters before that date.
140 (c) A taxing entity is not required to meet the notice requirements of Subsection (3) or
141 (4) if:
142 (i) Section 53A-17a-133 allows the taxing entity to levy a tax rate that exceeds that
143 certified tax rate without having to comply with the notice provisions of this section; or
144 (ii) the taxing entity:
145 (A) budgeted less than $20,000 in ad valorem tax revenues for the previous fiscal year;
146 and
147 (B) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
148 revenues.
149 (6) (a) Subject to Subsections (6)(d) and (7)(b), the advertisement described in this
150 section shall be published:
151 (i) subject to Section 45-1-101 , in a newspaper or combination of newspapers of

152 general circulation in the taxing entity;
153 (ii) electronically in accordance with Section 45-1-101 ; and
154 (iii) on the Utah Public Notice Website created in Section 63F-1-701 .
155 (b) The advertisement described in Subsection (6)(a)(i) shall:
156 (i) be no less than 1/4 page in size;
157 (ii) use type no smaller than 18 point; and
158 (iii) be surrounded by a 1/4-inch border.
159 (c) The advertisement described in Subsection (6)(a)(i) may not be placed in that
160 portion of the newspaper where legal notices and classified advertisements appear.
161 (d) It is the intent of the Legislature that:
162 (i) whenever possible, the advertisement described in Subsection (6)(a)(i) appear in a
163 newspaper that is published at least one day per week; and
164 (ii) the newspaper or combination of newspapers selected:
165 (A) be of general interest and readership in the taxing entity; and
166 (B) not be of limited subject matter.
167 (e) (i) The advertisement:
168 (A) described in Subsection (6)(a)(i) shall:
169 (I) except as provided in Subsection (6)(e)(ii), be run once each week for the two
170 weeks:
171 (Aa) before a taxing entity conducts a public hearing at which the taxing entity's annual
172 budget is discussed; and
173 (Bb) if a calendar year taxing entity provides the notice described in Subsection
174 (3)(a)(i)(B)(I), before the calendar year taxing entity levies a tax rate that exceeds the calendar
175 year taxing entity's certified tax rate; and
176 (II) state that the taxing entity will meet on a certain day, time, and place fixed in the
177 advertisement, which shall be not less than seven days after the day the first advertisement is
178 published, for the purpose of hearing comments regarding any proposed increase and to explain
179 the reasons for the proposed increase; or
180 (B) described in Subsection (6)(a)(ii) shall:
181 (I) be published two weeks:
182 (Aa) before a taxing entity conducts a public hearing at which the taxing entity's annual

183 budget is discussed; and
184 (Bb) if a calendar year taxing entity provides the notice described in Subsection
185 (3)(a)(i)(B)(I), before the calendar year taxing entity levies a tax rate that exceeds the calendar
186 year taxing entity's certified tax rate; and
187 (II) state that the taxing entity will meet on a certain day, time, and place fixed in the
188 advertisement, which shall be not less than seven days after the day the first advertisement is
189 published, for the purpose of hearing comments regarding any proposed increase and to explain
190 the reasons for the proposed increase.
191 (ii) If a taxing entity's public hearing information is published by the county auditor in
192 accordance with Section 59-2-919.2 , the taxing entity is not subject to the requirement to run
193 the advertisement twice, as required by Subsection (6)(e)(i)(A), but shall run the advertisement
194 once during the week:
195 (A) before the taxing entity conducts a public hearing at which the taxing entity's
196 annual budget is discussed; and
197 (B) if a calendar year taxing entity provides the notice described in Subsection
198 (3)(a)(i)(B)(I), before the calendar year taxing entity levies a tax rate that exceeds the calendar
199 year taxing entity's certified tax rate.
200 (f) (i) For purposes of Subsection (3)(a)(i)(A) or (4)(a), the form and content of an
201 advertisement shall be substantially as follows:
202 "NOTICE OF PROPOSED TAX INCREASE
203 (NAME OF TAXING ENTITY)
204 The (name of the taxing entity) is proposing to increase its property tax revenue.
205 * The (name of the taxing entity) tax on a (insert the average value of a residence
206 in the taxing entity rounded to the nearest thousand dollars) residence would
207 increase from $______ to $________, which is $_______ per year.
208 * The (name of the taxing entity) tax on a (insert the value of a business having
209 the same value as the average value of a residence in the taxing entity) business
210 would increase from $________ to $_______, which is $______ per year.
211 * If the proposed budget is approved, (name of the taxing entity) would increase
212 its property tax budgeted revenue by ___% above last year's property tax
213 budgeted revenue excluding new growth.

