Second Substitute S.B. 168

Senator Leonard M. Blackham proposes to substitute the following bill:

1 CERTAIN MUNICIPAL SERVICES IN FIRST
2 CLASS COUNTIES
3 2001 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Leonard M. Blackham
6 This act modifies provisions relating to Counties and to Revenue and Taxation to require
7 counties of the first class to provide detective investigative services in their unincorporated
8 area. The act requires those counties to decrease their countywide tax levy previously
9 imposed to pay for those services. The act authorizes cities and towns located within those
10 counties to increase their tax levy to generate within the city or town the same amount of
11 revenue as the county would have collected from within the city or town. The act exempts
12 the city and town tax increases from applicable notice and hearing requirements and
13 expands an exemption from those same requirements for cities and towns that increase their
14 tax rate to offset a countywide reduction relating to advanced life support and paramedic
15 services. The act also makes technical changes.
16 This act affects sections of Utah Code Annotated 1953 as follows:
17 AMENDS:
18 17-34-1, as repealed and reenacted by Chapter 199, Laws of Utah 2000
19 17-34-3, as last amended by Chapter 199, Laws of Utah 2000
20 59-2-924, as last amended by Chapters 22, 61, 141 and 199, Laws of Utah 2000
21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 17-34-1 is amended to read:
23 17-34-1. Counties may provide municipal services -- First class counties required to
24 provide paramedic and detective investigative services.
25 (1) For purposes of this chapter, "municipal-type services" means:

26 (a) fire protection service;
27 (b) waste and garbage collection and disposal;
28 (c) planning and zoning;
29 (d) street lighting;
30 (e) in a county of the first class[,]:
31 (i) advanced life support and paramedic services; and
32 (ii) detective investigative services; and
33 (f) all other services and functions that are required by law to be budgeted, appropriated,
34 and accounted for from a municipal services fund or a municipal capital projects fund as defined
35 under Chapter 36, Uniform Fiscal Procedures Act for Counties.
36 (2) A county may:
37 (a) provide municipal-type services to areas of the county outside the limits of cities and
38 towns without providing the same services to cities or towns;
39 (b) fund those services by:
40 (i) levying a tax on taxable property in the county outside the limits of cities and towns;
41 or
42 (ii) charging a service charge or fee to persons benefitting from the municipal-type
43 services.
44 (3) Each county of the first class shall provide [advanced life support and paramedic
45 services] to the area of the county outside the limits of cities and towns[.]:
46 (a) advanced life support and paramedic services; and
47 (b) detective investigative services.
48 Section 2. Section 17-34-3 is amended to read:
49 17-34-3. Taxes or service charges.
50 (1) (a) If a county furnishes the municipal-type services and functions described in Section
51 17-34-1 to areas of the county outside the limits of incorporated cities or towns, the entire cost of
52 the services or functions so furnished shall be defrayed from funds that the county has derived
53 from [either]:
54 (i) taxes [which] that the county may lawfully levy or impose outside the limits of
55 incorporated towns or cities;
56 (ii) service charges or fees the county may impose upon the persons benefited in any way

57 by the services or functions; or
58 (iii) a combination of these sources.
59 (b) As the taxes or service charges or fees are levied and collected, they shall be placed in
60 a special revenue fund of the county and shall be disbursed only for the rendering of the services
61 or functions established in Section 17-34-1 within the unincorporated areas of the county.
62 (2) For the purpose of levying taxes, service charges, or fees provided in this section, the
63 county legislative body may establish a district or districts in the unincorporated areas of the
64 county.
65 (3) Nothing contained in this chapter may be construed to authorize counties to impose
66 or levy taxes not otherwise allowed by law.
67 (4) (a) A county required under Subsection 17-34-1 (3) to provide advanced life support
68 and paramedic services to the unincorporated area of the county and that previously paid for those
69 services through a countywide levy may increase its levy under Subsection (1)(a)(i) to generate in
70 the unincorporated area of the county the same amount of revenue as the county loses from that
71 area due to the required decrease in the countywide certified tax rate under Subsection
72 59-2-924 (2)[(h)](k)(i).
73 (b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and hearing
74 requirements of Sections 59-2-918 and 59-2-919 .
75 Section 3. Section 59-2-924 is amended to read:
76 59-2-924. Report of valuation of property to county auditor and commission --
77 Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
78 budget.
79 (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
80 county auditor and the commission the following statements:
81 (i) a statement containing the aggregate valuation of all taxable property in each taxing
82 entity; and
83 (ii) a statement containing the taxable value of any additional personal property estimated
84 by the county assessor to be subject to taxation in the current year.
85 (b) The county auditor shall, on or before June 8, transmit to the governing body of each
86 taxing entity:
87 (i) the statements described in Subsections (1)(a)(i) and (ii);

