S.B. 251

1

UNIFORM FEES ON TANGIBLE PERSONAL
2 PROPERTY
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Craig A. Peterson
6 AN ACT RELATING TO THE PROPERTY TAX ACT; DECREASING THE UNIFORM FEE
7 ON TANGIBLE PERSONAL PROPERTY; PROVIDING FOR AN INCREASE THE
8 CERTIFIED TAX RATE AND THE CERTIFIED REVENUE LEVY TO OFFSET A
9 DECREASE IN UNIFORM FEES UNDER CERTAIN CIRCUMSTANCES; MAKING
10 TECHNICAL CHANGES; AND PROVIDING AN EFFECTIVE DATE.
11 This act affects sections of Utah Code Annotated 1953 as follows:
12 AMENDS:
13 53A-17a-135, as last amended by Chapter 321, Laws of Utah 1996
14 59-2-405, as last amended by Chapters 247 and 339, Laws of Utah 1995
15 59-2-906.1, as last amended by Chapter 271, Laws of Utah 1995
16 59-2-924, as last amended by Chapters 286, 321 and 326, Laws of Utah 1996
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 53A-17a-135 is amended to read:
19 53A-17a-135. Certified revenue levy -- District-wide discipline plan.
20 (1) (a) In order to qualify for receipt of the state contribution toward the basic program
21 and as its contribution toward its costs of the basic program, each school district shall impose a
22 minimum basic tax rate of .002138 per dollar of taxable value that is sufficient to generate
23 $164,837,930 in revenues.
24 (b) (i) The State Tax Commission shall certify on or before June 22, 1996, that the rate
25 provided in Subsection (1)(a) generates $164,837,930 in revenues.
26 (ii) If the State Tax Commission determines that the rate provided in Subsection (1)(a)
27 does not generate $164,837,930 in revenues, the State Tax Commission shall increase or decrease

1 the rate to meet the requirements of Subsection (1)(a).
2 (2) (a) Except as authorized in Subsection (2)(b), beginning in fiscal year 1996-97 the
3 Legislature shall authorize a levy not to exceed the certified revenue levy for the school district
4 contribution toward the costs of the basic program.
5 (b) If the Legislature authorizes a levy that exceeds the certified revenue levy, it is subject
6 to the notice requirements of Section 59-2-926.
7 (c) For the calendar year beginning on January 1, 1998, and ending December 31, 1998,
8 the certified revenue levy shall be increased by the amount necessary to offset the decrease in
9 revenues from uniform fees on tangible personal property under Section 59-2-405 as a result of
10 the decrease in uniform fees on tangible personal property under Section 59-2-405 enacted by the
11 Legislature during the 1997 Annual General Session.
12 (3) In order to qualify for receipt of the state contribution toward the basic program and
13 as its contribution toward the costs of the basic program, each school district shall impose a levy
14 as authorized by the Legislature under Subsection (2).
15 (4) (a) The state shall contribute to each district toward the cost of the basic program in
16 the district that portion which exceeds the proceeds of the levy authorized under Subsection (2).
17 (b) In accord with the state strategic plan for public education and to fulfill its
18 responsibility for the development and implementation of that plan, the Legislature instructs the
19 State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each of the
20 coming five years to develop budgets that will fully fund student enrollment growth.
21 (5) (a) If the proceeds of the levy authorized under Subsection (2) equal or exceed the cost
22 of the basic program in a school district, no state contribution shall be made to the basic program.
23 (b) The proceeds of the levy authorized under Subsection (2) which exceed the cost of the
24 basic program shall be paid into the Uniform School Fund as provided by law.
25 (6) In order to qualify for receipt of the state contribution toward the basic program, a
26 school district shall implement a district-wide discipline plan under guidelines developed by the
27 State Board of Education.
28 Section 2. Section 59-2-405 is amended to read:
29 59-2-405. Uniform fee on tangible personal property required to be registered with
30 the state.
31 (1) The property described in Subsection (2), except (2)(b) and (c), is exempt from ad

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1 valorem property taxes pursuant to Utah Constitution Article XIII, Section 14.
2 (2) There is levied in lieu of the ad valorem tax an annual statewide uniform fee based on
3 the value of motor vehicles, watercraft, recreational vehicles, and all other tangible personal
4 property required to be registered with the state before it is used on a public highway, on a public
5 waterway, on public land, or in the air. The following personal property is exempt from the
6 statewide uniform fee imposed by this section:
7 (a) aircraft;
8 (b) vintage vehicles as defined in Section 41-21-1;
9 (c) interstate motor carriers entitled to protection under Title 49, Section 11503a of the
10 United States Code; and
11 (d) personal property that is exempt from state or county ad valorem property taxes under
12 the laws of this state or of the federal government.
13 (3) The uniform fee is [1.7%] 1.5% of the fair market value of the personal property, as
14 established by the commission.
15 (4) Notwithstanding Section 59-2-407, property subject to the uniform fee that is brought
16 into the state and is required to be registered in Utah shall, as a condition of registration, be subject
17 to the uniform fee unless all property taxes or uniform fees imposed by the state of origin have
18 been paid for the current calendar year.
19 (5) (a) The revenues collected in each county from the uniform fee shall be distributed by
20 the county to each taxing entity in which the property described in Subsection (2) is located in the
21 same proportion in which revenue collected from ad valorem real property tax is distributed.
22 (b) Each taxing entity shall distribute the revenues received under Subsection (5)(a) in the
23 same proportion in which revenue collected from ad valorem real property tax is distributed.
24 (6) Appeals of the valuation of the tangible personal property described in Subsection (2)
25 shall be filed pursuant to Section 59-2-1005.
26 Section 3. Section 59-2-906.1 is amended to read:
27 59-2-906.1. Property Tax Valuation Agency Fund -- Creation -- Statewide levy --
28 Additional county levy permitted.
29 (1) (a) There is created the Property Tax Valuation Agency Fund, to be funded by a
30 statewide levy not to exceed .0003 as provided in Subsection (2).
31 (b) The purpose of the statewide levy and the disbursement formulas established in Section

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1 59-2-906.2 is to promote the accurate valuation of property, the establishment and maintenance
2 of uniform assessment levels within and among counties, and the efficient administration of the
3 property tax system, including the costs of assessment, collection, and distribution of property
4 taxes.
5 (c) Income derived from the investment of money in the fund created in this subsection
6 shall be deposited in and become part of the fund.
7 (2) (a) Except as authorized in Subsection (2)(b), beginning in fiscal year 1996-97 the
8 Legislature shall authorize a levy not to exceed the certified revenue levy to fund the Property Tax
9 Valuation Agency Fund.
10 (b) If the Legislature authorizes a levy that exceeds the certified revenue levy, it is subject
11 to the notice requirements of Section 59-2-926.
12 (c) For the calendar year beginning on January 1, 1998, and ending December 31, 1998,
13 the certified revenue levy shall be increased by the amount necessary to offset the decrease in
14 revenues from uniform fees on tangible personal property under Section 59-2-405 as a result of
15 the decrease in uniform fees on tangible personal property under Section 59-2-405 enacted by the
16 Legislature during the 1997 Annual General Session.
17 (3) (a) The levy authorized by the Legislature under Subsection (2) shall be separately
18 stated on the tax notice as a state assessing and collecting levy.
19 (b) Any levy authorized by the Legislature under Subsection (2) is:
20 (i) exempt from the redevelopment provisions of Subsections 17A-2-1199.48(1),
21 17A-2-1199.48(2), 17A-2-1247(1), and 17A-2-1247(2);
22 (ii) in addition to and exempt from the maximum levies allowable under Section 59-2-908;
23 and
24 (iii) exempt from the notice requirements of Sections 59-2-918 and 59-2-919.
25 (c) Each county shall transmit quarterly to the state treasurer the portion of the .0003 state
26 assessing and collecting levy which is above the amount to which that county is entitled to under
27 Section 59-2-906.2.
28 (i) The revenue shall be transmitted no later than the 10th day of the month following the
29 end of the quarter in which the revenue is collected.
30 (ii) If revenue is transmitted after the 10th day of the month following the end of the
31 quarter in which the revenue is collected, the county shall pay an interest penalty at the rate of 10%

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1 each year until the revenue is transmitted.
2 (d) The state treasurer shall deposit the revenue from the state assessing and collecting
3 levy, any interest accrued from that levy, and any penalties received under Subsection (3)(c) in the
4 Property Tax Valuation Agency Fund.
5 (4) Each county may levy an additional property tax up to .0002 per dollar of taxable value
6 of taxable property as reported by each county. This levy shall be stated on the tax notice as a
7 county assessing and collecting levy.
8 (a) The purpose of the levy established in this subsection is to promote the accurate
9 valuation of property, the establishment and maintenance of uniform assessment levels within and
10 among counties, and the efficient administration of the property tax system, including the costs
11 of assessment, collection, and distribution of property taxes.
12 (b) Any levy established in Subsection (4)(a) is:
13 (i) exempt from the redevelopment provisions of Subsections 17A-2-1199.48(1),
14 17A-2-1199.48(2), 17A-2-1247(1), and 17A-2-1247(2);
15 (ii) in addition to and exempt from the maximum levies allowable under Section 59-2-908;
16 and
17 (iii) is subject to the notice requirements of Sections 59-2-918 and 59-2-919.
18 Section 4. Section 59-2-924 is amended to read:
19 59-2-924. Report of valuation of property to county auditor and tax commission --
20 Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
21 budget.
22 (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
23 county auditor and the commission a statement showing the aggregate valuation of all taxable
24 property in each taxing entity, together with a statement showing the taxable value of any
25 additional personal property estimated by the county assessor to be subject to taxation in the
26 current tax year.
27 (b) The county auditor shall, on or before June 8, transmit this statement, together with an
28 estimate of the revenue from personal property, the certified tax rate, and all forms necessary to
29 submit a tax levy request, to the governing body of each taxing entity.
30 (2) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
31 property tax revenue for each taxing entity as was collected for the prior year by that taxing entity

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1 excluding collections from redemptions, interest, and penalties. The certified tax rate shall be
2 calculated by dividing property tax revenues collected for the prior year by that taxing entity
3 excluding collections from redemptions, interest, and penalties by the taxable value established
4 in accordance with Section 59-2-913 except for the following:
5 (i) except as provided in Subsection (2)(a)(ii), for new taxing entities the certified tax rate
6 is zero;
7 (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
8 (A) in a county of the first, second, or third class, the levy imposed for municipal-type
9 services under Sections 17-34-1 and 17-36-9; and
10 (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
11 purposes and such other levies imposed solely for the municipal-type services identified in Section
12 17-34-2 and Subsection17-36-3[(24)](22);
13 (iii) for debt service voted on by the public, the certified tax rate shall be the actual levy
14 imposed by that section; however,
15 (iv) the exceptions for the levies granted in Subsection (2)(a)(iii) do not include:
16 (A) school leeways provided for under Sections 11-2-7, 53A-16-110, 53A-17a-125,
17 53A-17a-127, 53A-17a-134, 53A-17a-143, 53A-17a-145, and 53A-21-103; and
18 (B) levies to pay for the costs of state legislative mandates or judicial or administrative
19 orders under Section 59-2-906.3; and
20 (v) the certified tax rates for the levies listed in Subsection(2)(a)(iv) shall each be
21 calculated in accordance with Section 59-2-913.
22 (b) For the purpose of calculating the certified tax rate, the county auditor shall use the
23 taxable value of property on the assessment roll, exclusive of new growth. New growth is the
24 increase in taxable value of the taxing entity from the previous calendar year to the current year
25 less the amount of increase to locally assessed real property taxable values resulting from
26 factoring, reappraisal, or any other adjustments.
27 [(c) Beginning January 1, 1996, and ending December 31, 1996, if a taxing entity receives
28 increased revenues from uniform fees on tangible personal property under Section 59-2-404 or
29 59-2-405 as a result of the decrease in the minimum basic tax rate under Section 53A-17a-135 by
30 the Legislature during the 1996 Annual General Session, the taxing entity shall decrease its
31 certified tax rate to offset the increased revenues.]

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1 (c) For the calendar year beginning on January 1, 1998, and ending December 31, 1998,
2 a taxing entity's certified tax rate shall be increased by the amount necessary to offset the decrease
3 in revenues from uniform fees on tangible personal property under Section 59-2-405 as a result
4 of the decrease in uniform fees on tangible personal property under Section 59-2-405 enacted by
5 the Legislature during the 1997 Annual General Session.
6 (3) (a) No later than June 22, each taxing entity shall adopt a tentative budget. If the
7 taxing entity intends to exceed the certified tax rate, it shall notify the county auditor of:
8 (i) its intent to exceed the rate; and
9 (ii) the amount by which it proposes to exceed the rate.
10 (b) The county auditor shall notify all property owners of any intent to exceed the certified
11 tax rate in accordance with Subsection 59-2-919(2).
12 [(4) (a) Except as provided in Subsection (4)(d), for taxable years beginning January 1,
13 1995, and ending December 31, 1996, for taxing entities operating on a calendar year basis, and
14 for fiscal years 1995-96 and 1996-97 for taxing entities operating on a fiscal year basis, a taxing
15 entity may not impose a tax rate that exceeds the certified tax rate established in Subsection (2)
16 unless the tax increase is authorized by a majority vote of the governing body and approved by a
17 vote of the people as provided in Subsection (4)(b).]
18 [(b) To obtain voter approval for a tax increase under Subsection (4)(a), the taxing entity
19 shall:]
20 [(i) hold the election on the fourth Tuesday in June; and]
21 [(ii) conduct the election according to the procedures and requirements of Title 20A
22 governing local elections.]
23 [(c) A taxing entity that imposes a tax rate under Subsections (4)(a) and (b) that exceeds
24 the certified rate established in Subsection (2) may not impose a tax rate in excess of the maximum
25 levy permitted by law.]
26 [(d) A school district that increases its tax rate under Section 53A-17a-145 for debt service,
27 the construction or remodeling of school buildings, or the purchase of school sites, buses,
28 equipment, textbooks, and supplies is not subject to the requirements of Subsections (4)(a) and
29 (b).]
30 Section 5. Effective date.
31 This act takes effect on January 1, 1998.

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Legislative Review Note
as of 2-28-97 6:48 PM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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