S.B. 36 Enrolled

1

SCHOOL DISTRICTS - LIMITED
2 AMENDMENTS TO TRUTH IN TAXATION
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Mike Dmitrich
6 House Sponsor: Gordon E. Snow
7
8 LONG TITLE
9 General Description:
10 This bill modifies the State System of Public Education Title and the Property Tax Act
11 relating to a voted leeway.
12 Highlighted Provisions:
13 This bill:
14 . modifies the State System of Public Education Title and the Property Tax Act to
15 exempt school districts from the advertisement requirements of truth in taxation
16 when budgeting revenue or levying a rate that exceeds the certified tax rate from
17 certain voted leeway programs; and
18 . makes technical changes.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill takes effect on January 1, 2007.
23 Utah Code Sections Affected:
24 AMENDS:
25 53A-17a-133, as last amended by Chapter 257, Laws of Utah 2004
26 53A-17a-134, as last amended by Chapter 257, Laws of Utah 2004
27 53A-19-102, as last amended by Chapter 79, Laws of Utah 1996
28 59-2-918, as last amended by Chapter 11, Laws of Utah 2005, First Special Session
29 59-2-919, as last amended by Chapter 11, Laws of Utah 2005, First Special Session

30 59-2-924, as last amended by Chapters 217 and 244, Laws of Utah 2005
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 53A-17a-133 is amended to read:
34 53A-17a-133. State-supported voted leeway program authorized -- Election
35 requirements -- State guarantee -- Reconsideration of the program.
36 (1) An election to consider adoption or modification of a voted leeway program is
37 required if initiative petitions signed by 10% of the number of electors who voted at the last
38 preceding general election are presented to the local school board or by action of the board.
39 (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
40 voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
41 special tax.
42 (ii) The tax rate may not exceed .002 per dollar of taxable value.
43 (b) The district may maintain a school program which exceeds the cost of the program
44 referred to in Section 53A-17a-145 with this voted leeway.
45 (c) In order to receive state support the first year, a district must receive voter approval
46 no later than December 1 of the year prior to implementation.
47 (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
48 to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
49 taxable value.
50 (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
51 of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
52 in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
53 taxable value if a school district levies a tax rate under both programs.
54 (c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
55 shall be indexed each year to the value of the weighted pupil unit by making the value of the
56 guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
57 (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted

58 pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
59 the prior year's weighted pupil unit.
60 (d) (i) The amount of state guarantee money to which a school district would otherwise
61 be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
62 levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
63 pursuant to changes in property valuation.
64 (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
65 the certified tax rate.
66 (4) (a) An election to modify an existing voted leeway program is not a reconsideration
67 of the existing program unless the proposition submitted to the electors expressly so states.
68 (b) A majority vote opposing a modification does not deprive the district of authority to
69 continue an existing program.
70 (c) If adoption of a leeway program is contingent upon an offset reducing other local
71 school board levies, the board must allow the electors, in an election, to consider modifying or
72 discontinuing the program prior to a subsequent increase in other levies that would increase the
73 total local school board levy.
74 (d) Nothing contained in this section terminates, without an election, the authority of a
75 school district to continue an existing voted leeway program previously authorized by the
76 voters.
77 (5) Notwithstanding Section 59-2-918 , a school district may budget an increased
78 amount of ad valorem property tax revenue derived from a voted leeway imposed under this
79 section in addition to revenue from new growth as defined in Subsection 59-2-924 (2), without
80 having to comply with the advertisement requirements of Section 59-2-918 , if the voted leeway
81 is approved:
82 (a) in accordance with Section 53A-16-110 on or after January 1, 2003; and
83 (b) within the four-year period immediately preceding the year in which the school
84 district seeks to budget an increased amount of ad valorem property tax revenue derived from
85 the voted leeway.

