S.B. 251 Enrolled

UNIFORM FEES ON TANGIBLE PERSONAL
PROPERTY
1997 GENERAL SESSION
STATE OF UTAH
Sponsor: Craig A. Peterson
AN ACT RELATING TO THE PROPERTY TAX ACT; DECREASING THE UNIFORM FEE
ON TANGIBLE PERSONAL PROPERTY; PROVIDING FOR AN INCREASE IN THE
CERTIFIED TAX RATE AND THE CERTIFIED REVENUE LEVY TO OFFSET A
DECREASE IN UNIFORM FEES UNDER CERTAIN CIRCUMSTANCES; MAKING
TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
53A-17a-135, as last amended by Chapter 321, Laws of Utah 1996
59-2-405, as last amended by Chapters 247 and 339, Laws of Utah 1995
59-2-906.1, as last amended by Chapter 271, Laws of Utah 1995
59-2-924, as last amended by Chapters 286, 321, and 326, Laws of Utah 1996
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 53A-17a-135 is amended to read:
53A-17a-135. Certified revenue levy -- District-wide discipline plan.
(1) (a) In order to qualify for receipt of the state contribution toward the basic program
and as its contribution toward its costs of the basic program, each school district shall impose a
minimum basic tax rate of .002138 per dollar of taxable value that is sufficient to generate
$164,837,930 in revenues.
(b) (i) The State Tax Commission shall certify on or before June 22, 1996, that the rate
provided in Subsection (1)(a) generates $164,837,930 in revenues.
(ii) If the State Tax Commission determines that the rate provided in Subsection (1)(a)
does not generate $164,837,930 in revenues, the State Tax Commission shall increase or decrease
the rate to meet the requirements of Subsection (1)(a).
(2) (a) Except as authorized in Subsection (2)(b), beginning in fiscal year 1996-97 the

Legislature shall authorize a levy not to exceed the certified revenue levy for the school district
contribution toward the costs of the basic program.
(b) If the Legislature authorizes a levy that exceeds the certified revenue levy, it is subject
to the notice requirements of Section 59-2-926.
(c) For the calendar year beginning on January 1, 1998, and ending December 31, 1998, the
certified revenue levy shall be increased by the amount necessary to offset the decrease in revenues
from uniform fees on tangible personal property under Section 59-2-405 as a result of the decrease
in uniform fees on tangible personal property under Section 59-2-405 enacted by the Legislature
during the 1997 Annual General Session.
(3) In order to qualify for receipt of the state contribution toward the basic program and as
its contribution toward the costs of the basic program, each school district shall impose a levy as
authorized by the Legislature under Subsection (2).
(4) (a) The state shall contribute to each district toward the cost of the basic program in the
district that portion which exceeds the proceeds of the levy authorized under Subsection (2).
(b) In accord with the state strategic plan for public education and to fulfill its responsibility
for the development and implementation of that plan, the Legislature instructs the State Board of
Education, the governor, and the Office of Legislative Fiscal Analyst in each of the coming five
years to develop budgets that will fully fund student enrollment growth.
(5) (a) If the proceeds of the levy authorized under Subsection (2) equal or exceed the cost
of the basic program in a school district, no state contribution shall be made to the basic program.
(b) The proceeds of the levy authorized under Subsection (2) which exceed the cost of the
basic program shall be paid into the Uniform School Fund as provided by law.
(6) In order to qualify for receipt of the state contribution toward the basic program, a school
district shall implement a district-wide discipline plan under guidelines developed by the State Board
of Education.
Section 2. Section 59-2-405 is amended to read:
59-2-405. Uniform fee on tangible personal property required to be registered with the
state.

