S.B. 189

1

PROPERTY TAX - CERTIFIED TAX RATE
2 ADJUSTMENT
3 2005 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Gregory S. Bell
6
7 LONG TITLE
8 General Description:
9 This bill amends the Property Tax Act to allow a taxing entity to make an adjustment to
10 the taxing entity's certified tax rate and ad valorem tax revenue budget without
11 complying with the notice and hearing requirements of Sections 59-2-918 and
12 59-2-919.
13 Highlighted Provisions:
14 This bill:
15 . defines terms;
16 . allows for an adjustment to a local taxing entity's ad valorem tax revenue budget
17 and certified tax rate; and
18 . provides that a taxing entity may budget an increased amount of ad valorem tax
19 revenue and levy a tax rate in excess of the taxing entity's certified tax rate, without
20 complying with the notice and hearing requirements of Sections 59-2-918 and
21 59-2-919, to the extent that the increase of the budget and tax rate are due to the
22 adjustment provided in this bill.
23 Monies Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 None
27 Utah Code Sections Affected:

28 AMENDS:
29 59-2-918, as last amended by Chapter 127, Laws of Utah 1999
30 59-2-919, as last amended by Chapter 127, Laws of Utah 1999
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-2-918 is amended to read:
34 59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
35 (1) (a) Except as provided in [Subsection] Subsections (1)(b) and (7), a taxing entity
36 may not budget an increased amount of ad valorem tax revenue exclusive of revenue from new
37 growth as defined in Subsection 59-2-924 (2) unless it advertises its intention to do so at the
38 same time that it advertises its intention to fix its budget for the forthcoming fiscal year.
39 (b) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
40 advertisement requirements of this section if the taxing entity collected less than $15,000 in ad
41 valorem tax revenues for the previous fiscal year.
42 (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
43 advertisement required by this section may be combined with the advertisement required by
44 Section 59-2-919 .
45 (b) For taxing entities operating under a January 1 through December 31 fiscal year,
46 the advertisement shall meet the size, type, placement, and frequency requirements established
47 under Section 59-2-919 .
48 (3) The form of the advertisement shall meet the size, type, placement, and frequency
49 requirements established under Section 59-2-919 and shall be substantially as follows:
50 "NOTICE OF PROPOSED TAX INCREASE
51 The (name of the taxing entity) is proposing to increase its property tax revenue. As a
52 result of the proposed increase, the tax on a (insert the average value of a residence in the
53 taxing entity rounded to the nearest thousand dollars) residence will be $__________, and the
54 tax on a business having the same value as the average value of a residence in the taxing entity
55 will be__________. Without the proposed increase, the tax on a (insert the average value of a
56 residence in the taxing entity rounded to the nearest thousand dollars) residence would be
57 $__________, and the tax on a business having the same value as the average value of a
58 residence in the taxing entity would be_________.

59 This would be an increase of ______%, which is $______ per year ($______ per
60 month) on a (insert the average value of a residence in the taxing entity rounded to the nearest
61 thousand dollars) residence or $______ per year on a business having the same value as the
62 average value of a residence in the taxing entity. With new growth, this property tax increase,
63 and other factors, (name of taxing entity) will increase its property tax revenue from $_____
64 collected last year to $_____ collected this year which is a revenue increase of _____%.
65 All concerned citizens are invited to a public hearing on the tax increase to be held on
66 (date and time) at (meeting place)."
67 (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
68 revenue is not made at the public hearing, the taxing entity shall announce at the public hearing
69 the scheduled time and place for consideration and adoption of the proposed budget increase.
70 (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
71 year shall by March 1 notify the county of the date, time, and place of the public hearing at
72 which the budget for the following fiscal year will be considered.
73 (b) The county shall include the information described in Subsection (5)(a) with the tax
74 notice.
75 (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
76 p.m.
77 (7) (a) For purposes of this Subsection (7):
78 (i) "budget amount of the prior year" means the amount of the ad valorem tax revenue
79 budgeted by a taxing entity for the year before the year for which the taxing entity sets the
80 budget described in Subsection (7)(b);
81 (ii) "consumer price index" is as described in Section 1(f)(4), Internal Revenue Code,
82 and defined in Section 1(f)(5), Internal Revenue Code;
83 (iii) "consumer price index increase" means the difference between:
84 (A) the budget amount of the prior year multiplied by the consumer price index for the
85 year before the year for which the taxing entity sets the budget described in Subsection (7)(b);
86 and
87 (B) the budget amount of the prior year.
88 (b) A taxing entity may budget an increased amount of ad valorem tax revenue, in
89 addition to revenue from new growth as defined in Subsection 59-2-924 (2), without complying

90 with this section or Section 59-2-919 , if the amount of that increase is no greater than the lesser
91 of:
92 (i) 50% of the consumer price index increase; or
93 (ii) 2% of the budget amount of the prior year.
94 (c) A taxing entity may levy a tax rate in excess of the certified tax rate without
95 complying with this section or Section 59-2-919 with regard to the portion of the rate in excess
96 of the certified tax rate that is attributable to the increased amount of ad valorem tax revenue
97 described in Subsection (7)(b).
98 Section 2. Section 59-2-919 is amended to read:
99 59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of
100 proposed tax increase -- Personal mailed notice in addition to advertisement -- Contents
101 of personal mailed notice -- Hearing -- Dates.
102 [A] Except as provided in Subsection 59-2-918 (7)(c), a tax rate in excess of the
103 certified tax rate may not be levied until a resolution has been approved by the taxing entity in
104 accordance with the following procedure:
105 (1) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a
106 newspaper or combination of newspapers of general circulation in the taxing entity.
107 (ii) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
108 advertisement requirements of this section if the taxing entity collected less than $15,000 in ad
109 valorem tax revenues for the previous fiscal year.
110 (b) The advertisement shall be no less than 1/4 page in size and the type used shall be
111 no smaller than 18 point, and surrounded by a 1/4-inch border.
112 (c) The advertisement may not be placed in that portion of the newspaper where legal
113 notices and classified advertisements appear.
114 (d) It is legislative intent that, whenever possible, the advertisement appear in a
115 newspaper that is published at least one day per week.
116 (e) It is further the intent of the Legislature that the newspaper or combination of
117 newspapers selected be of general interest and readership in the taxing entity, and not of limited
118 subject matter.
119 (f) The advertisement shall be run once each week for the two weeks preceding the
120 adoption of the final budget.