86 (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
87 section that exceeds the certified tax rate without having to comply with the advertisement
88 requirements of Section 59-2-919 if:
89 (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
90 increased amount of ad valorem property tax revenue derived from a voted leeway imposed
91 under this section; and
92 (b) if the voted leeway was approved:
93 (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
94 (ii) within the four-year period immediately preceding the year in which the school
95 district seeks to budget an increased amount of ad valorem property tax revenue derived from
96 the voted leeway.
97 Section 2. Section 53A-17a-134 is amended to read:
98 53A-17a-134. Board-approved leeway -- Purpose -- State support -- Disapproval.
99 (1) Each local school board may levy a tax rate of up to .0004 per dollar of taxable
100 value to maintain a school program above the cost of the basic school program as follows:
101 (a) a local school board shall use the monies generated by the tax for class size
102 reduction within the school district;
103 (b) if a local school board determines that the average class size in the school district is
104 not excessive, it may use the monies for other school purposes but only if the board has
105 declared the use for other school purposes in a public meeting prior to levying the tax rate; and
106 (c) a district may not use the monies for other school purposes under Subsection (1)(b)
107 until it has certified in writing that its class size needs are already being met and has identified
108 the other school purposes for which the monies will be used to the State Board of Education
109 and the state board has approved their use for other school purposes.
110 (2) (a) The state shall contribute an amount sufficient to guarantee $17.54 per weighted
111 pupil unit for each .0001 per dollar of taxable value.
112 (b) The guarantee shall increase in the same manner as provided for the voted leeway
113 guarantee in Subsections 53A-17a-133 (3)(c)(i) and (ii).

114 (c) (i) The amount of state guarantee money to which a school district would otherwise
115 be entitled to under this Subsection (2) may not be reduced for the sole reason that the district's
116 levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
117 pursuant to changes in property valuation.
118 (ii) Subsection (2)(c)(i) applies for a period of two years following any such change in
119 the certified tax rate.
120 (3) The levy authorized under this section is not in addition to the maximum rate of
121 .002 authorized in Section 53A-17a-133 , but is a board-authorized component of the total tax
122 rate under that section.
123 (4) As an exception to Section 53A-17a-133 , the board-authorized levy does not
124 require voter approval, but the board may require voter approval if requested by a majority of
125 the board.
126 (5) An election to consider disapproval of the board-authorized levy is required, if
127 within 60 days after the levy is established by the board, referendum petitions signed by the
128 number of legal voters required in Section 20A-7-301 , who reside within the school district, are
129 filed with the school district.
130 (6) (a) A local school board shall establish its board-approved levy by April 1 to have
131 the levy apply to the fiscal year beginning July 1 in that same calendar year except that if an
132 election is required under this section, the levy applies to the fiscal year beginning July 1 of the
133 next calendar year.
134 (b) The approval and disapproval votes authorized in Subsections (4) and (5) shall
135 occur at a general election in even-numbered years, except that a vote required under this
136 section in odd-numbered years shall occur at a special election held on a day in odd-numbered
137 years that corresponds to the general election date. The school district shall pay for the cost of
138 a special election.
139 (7) (a) Modification or termination of a voter-approved leeway rate authorized under
140 this section is governed by Section 53A-17a-133 .
141 (b) A board-authorized leeway rate may be modified or terminated by a majority vote

142 of the board subject to disapproval procedures specified in this section.
143 (8) A board levy election does not require publication of a voter information pamphlet.
144 Section 3. Section 53A-19-102 is amended to read:
145 53A-19-102. Local school boards budget procedures.
146 (1) Prior to June 22 of each year, each local school board shall adopt a budget and
147 make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
148 certified tax rate defined in Subsection 59-2-924 (2), the board shall comply with [the Tax
149 Increase Disclosure Act] Sections 59-2-918 and 59-2-919 in adopting the budget, except as
150 provided by Section 53A-17a-133 .
151 (2) Prior to the adoption of a budget containing a tax rate which does not exceed the
152 certified tax rate, the board shall hold a public hearing on the proposed budget. In addition to
153 complying with Title 52, Chapter 4, Open and Public Meetings, in regards to the hearing, the
154 board shall do the following:
155 (a) publish the required newspaper notice at least one week prior to the hearing; and
156 (b) file a copy of the proposed budget with the board's business administrator for public
157 inspection at least ten days prior to the hearing.
158 (3) The board shall file a copy of the adopted budget with the state auditor and the
159 State Board of Education.
160 Section 4. Section 59-2-918 is amended to read:
161 59-2-918. Advertisement of proposed tax increase -- Notice -- Contents --
162 Exemptions from notice requirements.
163 (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
164 increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
165 in Subsection 59-2-924 (2) unless it advertises its intention to do so at the same time that it
166 advertises its intention to fix its budget for the forthcoming fiscal year.
167 (b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
168 advertisement or hearing requirements of this section if:
169 [(i)] (A) the taxing entity:

