Second Substitute S.B. 111

Senator Aaron Osmond proposes the following substitute bill:


             1     
EDUCATION FUNDING EQUALIZATION

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Aaron Osmond

             5     
House Sponsor:

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes related to school property taxes and funding.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    creates the Minimum Basic Growth Account within the Uniform School Fund to
             14      fund the School LAND Trust Program;
             15          .    amends the calculation of the school minimum basic tax rate;
             16          .    requires specified revenue to be deposited into the Minimum Basic Growth
             17      Account;
             18          .    provides for the allocation of funds deposited into the Minimum Basic Growth
             19      Account;
             20          .    repeals certain public notice requirements related to the school minimum basic tax
             21      rate;
             22          .    amends requirements for a school improvement plan; and
             23          .    makes technical and conforming changes.
             24      Money Appropriated in this Bill:
             25          None


             26      Other Special Clauses:
             27          This bill has retrospective operation to January 1, 2014.
             28      Utah Code Sections Affected:
             29      AMENDS:
             30           11-13-302 , as last amended by Laws of Utah 2011, Chapter 371
             31           53A-1a-108.5 , as enacted by Laws of Utah 2002, Chapter 324
             32           53A-16-101 , as last amended by Laws of Utah 2013, Chapter 235
             33           53A-16-101.5 , as last amended by Laws of Utah 2013, Chapter 296
             34           53A-17a-103 , as last amended by Laws of Utah 2011, Chapter 371
             35           53A-17a-135 , as last amended by Laws of Utah 2013, Chapter 7
             36           59-2-102 , as last amended by Laws of Utah 2013, Chapters 19 and 322
             37           59-2-926 , as last amended by Laws of Utah 2009, Chapter 388
             38      REPEALS:
             39           53A-17a-131.17 , as last amended by Laws of Utah 2010, Chapter 3
             40     
             41      Be it enacted by the Legislature of the state of Utah:
             42          Section 1. Section 11-13-302 is amended to read:
             43           11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
             44      suppliers -- Method of calculating -- Collection -- Extent of tax lien.
             45          (1) (a) Each project entity created under this chapter that owns a project and that sells
             46      any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
             47      property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
             48      valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
             49      this section to each taxing jurisdiction within which the project or any part of it is located.
             50          (b) For purposes of this section, "annual fee" means the annual fee described in
             51      Subsection (1)(a) that is in lieu of ad valorem property tax.
             52          (c) The requirement to pay an annual fee shall commence:
             53          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
             54      impact alleviation payments under contracts or determination orders provided for in Sections
             55      11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
             56      candidate in which the date of commercial operation of the last generating unit, other than any


             57      generating unit providing additional project capacity, of the project occurs, or, in the case of
             58      any facilities providing additional project capacity, with the fiscal year of the candidate
             59      following the fiscal year of the candidate in which the date of commercial operation of the
             60      generating unit providing the additional project capacity occurs; and
             61          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
             62      Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
             63      project commences, or, in the case of facilities providing additional project capacity, with the
             64      fiscal year of the taxing jurisdiction in which construction of those facilities commences.
             65          (d) The requirement to pay an annual fee shall continue for the period of the useful life
             66      of the project or facilities.
             67          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
             68      because the ad valorem property tax imposed by a school district and authorized by the
             69      Legislature represents both:
             70          (i) a levy mandated by the state for the state minimum school program under Section
             71      53A-17a-135 ; and
             72          (ii) local levies for capital outlay and other purposes under Sections 53A-16-113 ,
             73      53A-17a-133 , and 53A-17a-164 .
             74          (b) The annual fees due a school district shall be as follows:
             75          (i) the project entity shall pay to the school district an annual fee for the state minimum
             76      school program at the rate imposed by the school district and authorized by the Legislature
             77      under [Subsection] Section 53A-17a-135 [(1)]; and
             78          (ii) for all other local property tax levies authorized to be imposed by a school district,
             79      the project entity shall pay to the school district either:
             80          (A) an annual fee; or
             81          (B) impact alleviation payments under contracts or determination orders provided for
             82      in Sections 11-13-305 and 11-13-306 .
             83          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
             84      by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
             85      multiplying the fee base or value determined in accordance with Subsection (4) for that year of
             86      the portion of the project located within the jurisdiction by the percentage of the project which
             87      is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.


             88          (b) As used in this section, "tax rate," when applied in respect to a school district,
             89      includes any assessment to be made by the school district under Subsection (2) or Section
             90      63M-5-302 .
             91          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
             92      an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
             93      the proceeds of which were used to provide public facilities and services for impact alleviation
             94      in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
             95          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
             96          (i) take into account the fee base or value of the percentage of the project located
             97      within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
             98      capacity, service, or other benefit sold to the supplier or suppliers; and
             99          (ii) reflect any credit to be given in that year.
             100          (4) (a) Except as otherwise provided in this section, the annual fees required by this
             101      section shall be paid, collected, and distributed to the taxing jurisdiction as if:
             102          (i) the annual fees were ad valorem property taxes; and
             103          (ii) the project were assessed at the same rate and upon the same measure of value as
             104      taxable property in the state.
             105          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
             106      this section, the fee base of a project may be determined in accordance with an agreement
             107      among:
             108          (A) the project entity; and
             109          (B) any county that:
             110          (I) is due an annual fee from the project entity; and
             111          (II) agrees to have the fee base of the project determined in accordance with the
             112      agreement described in this Subsection (4).
             113          (ii) The agreement described in Subsection (4)(b)(i):
             114          (A) shall specify each year for which the fee base determined by the agreement shall be
             115      used for purposes of an annual fee; and
             116          (B) may not modify any provision of this chapter except the method by which the fee
             117      base of a project is determined for purposes of an annual fee.
             118          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county