88 (ii) an estimate of the revenue from personal property;
89 (iii) the certified tax rate; and
90 (iv) all forms necessary to submit a tax levy request.
91 (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
92 property tax revenues for a taxing entity as were collected by that taxing entity for the prior year.
93 (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not include:
94 (A) collections from redemptions;
95 (B) interest; and
96 (C) penalties.
97 (iii) Except as provided in Subsection (2)(a)(iv), the certified tax rate shall be calculated
98 by dividing the ad valorem property tax revenues collected for the prior year by the taxing entity
99 by the taxable value established in accordance with Section 59-2-913 .
100 (iv) The certified tax rates for the taxing entities described in this Subsection (2)(a)(iv)
101 shall be calculated as follows:
102 (A) except as provided in Subsection (2)(a)(iv)(B), for new taxing entities the certified tax
103 rate is zero;
104 (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
105 (I) in a county of the first, second, or third class, the levy imposed for municipal-type
106 services under Sections 17-34-1 and 17-36-9 ; and
107 (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
108 purposes and such other levies imposed solely for the municipal-type services identified in Section
109 17-34-1 and Subsection 17-36-3 (22);
110 (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
111 imposed by that section, except that the certified tax rates for the following levies shall be
112 calculated in accordance with Section 59-2-913 and this section:
113 (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
114 53A-17a-127 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
115 (II) levies to pay for the costs of state legislative mandates or judicial or administrative
116 orders under Section 59-2-906.3 .
117 (v) (A) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330 shall be
118 established at that rate which is sufficient to generate only the revenue required to satisfy one or

119 more eligible judgments, as defined in Section 59-2-102 .
120 (B) The ad valorem property tax revenue generated by the judgment levy shall not be
121 considered in establishing the taxing entity's aggregate certified tax rate.
122 (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the
123 taxable value of property on the assessment roll.
124 (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the assessment
125 roll does not include new growth as defined in Subsection (2)(b)(iii).
126 (iii) "New growth" means:
127 (A) the difference between the increase in taxable value of the taxing entity from the
128 previous calendar year to the current year; minus
129 (B) the amount of an increase in taxable value described in Subsection (2)(b)(iv).
130 (iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
131 (A) the amount of increase to locally assessed real property taxable values resulting from
132 factoring, reappraisal, or any other adjustments; or
133 (B) the amount of an increase in the taxable value of property assessed by the commission
134 under Section 59-2-201 resulting from a change in the method of apportioning the taxable value
135 prescribed by:
136 (I) the Legislature;
137 (II) a court;
138 (III) the commission in an administrative rule; or
139 (IV) the commission in an administrative order.
140 (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from uniform
141 fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a result of
142 any county imposing a sales and use tax under Chapter 12, Part 11, County Option Sales and Use
143 Tax, the taxing entity shall decrease its certified tax rate to offset the increased revenues.
144 (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under Chapter
145 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
146 (A) decreased on a one-time basis by the amount of the estimated sales tax revenue to be
147 distributed to the county under Subsection 59-12-1102 (3); and
148 (B) increased by the amount necessary to offset the county's reduction in revenue from
149 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , or 59-2-405.1 as a