170 [(A)] (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal
171 year; or
172 [(B)] (II) is expressly exempted by law from complying with the requirements of this
173 section; or
174 [(ii)] (B) the increased amount of ad valorem tax revenue results from a tax rate
175 increase that is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and
176 hearing requirements of Section 59-2-919 .
177 (ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
178 advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
179 budget an increased amount of ad valorem property tax revenue without having to comply with
180 the advertisement requirements of this section.
181 (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
182 advertisement required by this section may be combined with the advertisement required by
183 Section 59-2-919 .
184 (b) For taxing entities operating under a January 1 through December 31 fiscal year,
185 the advertisement required by this section shall meet the size, type, placement, and frequency
186 requirements established under Section 59-2-919 .
187 (3) The form of the advertisement required by this section shall meet the size, type,
188 placement, and frequency requirements established under Section 59-2-919 and shall be
189 substantially as follows:
190 "NOTICE OF PROPOSED TAX INCREASE
191 The (name of the taxing entity) is proposing to increase its property tax revenue. As a
192 result of the proposed increase, the tax on a (insert the average value of a residence in the
193 taxing entity rounded to the nearest thousand dollars) residence will be $__________, and the
194 tax on a business having the same value as the average value of a residence in the taxing entity
195 will be__________. Without the proposed increase, the tax on a (insert the average value of a
196 residence in the taxing entity rounded to the nearest thousand dollars) residence would be
197 $__________, and the tax on a business having the same value as the average value of a

198 residence in the taxing entity would be_________.
199 This would be an increase of ______%, which is $______ per year ($______ per
200 month) on a (insert the average value of a residence in the taxing entity rounded to the nearest
201 thousand dollars) residence or $______ per year on a business having the same value as the
202 average value of a residence in the taxing entity. With new growth, this property tax increase,
203 and other factors, (name of taxing entity) will increase its property tax revenue from $_____
204 [collected] budgeted last year to $_____ [collected] budgeted this year which is a revenue
205 increase of _____%.
206 All concerned citizens are invited to a public hearing on the tax increase to be held on
207 (date and time) at (meeting place)."
208 (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
209 revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
210 announce at the public hearing the scheduled time and place for consideration and adoption of
211 the proposed budget increase.
212 (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
213 year shall by March 1 notify the county of the date, time, and place of the public hearing at
214 which the budget for the following fiscal year will be considered.
215 (b) The county shall include the information described in Subsection (5)(a) with the tax
216 notice.
217 (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
218 p.m.
219 Section 5. Section 59-2-919 is amended to read:
220 59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of
221 proposed tax increase -- Exemptions from notice requirement -- Personal mailed notice in
222 addition to advertisement -- Contents of personal mailed notice -- Hearing -- Dates.
223 A tax rate in excess of the certified tax rate may not be levied until a resolution has
224 been approved by the taxing entity in accordance with the following procedure:
225 (1) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a

226 newspaper or combination of newspapers of general circulation in the taxing entity.
227 (ii) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
228 advertisement or hearing requirements of this section if:
229 (A) the taxing entity:
230 (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
231 or
232 (II) is expressly exempted by law from complying with the requirements of this
233 section; or
234 (B) (I) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,
235 Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
236 emergency, and emergency medical services;
237 (II) the tax rate increase is approved by the taxing entity's voters at an election held for
238 that purpose on or before December 31, 2010;
239 (III) the purpose of the tax rate increase is to pay for fire protection, emergency, and
240 emergency medical services provided by the interlocal entity; and
241 (IV) at least 30 days before its annual budget hearing, the taxing entity:
242 (Aa) adopts a resolution certifying that the taxing entity will dedicate all revenue from
243 the tax rate increase exclusively to pay for fire protection, emergency, and emergency medical
244 services provided by the interlocal entity and that the amount of other revenues, independent of
245 the revenue generated from the tax rate increase, that the taxing entity spends for fire
246 protection, emergency, and emergency medical services each year after the tax rate increase
247 will not decrease below the amount spent by the taxing entity during the year immediately
248 before the tax rate increase without a corresponding decrease in the taxing entity's property tax
249 revenues used in calculating the taxing entity's certified tax rate; and
250 (Bb) sends a copy of the resolution to the commission.
251 (iii) The exception under Subsection (1)(a)(ii)(B) from the advertisement and hearing
252 requirements of this section does not apply to an increase in a taxing entity's tax rate that occurs
253 after December 31, 2010, even if the tax rate increase is approved by the taxing entity's voters