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(1) The property described in Subsection (2), except (2)(b) and (c), is exempt from ad
valorem property taxes pursuant to Utah Constitution Article XIII, Section 14.
(2) There is levied in lieu of the ad valorem tax an annual statewide uniform fee based on
the value of motor vehicles, watercraft, recreational vehicles, and all other tangible personal property
required to be registered with the state before it is used on a public highway, on a public waterway,
on public land, or in the air. The following personal property is exempt from the statewide uniform
fee imposed by this section:
(a) aircraft;
(b) vintage vehicles as defined in Section 41-21-1;
(c) interstate motor carriers entitled to protection under Title 49, Section 11503a of the
United States Code; and
(d) personal property that is exempt from state or county ad valorem property taxes under
the laws of this state or of the federal government.
(3) The uniform fee is [1.7%] 1.5% of the fair market value of the personal property, as
established by the commission.
(4) Notwithstanding Section 59-2-407, property subject to the uniform fee that is brought
into the state and is required to be registered in Utah shall, as a condition of registration, be subject
to the uniform fee unless all property taxes or uniform fees imposed by the state of origin have been
paid for the current calendar year.
(5) (a) The revenues collected in each county from the uniform fee shall be distributed by
the county to each taxing entity in which the property described in Subsection (2) is located in the
same proportion in which revenue collected from ad valorem real property tax is distributed.
(b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in the
same proportion in which revenue collected from ad valorem real property tax is distributed.
(6) Appeals of the valuation of the tangible personal property described in Subsection (2)
shall be filed pursuant to Section 59-2-1005.
Section 3. Section 59-2-906.1 is amended to read:
59-2-906.1. Property Tax Valuation Agency Fund -- Creation -- Statewide levy --

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Additional county levy permitted.
(1) (a) There is created the Property Tax Valuation Agency Fund, to be funded by a
statewide levy not to exceed .0003 as provided in Subsection (2).
(b) The purpose of the statewide levy and the disbursement formulas established in Section
59-2-906.2 is to promote the accurate valuation of property, the establishment and maintenance of
uniform assessment levels within and among counties, and the efficient administration of the
property tax system, including the costs of assessment, collection, and distribution of property taxes.
(c) Income derived from the investment of money in the fund created in this Subsection (1)
shall be deposited in and become part of the fund.
(2) (a) Except as authorized in Subsection (2)(b), beginning in fiscal year 1996-97 the
Legislature shall authorize a levy not to exceed the certified revenue levy to fund the Property Tax
Valuation Agency Fund.
(b) If the Legislature authorizes a levy that exceeds the certified revenue levy, it is subject
to the notice requirements of Section 59-2-926.
(c) For the calendar year beginning on January 1, 1998, and ending December 31, 1998, the
certified revenue levy shall be increased by the amount necessary to offset the decrease in revenues
from uniform fees on tangible personal property under Section 59-2-405 as a result of the decrease
in uniform fees on tangible personal property under Section 59-2-405 enacted by the Legislature
during the 1997 Annual General Session.
(3) (a) The levy authorized by the Legislature under Subsection (2) shall be separately
stated on the tax notice as a state assessing and collecting levy.
(b) Any levy authorized by the Legislature under Subsection (2) is:
(i) exempt from the redevelopment provisions of Subsections 17A-2-1199.48(1),
17A-2-1199.48(2), 17A-2-1247(1), and 17A-2-1247(2);
(ii) in addition to and exempt from the maximum levies allowable under Section 59-2-908;
and
(iii) exempt from the notice requirements of Sections 59-2-918 and 59-2-919.
(c) Each county shall transmit quarterly to the state treasurer the portion of the .0003 state

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assessing and collecting levy which is above the amount to which that county is entitled to under
Section 59-2-906.2.
(i) The revenue shall be transmitted no later than the 10th day of the month following the
end of the quarter in which the revenue is collected.
(ii) If revenue is transmitted after the 10th day of the month following the end of the quarter
in which the revenue is collected, the county shall pay an interest penalty at the rate of 10% each
year until the revenue is transmitted.
(d) The state treasurer shall deposit the revenue from the state assessing and collecting levy,
any interest accrued from that levy, and any penalties received under Subsection (3)(c) in the
Property Tax Valuation Agency Fund.
(4) Each county may levy an additional property tax up to .0002 per dollar of taxable value
of taxable property as reported by each county. This levy shall be stated on the tax notice as a county
assessing and collecting levy.
(a) The purpose of the levy established in this Subsection (4) is to promote the accurate
valuation of property, the establishment and maintenance of uniform assessment levels within and
among counties, and the efficient administration of the property tax system, including the costs of
assessment, collection, and distribution of property taxes.
(b) Any levy established in Subsection (4)(a) is:
(i) exempt from the redevelopment provisions of Subsections 17A-2-1199.48(1),
17A-2-1199.48(2), 17A-2-1247(1), and 17A-2-1247(2);
(ii) in addition to and exempt from the maximum levies allowable under Section 59-2-908;
and
(iii) is subject to the notice requirements of Sections 59-2-918 and 59-2-919.
Section 4. Section 59-2-924 is amended to read:
59-2-924. Report of valuation of property to county auditor and tax commission --
Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
budget.
(1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the

