S.B. 151

1

PROPERTY TAX - NOTICE AND HEARING
2 AMENDMENTS
3 2006 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Gregory S. Bell
6 House Sponsor: ____________
7
8 LONG TITLE
9 General Description:
10 This bill amends the Property Tax Act to allow a taxing entity under certain
11 circumstances to make an adjustment to the taxing entity's certified tax rate and ad
12 valorem tax revenue budget without complying with property tax notice and hearing
13 requirements.
14 Highlighted Provisions:
15 This bill:
16 . defines terms;
17 . provides that a taxing entity may budget an increased amount of ad valorem tax
18 revenue and levy a tax rate in excess of the taxing entity's certified tax rate, without
19 complying with property tax notice and hearing requirements, if the budgeted
20 amount and levy do not exceed a certain amount;
21 . modifies the property tax notice requirements; and
22 . makes technical changes.
23 Monies Appropriated in this Bill:
24 None
25 Other Special Clauses:
26 This bill takes effect on January 1, 2007.
27 Utah Code Sections Affected:

28 AMENDS:
29 59-2-918, as last amended by Chapter 11, Laws of Utah 2005, First Special Session
30 59-2-919, as last amended by Chapter 11, Laws of Utah 2005, First Special Session
31
32 Be it enacted by the Legislature of the state of Utah:
33 Section 1. Section 59-2-918 is amended to read:
34 59-2-918. Advertisement of proposed tax increase -- Notice -- Contents --
35 Exceptions to notice and hearing requirements.
36 (1) (a) Except as provided in [Subsection] Subsections (1)(b) and (7), a taxing entity
37 may not budget an increased amount of ad valorem tax revenue exclusive of revenue from new
38 growth as defined in Subsection 59-2-924 (2) unless it advertises its intention to do so at the
39 same time that it advertises its intention to fix its budget for the forthcoming fiscal year.
40 (b) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
41 advertisement or hearing requirements of this section if:
42 (i) the taxing entity:
43 (A) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
44 or
45 (B) is expressly exempted by law from complying with the requirements of this
46 section; or
47 (ii) the increased amount of ad valorem tax revenue results from a tax rate increase that
48 is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and hearing
49 requirements of Section 59-2-919 .
50 (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
51 advertisement required by this section may be combined with the advertisement required by
52 Section 59-2-919 .
53 (b) For taxing entities operating under a January 1 through December 31 fiscal year,
54 the advertisement required by this section shall meet the size, type, placement, and frequency
55 requirements established under Section 59-2-919 .
56 (3) The form of the advertisement required by this section shall meet the size, type,
57 placement, and frequency requirements established under Section 59-2-919 and shall be
58 substantially as follows:

59 "NOTICE OF PROPOSED TAX INCREASE
60 The (name of the taxing entity) is proposing to increase its property tax revenue. As a
61 result of the proposed increase, the tax on a (insert the average value of a residence in the
62 taxing entity rounded to the nearest thousand dollars) residence will be $__________, and the
63 tax on a business having the same value as the average value of a residence in the taxing entity
64 will be__________. Without the proposed increase, the tax on a (insert the average value of a
65 residence in the taxing entity rounded to the nearest thousand dollars) residence would be
66 $__________, and the tax on a business having the same value as the average value of a
67 residence in the taxing entity would be_________.
68 This would be an increase of ______%, which is $______ per year ($______ per
69 month) on a (insert the average value of a residence in the taxing entity rounded to the nearest
70 thousand dollars) residence or $______ per year on a business having the same value as the
71 average value of a residence in the taxing entity. With new growth, this property tax increase,
72 and other factors, (name of taxing entity) will increase its property tax revenue from $_____
73 [collected] budgeted last year to $_____ [collected] budgeted this year which is a revenue
74 increase of _____%.
75 All concerned citizens are invited to a public hearing on the tax increase to be held on
76 (date and time) at (meeting place)."
77 (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
78 revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
79 announce at the public hearing the scheduled time and place for consideration and adoption of
80 the proposed budget increase.
81 (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
82 year shall by March 1 notify the county of the date, time, and place of the public hearing at
83 which the budget for the following fiscal year will be considered.
84 (b) The county shall include the information described in Subsection (5)(a) with the tax
85 notice.
86 (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
87 p.m.
88 (7) (a) As used in this Subsection (7):
89 (i) "Budget amount for the prior year" means the amount of ad valorem property tax