254 before that date.
255 (iv) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
256 advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
257 levy a tax rate that exceeds that certified tax rate without having to comply with the
258 advertisement requirements of this section.
259 (b) The advertisement described in this section shall:
260 (i) be no less than 1/4 page in size;
261 (ii) use type no smaller than 18 point; and
262 (iii) be surrounded by a 1/4-inch border.
263 (c) The advertisement described in this section may not be placed in that portion of the
264 newspaper where legal notices and classified advertisements appear.
265 (d) It is the intent of the Legislature that:
266 (i) whenever possible, the advertisement described in this section appear in a
267 newspaper that is published at least one day per week; and
268 (ii) the newspaper or combination of newspapers selected:
269 (A) be of general interest and readership in the taxing entity; and
270 (B) not be of limited subject matter.
271 (e) The advertisement described in this section shall:
272 (i) be run once each week for the two weeks preceding the adoption of the final budget;
273 and
274 (ii) state that the taxing entity will meet on a certain day, time, and place fixed in the
275 advertisement, which shall be not less than seven days after the day the first advertisement is
276 published, for the purpose of hearing comments regarding any proposed increase and to explain
277 the reasons for the proposed increase.
278 (f) The meeting on the proposed increase may coincide with the hearing on the
279 proposed budget of the taxing entity.
280 (2) The form and content of the notice shall be substantially as follows:
281 "NOTICE OF PROPOSED TAX INCREASE

282 The (name of the taxing entity) is proposing to increase its property tax revenue. As a
283 result of the proposed increase, the tax on a (insert the average value of a residence in the
284 taxing entity rounded to the nearest thousand dollars) residence will be $__________, and the
285 tax on a business having the same value as the average value of a residence in the taxing entity
286 will be $__________. Without the proposed increase the tax on a (insert the average value of a
287 residence in the taxing entity rounded to the nearest thousand dollars) residence would be
288 $__________, and the tax on a business having the same value as the average value of a
289 residence in the taxing entity would be $__________.
290 The (insert year) proposed tax rate is __________. Without the proposed increase, the
291 rate would be __________. This would be an increase of ______%, which is $______ per year
292 ($______ per month) on a (insert the average value of a residence in the taxing entity rounded
293 to the nearest thousand dollars) residence or $______ per year on a business having the same
294 value as the average value of a residence in the taxing entity. With new growth, this property
295 tax increase, and other factors, (name of taxing entity) will increase its property tax revenue
296 from $_____ [collected] budgeted last year to $_____ [collected] budgeted this year which is a
297 revenue increase of _____%.
298 All concerned citizens are invited to a public hearing on the tax increase to be held on
299 (date and time) at (meeting place)."
300 (3) The commission:
301 (a) shall adopt rules governing the joint use of one advertisement under this section or
302 Section 59-2-918 by two or more taxing entities; and
303 (b) may, upon petition by any taxing entity, authorize either:
304 (i) the use of weekly newspapers in counties having both daily and weekly newspapers
305 where the weekly newspaper would provide equal or greater notice to the taxpayer; or
306 (ii) the use of a commission-approved direct notice to each taxpayer if the:
307 (A) cost of the advertisement would cause undue hardship; and
308 (B) direct notice is different and separate from that provided for in Subsection (4).
309 (4) (a) In addition to providing the notice required by Subsections (1) and (2), the