             119      described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
             120      Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
             121      jurisdiction.
             122          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
             123      year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
             124      portion of the project for which there is not an agreement:
             125          (I) for that year; and
             126          (II) using the same measure of value as is used for taxable property in the state.
             127          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
             128      Commission in accordance with rules made by the State Tax Commission.
             129          (c) Payments of the annual fees shall be made from:
             130          (i) the proceeds of bonds issued for the project; and
             131          (ii) revenues derived by the project entity from the project.
             132          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
             133      other benefits of the project whose tangible property is not exempted by Utah Constitution
             134      Article XIII, Section 3, from the payment of ad valorem property tax shall require each
             135      purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
             136      its share, determined in accordance with the terms of the contract, of these fees.
             137          (ii) It is the responsibility of the project entity to enforce the obligations of the
             138      purchasers.
             139          (5) (a) The responsibility of the project entity to make payment of the annual fees is
             140      limited to the extent that there is legally available to the project entity, from bond proceeds or
             141      revenues, money to make these payments, and the obligation to make payments of the annual
             142      fees is not otherwise a general obligation or liability of the project entity.
             143          (b) No tax lien may attach upon any property or money of the project entity by virtue of
             144      any failure to pay all or any part of an annual fee.
             145          (c) The project entity or any purchaser may contest the validity of an annual fee to the
             146      same extent as if the payment was a payment of the ad valorem property tax itself.
             147          (d) The payments of an annual fee shall be reduced to the extent that any contest is
             148      successful.
             149          (6) (a) The annual fee described in Subsection (1):


             150          (i) shall be paid by a public agency that:
             151          (A) is not a project entity; and
             152          (B) owns an interest in a facility providing additional project capacity if the interest is
             153      otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
             154          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
             155      accordance with Subsection (6)(b).
             156          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
             157      rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
             158          (i) the fee base or value of the facility providing additional project capacity located
             159      within the jurisdiction;
             160          (ii) the percentage of the ownership interest of the public agency in the facility; and
             161          (iii) the portion, expressed as a percentage, of the public agency's ownership interest
             162      that is attributable to the capacity, service, or other benefit from the facility that is sold by the
             163      public agency to an energy supplier or suppliers whose tangible property is not exempted by
             164      Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
             165          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
             166      obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
             167      to its ownership interest as though it were a project entity.
             168          Section 2. Section 53A-1a-108.5 is amended to read:
             169           53A-1a-108.5. School improvement plan.
             170          (1) (a) Each school community council shall annually evaluate the school's U-PASS
             171      test results and use the evaluations in developing a school improvement plan.
             172          (b) In evaluating U-PASS test results and developing a school improvement plan, a
             173      school community council may not have access to data that reveal the identity of students.
             174          (2) Each school improvement plan shall:
             175          (a) identify the school's most critical academic needs;
             176          (b) recommend a course of action to meet the identified needs;
             177          (c) list any programs, practices, materials, or equipment that the school will need to
             178      implement its action plan to have a direct impact on the instruction of students and result in
             179      measurable increased student performance; [and]
             180          (d) specify actions that school leadership will take to improve student achievement;


             181          (e) specify what actions will be implemented to ensure that high quality instruction is
             182      delivered to all students;
             183          (f) describe how assessments will be used to inform instruction;
             184          (g) describe how targeted interventions will be implemented to meet individual student
             185      needs;
             186          (h) specify what actions will be taken to ensure that professional development results
             187      in improved student achievement; and
             188          [(d)] (i) describe how the school intends to enhance or improve academic achievement,
             189      including how financial resources available to the school, such as School LAND Trust Program
             190      money received under Section 53A-16-101.5 and state and federal grants, will be used to
             191      enhance or improve academic achievement.
             192          (3) The school improvement plan shall focus on the school's most critical academic
             193      needs but may include other actions to enhance or improve academic achievement and
             194      community environment for students.
             195          (4) The school principal shall make available to the school community council the
             196      school budget and other data needed to develop the school improvement plan.
             197          (5) The school improvement plan shall be subject to the approval of the local school
             198      board of the school district in which the school is located.
             199          (6) A school community council may develop a multiyear school improvement plan,
             200      but the plan must be presented to and approved annually by the local school board.
             201          (7) Each school shall:
             202          (a) implement the school improvement plan as developed by the school community
             203      council and approved by the local school board;
             204          (b) provide ongoing support for the council's plan; and
             205          (c) meet local school board reporting requirements regarding performance and
             206      accountability.
             207          Section 3. Section 53A-16-101 is amended to read:
             208           53A-16-101. Uniform School Fund -- Contents -- Interest and Dividends Account
             209      -- Invest More for Education Account.
             210          (1) The Uniform School Fund, a special revenue fund within the Education Fund,
             211      established by Utah Constitution, Article X, Section 5, consists of:


             212          (a) interest and dividends derived from the investment of money in the permanent State
             213      School Fund established by Utah Constitution, Article X, Section 5;
             214          (b) money transferred to the fund pursuant to Title 67, Chapter 4a, Unclaimed Property
             215      Act; and
             216          (c) all other constitutional or legislative allocations to the fund, including revenues
             217      received by donation.
             218          (2) (a) There is created within the Uniform School Fund a restricted account known as
             219      the "Interest and Dividends Account."
             220          (b) The Interest and Dividends Account consists of:
             221          (i) interest and dividends derived from the investment of money in the permanent State
             222      School Fund referred to in Subsection (1)(a); and
             223          (ii) interest on account money.
             224          (3) (a) Upon appropriation by the Legislature, money from the Interest and Dividends
             225      Account shall be used for:
             226          (i) the administration of the School LAND Trust Program as provided in Section
             227      53A-16-101.5 ; and
             228          (ii) the performance of duties described in Section 53A-16-101.6 .
             229          (b) The Legislature may appropriate any remaining balance for the support of the
             230      public education system.
             231          (4) (a) There is created within the Uniform School Fund a restricted account known as
             232      the "Invest More for Education Account."
             233          (b) The account shall be funded by contributions deposited into the restricted account
             234      in accordance with Section 59-10-1318 .
             235          (c) The account shall earn interest.
             236          (d) Interest earned on the account shall be deposited into the account.
             237          (e) The Legislature may appropriate money from the account for the support of the
             238      public education system.
             239          (5) (a) There is created within the Uniform School Fund a restricted account known as
             240      the "Minimum Basic Growth Account."
             241          (b) The account shall be funded by amounts appropriated into the account in
             242      accordance with Section 53A-17a-135 .