90 revenue budgeted by a taxing entity:
91 (A) for a taxing entity operating on a January 1 through December 31 fiscal year, for
92 the one-year period beginning on the January 1 immediately preceding the fiscal year for which
93 the taxing entity is budgeting an increased amount of ad valorem property tax revenue in
94 accordance with this Subsection (7); or
95 (B) for a taxing entity operating on a July 1 through June 30 fiscal year, for the
96 one-year period beginning on the July 1 immediately preceding the fiscal year for which the
97 taxing entity is budgeting an increased amount of ad valorem property tax revenue in
98 accordance with this Subsection (7).
99 (ii) "Consumer price index" is as calculated under Sections 1(f)(4) and 1(f)(5), Internal
100 Revenue Code.
101 (iii) "Consumer price index change for the prior year" means the percentage difference
102 between the consumer price index for:
103 (A) the August 31 of the calendar year that is two calendar years preceding the calendar
104 year during which the first day of the taxing entity's fiscal year occurs; and
105 (B) the August 31 of the calendar year that is one calendar year preceding the calendar
106 year during which the first day of the taxing entity's fiscal year occurs.
107 (iv) (A) Subject to Subsection (7)(a)(iv)(B), "consumer price index increase" means the
108 difference between:
109 (I) the budget amount for the prior year multiplied by the consumer price index change
110 for the prior year; and
111 (II) the budget amount for the prior year; and
112 (B) if the percentage difference under Subsection (7)(a)(iv) is zero or a negative
113 percentage, the consumer price index increase for the prior year is zero.
114 (b) A taxing entity may budget an increased amount of ad valorem tax revenue, in
115 addition to revenue from new growth as defined in Subsection 59-2-924 (2), without having to
116 comply with the advertisement or hearing requirements of this section, if the amount of that
117 increase does not exceed the lesser of:
118 (i) 50% of the consumer price index increase; or
119 (ii) 2% of the budget amount for the prior year.
120 Section 2. Section 59-2-919 is amended to read:

121 59-2-919. Resolution proposing tax increases -- Notice -- Exceptions -- Contents
122 of notice of proposed tax increase -- Personal mailed notice in addition to advertisement
123 -- Contents of personal mailed notice -- Hearing -- Dates.
124 [A] Except as provided in Subsection (1)(a)(ii), a tax rate in excess of the certified tax
125 rate may not be levied until a resolution has been approved by the taxing entity in accordance
126 with the following procedure:
127 (1) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a
128 newspaper or combination of newspapers of general circulation in the taxing entity.
129 (ii) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
130 advertisement or hearing requirements of this section if:
131 (A) the taxing entity:
132 (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
133 or
134 (II) is expressly exempted by law from complying with the requirements of this
135 section; [or]
136 (B) (I) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,
137 Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
138 emergency, and emergency medical services;
139 (II) the tax rate increase is approved by the taxing entity's voters at an election held for
140 that purpose on or before December 31, 2010;
141 (III) the purpose of the tax rate increase is to pay for fire protection, emergency, and
142 emergency medical services provided by the interlocal entity; and
143 (IV) at least 30 days before its annual budget hearing, the taxing entity:
144 (Aa) adopts a resolution certifying that the taxing entity will dedicate all revenue from
145 the tax rate increase exclusively to pay for fire protection, emergency, and emergency medical
146 services provided by the interlocal entity and that the amount of other revenues, independent of
147 the revenue generated from the tax rate increase, that the taxing entity spends for fire
148 protection, emergency, and emergency medical services each year after the tax rate increase
149 will not decrease below the amount spent by the taxing entity during the year immediately
150 before the tax rate increase without a corresponding decrease in the taxing entity's property tax
151 revenues used in calculating the taxing entity's certified tax rate; and