310 county auditor, on or before July 22 of each year, shall notify, by mail, each owner of real
311 estate as defined in Section 59-2-102 who is listed on the assessment roll.
312 (b) The notice described in Subsection (4)(a) shall:
313 (i) be sent to all owners of real property by mail not less than ten days before the day
314 on which:
315 (A) the county board of equalization meets; and
316 (B) the taxing entity holds a public hearing on the proposed increase in the certified tax
317 rate;
318 (ii) be printed on a form that is:
319 (A) approved by the commission; and
320 (B) uniform in content in all counties in the state; and
321 (iii) contain for each property:
322 (A) the value of the property;
323 (B) the date the county board of equalization will meet to hear complaints on the
324 valuation;
325 (C) itemized tax information for all taxing entities, including a separate statement for
326 the minimum school levy under Section 53A-17a-135 stating:
327 (I) the dollar amount the taxpayer would have paid based on last year's rate; and
328 (II) the amount of the taxpayer's liability under the current rate;
329 (D) the tax impact on the property;
330 (E) the time and place of the required public hearing for each entity;
331 (F) property tax information pertaining to:
332 (I) taxpayer relief;
333 (II) options for payment of taxes; and
334 (III) collection procedures;
335 (G) information specifically authorized to be included on the notice under Title 59,
336 Chapter 2, Property Tax Act; and
337 (H) other property tax information approved by the commission.

338 (5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt
339 a resolution levying a tax rate in excess of the certified tax rate.
340 (b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
341 the scheduled time and place for consideration and adoption of the resolution shall be
342 announced at the public hearing.
343 (c) If a resolution adopting a tax rate is to be considered at a day and time that is more
344 than two weeks after the public hearing described in Subsection (4)(b)(iii)(E), a taxing entity,
345 other than a taxing entity described in Subsection (1)(a)(ii), shall advertise the date of the
346 proposed adoption of the resolution in the same manner as provided under Subsections (1) and
347 (2).
348 (6) (a) All hearings described in this section shall be open to the public.
349 (b) The governing body of a taxing entity conducting a hearing shall permit all
350 interested parties desiring to be heard an opportunity to present oral testimony within
351 reasonable time limits.
352 (7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
353 year of the date, time, and place a public hearing is held by the taxing entity pursuant to this
354 section.
355 (b) A taxing entity may not schedule a hearing described in this section at the same
356 time as another overlapping taxing entity in the same county, but all taxing entities in which the
357 power to set tax levies is vested in the same governing board or authority may consolidate the
358 required hearings into one hearing.
359 (c) The county legislative body shall resolve any conflicts in hearing dates and times
360 after consultation with each affected taxing entity.
361 (8) A taxing entity shall hold a public hearing under this section beginning at or after 6
362 p.m.
363 Section 6. Section 59-2-924 is amended to read:
364 59-2-924. Report of valuation of property to county auditor and commission --
365 Transmittal by auditor to governing bodies -- Certified tax rate -- Rulemaking authority

366 -- Adoption of tentative budget.
367 (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to
368 the county auditor and the commission the following statements:
369 (i) a statement containing the aggregate valuation of all taxable property in each taxing
370 entity; and
371 (ii) a statement containing the taxable value of any additional personal property
372 estimated by the county assessor to be subject to taxation in the current year.
373 (b) The county auditor shall, on or before June 8, transmit to the governing body of
374 each taxing entity:
375 (i) the statements described in Subsections (1)(a)(i) and (ii);
376 (ii) an estimate of the revenue from personal property;
377 (iii) the certified tax rate; and
378 (iv) all forms necessary to submit a tax levy request.
379 (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad
380 valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
381 prior year.
382 (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
383 include:
384 (A) collections from redemptions;
385 (B) interest; and
386 (C) penalties.
387 (iii) Except as provided in Subsection (2)(a)(v), the certified tax rate shall be calculated
388 by dividing the ad valorem property tax revenues budgeted for the prior year by the taxing
389 entity by the taxable value established in accordance with Section 59-2-913 .
390 (iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
391 Act, the commission shall make rules determining the calculation of ad valorem property tax
392 revenues budgeted by a taxing entity.
393 (B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues

394 budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax
395 revenues are calculated for purposes of Section 59-2-913 .
396 (v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v)
397 shall be calculated as follows:
398 (A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified
399 tax rate is zero;
400 (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
401 (I) in a county of the first, second, or third class, the levy imposed for municipal-type
402 services under Sections 17-34-1 and 17-36-9 ; and
403 (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
404 purposes and such other levies imposed solely for the municipal-type services identified in
405 Section 17-34-1 and Subsection 17-36-3 (22);
406 (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
407 imposed by that section, except that the certified tax rates for the following levies shall be
408 calculated in accordance with Section 59-2-913 and this section:
409 (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
410 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
411 (II) levies to pay for the costs of state legislative mandates or judicial or administrative
412 orders under Section 59-2-906.3 .
413 (vi) (A) A judgment levy imposed under Section 59-2-1328 or Section 59-2-1330 shall
414 be established at that rate which is sufficient to generate only the revenue required to satisfy
415 one or more eligible judgments, as defined in Section 59-2-102 .
416 (B) The ad valorem property tax revenue generated by the judgment levy shall not be
417 considered in establishing the taxing entity's aggregate certified tax rate.
418 (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use
419 the taxable value of property on the assessment roll.
420 (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the
421 assessment roll does not include new growth as defined in Subsection (2)(b)(iii).

422 (iii) "New growth" means:
423 (A) the difference between the increase in taxable value of the taxing entity from the
424 previous calendar year to the current year; minus
425 (B) the amount of an increase in taxable value described in Subsection (2)(b)(iv).
426 (iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
427 (A) the amount of increase to locally assessed real property taxable values resulting
428 from factoring, reappraisal, or any other adjustments; or
429 (B) the amount of an increase in the taxable value of property assessed by the
430 commission under Section 59-2-201 resulting from a change in the method of apportioning the
431 taxable value prescribed by:
432 (I) the Legislature;
433 (II) a court;
434 (III) the commission in an administrative rule; or
435 (IV) the commission in an administrative order.
436 (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
437 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
438 59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
439 12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
440 rate to offset the increased revenues.
441 (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
442 Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
443 (A) decreased on a one-time basis by the amount of the estimated sales and use tax
444 revenue to be distributed to the county under Subsection 59-12-1102 (3); and
445 (B) increased by the amount necessary to offset the county's reduction in revenue from
446 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
447 59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
448 (2)(d)(i)(A).
449 (ii) The commission shall determine estimates of sales and use tax distributions for

450 purposes of Subsection (2)(d)(i).
451 (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
452 communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
453 decreased on a one-time basis by the amount necessary to offset the first 12 months of
454 estimated revenue from the additional resort communities sales and use tax imposed under
455 Section 59-12-402 .
456 (f) For the calendar year beginning on January 1, 1999, and ending on December 31,
457 1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
458 adjustment in revenues from uniform fees on tangible personal property under Section
459 59-2-405.1 as a result of the adjustment in uniform fees on tangible personal property under
460 Section 59-2-405.1 enacted by the Legislature during the 1998 Annual General Session.
461 (g) For purposes of Subsections (2)(h) through (j):
462 (i) "1998 actual collections" means the amount of revenues a taxing entity actually
463 collected for the calendar year beginning on January 1, 1998 , under Section 59-2-405 for:
464 (A) motor vehicles required to be registered with the state that weigh 12,000 pounds or
465 less; and
466 (B) state-assessed commercial vehicles required to be registered with the state that
467 weigh 12,000 pounds or less.
468 (ii) "1999 actual collections" means the amount of revenues a taxing entity actually
469 collected for the calendar year beginning on January 1, 1999, under Section 59-2-405.1 .
470 (h) For the calendar year beginning on January 1, 2000, the commission shall make the
471 following adjustments:
472 (i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for
473 the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were
474 greater than the sum of:
475 (A) the taxing entity's 1999 actual collections; and
476 (B) any adjustments the commission made under Subsection (2)(f);
477 (ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for