150 result of the decrease in the certified tax rate under Subsection (2)(d)(i)(A).
151 (ii) The commission shall determine estimates of sales tax distributions for purposes of
152 Subsection (2)(d)(i).
153 (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
154 communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
155 decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
156 revenue from the additional resort communities sales tax imposed under Section 59-12-402 .
157 (f) For the calendar year beginning on January 1, 1999, and ending on December 31, 1999,
158 a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the adjustment
159 in revenues from uniform fees on tangible personal property under Section 59-2-405.1 as a result
160 of the adjustment in uniform fees on tangible personal property under Section 59-2-405.1 enacted
161 by the Legislature during the 1998 Annual General Session.
162 (g) For purposes of Subsections (2)(h) through (j):
163 (i) "1998 actual collections" means the amount of revenues a taxing entity actually
164 collected for the calendar year beginning on January 1, 1998, under Section 59-2-405 for:
165 (A) motor vehicles required to be registered with the state that weigh 12,000 pounds or
166 less; and
167 (B) state-assessed commercial vehicles required to be registered with the state that weigh
168 12,000 pounds or less.
169 (ii) "1999 actual collections" means the amount of revenues a taxing entity actually
170 collected for the calendar year beginning on January 1, 1999, under Section 59-2-405.1 .
171 (h) For the calendar year beginning on January 1, 2000, the commission shall make the
172 following adjustments:
173 (i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for the
174 calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater
175 than the sum of:
176 (A) the taxing entity's 1999 actual collections; and
177 (B) any adjustments the commission made under Subsection (2)(f);
178 (ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for the
179 calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater
180 than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual collections were

181 less than the sum of:
182 (A) the taxing entity's 1999 actual collections; and
183 (B) any adjustments the commission made under Subsection (2)(f); and
184 (iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for
185 the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were less
186 than the taxing entity's 1999 actual collections.
187 (i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing entity's
188 certified tax rate under this section and a taxing entity's certified revenue levy under Section
189 59-2-906.1 by the amount necessary to offset the difference between:
190 (A) the taxing entity's 1998 actual collections; and
191 (B) the sum of:
192 (I) the taxing entity's 1999 actual collections; and
193 (II) any adjustments the commission made under Subsection (2)(f).
194 (ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing entity's
195 certified tax rate under this section and a taxing entity's certified revenue levy under Section
196 59-2-906.1 by the amount necessary to offset the difference between:
197 (A) the sum of:
198 (I) the taxing entity's 1999 actual collections; and
199 (II) any adjustments the commission made under Subsection (2)(f); and
200 (B) the taxing entity's 1998 actual collections.
201 (iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing entity's
202 certified tax rate under this section and a taxing entity's certified revenue levy under Section
203 59-2-906.1 by the amount of any adjustments the commission made under Subsection (2)(f).
204 (j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
205 purposes of Subsections (2)(f) through (i), the commission may make rules establishing the method
206 for determining a taxing entity's 1998 actual collections and 1999 actual collections.
207 (k) (i) (A) For fiscal year 2000, the certified tax rate of each county [to which] required
208 under Subsection [ 17-34-3 (4)(a) applies] 17-34-1 (3)(a) to provide advanced life support and
209 paramedic services to the unincorporated area of the county shall be decreased by the amount
210 necessary to reduce revenues in that fiscal year by an amount equal to the difference between the
211 amount the county budgeted in its 2000 fiscal year budget for advanced life support and paramedic

212 services countywide and the amount the county spent during fiscal year 2000 for those services,
213 excluding amounts spent from a municipal services fund for those services.
214 (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
215 [ 17-34-3 (4)(a)] (2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues
216 in that fiscal year by the amount that the county spent during fiscal year 2000 for advanced life
217 support and paramedic services countywide, excluding amounts spent from a municipal services
218 fund for those services.
219 (ii) (A) [For fiscal year 2001, a] A city or town located within a county of the first class
220 to which Subsection [ 17-34-3 (4)(a)] (2)(k)(i) applies may increase its certified tax rate by the
221 amount necessary to generate within the city or town the same amount of revenues as the county
222 would collect from that city or town if the decrease under Subsection (2)(k)(i) did not occur.
223 (B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal year
224 or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
225 Sections 59-2-918 and 59-2-919 .
226 (l) (i) The certified tax rate of each county required under Subsection 17-34-1 (3)(b) to
227 provide detective investigative services to the unincorporated area of the county shall be decreased:
228 (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year by
228a h AT LEAST h
229 $4,400,000; and
230 (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year by
231 h [ $4,858,412 ] AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN $9,258,412 AND THE AMOUNT
231a OF THE REDUCTION IN REVENUES UNDER SUBSECTION (2)(I)(i)(A) h .
232 (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
233 county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within
234 the city or town the same amount of revenue as the county would have collected during county
235 fiscal year 2001from within the city or town except for Subsection (2)(l)(i)(A).
236 (I) Beginning with municipal fiscal year 2003, a city or town located within a county to
237 which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the city or
238 town the same amount of revenue as the county would have collected during county fiscal year
239 2002 from within the city or town except for Subsection (2)(l)(i)(B).
240 (B) S [ An ] (I) EXCEPT AS PROVIDED IN SUBSECTION (2)(l)(ii)(B)(II), AN s
240a increase in the city or town's certified tax rate under Subsection (2)(l)(ii)(A),
241 whether occurring in a single fiscal year or spread over multiple fiscal years, is S [ not exempt
241a from ] SUBJECT TO s the
242 notice and hearing requirements of Sections 59-2-918 and 59-2-919 .
242a S (II) FOR AN INCREASE UNDER THIS SUBSECTION (2)(l)(ii) THAT GENERATES REVENUE s