             243          (c) The account shall earn interest.
             244          (d) Interest earned on the account shall be deposited into the account.
             245          (e) Upon appropriation by the Legislature, money from the account shall be used to
             246      fund the School LAND Trust Program as provided in Section 53A-16-101.5 .
             247          (f) The Legislature may not appropriate money from the account for the performance of
             248      duties described in Section 53A-16-101.6 .
             249          Section 4. Section 53A-16-101.5 is amended to read:
             250           53A-16-101.5. School LAND Trust Program -- Purpose -- Distribution of funds --
             251      School plans for use of funds.
             252          (1) There is established the School LAND (Learning And Nurturing Development)
             253      Trust Program to:
             254          (a) provide financial resources to public schools to enhance or improve student
             255      academic achievement and implement a component of the school improvement plan; and
             256          (b) involve parents and guardians of a school's students in decision making regarding
             257      the expenditure of School LAND Trust Program money allocated to the school.
             258          (2) (a) The program shall be funded each fiscal year from:
             259          (i) [from] the Interest and Dividends Account created in Section 53A-16-101 [; and (ii)]
             260      in the amount of the sum of the following:
             261          (A) the interest and dividends from the investment of money in the permanent State
             262      School Fund deposited to the Interest and Dividends Account in the immediately preceding
             263      year; and
             264          (B) interest accrued on money in the Interest and Dividends Account in the
             265      immediately preceding fiscal year[.]; and
             266          (ii) the Minimum Basic Growth Account created in Section 53A-16-101 .
             267          (b) On and after July 1, 2003, the program shall be funded as provided in Subsection
             268      (2)(a)(i) up to an amount equal to 2% of the funds provided for the Minimum School Program,
             269      pursuant to Title 53A, Chapter 17a, Minimum School Program Act, each fiscal year.
             270          (c) (i) The Legislature shall annually allocate, through an appropriation to the State
             271      Board of Education, a portion of the Interest and Dividends Account created in Section
             272      53A-16-101 to be used for:
             273          (A) the administration of the School LAND Trust Program; and


             274          (B) the performance of duties described in Section 53A-16-101.6 .
             275          (ii) Any unused balance remaining from an amount appropriated under Subsection
             276      (2)(c)(i) shall be deposited in the Interest and Dividends Account for distribution to schools in
             277      the School LAND Trust Program.
             278          (3) (a) The State Board of Education shall allocate the money [referred to in Subsection
             279      (2)] described under Subsections (2)(a)(i) and (ii) annually for the fiscal year beginning July 1,
             280      2013, and for each fiscal year thereafter as follows:
             281          (i) the Utah Schools for the Deaf and the Blind and the charter schools combined shall
             282      receive funding equal to the product of:
             283          (A) enrollment on October 1 in the prior year at the Utah Schools for the Deaf and the
             284      Blind, or in the charter schools combined, divided by enrollment on October 1 in the prior year
             285      in public schools statewide; and
             286          (B) the total amount available for distribution under [Subsection (2)] Subsections
             287      (2)(a)(i) and (ii);
             288          (ii) the amount allocated to the charter schools combined under Subsection (3)(a)(i)
             289      shall be distributed among charter schools in accordance with a formula specified in rules
             290      adopted by the State Board of Education in consultation with the State Charter School Board;
             291      and
             292          (iii) of the funds available for distribution under [Subsection (2)] Subsections (2)(a)(i)
             293      and (ii) after the allocation of funds for the Utah Schools for the Deaf and the Blind and charter
             294      schools:
             295          (A) school districts shall receive 10% of the funds on an equal basis; and
             296          (B) the remaining 90% of the funds shall be distributed on a per student basis.
             297          (b) For the allocations made under Subsection (3)(a), the State Board of Education
             298      shall provide a separate allocation to each entity for the money described under:
             299          (i) Subsection (2)(a)(i); and
             300          (ii) Subsection (2)(a)(ii).
             301          [(b) A] (c) Subject to Subsection (3)(d), a school district shall distribute its allocation
             302      under Subsection (3)(a)(iii) to [each school] schools within the district [on an equal per student
             303      basis.] as follows:
             304          (i) an allocation of the money described under Subsection (2)(a)(i) shall be distributed


             305      to each school within the district on an equal per student basis;
             306          (ii) for an allocation of the money described under Subsection (2)(a)(ii):
             307          (A) 25% shall be distributed to each school within the district on an equal per student
             308      basis; and
             309          (B) 75% shall be distributed to schools within the district at the direction of the local
             310      school board.
             311          (d) A school district may retain up to 5% of the amount of money described under
             312      Subsection (3)(c)(ii) and allocated to the school district by the State Board of Education in
             313      accordance with Subsection (3)(a) to be used to offset the cost of:
             314          (i) distributing the money described under Subsection (2)(a)(ii) in accordance with
             315      Subsection (3)(c)(ii);
             316          (ii) auditing the use of the money distributed to schools in accordance with Subsection
             317      (3)(c); and
             318          (iii) providing training to a school community council.
             319          [(c)] (e) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
             320      Act, the State Board of Education may make rules regarding the time and manner in which the
             321      student count shall be made for allocation of the money under Subsection (3)(a)(iii).
             322          (4) To receive its allocation under Subsection (3):
             323          (a) a school shall have established a school community council in accordance with
             324      Section 53A-1a-108 ; and
             325          (b) the school's principal shall provide a signed, written assurance in accordance with
             326      rules of the State Board of Education that the membership of the school community council is
             327      consistent with the membership requirements specified in Section 53A-1a-108 .
             328          (5) (a) (i) The school community council or its subcommittee shall create a program to
             329      use its allocation under Subsection (3) to implement a component of the [school's] school
             330      improvement plan described under Subsection 53A-1a-108.5 (2), including:
             331          [(i)] (A) the school's identified most critical academic needs;
             332          [(ii)] (B) a recommended course of action to meet the identified academic needs;
             333          [(iii)] (C) a specific listing of any programs, practices, materials, or equipment which
             334      the school will need to implement a component of its school improvement plan to have a direct
             335      impact on the instruction of students and result in measurable increased student performance;