478 the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were
479 greater than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual
480 collections were less than the sum of:
481 (A) the taxing entity's 1999 actual collections; and
482 (B) any adjustments the commission made under Subsection (2)(f); and
483 (iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for
484 the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were
485 less than the taxing entity's 1999 actual collections.
486 (i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing
487 entity's certified tax rate under this section and a taxing entity's certified revenue levy under
488 Section 59-2-906.1 by the amount necessary to offset the difference between:
489 (A) the taxing entity's 1998 actual collections; and
490 (B) the sum of:
491 (I) the taxing entity's 1999 actual collections; and
492 (II) any adjustments the commission made under Subsection (2)(f).
493 (ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing
494 entity's certified tax rate under this section and a taxing entity's certified revenue levy under
495 Section 59-2-906.1 by the amount necessary to offset the difference between:
496 (A) the sum of:
497 (I) the taxing entity's 1999 actual collections; and
498 (II) any adjustments the commission made under Subsection (2)(f); and
499 (B) the taxing entity's 1998 actual collections.
500 (iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing
501 entity's certified tax rate under this section and a taxing entity's certified revenue levy under
502 Section 59-2-906.1 by the amount of any adjustments the commission made under Subsection
503 (2)(f).
504 (j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
505 purposes of Subsections (2)(f) through (i), the commission may make rules establishing the

506 method for determining a taxing entity's 1998 actual collections and 1999 actual collections.
507 (k) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
508 Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
509 unincorporated area of the county shall be decreased by the amount necessary to reduce
510 revenues in that fiscal year by an amount equal to the difference between the amount the county
511 budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
512 countywide and the amount the county spent during fiscal year 2000 for those services,
513 excluding amounts spent from a municipal services fund for those services.
514 (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
515 (2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
516 year by the amount that the county spent during fiscal year 2000 for advanced life support and
517 paramedic services countywide, excluding amounts spent from a municipal services fund for
518 those services.
519 (ii) (A) A city or town located within a county of the first class to which Subsection
520 (2)(k)(i) applies may increase its certified tax rate by the amount necessary to generate within
521 the city or town the same amount of revenues as the county would collect from that city or
522 town if the decrease under Subsection (2)(k)(i) did not occur.
523 (B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal
524 year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
525 of Sections 59-2-918 and 59-2-919 .
526 (l) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
527 provide detective investigative services to the unincorporated area of the county shall be
528 decreased:
529 (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
530 by at least $4,400,000; and
531 (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
532 by an amount equal to the difference between $9,258,412 and the amount of the reduction in
533 revenues under Subsection (2)(l)(i)(A).

534 (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
535 county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate
536 within the city or town the same amount of revenue as the county would have collected during
537 county fiscal year 2001 from within the city or town except for Subsection (2)(l)(i)(A).
538 (II) Beginning with municipal fiscal year 2003, a city or town located within a county
539 to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the
540 city or town the same amount of revenue as the county would have collected during county
541 fiscal year 2002 from within the city or town except for Subsection (2)(l)(i)(B).
542 (B) (I) Except as provided in Subsection (2)(l)(ii)(B)(II), an increase in the city or
543 town's certified tax rate under Subsection (2)(l)(ii)(A), whether occurring in a single fiscal year
544 or spread over multiple fiscal years, is subject to the notice and hearing requirements of
545 Sections 59-2-918 and 59-2-919 .
546 (II) For an increase under this Subsection (2)(l)(ii) that generates revenue that does not
547 exceed the same amount of revenue as the county would have collected except for Subsection
548 (2)(l)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
549 (Aa) publishes a notice that meets the size, type, placement, and frequency
550 requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
551 by the county to one imposed by the city or town, and explains how the revenues from the tax
552 increase will be used; and
553 (Bb) holds a public hearing on the tax shift that may be held in conjunction with the
554 city or town's regular budget hearing.
555 (m) (i) This Subsection (2)(m) applies to each county that:
556 (A) establishes a countywide special service district under Title 17A, Chapter 2, Part
557 13, Utah Special Service District Act, to provide jail service, as provided in Subsection
558 17A-2-1304 (1)(a)(x); and
559 (B) levies a property tax on behalf of the special service district under Section
560 17A-2-1322 .
561 (ii) (A) The certified tax rate of each county to which this Subsection (2)(m) applies