121 (g) The advertisement shall state that the taxing entity will meet on a certain day, time,
122 and place fixed in the advertisement, which shall be not less than seven days after the day the
123 first advertisement is published, for the purpose of hearing comments regarding any proposed
124 increase and to explain the reasons for the proposed increase.
125 (h) The meeting on the proposed increase may coincide with the hearing on the
126 proposed budget of the taxing entity.
127 (2) The form and content of the notice shall be substantially as follows:
128 "NOTICE OF PROPOSED TAX INCREASE
129 The (name of the taxing entity) is proposing to increase its property tax revenue. As a
130 result of the proposed increase, the tax on a (insert the average value of a residence in the
131 taxing entity rounded to the nearest thousand dollars) residence will be $__________, and the
132 tax on a business having the same value as the average value of a residence in the taxing entity
133 will be $__________. Without the proposed increase the tax on a (insert the average value of a
134 residence in the taxing entity rounded to the nearest thousand dollars) residence would be
135 $__________, and the tax on a business having the same value as the average value of a
136 residence in the taxing entity would be $__________..
137 The (insert year) proposed tax rate is __________. Without the proposed increase, the
138 rate would be __________. This would be an increase of ______%, which is $______ per year
139 ($______ per month) on a (insert the average value of a residence in the taxing entity rounded
140 to the nearest thousand dollars) residence or $______ per year on a business having the same
141 value as the average value of a residence in the taxing entity. With new growth, this property
142 tax increase, and other factors, (name of taxing entity) will increase its property tax revenue
143 from $_____ collected last year to $_____ collected this year which is a revenue increase of
144 _____%.
145 All concerned citizens are invited to a public hearing on the tax increase to be held on
146 (date and time) at (meeting place)."
147 (3) The commission shall adopt rules governing the joint use of one advertisement
148 under this section or Section 59-2-918 by two or more taxing entities and may, upon petition by
149 any taxing entity, authorize either:
150 (a) the use of weekly newspapers in counties having both daily and weekly newspapers
151 where the weekly newspaper would provide equal or greater notice to the taxpayer; or

152 (b) the use of a commission-approved direct notice to each taxpayer if the cost of the
153 advertisement would cause undue hardship and the direct notice is different and separate from
154 that provided for in Subsection (4).
155 (4) In addition to providing the notice required by Subsections (1) and (2), the county
156 auditor, on or before July 22 of each year, shall notify, by mail, each owner of real estate as
157 defined in Section 59-2-102 who is listed on the assessment roll. The notice shall:
158 (a) be sent to all owners of real property by mail not less than ten days before the day
159 on which:
160 (i) the county board of equalization meets; and
161 (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax
162 rate;
163 (b) the notice shall be printed on a form that is:
164 (i) approved by the commission; and
165 (ii) uniform in content in all counties in the state;
166 (c) contain for each property:
167 (i) the value of the property;
168 (ii) the date the county board of equalization will meet to hear complaints on the
169 valuation;
170 (iii) itemized tax information for all taxing entities, including a separate statement for
171 the minimum school levy under Section 53A-17a-135 stating:
172 (A) the dollar amount the taxpayer would have paid based on last year's rate; and
173 (B) the amount of the taxpayer's liability under the current rate;
174 (iv) the tax impact on the property;
175 (v) the time and place of the required public hearing for each entity;
176 (vi) property tax information pertaining to taxpayer relief, options for payment of
177 taxes, and collection procedures;
178 (vii) other information specifically authorized to be included on the notice under Title
179 59, Chapter 2, Property Tax Act; and
180 (viii) other property tax information approved by the commission.
181 (5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt
182 a resolution levying a tax rate in excess of the certified tax rate.

183 (b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
184 the scheduled time and place for consideration and adoption of the resolution shall be
185 announced at the public hearing.
186 (c) If a resolution adopting a tax rate is to be considered at a day and time that is more
187 than two weeks after the public hearing described in Subsection (4)(c)(v), a taxing entity, other
188 than a taxing entity described in Subsection (1)(a)(ii), shall advertise the date of the proposed
189 adoption of the resolution in the same manner as provided under Subsections (1) and (2).
190 (6) (a) All hearings shall be open to the public.
191 (b) The governing body of a taxing entity conducting a hearing shall permit all
192 interested parties desiring to be heard an opportunity to present oral testimony within
193 reasonable time limits.
194 (7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
195 year of the date, time, and place of its public hearing.
196 (b) A taxing entity may not schedule its hearing at the same time as another
197 overlapping taxing entity in the same county, but all taxing entities in which the power to set
198 tax levies is vested in the same governing board or authority may consolidate the required
199 hearings into one hearing.
200 (c) The county legislative body shall resolve any conflicts in hearing dates and times
201 after consultation with each affected taxing entity.
202 (8) A taxing entity shall hold a public hearing under this section beginning at or after 6
203 p.m.




Legislative Review Note
as of 2-8-05 1:54 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel