H.B. 420 Enrolled

TRUTH IN TAXATION AMENDMENTS
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: Thomas Hatch
AN ACT RELATING TO THE PROPERTY TAX ACT; EXEMPTING TAXING ENTITIES
WITH LESS THAN $15,000 IN AD VALOREM TAX REVENUES FROM THE
ADVERTISEMENT REQUIREMENTS OF TRUTH IN TAXATION; MAKING
TECHNICAL CHANGES; AND PROVIDING FOR RETROSPECTIVE OPERATION.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-2-918, as last amended by Chapter 292, Laws of Utah 1997
59-2-919, as last amended by Chapter 292, Laws of Utah 1997
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-2-918 is amended to read:
59-2-918. Advertisement of proposed tax increase -- Notice -- Contents -- Exceptions.
(1) (a) [A] Except as provided in Subsection (1)(b), a taxing entity may not budget an
increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined in
Subsection 59-2-924 (2) unless it advertises its intention to do so at the same time that it advertises
its intention to fix its budget for the forthcoming fiscal year.
(b) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
advertisement requirements of this section if the taxing entity collected less than $15,000 in ad
valorem tax revenues for the previous fiscal year.
(2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
advertisement required by this section may be combined with the advertisement required by
Section 59-2-919 .
(b) For taxing entities operating under a January 1 through December 31 fiscal year, the
advertisement shall meet the size, type, placement, and frequency requirements established under
Section 59-2-919 .
(3) The form of the advertisement shall meet the size, type, placement, and frequency

requirements established under Section 59-2-919 and shall be substantially as follows:
"NOTICE OF PROPOSED TAX INCREASE
The (name of the taxing entity) is proposing to increase its property tax revenue. As a result
of the proposed increase, the tax on a (insert the average value of a residence in the taxing entity
rounded to the nearest thousand dollars) residence will be $__________, and the tax on a business
having the same value as the average value of a residence in the taxing entity will be__________.
Without the proposed increase the tax on a (insert the average value of a residence in the taxing
entity rounded to the nearest thousand dollars) residence would be $__________, and the tax on a
business having the same value as the average value of a residence in the taxing entity would
be_________. The (name of the taxing entity) is proposing to increase its property tax revenue from
$__________ collected last year to $__________ proposed this year, an increase of __________%.
All concerned citizens are invited to a public hearing on the tax increase to be held on (date
and time) at (meeting place)."
(4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
revenue is not made at the public hearing, the taxing entity shall announce at the public hearing the
scheduled time and place for consideration and adoption of the proposed budget increase.
(5) Each taxing entity operating under the January 1 through December 31 fiscal year shall
by March 1 notify the county of the date, time, and place of the public hearing at which the budget
for the following fiscal year will be considered. The county shall include that information with the
tax notice.
Section 2. Section 59-2-919 is amended to read:
59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of proposed
tax increase -- Exceptions to notice requirements -- Personal mailed notice in addition to
advertisement -- Contents of personal mailed notice -- Hearing -- Dates.
A tax rate in excess of the certified tax rate may not be levied until a resolution has been
approved by the taxing entity in accordance with the following procedure:
(1) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a
newspaper or combination of newspapers of general circulation in the taxing entity.

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(ii) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
advertisement requirements of this section if the taxing entity collected less than $15,000 in ad
valorem tax revenues for the previous fiscal year.
(b) The advertisement shall be no less than 1/4 page in size and the type used shall be no
smaller than 18 point, and surrounded by a 1/4-inch border.
(c) The advertisement may not be placed in that portion of the newspaper where legal notices
and classified advertisements appear.
(d) It is legislative intent that, whenever possible, the advertisement appear in a newspaper
that is published at least one day per week.
(e) It is further the intent of the Legislature that the newspaper or combination of newspapers
selected be of general interest and readership in the taxing entity, and not of limited subject matter.
(f) The advertisement shall be run once each week for the two weeks preceding the adoption
of the final budget.
(g) The advertisement shall state that the taxing entity will meet on a certain day, time, and
place fixed in the advertisement, which shall be not less than seven days after the day the first
advertisement is published, for the purpose of hearing comments regarding any proposed increase
and to explain the reasons for the proposed increase.
(h) The meeting on the proposed increase may coincide with the hearing on the proposed
budget of the taxing entity.
(2) The form and content of the notice shall be substantially as follows:
"NOTICE OF PROPOSED TAX INCREASE
The (name of the taxing entity) is proposing to increase its property tax revenue. As a result
of the proposed increase, the tax on a (insert the average value of a residence in the taxing entity
rounded to the nearest thousand dollars) residence will be $__________, and the tax on a business
having the same value as the average value of a residence in the taxing entity will be $__________.
Without the proposed increase the tax on a (insert the average value of a residence in the taxing
entity rounded to the nearest thousand dollars) residence would be $__________, and the tax on a
business having the same value as the average value of a residence in the taxing entity would be