214 All concerned citizens are invited to a public hearing on the tax increase.
215 PUBLIC HEARING
216 Date/Time: (date) (time)
217 Location: (name of meeting place and address of meeting place)
218 To obtain more information regarding the tax increase, citizens may contact the (name
219 of the taxing entity) at (phone number of taxing entity)."
220 (ii) For purposes of Subsection (3)(a)(i)(B)(I), the form and content of an
221 advertisement shall be substantially as follows:
222 "NOTICE OF PROPOSED TAX INCREASE
223 (NAME OF TAXING ENTITY)
224 The (name of the taxing entity) is proposing to increase its property tax revenue.
225 * The (name of the taxing entity) tax on a (insert the average value of a residence
226 in the taxing entity rounded to the nearest thousand dollars) residence would
227 increase from $______ to $________, which is $_______ per year.
228 * The (name of the taxing entity) tax on a (insert the value of a business having
229 the same value as the average value of a residence in the taxing entity) business
230 would increase from $________ to $_______, which is $______ per year.
231 * If the proposed budget is approved, (name of the taxing entity) would increase
232 its property tax budgeted revenue by ___% above last year's property tax
233 budgeted revenue excluding new growth.
234 (Name of taxing entity) property tax revenue from new growth and other sources will
235 increase from $_______________ to $______________.
236 All concerned citizens are invited to a public hearing on the tax increase.
237 PUBLIC HEARING
238 Date/Time: (date) (time)
239 Location: (name of meeting place and address of meeting place)
240 To obtain more information regarding the tax increase, citizens may contact the (name
241 of the taxing entity) at (phone number of taxing entity)."
242 (7) The commission:
243 (a) shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative
244 Rulemaking Act, governing the joint use of one advertisement described in Subsection (6) by

245 two or more taxing entities; and
246 (b) subject to Section 45-1-101 , may authorize:
247 (i) the use of a weekly newspaper:
248 (A) in a county having both daily and weekly newspapers if the weekly newspaper
249 would provide equal or greater notice to the taxpayer; and
250 (B) if the county petitions the commission for the use of the weekly newspaper; or
251 (ii) the use by a taxing entity except for a calendar year taxing entity that provides the
252 notice described in Subsection (3)(a)(i)(B)(II) of a commission approved direct notice to each
253 taxpayer if:
254 (A) the cost of the advertisement would cause undue hardship;
255 (B) the direct notice is different and separate from that provided for in Section
256 59-2-919.1 ; and
257 (C) the taxing entity petitions the commission for the use of a commission approved
258 direct notice.
259 (8) (a) (i) A taxing entity shall on or before March 1 notify the county legislative body
260 in which the taxing entity is located of the date, time, and place of the first public hearing at
261 which the taxing entity's annual budget will be discussed.
262 (ii) A county that receives notice from a taxing entity under Subsection (8)(a)(i) shall
263 include on the notice required by Section 59-2-919.1 the date, time, and place of the public
264 hearing described in Subsection (8)(a)(i).
265 (b) (i) A public hearing described in this section shall be open to the public.
266 (ii) The governing body of a taxing entity conducting a public hearing described in this
267 section shall provide an interested party desiring to be heard an opportunity to present oral
268 testimony within reasonable time limits.
269 (c) (i) Except as provided in Subsection (8)(c)(ii), a taxing entity may not schedule a
270 public hearing described in this section at the same time as the public hearing of another
271 overlapping taxing entity in the same county.
272 (ii) The taxing entities in which the power to set tax levies is vested in the same
273 governing board or authority may consolidate the public hearings described in this section into
274 one public hearing.
275 (d) A county legislative body shall resolve any conflict in public hearing dates and