             336      and
             337          [(iv)] (D) how the school intends to spend its allocation of funds under this section to
             338      enhance or improve academic excellence at the school.
             339          (ii) A school community council or its subcommittee may not use its allocation under
             340      Subsection (3) to supplant other state, federal, or local funds that would otherwise be available
             341      for a school's educational programs.
             342          (b) (i) A school community council shall create and vote to adopt a plan for the use of
             343      School LAND Trust Program money in a meeting of the school community council at which a
             344      quorum is present.
             345          (ii) If a majority of the quorum votes to adopt a plan for the use of School LAND Trust
             346      Program money, the plan is adopted.
             347          (c) A school community council shall:
             348          (i) post a plan for the use of School LAND Trust Program money that is adopted in
             349      accordance with Subsection (5)(b) on the School LAND Trust Program website; and
             350          (ii) include with the plan a report noting the number of school community council
             351      members who voted for or against the approval of the plan and the number of members who
             352      were absent for the vote.
             353          (d) (i) A school's local school board shall approve or disapprove a plan for the use of
             354      School LAND Trust Program money.
             355          (ii) If a local school board disapproves a plan for the use of School LAND Trust
             356      Program money, the local school board shall provide a written explanation of why the plan was
             357      disapproved and request the school community council who submitted the plan to revise the
             358      plan.
             359          (iii) The school community council shall submit a revised plan to the local school
             360      board for approval.
             361          (6) (a) Each school shall:
             362          (i) implement the program as approved;
             363          (ii) provide ongoing support for the council's program; and
             364          (iii) meet State Board of Education reporting requirements regarding financial and
             365      performance accountability of the program.
             366          (b) (i) Each school, through its school community council, shall prepare and post an


             367      annual report of the program on the School LAND Trust Program website each fall.
             368          (ii) The report shall detail the use of program funds received by the school under this
             369      section and an assessment of the results obtained from the use of the funds.
             370          (iii) A summary of the report shall be provided to parents or guardians of students
             371      attending the school.
             372          (7) (a) The governing board of a charter school shall establish a council, which shall
             373      prepare a plan for the use of School LAND Trust Program money that includes the elements
             374      listed in Subsection (5).
             375          (b) (i) The membership of the council shall include parents or guardians of students
             376      enrolled at the school and may include other members.
             377          (ii) The number of council members who are parents or guardians of students enrolled
             378      at the school shall exceed all other members combined by at least two.
             379          (c) A charter school governing board may serve as the council that prepares a plan for
             380      the use of School LAND Trust Program money if the membership of the charter school
             381      governing board meets the requirements of Subsection (7)(b)(ii).
             382          (d) (i) Except as provided in Subsection (7)(d)(ii), council members who are parents or
             383      guardians of students enrolled at the school shall be elected in accordance with procedures
             384      established by the charter school governing board.
             385          (ii) Subsection (7)(d)(i) does not apply to a charter school governing board that serves
             386      as the council that prepares a plan for the use of School LAND Trust Program money.
             387          (e) A parent or guardian of a student enrolled at the school shall serve as chair or
             388      cochair of a council that prepares a plan for the use of School LAND Trust Program money.
             389          (f) A plan for the use of School LAND Trust Program money shall be subject to
             390      approval by the charter school governing board and the entity that authorized the establishment
             391      of the charter school.
             392          Section 5. Section 53A-17a-103 is amended to read:
             393           53A-17a-103. Definitions.
             394          As used in this chapter:
             395          (1) "Basic state-supported school program" or "basic program" means public education
             396      programs for kindergarten, elementary, and secondary school students that are operated and
             397      maintained for the amount derived by multiplying the number of weighted pupil units for each


             398      school district or charter school by the value established each year in statute, except as
             399      otherwise provided in this chapter.
             400          (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
             401      ad valorem property tax revenue equal to the sum of:
             402          (i) the amount of ad valorem property tax revenue to be generated statewide in the
             403      previous year from imposing a minimum basic tax rate, as specified in [Subsection] Section
             404      53A-17a-135 [(1)(a)]; and
             405          (ii) the product of:
             406          (A) new growth, as defined in:
             407          (I) Section 59-2-924 ; and
             408          (II) rules of the State Tax Commission; and
             409          (B) the minimum basic tax rate certified by the State Tax Commission for the previous
             410      year.
             411          (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
             412      include property tax revenue received statewide from personal property that is:
             413          (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
             414      Assessment; and
             415          (ii) semiconductor manufacturing equipment.
             416          (c) For purposes of calculating the certified revenue levy described in this Subsection
             417      (2), the State Tax Commission shall use:
             418          (i) the taxable value of real property assessed by a county assessor contained on the
             419      assessment roll;
             420          (ii) the taxable value of real and personal property assessed by the State Tax
             421      Commission; and
             422          (iii) the taxable year end value of personal property assessed by a county assessor
             423      contained on the prior year's assessment roll.
             424          (3) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
             425          (4) (a) "State-supported minimum school program" or "Minimum School Program"
             426      means public school programs for kindergarten, elementary, and secondary schools as
             427      described in this Subsection (4).
             428          (b) The minimum school program established in school districts and charter schools


             429      shall include the equivalent of a school term of nine months as determined by the State Board
             430      of Education.
             431          (c) (i) The board shall establish the number of days or equivalent instructional hours
             432      that school is held for an academic school year.
             433          (ii) Education, enhanced by utilization of technologically enriched delivery systems,
             434      when approved by local school boards or charter school governing boards, shall receive full
             435      support by the State Board of Education as it pertains to fulfilling the attendance requirements,
             436      excluding time spent viewing commercial advertising.
             437          (d) The Minimum School Program includes a program or allocation funded by a line
             438      item appropriation or other appropriation designated as follows:
             439          (i) Basic School Program;
             440          (ii) Related to Basic Programs;
             441          (iii) Voted and Board Levy Programs; or
             442          (iv) Minimum School Program.
             443          (5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
             444      factors that is computed in accordance with this chapter for the purpose of determining the
             445      costs of a program on a uniform basis for each district.
             446          Section 6. Section 53A-17a-135 is amended to read:
             447           53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
             448          (1) (a) Except as provided in Subsection (1)(b), as used in this section, "basic levy
             449      increment rate" means a rate equal to the lesser of:
             450          (i) the difference between:
             451          (A) a rate of .001691; and
             452          (B) the certified revenue levy; and
             453          (ii) a rate that:
             454          (A) provides an amount of ad valorem property tax revenue equal to $100,000,000; and
             455          (B) is calculated in the same manner as the certified revenue levy.
             456          (b) If the difference calculated in Subsection (1)(a)(i) is less than zero, "basic levy
             457      increment rate" means a rate equal to the rate described in Subsection (1)(a)(ii).
             458          [(1)] (2) (a) In order to qualify for receipt of the state contribution toward the basic
             459      program and as its contribution toward its costs of the basic program, each school district shall


             460      impose a minimum basic tax rate per dollar of taxable value [that generates $294,092,000 in
             461      revenues statewide] in accordance with this section.
             462          [(b) The preliminary estimate for the 2013-14 minimum basic tax rate is .001691.]
             463          [(c) The State Tax Commission shall certify on or before June 22 the rate that
             464      generates $294,092,000 in revenues statewide.]
             465          [(d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
             466      Section 53A-17a-103 , the state is subject to the notice requirements of Section 59-2-926 .]
             467          (b) Except as provided in Subsection (2)(c), beginning on January 1, 2014, the
             468      minimum basic tax rate is the greater of:
             469          (i) the certified revenue levy; or
             470          (ii) a tax rate of .001691.
             471          (c) If the basic levy increment rate is equal to a rate described in Subsection (1)(a)(ii),
             472      the minimum basic tax rate is a rate equal to the sum of:
             473          (i) the certified revenue levy; and
             474          (ii) the basic levy increment rate.
             475          (3) (a) On or before June 8, the State Tax Commission shall provide the State Board of
             476      Education and each school district with an initial estimate of:
             477          (i) the minimum basic tax rate to be imposed under Subsection (2); and
             478          (ii) the basic levy increment rate.
             479          (b) On or before June 22, the State Tax Commission shall certify:
             480          (i) the minimum basic tax rate to be imposed under Subsection (2); and
             481          (ii) the basic levy increment rate.
             482          [(2)] (4) (a) The state shall contribute to each district toward the cost of the basic
             483      program in the district that portion which exceeds the proceeds of [the levy authorized under
             484      Subsection (1).] the difference between:
             485          (i) the minimum basic tax rate imposed under Subsection (2); and
             486          (ii) the basic levy increment rate.
             487          (b) In accord with the state strategic plan for public education and to fulfill its
             488      responsibility for the development and implementation of that plan, the Legislature instructs
             489      the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
             490      of the coming five years to develop budgets that will fully fund student enrollment growth.


             491          [(3)] (5) (a) If the [proceeds of the levy authorized under Subsection (1) equal or
             492      exceed] difference described in Subsection (4)(a) equals or exceeds the cost of the basic
             493      program in a school district, no state contribution shall be made to the basic program.
             494          (b) The proceeds of [the levy authorized under Subsection (1) which] the difference
             495      described in Subsection (4)(a) that exceed the cost of the basic program shall be paid into the
             496      Uniform School Fund as provided by law.
             497          (6) The State Board of Education shall:
             498          (a) deduct from state funds that a school district is authorized to receive under this
             499      chapter an amount equal to the proceeds generated within the school district by the basic levy
             500      increment rate; and
             501          (b) deposit the money described in Subsection (6)(a) into the Minimum Basic Growth
             502      Account created in Section 53A-16-101 .
             503          Section 7. Section 59-2-102 is amended to read:
             504           59-2-102. Definitions.
             505          As used in this chapter and title:
             506          (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
             507      engaging in dispensing activities directly affecting agriculture or horticulture with an
             508      airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
             509      rotorcraft's use for agricultural and pest control purposes.
             510          (2) "Air charter service" means an air carrier operation which requires the customer to
             511      hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
             512      trip.
             513          (3) "Air contract service" means an air carrier operation available only to customers
             514      who engage the services of the carrier through a contractual agreement and excess capacity on
             515      any trip and is not available to the public at large.
             516          (4) "Aircraft" is as defined in Section 72-10-102 .
             517          (5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
             518          (i) operates:
             519          (A) on an interstate route; and
             520          (B) on a scheduled basis; and
             521          (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a


             522      regularly scheduled route.
             523          (b) "Airline" does not include an:
             524          (i) air charter service; or
             525          (ii) air contract service.
             526          (6) "Assessment roll" means a permanent record of the assessment of property as
             527      assessed by the county assessor and the commission and may be maintained manually or as a
             528      computerized file as a consolidated record or as multiple records by type, classification, or
             529      categories.
             530          (7) (a) "Certified revenue levy" means a property tax levy that provides an amount of
             531      ad valorem property tax revenue equal to the sum of:
             532          (i) the amount of ad valorem property tax revenue to be generated statewide in the
             533      previous year from imposing a school minimum basic tax rate, as specified in [Subsection]
             534      Section 53A-17a-135 [(1)(a)], or multicounty assessing and collecting levy, as specified in
             535      Section 59-2-1602 ; and
             536          (ii) the product of:
             537          (A) new growth, as defined in:
             538          (I) Section 59-2-924 ; and
             539          (II) rules of the commission; and
             540          (B) the school minimum basic tax rate or multicounty assessing and collecting levy
             541      certified by the commission for the previous year.
             542          (b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
             543      include property tax revenue received by a taxing entity from personal property that is:
             544          (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
             545          (ii) semiconductor manufacturing equipment.
             546          (c) For purposes of calculating the certified revenue levy described in this Subsection
             547      (7), the commission shall use:
             548          (i) the taxable value of real property assessed by a county assessor contained on the
             549      assessment roll;
             550          (ii) the taxable value of real and personal property assessed by the commission; and
             551          (iii) the taxable year end value of personal property assessed by a county assessor
             552      contained on the prior year's assessment roll.


             553          (8) "County-assessed commercial vehicle" means:
             554          (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
             555      Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
             556      property in furtherance of the owner's commercial enterprise;
             557          (b) any passenger vehicle owned by a business and used by its employees for
             558      transportation as a company car or vanpool vehicle; and
             559          (c) vehicles that are:
             560          (i) especially constructed for towing or wrecking, and that are not otherwise used to
             561      transport goods, merchandise, or people for compensation;
             562          (ii) used or licensed as taxicabs or limousines;
             563          (iii) used as rental passenger cars, travel trailers, or motor homes;
             564          (iv) used or licensed in this state for use as ambulances or hearses;
             565          (v) especially designed and used for garbage and rubbish collection; or
             566          (vi) used exclusively to transport students or their instructors to or from any private,
             567      public, or religious school or school activities.
             568          (9) (a) Except as provided in Subsection (9)(b), for purposes of Section 59-2-801 ,
             569      "designated tax area" means a tax area created by the overlapping boundaries of only the
             570      following taxing entities:
             571          (i) a county; and
             572          (ii) a school district.
             573          (b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
             574      by the overlapping boundaries of:
             575          (i) the taxing entities described in Subsection (9)(a); and
             576          (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
             577      and the boundaries of the city or town are identical; or
             578          (B) a special service district if the boundaries of the school district under Subsection
             579      (9)(a) are located entirely within the special service district.
             580          (10) "Eligible judgment" means a final and unappealable judgment or order under
             581      Section 59-2-1330 :
             582          (a) that became a final and unappealable judgment or order no more than 14 months
             583      prior to the day on which the notice required by Section 59-2-919.1 is required to be mailed;


             584      and
             585          (b) for which a taxing entity's share of the final and unappealable judgment or order is
             586      greater than or equal to the lesser of:
             587          (i) $5,000; or
             588          (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
             589      previous fiscal year.
             590          (11) (a) "Escaped property" means any property, whether personal, land, or any
             591      improvements to the property, subject to taxation and is:
             592          (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
             593      to the wrong taxpayer by the assessing authority;
             594          (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
             595      comply with the reporting requirements of this chapter; or
             596          (iii) undervalued because of errors made by the assessing authority based upon
             597      incomplete or erroneous information furnished by the taxpayer.
             598          (b) Property that is undervalued because of the use of a different valuation
             599      methodology or because of a different application of the same valuation methodology is not
             600      "escaped property."
             601          (12) "Fair market value" means the amount at which property would change hands
             602      between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
             603      and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
             604      market value" shall be determined using the current zoning laws applicable to the property in
             605      question, except in cases where there is a reasonable probability of a change in the zoning laws
             606      affecting that property in the tax year in question and the change would have an appreciable
             607      influence upon the value.
             608          (13) "Farm machinery and equipment," for purposes of the exemption provided under
             609      Section 59-2-1101 , means tractors, milking equipment and storage and cooling facilities, feed
             610      handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
             611      tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
             612      equipment used primarily for agricultural purposes; but does not include vehicles required to be
             613      registered with the Motor Vehicle Division or vehicles or other equipment used for business
             614      purposes other than farming.


             615          (14) "Geothermal fluid" means water in any form at temperatures greater than 120
             616      degrees centigrade naturally present in a geothermal system.
             617          (15) "Geothermal resource" means:
             618          (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
             619      and
             620          (b) the energy, in whatever form, including pressure, present in, resulting from, created
             621      by, or which may be extracted from that natural heat, directly or through a material medium.
             622          (16) (a) "Goodwill" means:
             623          (i) acquired goodwill that is reported as goodwill on the books and records:
             624          (A) of a taxpayer; and
             625          (B) that are maintained for financial reporting purposes; or
             626          (ii) the ability of a business to:
             627          (A) generate income:
             628          (I) that exceeds a normal rate of return on assets; and
             629          (II) resulting from a factor described in Subsection (16)(b); or
             630          (B) obtain an economic or competitive advantage resulting from a factor described in
             631      Subsection (16)(b).
             632          (b) The following factors apply to Subsection (16)(a)(ii):
             633          (i) superior management skills;
             634          (ii) reputation;
             635          (iii) customer relationships;
             636          (iv) patronage; or
             637          (v) a factor similar to Subsections (16)(b)(i) through (iv).
             638          (c) "Goodwill" does not include:
             639          (i) the intangible property described in Subsection (20)(a) or (b);
             640          (ii) locational attributes of real property, including:
             641          (A) zoning;
             642          (B) location;
             643          (C) view;
             644          (D) a geographic feature;
             645          (E) an easement;


