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Second Substitute S.B. 209

This document includes Senate Committee Amendments incorporated into the bill on Tue, Feb 22, 2005 at 2:29 PM by rday. --> This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Fri, Feb 25, 2005 at 10:13 AM by rday. -->

Senator Howard A. Stephenson proposes the following substitute bill:


             1     
INTERLOCAL COOPERATION

             2     
AMENDMENTS

             3     
2005 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Curtis S. Bramble

             6     

             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to participants in certain interlocal cooperation
             10      entities.
             11      Highlighted Provisions:
             12          This bill:
             13          .    provides an exemption from truth in taxation requirements for a tax increase by
             14      taxing entities that are participants in an interlocal entity that provides fire
             15      protection, emergency, and emergency medical services if the tax increase is
             16      approved by voters.
             17      Monies Appropriated in this Bill:
             18          None
             19      Other Special Clauses:
             20          None
             21      Utah Code Sections Affected:
             22      AMENDS:
             23          59-2-918, as last amended by Chapter 127, Laws of Utah 1999
             24          59-2-919, as last amended by Chapter 127, Laws of Utah 1999
             25     



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             26
     Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 59-2-918 is amended to read:
             28           59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
             29          (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
             30      increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
             31      in Subsection 59-2-924 (2) unless it advertises its intention to do so at the same time that it
             32      advertises its intention to fix its budget for the forthcoming fiscal year.
             33          (b) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             34      advertisement or hearing requirements of this section if:
             35          (i) the taxing entity collected less than $15,000 in ad valorem tax revenues for the
             36      previous fiscal year[.]; or
             37          (ii) the increased amount of ad valorem tax revenue results from a tax rate increase that
             38      is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and hearing
             39      requirements of Section 59-2-919 .
             40          (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
             41      advertisement required by this section may be combined with the advertisement required by
             42      Section 59-2-919 .
             43          (b) For taxing entities operating under a January 1 through December 31 fiscal year,
             44      the advertisement shall meet the size, type, placement, and frequency requirements established
             45      under Section 59-2-919 .
             46          (3) The form of the advertisement shall meet the size, type, placement, and frequency
             47      requirements established under Section 59-2-919 and shall be substantially as follows:
             48     
"NOTICE OF PROPOSED TAX INCREASE

             49          The (name of the taxing entity) is proposing to increase its property tax revenue. As a
             50      result of the proposed increase, the tax on a (insert the average value of a residence in the
             51      taxing entity rounded to the nearest thousand dollars) residence will be $__________, and the
             52      tax on a business having the same value as the average value of a residence in the taxing entity
             53      will be__________. Without the proposed increase, the tax on a (insert the average value of a
             54      residence in the taxing entity rounded to the nearest thousand dollars) residence would be
             55      $__________, and the tax on a business having the same value as the average value of a
             56      residence in the taxing entity would be_________.



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             57
         This would be an increase of ______%, which is $______ per year ($______ per
             58      month) on a (insert the average value of a residence in the taxing entity rounded to the nearest
             59      thousand dollars) residence or $______ per year on a business having the same value as the
             60      average value of a residence in the taxing entity. With new growth, this property tax increase,
             61      and other factors, (name of taxing entity) will increase its property tax revenue from $_____
             62      collected last year to $_____ collected this year which is a revenue increase of _____%.
             63          All concerned citizens are invited to a public hearing on the tax increase to be held on
             64      (date and time) at (meeting place)."
             65          (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
             66      revenue is not made at the public hearing, the taxing entity shall announce at the public hearing
             67      the scheduled time and place for consideration and adoption of the proposed budget increase.
             68          (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
             69      year shall by March 1 notify the county of the date, time, and place of the public hearing at
             70      which the budget for the following fiscal year will be considered.
             71          (b) The county shall include the information described in Subsection (5)(a) with the tax
             72      notice.
             73          (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
             74      p.m.
             75          Section 2. Section 59-2-919 is amended to read:
             76           59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of
             77      proposed tax increase -- Personal mailed notice in addition to advertisement -- Contents
             78      of personal mailed notice -- Hearing -- Dates.
             79          A tax rate in excess of the certified tax rate may not be levied until a resolution has
             80      been approved by the taxing entity in accordance with the following procedure:
             81          (1) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a
             82      newspaper or combination of newspapers of general circulation in the taxing entity.
             83          (ii) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
             84      advertisement or hearing requirements of this section if:
             85          (A) the taxing entity collected less than $15,000 in ad valorem tax revenues for the
             86      previous fiscal year[.]; or
             87          (B) (I) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,



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Senate 3rd Reading Amendments 2-25-2005 rd/rhr