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$__________. The (name of the taxing entity) is proposing to increase its property tax revenue from
$__________ collected last year to $__________ proposed this year, an increase of __________%.
The (insert year) proposed tax rate is __________. Without the proposed increase the rate
would be __________.
All concerned citizens are invited to a public hearing on the tax increase to be held on (date
and time) at (meeting place)."
(3) The commission shall adopt rules governing the joint use of one advertisement under this
section or Section 59-2-918 by two or more taxing entities and may, upon petition by any taxing
entity, authorize either:
(a) the use of weekly newspapers in counties having both daily and weekly newspapers
where the weekly newspaper would provide equal or greater notice to the taxpayer; or
(b) the use of a commission-approved direct notice to each taxpayer if the cost of the
advertisement would cause undue hardship and the direct notice is different and separate from that
provided for in Subsection (4).
(4) In addition to providing the notice required by Subsections (1) and (2), the county
auditor, on or before July 22 of each year, shall notify, by mail, each owner of real estate as defined
in Section 59-2-102 who is listed on the assessment roll. The notice shall:
(a) be sent to all owners of real property by mail not less than ten days before the day on
which:
(i) the county board of equalization meets; and
(ii) the taxing entity holds a public hearing on the proposed increase in the certified tax rate;
(b) the notice shall be printed on a form that is:
(i) approved by the commission; and
(ii) uniform in content in all counties in the state;
(c) contain for each property:
(i) the value of the property;
(ii) the date the county board of equalization will meet to hear complaints on the valuation;
(iii) itemized tax information for all taxing entities, including a separate statement for the

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minimum school levy under Section 53A-17a-135 stating:
(A) the dollar amount the taxpayer would have paid based on last year's rate; and
(B) the amount of the taxpayer's liability under the current rate;
(iv) the tax impact on the property;
(v) the time and place of the required public hearing for each entity;
(vi) property tax information pertaining to taxpayer relief, options for payment of taxes, and
collection procedures;
(vii) other information specifically authorized to be included on the notice under Title 59,
Chapter 2, Property Tax Act; and
(viii) other property tax information approved by the commission.
(5) (a) The taxing entity, after the hearing has been held in accordance with the above
procedures, may adopt a resolution levying a tax rate in excess of the certified tax rate.
(b) If the resolution adopting the tax rate is not adopted on the day of the public hearing, the
scheduled time and place for consideration and adoption of the resolution shall be announced at the
public hearing.
(c) If the resolution is to be considered at a day and time that is more than two weeks after
the public hearing described in Subsection (4)(c)(v), [the] a taxing entity, other than a taxing entity
described in Subsection (1)(a)(ii), shall advertise the date of the proposed adoption of the resolution
in the same manner as provided under Subsections (1) and (2).
(6) All hearings shall be open to the public. The governing body of the taxing entity
conducting the hearing shall permit all interested parties desiring to be heard an opportunity to
present oral testimony within reasonable time limits.
(7) (a) Each taxing entity shall notify the county legislative body by March 1 of each year
of the date, time, and place of its public hearing.
(b) A taxing entity may not schedule its hearing at the same time as another overlapping
taxing entity in the same county, but all taxing entities in which the power to set tax levies is vested
in the same governing board or authority may consolidate the required hearings into one hearing.
(c) The county legislative body shall resolve any conflicts in hearing dates and times after

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consultation with each affected taxing entity.
Section 3. Retrospective operation.
This act has retrospective operation to January 1, 1998.

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