152 (Bb) sends a copy of the resolution to the commission[.]; or
153 (C) a tax rate that exceeds the certified tax rate is levied in accordance with Subsection
154 (9).
155 (iii) The exception under Subsection (1)(a)(ii)(B) from the advertisement and hearing
156 requirements of this section does not apply to an increase in a taxing entity's tax rate that occurs
157 after December 31, 2010, even if the tax rate increase is approved by the taxing entity's voters
158 before that date.
159 (b) The advertisement described in this section shall:
160 (i) be no less than 1/4 page in size;
161 (ii) use type no smaller than 18 point; and
162 (iii) be surrounded by a 1/4-inch border.
163 (c) The advertisement described in this section may not be placed in that portion of the
164 newspaper where legal notices and classified advertisements appear.
165 (d) It is the intent of the Legislature that:
166 (i) whenever possible, the advertisement described in this section appear in a
167 newspaper that is published at least one day per week; and
168 (ii) the newspaper or combination of newspapers selected:
169 (A) be of general interest and readership in the taxing entity; and
170 (B) not be of limited subject matter.
171 (e) The advertisement described in this section shall:
172 (i) be run once each week for the two weeks preceding the adoption of the final budget;
173 and
174 (ii) state that the taxing entity will meet on a certain day, time, and place fixed in the
175 advertisement, which shall be not less than seven days after the day the first advertisement is
176 published, for the purpose of hearing comments regarding any proposed increase and to explain
177 the reasons for the proposed increase.
178 (f) The meeting on the proposed increase may coincide with the hearing on the
179 proposed budget of the taxing entity.
180 (2) The form and content of the notice shall be substantially as follows:
181 "NOTICE OF PROPOSED TAX INCREASE
182 The (name of the taxing entity) is proposing to increase its property tax revenue. As a

183 result of the proposed increase, the tax on a (insert the average value of a residence in the
184 taxing entity rounded to the nearest thousand dollars) residence will be $__________, and the
185 tax on a business having the same value as the average value of a residence in the taxing entity
186 will be $__________. Without the proposed increase the tax on a (insert the average value of a
187 residence in the taxing entity rounded to the nearest thousand dollars) residence would be
188 $__________, and the tax on a business having the same value as the average value of a
189 residence in the taxing entity would be $__________.
190 The (insert year) proposed tax rate is __________. Without the proposed increase, the
191 rate would be __________. This would be an increase of ______%, which is $______ per year
192 ($______ per month) on a (insert the average value of a residence in the taxing entity rounded
193 to the nearest thousand dollars) residence or $______ per year on a business having the same
194 value as the average value of a residence in the taxing entity. With new growth, this property
195 tax increase, and other factors, (name of taxing entity) will increase its property tax revenue
196 from $_____ [collected] budgeted last year to $_____ [collected] budgeted this year which is a
197 revenue increase of _____%.
198 All concerned citizens are invited to a public hearing on the tax increase to be held on
199 (date and time) at (meeting place)."
200 (3) The commission:
201 (a) shall adopt rules governing the joint use of one advertisement under this section or
202 Section 59-2-918 by two or more taxing entities; and
203 (b) may, upon petition by any taxing entity, authorize either:
204 (i) the use of weekly newspapers in counties having both daily and weekly newspapers
205 where the weekly newspaper would provide equal or greater notice to the taxpayer; or
206 (ii) the use of a commission-approved direct notice to each taxpayer if the:
207 (A) cost of the advertisement would cause undue hardship; and
208 (B) direct notice is different and separate from that provided for in Subsection (4).
209 (4) (a) In addition to providing the notice required by Subsections (1) and (2), the
210 county auditor, on or before July 22 of each year, shall notify, by mail, each owner of real
211 estate as defined in Section 59-2-102 who is listed on the assessment roll.
212 (b) The notice described in Subsection (4)(a) shall:
213 (i) be sent to all owners of real property by mail not less than ten days before the day