276 times after consultation with each affected taxing entity.
277 (e) A taxing entity shall hold a public hearing described in this section beginning at or
278 after 6 p.m.
279 (9) (a) If a taxing entity does not make a final decision on budgeting an increased
280 amount of ad valorem tax revenue at a public hearing described in this section, the taxing entity
281 shall announce at that public hearing the scheduled time and place of the next public meeting at
282 which the taxing entity will consider budgeting the increased amount of ad valorem tax
283 revenue.
284 (b) (i) If a calendar year taxing entity that conducts a public hearing in accordance with
285 Subsection (3)(b)(ii) does not adopt a resolution levying a tax rate on the day of the public
286 hearing, the taxing entity shall announce at that public hearing the scheduled time and place of
287 the next public meeting at which the taxing entity will consider adopting a resolution levying
288 the tax rate.
289 (ii) If a taxing entity except for a taxing entity described in Subsection (5)(a) or (b) will
290 consider adopting a resolution levying a tax rate at a day and time that is more than two weeks
291 after the public hearing described in Subsection 59-2-919.1 (2)(c)(v), the taxing entity shall
292 meet the notice requirements of Subsection (3)(a)(i)(B)(I).
293 (10) (a) A taxing entity may adopt a resolution levying a tax rate that exceeds the
294 taxing entity's certified tax rate if the taxing entity, to the extent required by this section, meets
295 the:
296 (i) notice requirements of this section; and
297 (ii) public hearing requirements of this section.
298 (b) A public hearing on levying a tax rate that exceeds a taxing entity's certified tax rate
299 may coincide with a public hearing on the taxing entity's proposed annual budget.
300 (11) The amendments to this section in Laws of Utah 2009, Chapter 204, apply to:
301 (a) for a fiscal year taxing entity, the fiscal year that begins on July 1, 2009; or
302 (b) for a calendar year taxing entity, the fiscal year that begins on January 1, 2010.
303 Section 2. Section 59-2-919.3 is enacted to read:
304 59-2-919.3. Definitions -- Property tax revenue increase that exceeds nonvoted
305 property tax revenue limit -- Opinion question -- Taxing entity authority to impose tax
306 rate.

307 (1) As used in this section:
308 (a) "Ad valorem property tax revenues" is as defined in Section 59-2-924 .
309 (b) "Certified tax rate" is as defined in Section 59-2-924 .
310 (c) "Consumer price index" is as described in Section 1(f)(4), Internal Revenue Code,
311 and defined in Section 1(f)(5), Internal Revenue Code.
312 (d) "New growth" is as defined in Section 59-2-924 .
313 (e) "Nonvoted property tax revenue limit" means, for a taxable year, the sum of:
314 (i) ad valorem property tax revenues budgeted by the taxing entity in the prior year;
315 (ii) revenue from new growth in the current year; and
316 (iii) the product of:
317 (A) the taxing entity's budgeted ad valorem property tax revenues in the prior year; and
318 (B) the annual percentage change in the consumer price index in the most recent year.
319 (2) Beginning January 1, 2014, in addition to any other requirements of this part,
320 before budgeting ad valorem property tax revenues that exceed the nonvoted property tax
321 revenue limit, a taxing entity shall submit an opinion question to the taxing entity's registered
322 voters voting on exceeding the nonvoted property tax revenue limit so that each registered
323 voter has the opportunity to express the registered voter's opinion on whether the taxing entity
324 should exceed the nonvoted property tax revenue limit.
325 (3) The opinion question required by this section shall state:
326 "Shall (insert the name of the taxing entity) be authorized to impose a tax rate that
327 would result in the collection of increased property tax revenue? If this tax rate is imposed,
328 property tax revenue for (insert the name of the taxing entity) would increase by (insert
329 aggregate dollar amount of increase) above the prior year's budgeted property tax revenue.
330 This increase is (insert aggregate dollar amount of increase) above the nonvoted property tax
331 revenue limit. The increase would result in a property tax increase of (insert dollar amount of
332 property tax increase) as compared to last year for a primary residence having an assessed value
333 of (insert median assessed value of a primary residence within the taxing entity). Revenue
334 received from this increase will be used for (insert intended use of revenue)."
335 (4) The election required by this section shall be held at:
336 (a) a regular general election conducted in accordance with the procedures and
337 requirements of Title 20A, Election Code, governing regular elections; or

338 (b) at a municipal general election conducted in accordance with the procedures and
339 requirements of Section 20A-1-202 .
340 (5) If a majority of the taxing entity's registered voters voting on exceeding the
341 nonvoted property tax revenue limit vote in favor of exceeding the nonvoted property tax
342 revenue limit, the taxing entity may, no later than two years after the date of the canvass of the
343 election, impose a tax rate up to the tax rate that generates the increase in ad valorem property
344 tax revenues authorized by the vote.
345 Section 3. Effective date.
346 This bill takes effect on January 1, 2014.




Legislative Review Note
as of 2-22-13 10:13 AM

Office of Legislative Research and General Counsel

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