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Senate Committee Amendments 2-22-2005 rd/rhr
             88
     Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
             89      emergency, and emergency medical services;
             90          (II) the tax rate increase is approved by the taxing entity's voters at an election held for
             91      that purpose S. [ before December 31, 2009 ] .S ; S. [ and ] .S
             92          (III) the purpose of the tax rate increase is to pay for fire protection, emergency, and
             93      emergency medical services provided by the interlocal entity S. [ . ] ; and
             93a          (IV) at least 30 days before its annual budget hearing, the taxing entity:
             93b          (Aa) adopts a resolution certifying that the taxing entity will dedicate revenue from the
             93c      tax rate increase exclusively to pay for fire protection, emergency, and emergency medical
             93d      services provided by the interlocal entity; and
             93e          (Bb) sends a copy of the resolution to the commission. .S
             94          (b) The advertisement shall be no less than 1/4 page in size and the type used shall be
             95      no smaller than 18 point, and surrounded by a 1/4-inch border.
             96          (c) The advertisement may not be placed in that portion of the newspaper where legal
             97      notices and classified advertisements appear.
             98          (d) It is legislative intent that, whenever possible, the advertisement appear in a
             99      newspaper that is published at least one day per week.
             100          (e) It is further the intent of the Legislature that the newspaper or combination of
             101      newspapers selected be of general interest and readership in the taxing entity, and not of limited
             102      subject matter.
             103          (f) The advertisement shall be run once each week for the two weeks preceding the
             104      adoption of the final budget.
             105          (g) The advertisement shall state that the taxing entity will meet on a certain day, time,
             106      and place fixed in the advertisement, which shall be not less than seven days after the day the
             107      first advertisement is published, for the purpose of hearing comments regarding any proposed
             108      increase and to explain the reasons for the proposed increase.
             109          (h) The meeting on the proposed increase may coincide with the hearing on the
             110      proposed budget of the taxing entity.
             111          (2) The form and content of the notice shall be substantially as follows:
             112     
"NOTICE OF PROPOSED TAX INCREASE

             113          The (name of the taxing entity) is proposing to increase its property tax revenue. As a
             114      result of the proposed increase, the tax on a (insert the average value of a residence in the
             115      taxing entity rounded to the nearest thousand dollars) residence will be $__________, and the
             116      tax on a business having the same value as the average value of a residence in the taxing entity
             117      will be $__________. Without the proposed increase the tax on a (insert the average value of a
             118      residence in the taxing entity rounded to the nearest thousand dollars) residence would be



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             119
     $__________, and the tax on a business having the same value as the average value of a
             120      residence in the taxing entity would be $__________..
             121          The (insert year) proposed tax rate is __________. Without the proposed increase, the
             122      rate would be __________. This would be an increase of ______%, which is $______ per year
             123      ($______ per month) on a (insert the average value of a residence in the taxing entity rounded
             124      to the nearest thousand dollars) residence or $______ per year on a business having the same
             125      value as the average value of a residence in the taxing entity. With new growth, this property
             126      tax increase, and other factors, (name of taxing entity) will increase its property tax revenue
             127      from $_____ collected last year to $_____ collected this year which is a revenue increase of
             128      _____%.
             129          All concerned citizens are invited to a public hearing on the tax increase to be held on
             130      (date and time) at (meeting place)."
             131          (3) The commission shall adopt rules governing the joint use of one advertisement
             132      under this section or Section 59-2-918 by two or more taxing entities and may, upon petition by
             133      any taxing entity, authorize either:
             134          (a) the use of weekly newspapers in counties having both daily and weekly newspapers
             135      where the weekly newspaper would provide equal or greater notice to the taxpayer; or
             136          (b) the use of a commission-approved direct notice to each taxpayer if the cost of the
             137      advertisement would cause undue hardship and the direct notice is different and separate from
             138      that provided for in Subsection (4).
             139          (4) In addition to providing the notice required by Subsections (1) and (2), the county
             140      auditor, on or before July 22 of each year, shall notify, by mail, each owner of real estate as
             141      defined in Section 59-2-102 who is listed on the assessment roll. The notice shall:
             142          (a) be sent to all owners of real property by mail not less than ten days before the day
             143      on which:
             144          (i) the county board of equalization meets; and
             145          (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax
             146      rate;
             147          (b) the notice shall be printed on a form that is:
             148          (i) approved by the commission; and
             149          (ii) uniform in content in all counties in the state;



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             150
         (c) contain for each property:
             151          (i) the value of the property;
             152          (ii) the date the county board of equalization will meet to hear complaints on the
             153      valuation;
             154          (iii) itemized tax information for all taxing entities, including a separate statement for
             155      the minimum school levy under Section 53A-17a-135 stating:
             156          (A) the dollar amount the taxpayer would have paid based on last year's rate; and
             157          (B) the amount of the taxpayer's liability under the current rate;
             158          (iv) the tax impact on the property;
             159          (v) the time and place of the required public hearing for each entity;
             160          (vi) property tax information pertaining to taxpayer relief, options for payment of
             161      taxes, and collection procedures;
             162          (vii) other information specifically authorized to be included on the notice under Title
             163      59, Chapter 2, Property Tax Act; and
             164          (viii) other property tax information approved by the commission.
             165          (5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt
             166      a resolution levying a tax rate in excess of the certified tax rate.
             167          (b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
             168      the scheduled time and place for consideration and adoption of the resolution shall be
             169      announced at the public hearing.
             170          (c) If a resolution adopting a tax rate is to be considered at a day and time that is more
             171      than two weeks after the public hearing described in Subsection (4)(c)(v), a taxing entity, other
             172      than a taxing entity described in Subsection (1)(a)(ii), shall advertise the date of the proposed
             173      adoption of the resolution in the same manner as provided under Subsections (1) and (2).
             174          (6) (a) All hearings shall be open to the public.
             175          (b) The governing body of a taxing entity conducting a hearing shall permit all
             176      interested parties desiring to be heard an opportunity to present oral testimony within
             177      reasonable time limits.
             178          (7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
             179      year of the date, time, and place of its public hearing.
             180          (b) A taxing entity may not schedule its hearing at the same time as another



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             181
     overlapping taxing entity in the same county, but all taxing entities in which the power to set
             182      tax levies is vested in the same governing board or authority may consolidate the required
             183      hearings into one hearing.
             184          (c) The county legislative body shall resolve any conflicts in hearing dates and times
             185      after consultation with each affected taxing entity.
             186          (8) A taxing entity shall hold a public hearing under this section beginning at or after 6
             187      p.m.


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