214 on which:
215 (A) the county board of equalization meets; and
216 (B) the taxing entity holds a public hearing on the proposed increase in the certified tax
217 rate;
218 (ii) be printed on a form that is:
219 (A) approved by the commission; and
220 (B) uniform in content in all counties in the state; and
221 (iii) contain for each property:
222 (A) the value of the property;
223 (B) the date the county board of equalization will meet to hear complaints on the
224 valuation;
225 (C) itemized tax information for all taxing entities, including a separate statement for
226 the minimum school levy under Section 53A-17a-135 stating:
227 (I) the dollar amount the taxpayer would have paid based on last year's rate; and
228 (II) the amount of the taxpayer's liability under the current rate;
229 (D) the tax impact on the property;
230 (E) the time and place of the required public hearing for each entity;
231 (F) property tax information pertaining to:
232 (I) taxpayer relief;
233 (II) options for payment of taxes; and
234 (III) collection procedures;
235 (G) information specifically authorized to be included on the notice under Title 59,
236 Chapter 2, Property Tax Act; and
237 (H) other property tax information approved by the commission.
238 (5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt
239 a resolution levying a tax rate in excess of the certified tax rate.
240 (b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
241 the scheduled time and place for consideration and adoption of the resolution shall be
242 announced at the public hearing.
243 (c) If a resolution adopting a tax rate is to be considered at a day and time that is more
244 than two weeks after the public hearing described in Subsection (4)(b)(iii)(E), a taxing entity,

245 other than a taxing entity described in Subsection (1)(a)(ii), shall advertise the date of the
246 proposed adoption of the resolution in the same manner as provided under Subsections (1) and
247 (2).
248 (6) (a) All hearings described in this section shall be open to the public.
249 (b) The governing body of a taxing entity conducting a hearing shall permit all
250 interested parties desiring to be heard an opportunity to present oral testimony within
251 reasonable time limits.
252 (7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
253 year of the date, time, and place a public hearing is held by the taxing entity pursuant to this
254 section.
255 (b) A taxing entity may not schedule a hearing described in this section at the same
256 time as another overlapping taxing entity in the same county, but all taxing entities in which the
257 power to set tax levies is vested in the same governing board or authority may consolidate the
258 required hearings into one hearing.
259 (c) The county legislative body shall resolve any conflicts in hearing dates and times
260 after consultation with each affected taxing entity.
261 (8) A taxing entity shall hold a public hearing under this section beginning at or after 6
262 p.m.
263 (9) (a) As used in this Subsection (9):
264 (i) "Budget amount for the prior year" means the amount of ad valorem property tax
265 revenue budgeted by a taxing entity:
266 (A) for a taxing entity operating on a January 1 through December 31 fiscal year, for
267 the one-year period beginning on the January 1 immediately preceding the fiscal year for which
268 the taxing entity is budgeting an increased amount of ad valorem property tax revenue in
269 accordance with this Subsection (9); or
270 (B) for a taxing entity operating on a July 1 through June 30 fiscal year, for the
271 one-year period beginning on the July 1 immediately preceding the fiscal year for which the
272 taxing entity is budgeting an increased amount of ad valorem property tax revenue in
273 accordance with this Subsection (9).
274 (ii) "Consumer price index" is as calculated under Sections 1(f)(4) and 1(f)(5), Internal
275 Revenue Code.

276 (iii) "Consumer price index change for the prior year" means the percentage difference
277 between the consumer price index for:
278 (A) the August 31 of the calendar year that is two calendar years preceding the calendar
279 year during which the first day of the taxing entity's fiscal year occurs; and
280 (B) the August 31 of the calendar year that is one calendar year preceding the calendar
281 year during which the first day of the taxing entity's fiscal year occurs.
282 (iv) (A) Subject to Subsection (9)(a)(iv)(B), "consumer price index increase" means the
283 difference between:
284 (I) the budget amount for the prior year multiplied by the consumer price index for the
285 prior year; and
286 (II) the budget amount for the prior year; and
287 (B) if the percentage difference under Subsection (9)(a)(iv) is zero or a negative
288 percentage, the consumer price index increase for the prior year is zero.
289 (b) A taxing entity may levy a tax rate in excess of the certified tax rate without having
290 to comply with the advertisement or hearing requirements of this section if the levy exceeds the
291 certified tax rate as the result of the taxing entity budgeting an increased amount of ad valorem
292 property tax revenue by an amount that does not exceed the lesser of:
293 (i) 50% of the consumer price index increase; or
294 (ii) 2% of the budget amount for the prior year.
295 Section 3. Effective date.
296 This bill takes effect on January 1, 2007.




Legislative Review Note
as of 1-16-06 10:04 AM

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

Office of Legislative Research and General Counsel