562 shall be decreased by the amount necessary to reduce county revenues by the same amount of
563 revenues that will be generated by the property tax imposed on behalf of the special service
564 district.
565 (B) Each decrease under Subsection (2)(m)(ii)(A) shall occur contemporaneously with
566 the levy on behalf of the special service district under Section 17A-2-1322 .
567 (n) (i) As used in this Subsection (2)(n):
568 (A) "Annexing county" means a county whose unincorporated area is included within a
569 fire district by annexation.
570 (B) "Annexing municipality" means a municipality whose area is included within a fire
571 district by annexation.
572 (C) "Equalized fire protection tax rate" means the tax rate that results from:
573 (I) calculating, for each participating county and each participating municipality, the
574 property tax revenue necessary to cover all of the costs associated with providing fire
575 protection, paramedic, and emergency services:
576 (Aa) for a participating county, in the unincorporated area of the county; and
577 (Bb) for a participating municipality, in the municipality; and
578 (II) adding all the amounts calculated under Subsection (2)(n)(i)(C)(I) for all
579 participating counties and all participating municipalities and then dividing that sum by the
580 aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
581 (Aa) for participating counties, in the unincorporated area of all participating counties;
582 and
583 (Bb) for participating municipalities, in all the participating municipalities.
584 (D) "Fire district" means a county service area under Title 17A, Chapter 2, Part 4,
585 County Service Area Act, in the creation of which an election was not required under
586 Subsection 17B-2-214 (3)(c).
587 (E) "Fire protection tax rate" means:
588 (I) for an annexing county, the property tax rate that, when applied to taxable property
589 in the unincorporated area of the county, generates enough property tax revenue to cover all the

590 costs associated with providing fire protection, paramedic, and emergency services in the
591 unincorporated area of the county; and
592 (II) for an annexing municipality, the property tax rate that generates enough property
593 tax revenue in the municipality to cover all the costs associated with providing fire protection,
594 paramedic, and emergency services in the municipality.
595 (F) "Participating county" means a county whose unincorporated area is included
596 within a fire district at the time of the creation of the fire district.
597 (G) "Participating municipality" means a municipality whose area is included within a
598 fire district at the time of the creation of the fire district.
599 (ii) In the first year following creation of a fire district, the certified tax rate of each
600 participating county and each participating municipality shall be decreased by the amount of
601 the equalized fire protection tax rate.
602 (iii) In the first year following annexation to a fire district, the certified tax rate of each
603 annexing county and each annexing municipality shall be decreased by the fire protection tax
604 rate.
605 (iv) Each tax levied under this section by a fire district shall be considered to be levied
606 by:
607 (A) each participating county and each annexing county for purposes of the county's
608 tax limitation under Section 59-2-908 ; and
609 (B) each participating municipality and each annexing municipality for purposes of the
610 municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
611 city.
612 (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
613 (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
614 auditor of:
615 (i) its intent to exceed the certified tax rate; and
616 (ii) the amount by which it proposes to exceed the certified tax rate.
617 (c) The county auditor shall notify all property owners of any intent to exceed the

618 certified tax rate in accordance with Subsection 59-2-919 (2).
619 (4) (a) The taxable value for the base year under Subsection 17B-4-102 (4) shall be
620 reduced for any year to the extent necessary to provide a redevelopment agency established
621 under Title 17B, Chapter 4, Redevelopment Agencies Act, with approximately the same
622 amount of money the agency would have received without a reduction in the county's certified
623 tax rate if:
624 (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
625 (2)(d)(i);
626 (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
627 previous year; and
628 (iii) the decrease results in a reduction of the amount to be paid to the agency under
629 Section 17B-4-1003 or 17B-4-1004 .
630 (b) The base taxable value under Subsection 17B-4-102 (4) shall be increased in any
631 year to the extent necessary to provide a redevelopment agency with approximately the same
632 amount of money as the agency would have received without an increase in the certified tax
633 rate that year if:
634 (i) in that year the base taxable value under Subsection 17B-4-102 (4) is reduced due to
635 a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and
636 (ii) The certified tax rate of a city, school district, or special district increases
637 independent of the adjustment to the taxable value of the base year.
638 (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
639 (2)(d)(i), the amount of money allocated and, when collected, paid each year to a
640 redevelopment agency established under Title 17B, Chapter 4, Redevelopment Agencies Act,
641 for the payment of bonds or other contract indebtedness, but not for administrative costs, may
642 not be less than that amount would have been without a decrease in the certified tax rate under
643 Subsection (2)(c) or (2)(d)(i).
644 Section 7. Effective date.
645 This bill takes effect on January 1, 2007.

646