242b S THAT DOES NOT EXCEED THE SAME AMOUNT OF REVENUE AS THE COUNTY WOULD HAVE
242c COLLECTED EXCEPT FOR SUBSECTION (2)(l)(i) h (B) h , THE REQUIREMENTS OF SECTIONS
242c1 59-2-918
242d AND 59-2-919 DO NOT APPLY IF THE CITY OR TOWN:
242e (aa) PUBLISHES A NOTICE THAT MEETS THE SIZE, TYPE, PLACEMENT, AND FREQUENCY
242f REQUIREMENTS OF SECTION 59-2-919, REFLECTS THAT THE INCREASE IS A SHIFT OF A TAX
242g FROM
242g ONE IMPOSED BY THE COUNTY TO ONE IMPOSED BY THE CITY OR TOWN, AND EXPLAINS HOW
242h THE REVENUES FROM THE TAX INCREASE WILL BE USED; AND
242i (bb) HOLDS A PUBLIC HEARING ON THE TAX SHIFT THAT MAY BE HELD IN CONJUNCTION
242j WITH THE CITY OR TOWN'S REGULAR BUDGET HEARING. s

243 (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
244 (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
245 auditor of:
246 (i) its intent to exceed the certified tax rate; and
247 (ii) the amount by which it proposes to exceed the certified tax rate.
248 (c) The county auditor shall notify all property owners of any intent to exceed the certified
249 tax rate in accordance with Subsection 59-2-919 (2).
250 (4) (a) The taxable value for the base year under Subsection 17A-2-1247 (2)(a) or
251 17A-2-1202 (2), as the case may be, shall be reduced for any year to the extent necessary to provide
252 a redevelopment agency established under Title 17A, Chapter 2, Part 12, Utah Neighborhood
253 Development Act, with approximately the same amount of money the agency would have received
254 without a reduction in the county's certified tax rate if:
255 (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
256 (2)(d)(i);
257 (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
258 previous year; and
259 (iii) the decrease results in a reduction of the amount to be paid to the agency under
260 Section 17A-2-1247 or 17A-2-1247.5 .
261 (b) The taxable value of the base year under Subsection 17A-2-1247 (2)(a) or
262 17A-2-1202 (2), as the case may be, shall be increased in any year to the extent necessary to
263 provide a redevelopment agency with approximately the same amount of money as the agency
264 would have received without an increase in the certified tax rate that year if:
265 (i) in that year the taxable value for the base year under Subsection 17A-2-1247 (2) or
266 17A-2-1202 (2) is reduced due to a decrease in the certified tax rate under Subsection (2)(c) or
267 (2)(d)(i); and
268 (ii) The certified tax rate of a city, school district, or special district increases independent
269 of the adjustment to the taxable value of the base year.
270 (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i),
271 the amount of money allocated and, when collected, paid each year to a redevelopment agency
272 established under Title 17A, Chapter 2, Part 12, Utah Neighborhood Development Act, for the
273 payment of bonds or other contract indebtedness, but not for administrative costs, may not be less

274 than that amount would have been without a decrease in the certified tax rate under Subsection
275 (2)(c) or (2)(d)(i).