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county auditor and the commission a statement showing the aggregate valuation of all taxable
property in each taxing entity, together with a statement showing the taxable value of any additional
personal property estimated by the county assessor to be subject to taxation in the current tax year.
(b) The county auditor shall, on or before June 8, transmit this statement, together with an
estimate of the revenue from personal property, the certified tax rate, and all forms necessary to
submit a tax levy request, to the governing body of each taxing entity.
(2) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
property tax revenue for each taxing entity as was collected for the prior year by that taxing entity
excluding collections from redemptions, interest, and penalties. The certified tax rate shall be
calculated by dividing property tax revenues collected for the prior year by that taxing entity
excluding collections from redemptions, interest, and penalties by the taxable value established in
accordance with Section 59-2-913 except for the following:
(i) except as provided in Subsection (2)(a)(ii), for new taxing entities the certified tax rate
is zero;
(ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
(A) in a county of the first, second, or third class, the levy imposed for municipal-type
services under Sections 17-34-1 and 17-36-9; and
(B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services identified in Section
17-34-2 and Subsection17-36-3[(24)](22);
(iii) for debt service voted on by the public, the certified tax rate shall be the actual levy
imposed by that section; however,
(iv) the exceptions for the levies granted in Subsection (2)(a)(iii) do not include:
(A) school leeways provided for under Sections 11-2-7, 53A-16-110, 53A-17a-125,
53A-17a-127, 53A-17a-134, 53A-17a-143, 53A-17a-145, and 53A-21-103; and
(B) levies to pay for the costs of state legislative mandates or judicial or administrative
orders under Section 59-2-906.3; and
(v) the certified tax rates for the levies listed in Subsection(2)(a)(iv) shall each be calculated

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in accordance with Section 59-2-913.
(b) For the purpose of calculating the certified tax rate, the county auditor shall use the
taxable value of property on the assessment roll, exclusive of new growth. New growth is the
increase in taxable value of the taxing entity from the previous calendar year to the current year less
the amount of increase to locally assessed real property taxable values resulting from factoring,
reappraisal, or any other adjustments.
[(c) Beginning January 1, 1996, and ending December 31, 1996, if a taxing entity receives
increased revenues from uniform fees on tangible personal property under Section 59-2-404 or
59-2-405 as a result of the decrease in the minimum basic tax rate under Section 53A-17a-135 by
the Legislature during the 1996 Annual General Session, the taxing entity shall decrease its certified
tax rate to offset the increased revenues.]
(c) For the calendar year beginning on January 1, 1998, and ending December 31, 1998, a
taxing entity's certified tax rate shall be increased by the amount necessary to offset the decrease in
revenues from uniform fees on tangible personal property under Section 59-2-405 as a result of the
decrease in uniform fees on tangible personal property under Section 59-2-405 enacted by the
Legislature during the 1997 Annual General Session.
(3) (a) No later than June 22, each taxing entity shall adopt a tentative budget. If the taxing
entity intends to exceed the certified tax rate, it shall notify the county auditor of:
(i) its intent to exceed the rate; and
(ii) the amount by which it proposes to exceed the rate.
(b) The county auditor shall notify all property owners of any intent to exceed the certified
tax rate in accordance with Subsection 59-2-919(2).
[(4) (a) Except as provided in Subsection (4)(d), for taxable years beginning January 1, 1995,
and ending December 31, 1996, for taxing entities operating on a calendar year basis, and for fiscal
years 1995-96 and 1996-97 for taxing entities operating on a fiscal year basis, a taxing entity may
not impose a tax rate that exceeds the certified tax rate established in Subsection (2) unless the tax
increase is authorized by a majority vote of the governing body and approved by a vote of the people
as provided in Subsection (4)(b).]

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[(b) To obtain voter approval for a tax increase under Subsection (4)(a), the taxing entity
shall:]
[(i) hold the election on the fourth Tuesday in June; and]
[(ii) conduct the election according to the procedures and requirements of Title 20A
governing local elections.]
[(c) A taxing entity that imposes a tax rate under Subsections (4)(a) and (b) that exceeds the
certified rate established in Subsection (2) may not impose a tax rate in excess of the maximum levy
permitted by law.]
[(d) A school district that increases its tax rate under Section 53A-17a-145 for debt service,
the construction or remodeling of school buildings, or the purchase of school sites, buses, equipment,
textbooks, and supplies is not subject to the requirements of Subsections (4)(a) and (b).]
Section 5. Effective date.
This act takes effect on January 1, 1998.

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