H.B. 178 Enrolled

PROPERTY TAX CERTIFIED TAX RATE
ADJUSTMENTS - UNIFORM FEES
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Raymond W. Short
AN ACT RELATING TO THE PROPERTY TAX ACT; REQUIRING THE STATE TAX
COMMISSION TO ADJUST A TAXING ENTITY'S CERTIFIED TAX RATE AND
CERTIFIED REVENUE LEVY UNDER CERTAIN CIRCUMSTANCES; REPEALING
OBSOLETE LANGUAGE; MAKING TECHNICAL CHANGES; AND PROVIDING FOR
RETROSPECTIVE OPERATION.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
59-2-924, as last amended by Chapter 353, Laws of Utah 1999
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 59-2-924 is amended to read:
59-2-924. Report of valuation of property to county auditor and 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
county auditor and the commission the following statements:
(i) a statement containing the aggregate valuation of all taxable property in each taxing
entity; and
(ii) a statement containing the taxable value of any additional personal property estimated
by the county assessor to be subject to taxation in the current year.
(b) The county auditor shall, on or before June 8, transmit to the governing body of each
taxing entity:
(i) the statements described in Subsections (1)(a)(i) and (ii);
(ii) an estimate of the revenue from personal property;
(iii) the certified tax rate; and

(iv) all forms necessary to submit a tax levy request.
(2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
property tax revenues for a taxing entity as were collected by that taxing entity for the prior year.
(ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not include:
(A) collections from redemptions;
(B) interest; and
(C) penalties.
(iii) Except as provided in Subsection (2)(a)(iv), the certified tax rate shall be calculated by
dividing the ad valorem property tax revenues collected for the prior year by the taxing entity by the
taxable value established in accordance with Section 59-2-913 .
(iv) The certified tax rates for the taxing entities described in this Subsection (2)(a)(iv) shall
be calculated as follows:
(A) except as provided in Subsection (2)(a)(iv)(B), for new taxing entities the certified tax
rate is zero;
(B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
(I) 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
(II) 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 Subsection 17-36-3 (22);
(C) for debt service voted on by the public, the certified tax rate shall be the actual levy
imposed by that section, except that the certified tax rates for the following levies shall be calculated
in accordance with Section 59-2-913 and this section:
(I) 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
(II) levies to pay for the costs of state legislative mandates or judicial or administrative orders
under Section 59-2-906.3 .
(v) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330 shall be

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established at that rate which is sufficient to generate only the revenue required to satisfy the known,
unpaid judgments. The ad valorem property tax revenue generated by the judgment levy shall not
be considered in establishing the taxing entity's aggregate certified tax rate.
(b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the
taxable value of property on the assessment roll.
(ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the assessment roll
does not include new growth as defined in Subsection (2)(b)(iii).
(iii) "New growth" means:
(A) the difference between the increase in taxable value of the taxing entity from the previous
calendar year to the current year; minus
(B) the amount of increase to locally assessed real property taxable values resulting from
factoring, reappraisal, or any other adjustments.
(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from uniform
fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a result of
any county imposing a sales and use tax under [Title 59,] Chapter 12, Part 11, County Option Sales
and Use Tax, the taxing entity shall decrease its certified tax rate to offset the increased revenues.
(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under [Title 59,]
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
(A) decreased on a one-time basis by the amount of the estimated sales tax revenue to be
distributed to the county under Subsection 59-12-1102 (3); and
(B) increased by the amount necessary to offset the county's reduction in revenue from
uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a
result of the decrease in the certified tax rate under Subsection (2)(d)(i)(A).
(ii) The commission shall determine estimates of sales tax distributions for purposes of
Subsection (2)(d)(i).
[(e) 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

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decrease in uniform fees on tangible personal property under Section 59-2-405 enacted by the
Legislature during the 1997 Annual General Session.]
[(f)] (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be decreased
on a one-time basis by the amount necessary to offset the first 12 months of estimated revenue from
the additional resort communities sales tax imposed under Section 59-12-402 .
[(g)] (f) For the calendar year beginning on January 1, 1999, and ending on December 31,
1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
adjustment in revenues from uniform fees on tangible personal property under Section 59-2-405.1
as a result of the adjustment in uniform fees on tangible personal property under Section 59-2-405.1
enacted by the Legislature during the 1998 Annual General Session.
(g) For purposes of Subsections (2)(h) through (j):
(i) "1998 actual collections" means the amount of revenues a taxing entity actually collected
for the calendar year beginning on January 1, 1998, under Section 59-2-405 for:
(A) motor vehicles required to be registered with the state that weigh 12,000 pounds or less;
and
(B) state-assessed commercial vehicles required to be registered with the state that weigh
12,000 pounds or less.
(ii) "1999 actual collections" means the amount of revenues a taxing entity actually collected
for the calendar year beginning on January 1, 1999, under Section 59-2-405.1.
(h) For the calendar year beginning on January 1, 2000, the commission shall make the
following adjustments:
(i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for the
calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater than
the sum of:
(A) the taxing entity's 1999 actual collections; and
(B) any adjustments the commission made under Subsection (2)(f);
(ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for the

