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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     


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