             646          (F) a covenant;
             647          (G) proximity to raw materials;
             648          (H) the condition of surrounding property; or
             649          (I) proximity to markets;
             650          (iii) value attributable to the identification of an improvement to real property,
             651      including:
             652          (A) reputation of the designer, builder, or architect of the improvement;
             653          (B) a name given to, or associated with, the improvement; or
             654          (C) the historic significance of an improvement; or
             655          (iv) the enhancement or assemblage value specifically attributable to the interrelation
             656      of the existing tangible property in place working together as a unit.
             657          (17) "Governing body" means:
             658          (a) for a county, city, or town, the legislative body of the county, city, or town;
             659          (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
             660      Local Districts, the local district's board of trustees;
             661          (c) for a school district, the local board of education; or
             662          (d) for a special service district under Title 17D, Chapter 1, Special Service District
             663      Act:
             664          (i) the legislative body of the county or municipality that created the special service
             665      district, to the extent that the county or municipal legislative body has not delegated authority
             666      to an administrative control board established under Section 17D-1-301 ; or
             667          (ii) the administrative control board, to the extent that the county or municipal
             668      legislative body has delegated authority to an administrative control board established under
             669      Section 17D-1-301 .
             670          (18) (a) For purposes of Section 59-2-103 :
             671          (i) "household" means the association of persons who live in the same dwelling,
             672      sharing its furnishings, facilities, accommodations, and expenses; and
             673          (ii) "household" includes married individuals, who are not legally separated, that have
             674      established domiciles at separate locations within the state.
             675          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             676      commission may make rules defining the term "domicile."


             677          (19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
             678      structure, fixture, fence, or other item that is permanently attached to land, regardless of
             679      whether the title has been acquired to the land, if:
             680          (i) (A) attachment to land is essential to the operation or use of the item; and
             681          (B) the manner of attachment to land suggests that the item will remain attached to the
             682      land in the same place over the useful life of the item; or
             683          (ii) removal of the item would:
             684          (A) cause substantial damage to the item; or
             685          (B) require substantial alteration or repair of a structure to which the item is attached.
             686          (b) "Improvement" includes:
             687          (i) an accessory to an item described in Subsection (19)(a) if the accessory is:
             688          (A) essential to the operation of the item described in Subsection (19)(a); and
             689          (B) installed solely to serve the operation of the item described in Subsection (19)(a);
             690      and
             691          (ii) an item described in Subsection (19)(a) that:
             692          (A) is temporarily detached from the land for repairs; and
             693          (B) remains located on the land.
             694          (c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
             695          (i) an item considered to be personal property pursuant to rules made in accordance
             696      with Section 59-2-107 ;
             697          (ii) a moveable item that is attached to land:
             698          (A) for stability only; or
             699          (B) for an obvious temporary purpose;
             700          (iii) (A) manufacturing equipment and machinery; or
             701          (B) essential accessories to manufacturing equipment and machinery;
             702          (iv) an item attached to the land in a manner that facilitates removal without substantial
             703      damage to:
             704          (A) the land; or
             705          (B) the item; or
             706          (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
             707      transportable factory-built housing unit is considered to be personal property under Section


             708      59-2-1503 .
             709          (20) "Intangible property" means:
             710          (a) property that is capable of private ownership separate from tangible property,
             711      including:
             712          (i) money;
             713          (ii) credits;
             714          (iii) bonds;
             715          (iv) stocks;
             716          (v) representative property;
             717          (vi) franchises;
             718          (vii) licenses;
             719          (viii) trade names;
             720          (ix) copyrights; and
             721          (x) patents;
             722          (b) a low-income housing tax credit;
             723          (c) goodwill; or
             724          (d) a renewable energy tax credit or incentive, including:
             725          (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
             726      Code;
             727          (ii) a federal energy credit for qualified renewable electricity production facilities under
             728      Section 48, Internal Revenue Code;
             729          (iii) a federal grant for a renewable energy property under American Recovery and
             730      Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
             731          (iv) a tax credit under Subsection 59-7-614 (2)(c).
             732          (21) "Low-income housing tax credit" means:
             733          (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
             734      or
             735          (b) a low-income housing tax credit under:
             736          (i) Section 59-7-607 ; or
             737          (ii) Section 59-10-1010 .
             738          (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.


             739          (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
             740      valuable mineral.
             741          (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
             742      otherwise removing a mineral from a mine.
             743          (25) (a) "Mobile flight equipment" means tangible personal property that is:
             744          (i) owned or operated by an:
             745          (A) air charter service;
             746          (B) air contract service; or
             747          (C) airline; and
             748          (ii) (A) capable of flight;
             749          (B) attached to an aircraft that is capable of flight; or
             750          (C) contained in an aircraft that is capable of flight if the tangible personal property is
             751      intended to be used:
             752          (I) during multiple flights;
             753          (II) during a takeoff, flight, or landing; and
             754          (III) as a service provided by an air charter service, air contract service, or airline.
             755          (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
             756      engine that is rotated:
             757          (A) at regular intervals; and
             758          (B) with an engine that is attached to the aircraft.
             759          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             760      commission may make rules defining the term "regular intervals."
             761          (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
             762      sand, rock, gravel, and all carboniferous materials.
             763          (27) "Personal property" includes:
             764          (a) every class of property as defined in Subsection (28) that is the subject of
             765      ownership and not included within the meaning of the terms "real estate" and "improvements";
             766          (b) gas and water mains and pipes laid in roads, streets, or alleys;
             767          (c) bridges and ferries;
             768          (d) livestock, which, for the purposes of the exemption provided under Section
             769      59-2-1112 , means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and


             770          (e) outdoor advertising structures as defined in Section 72-7-502 .
             771          (28) (a) "Property" means property that is subject to assessment and taxation according
             772      to its value.
             773          (b) "Property" does not include intangible property as defined in this section.
             774          (29) "Public utility," for purposes of this chapter, means the operating property of a
             775      railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
             776      company, electrical corporation, telephone corporation, sewerage corporation, or heat
             777      corporation where the company performs the service for, or delivers the commodity to, the
             778      public generally or companies serving the public generally, or in the case of a gas corporation
             779      or an electrical corporation, where the gas or electricity is sold or furnished to any member or
             780      consumers within the state for domestic, commercial, or industrial use. Public utility also
             781      means the operating property of any entity or person defined under Section 54-2-1 except water
             782      corporations.
             783          (30) (a) Subject to Subsection (30)(b), "qualifying exempt primary residential rental
             784      personal property" means household furnishings, furniture, and equipment that:
             785          (i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
             786          (ii) are owned by the owner of the dwelling unit that is the primary residence of a
             787      tenant; and
             788          (iii) after applying the residential exemption described in Section 59-2-103 , are exempt
             789      from taxation under this chapter in accordance with Subsection 59-2-1115 (2).
             790          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             791      commission may by rule define the term "dwelling unit" for purposes of this Subsection (30)
             792      and Subsection (33).
             793          (31) "Real estate" or "real property" includes:
             794          (a) the possession of, claim to, ownership of, or right to the possession of land;
             795          (b) all mines, minerals, and quarries in and under the land, all timber belonging to
             796      individuals or corporations growing or being on the lands of this state or the United States, and
             797      all rights and privileges appertaining to these; and
             798          (c) improvements.
             799          (32) "Relationship with an owner of the property's land surface rights" means a
             800      relationship described in Subsection 267(b), Internal Revenue Code:


             801          (a) except that notwithstanding Subsection 267(b), Internal Revenue Code, the term
             802      25% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code; and
             803          (b) using the ownership rules of Subsection 267(c), Internal Revenue Code, for
             804      determining the ownership of stock.
             805          (33) (a) Subject to Subsection (33)(b), "residential property," for the purposes of the
             806      reductions and adjustments under this chapter, means any property used for residential
             807      purposes as a primary residence.
             808          (b) Subject to Subsection (33)(c), "residential property":
             809          (i) except as provided in Subsection (33)(b)(ii), includes household furnishings,
             810      furniture, and equipment if the household furnishings, furniture, and equipment are:
             811          (A) used exclusively within a dwelling unit that is the primary residence of a tenant;
             812      and
             813          (B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
             814      and
             815          (ii) does not include property used for transient residential use.
             816          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             817      commission may by rule define the term "dwelling unit" for purposes of Subsection (30) and
             818      this Subsection (33).
             819          (34) "Split estate mineral rights owner" means a person who:
             820          (a) has a legal right to extract a mineral from property;
             821          (b) does not hold more than a 25% interest in:
             822          (i) the land surface rights of the property where the wellhead is located; or
             823          (ii) an entity with an ownership interest in the land surface rights of the property where
             824      the wellhead is located;
             825          (c) is not an entity in which the owner of the land surface rights of the property where
             826      the wellhead is located holds more than a 25% interest; and
             827          (d) does not have a relationship with an owner of the land surface rights of the property
             828      where the wellhead is located.
             829          (35) (a) "State-assessed commercial vehicle" means:
             830          (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
             831      to transport passengers, freight, merchandise, or other property for hire; or


             832          (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
             833      transports the vehicle owner's goods or property in furtherance of the owner's commercial
             834      enterprise.
             835          (b) "State-assessed commercial vehicle" does not include vehicles used for hire which
             836      are specified in Subsection (8)(c) as county-assessed commercial vehicles.
             837          (36) "Taxable value" means fair market value less any applicable reduction allowed for
             838      residential property under Section 59-2-103 .
             839          (37) "Tax area" means a geographic area created by the overlapping boundaries of one
             840      or more taxing entities.
             841          (38) "Taxing entity" means any county, city, town, school district, special taxing
             842      district, local district under Title 17B, Limited Purpose Local Government Entities - Local
             843      Districts, or other political subdivision of the state with the authority to levy a tax on property.
             844          (39) "Tax roll" means a permanent record of the taxes charged on property, as extended
             845      on the assessment roll and may be maintained on the same record or records as the assessment
             846      roll or may be maintained on a separate record properly indexed to the assessment roll. It
             847      includes tax books, tax lists, and other similar materials.
             848          Section 8. Section 59-2-926 is amended to read:
             849           59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
             850          If the state authorizes a levy pursuant to [Section 53A-17a-135 that exceeds the
             851      certified revenue levy as defined in Section 53A-17a-103 or authorizes a levy pursuant to]
             852      Section 59-2-1602 that exceeds the certified revenue levy as defined in Section 59-2-102 , the
             853      state shall publish a notice no later than 10 days after the last day of the annual legislative
             854      general session that meets the following requirements:
             855          (1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state
             856      authorized a levy that generates revenue in excess of the previous year's ad valorem tax
             857      revenue, plus new growth, but exclusive of revenue from collections from redemptions,
             858      interest, and penalties:
             859          (i) in a newspaper of general circulation in the state; and
             860          (ii) as required in Section 45-1-101 .
             861          (b) Except an advertisement published on a website, the advertisement described in
             862      Subsection (1)(a):


             863          (i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
             864      point, and surrounded by a 1/4-inch border:
             865          (ii) may not be placed in that portion of the newspaper where legal notices and
             866      classified advertisements appear; and
             867          (iii) shall be run once.
             868          (2) The form and content of the notice shall be substantially as follows:
             869     
"NOTICE OF TAX INCREASE

             870          The state has budgeted an increase in its property tax revenue from $__________ to
             871      $__________ or ____%. The increase in property tax revenues will come from the following
             872      sources (include all of the following provisions):
             873          (a) $__________ of the increase will come from (provide an explanation of the cause
             874      of adjustment or increased revenues, such as reappraisals or factoring orders);
             875          (b) $__________ of the increase will come from natural increases in the value of the
             876      tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
             877          (c) a home valued at $100,000 in the state of Utah which based on last year's [(levy for
             878      the basic state-supported school program,] levy for the Property Tax Valuation Agency Fund,
             879      [or both)] paid $____________ in property taxes would pay the following:
             880          (i) $__________ if the state of Utah did not budget an increase in property tax revenue
             881      exclusive of new growth; and
             882          (ii) $__________ under the increased property tax revenues exclusive of new growth
             883      budgeted by the state of Utah."
             884          Section 9. Repealer.
             885          This bill repeals:
             886          Section 53A-17a-131.17 , State contribution for School LAND Trust Program.
             887          Section 10. Retrospective operation.
             888          This bill has retrospective operation to January 1, 2014.


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