H.B. 116 Enrolled

PROPERTY TAX - CALCULATION OF
CERTIFIED TAX RATE
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Ann W. Hardy
This act modifies the Property Tax Act to modify the calculation of the certified tax rate.
The act grants rulemaking authority to the State Tax Commission to prescribe a portion
of the calculation of the certified tax rate. This act makes technical changes. The act
takes effect on January 1, 2004.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
53A-19-105, as last amended by Chapter 309, Laws of Utah 1997
59-2-924, as last amended by Chapters 133, 195 and 258, Laws of Utah 2001
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 53A-19-105 is amended to read:
53A-19-105. School district interfund transfers.
(1) A school district shall spend revenues only within the fund for which they were
originally authorized, levied, collected, or appropriated.
(2) Except as otherwise provided in this section, school district interfund transfers of
residual equity are prohibited.
(3) The State Board of Education may authorize school district interfund transfers of
residual equity when a district states its intent to create a new fund or expand, contract, or
liquidate an existing fund.
(4) The State Board of Education may also authorize school district interfund transfers
of residual equity for a financially distressed district if the board determines the following:
(a) the district has a significant deficit in its maintenance and operations fund caused
by circumstances not subject to the administrative decisions of the district;
(b) the deficit cannot be reasonably reduced under Section 53A-19-104 ; and
(c) without the transfer, the school district will not be capable of meeting statewide

educational standards adopted by the State Board of Education.
(5) The board shall develop standards for defining and aiding financially distressed
school districts under this section in accordance with Title 63, Chapter 46a, Utah Administrative
Rulemaking Act.
(6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
and reported in the debt service fund.
(b) Debt service levies under Subsection 59-2-924 (2)(a)[(iv)](v)(C) that are not subject
to the certified tax rate hearing requirements of Sections 59-2-918 and 59-2-919 may not be used
for any purpose other than retiring general obligation debt.
(c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
year shall be used in subsequent years for general obligation debt retirement.
(d) Any amounts left in the debt service fund after all general obligation debt has been
retired may be transferred to the capital projects fund upon completion of the budgetary hearing
process required under Section 53A-19-102 .
Section 2. 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 -- Rulemaking authority --
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;

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(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] budgeted 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)](v), the certified tax rate shall be
calculated by dividing the ad valorem property tax revenues [collected] budgeted for the prior
year by the taxing entity by the taxable value established in accordance with Section 59-2-913 .
(iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
the commission shall make rules determining the calculation of ad valorem property tax revenues
budgeted by a taxing entity.
(B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues budgeted
by a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
calculated for purposes of Section 59-2-913 .
[(iv)] (v) The certified tax rates for the taxing entities described in this Subsection
(2)(a)[(iv)](v) shall be calculated as follows:
(A) except as provided in Subsection (2)(a)[(iv)](v)(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

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Section 17-34-1 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)] (vi) (A) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330
shall be established at that rate which is sufficient to generate only the revenue required to satisfy
one or more eligible judgments, as defined in Section 59-2-102 .
(B) 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 an increase in taxable value described in Subsection (2)(b)(iv).
(iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
(A) the amount of increase to locally assessed real property taxable values resulting from
factoring, reappraisal, or any other adjustments; or
(B) the amount of an increase in the taxable value of property assessed by the
commission under Section 59-2-201 resulting from a change in the method of apportioning the
taxable value prescribed by:
(I) the Legislature;

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(II) a court;
(III) the commission in an administrative rule; or
(IV) the commission in an administrative order.
(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 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 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 and use 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 and use tax distributions for
purposes of Subsection (2)(d)(i).
(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 and use tax imposed under Section
59-12-402 .
(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

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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
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:

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(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.
(k) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
unincorporated area of the county shall be decreased by the amount necessary to reduce revenues
in that fiscal year by an amount equal to the difference between the amount the county budgeted
in its 2000 fiscal year budget for advanced life support and paramedic services countywide and
the amount the county spent during fiscal year 2000 for those services, excluding amounts spent
from a municipal services fund for those services.
(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
(2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
year by the amount that the county spent during fiscal year 2000 for advanced life support and
paramedic services countywide, excluding amounts spent from a municipal services fund for
those services.

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(ii) (A) A city or town located within a county of the first class to which Subsection
(2)(k)(i) applies may increase its certified tax rate by the amount necessary to generate within the
city or town the same amount of revenues as the county would collect from that city or town if
the decrease under Subsection (2)(k)(i) did not occur.
(B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal year
or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
Sections 59-2-918 and 59-2-919 .
(l) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
provide detective investigative services to the unincorporated area of the county shall be
decreased:
(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year by
at least $4,400,000; and
(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year by
an amount equal to the difference between $9,258,412 and the amount of the reduction in
revenues under Subsection (2)(l)(i)(A).
(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within
the city or town the same amount of revenue as the county would have collected during county
fiscal year 2001 from within the city or town except for Subsection (2)(l)(i)(A).
(II) Beginning with municipal fiscal year 2003, a city or town located within a county to
which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the city or
town the same amount of revenue as the county would have collected during county fiscal year
2002 from within the city or town except for Subsection (2)(l)(i)(B).
(B) (I) Except as provided in Subsection (2)(l)(ii)(B)(II), an increase in the city or town's
certified tax rate under Subsection (2)(l)(ii)(A), whether occurring in a single fiscal year or
spread over multiple fiscal years, is subject to the notice and hearing requirements of Sections
59-2-918 and 59-2-919 .
(II) For an increase under this Subsection (2)(l)(ii) that generates revenue that does not

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exceed the same amount of revenue as the county would have collected except for Subsection
(2)(l)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
(aa) publishes a notice that meets the size, type, placement, and frequency requirements
of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed by the county
to one imposed by the city or town, and explains how the revenues from the tax increase will be
used; and
(bb) holds a public hearing on the tax shift that may be held in conjunction with the city
or town's regular budget hearing.
(m) (i) This Subsection (2)(m) applies to each county that:
(A) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
Utah Special Service District Act, to provide jail service, as provided in Subsection
17A-2-1304 (1)(a)(x); and
(B) levies a property tax on behalf of the special service district under Section
17A-2-1322 .
(ii) (A) The certified tax rate of each county to which this Subsection (2)(m) applies shall
be decreased by the amount necessary to reduce county revenues by the same amount of revenues
that will be generated by the property tax imposed on behalf of the special service district.
(B) Each decrease under Subsection (2)(m)(ii)(A) shall occur contemporaneously with
the levy on behalf of the special service district under Section 17A-2-1322 .
(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 17B-4-102 (4) shall be
reduced for any year to the extent necessary to provide a redevelopment agency established under

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Title 17B, Chapter 4, Redevelopment Agencies 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 17B-4-1003 or 17B-4-1004 .
(b) The [taxable value of the] base [year] taxable value under Subsection [ 17B-4-101 ]
17B-4-102 (4) 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] taxable value under Subsection
[ 17B-4-101 ] 17B-4-102 (4) 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 established under Title 17B, Chapter 4, Redevelopment Agencies 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).
Section 3. Effective date.
This act takes effect on January 1, 2004.

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