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calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater than
the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual collections were less
than the sum of:
(A) the taxing entity's 1999 actual collections; and
(B) any adjustments the commission made under Subsection (2)(f); and
(iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for the
calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were less than
the taxing entity's 1999 actual collections.
(i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing entity's
certified tax rate under this section and a taxing entity's certified revenue levy under Section
59-2-906.1 by the amount necessary to offset the difference between:
(A) the taxing entity's 1998 actual collections; and
(B) the sum of:
(I) the taxing entity's 1999 actual collections; and
(II) any adjustments the commission made under Subsection (2)(f).
(ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing entity's
certified tax rate under this section and a taxing entity's certified revenue levy under Section
59-2-906.1 by the amount necessary to offset the difference between:
(A) the sum of:
(I) the taxing entity's 1999 actual collections; and
(II) any adjustments the commission made under Subsection (2)(f); and
(B) the taxing entity's 1998 actual collections.
(iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing entity's
certified tax rate under this section and a taxing entity's certified revenue levy under Section
59-2-906.1 by the amount of any adjustments the commission made under Subsection (2)(f).
(j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
purposes of Subsections (2)(f) through (i), the commission may make rules establishing the method
for determining a taxing entity's 1998 actual collections and 1999 actual collections.

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(3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
(b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
auditor of:
(i) its intent to exceed the certified tax rate; and
(ii) the amount by which it proposes to exceed the certified tax rate.
(c) 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) The taxable value for the base year under Subsection 17A-2-1247 (2)(a) or
17A-2-1202 (2), as the case may be, shall be reduced for any year to the extent necessary to provide
a redevelopment agency established under Title 17A, Chapter 2, Part 12, Utah Neighborhood
Development Act, with approximately the same amount of money the agency would have received
without a reduction in the county's certified tax rate if:
(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i);
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
previous year; and
(iii) the decrease results in a reduction of the amount to be paid to the agency under Section
17A-2-1247 or 17A-2-1247.5 .
(b) The taxable value of the base year under Subsection 17A-2-1247 (2)(a) or 17A-2-1202 (2),
as the case may be, shall be increased in any year to the extent necessary to provide a redevelopment
agency with approximately the same amount of money as the agency would have received without
an increase in the certified tax rate that year if:
(i) in that year the taxable value for the base year under Subsection 17A-2-1247 (2) or
17A-2-1202 (2) is reduced due to a decrease in the certified tax rate under Subsection (2)(c) or
(2)(d)(i); and
(ii) The certified tax rate of a city, school district, or special district increases independent
of the adjustment to the taxable value of the base year.
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i),
the amount of money allocated and, when collected, paid each year to a redevelopment agency

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established under Title 17A, Chapter 2, Part 12, Utah Neighborhood Development Act, for the
payment of bonds or other contract indebtedness, but not for administrative costs, may not be less
than that amount would have been without a decrease in the certified tax rate under Subsection (2)(c)
or (2)(d)(i).
[(5) (a) Except as provided in Subsections (5)(d) through (f), for the calendar year beginning
on January 1, 1998, and ending December 31, 1998, to impose a tax rate that exceeds the certified
tax rate established in Subsection (2), a taxing entity shall obtain approval for the tax increase by a
majority vote of the:]
[(i) governing body; and]
[(ii) people as provided in Subsection (5)(b).]
[(b) To obtain voter approval for a tax increase under Subsection (5)(a), a taxing entity shall:]
[(i) hold an election on the fourth Tuesday in June; and]
[(ii) conduct the election according to the procedures and requirements of Title 20A, Election
Code, governing local elections.]
[(c) A tax rate imposed by a taxing entity under this Subsection (5) may not exceed the
maximum levy permitted by law under Section 59-2-908 .]
[(d) Notwithstanding Subsection (5)(a), a school district is not required to obtain voter
approval under this Subsection (5) to impose a tax rate that exceeds the certified tax rate:]
[(i) under Section 53A-17a-135 , if the Legislature increases the minimum basic tax rate under
Section 53A-17a-135 ;]
[(ii) under Section 53A-21-103 ;]
[(iii) under Section 53A-16-111 ;]
[(iv) if, on or after January 1, 1997, but on or before December 31, 1997, the school district
obtained voter approval to impose the tax rate; or]
[(v) if, on or after January 1, 1998, the school district obtains voter approval to impose the
tax rate under a statutory provision, other than the provisions of this section, requiring voter approval
to impose the tax rate.]
[(e) Notwithstanding Subsection (5)(a), a municipality is not required to obtain voter

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approval under this Subsection (5) to impose a tax rate that exceeds the certified tax rate if:]
[(i) the municipality meets the requirements of Sections 59-2-918 and 59-2-919 ; and]
[(ii) in adopting the resolution required under Section 59-2-919 , the municipal legislative
body obtains approval to impose the tax rate by two-thirds of all members of the municipal legislative
body.]
[(f) Notwithstanding Subsection (5)(a), a county or municipality is not required to obtain
voter approval under this Subsection (5) to impose a tax rate under Section 17A-2-1322 that exceeds
the certified tax rate calculated for a special service district established under Title 17A, Chapter 2,
Part 13, Utah Special Service District Act, if the county or municipality obtained voter approval to
impose a tax on property within the special service district:]
[(i) under Section 17A-2-1322 ; and]
[(ii) on or after June 1, 1996.]
Section 2. Retrospective operation.
This act has retrospective operation to January 1, 2000.

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