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H.B. 151

             1     

MINIMUM BASIC LEVY AND OTHER

             2     
PROPERTY TAX AMENDMENTS

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Aaron Tilton

             6     
Senate Sponsor: ____________

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the Interlocal Cooperation Act, the Limited Purpose Local
             11      Government Entities - Community Development and Renewal Agencies Title, the
             12      Minimum School Program Act, the Property Tax Act, and the State Appropriations and
             13      Tax Limitation Act to amend provisions relating to the minimum basic levy and
             14      provisions relating to a taxing entity's certified tax rate.
             15      Highlighted Provisions:
             16          This bill:
             17          .    repeals the requirement that a school district impose a minimum basic levy before it
             18      may participate in the Minimum School Program;
             19          .    provides that a taxing entity levying a property tax rate in excess of the certified tax
             20      rate during the 2008 calendar year must obtain voter approval before imposing the
             21      tax rate; 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, 2008.
             27      Utah Code Sections Affected:



             28      AMENDS:
             29          11-13-302, as last amended by Chapter 21, Laws of Utah 2003
             30          11-13-310, as last amended by Chapter 21, Laws of Utah 2003
             31          11-13-311, as last amended by Chapter 21, Laws of Utah 2003
             32          17C-1-102, as last amended by Chapter 254 and renumbered and amended by Chapter
             33      359, Laws of Utah 2006
             34          17C-4-201, as enacted by Chapter 359, Laws of Utah 2006
             35          53A-1a-106, as last amended by Chapter 221, Laws of Utah 2003
             36          53A-1a-513, as last amended by Chapters 9 and 291, Laws of Utah 2005
             37          53A-3-415, as last amended by Chapter 72, Laws of Utah 1991
             38          53A-17a-103, as last amended by Chapter 354, Laws of Utah 2006
             39          53A-17a-136, as renumbered and amended by Chapter 72, Laws of Utah 1991
             40          53A-17a-143, as last amended by Chapter 271, Laws of Utah 1995
             41          53A-17a-144, as last amended by Chapters 88 and 221, Laws of Utah 2003
             42          59-2-904, as last amended by Chapter 4, Laws of Utah 1993
             43          59-2-919, as last amended by Chapters 26 and 104, Laws of Utah 2006
             44          59-2-924, as last amended by Chapters 26, 105 and 359, Laws of Utah 2006
             45          59-2-926, as last amended by Chapter 320, Laws of Utah 2003
             46          63-38c-102, as last amended by Chapter 318, Laws of Utah 2004
             47      REPEALS:
             48          53A-17a-135, as last amended by Chapter 4, Laws of Utah 2006
             49          59-2-902, as last amended by Chapters 4 and 227, Laws of Utah 1993
             50          59-2-903, as last amended by Chapter 3, Laws of Utah 1988
             51          59-2-905, as last amended by Chapter 3, Laws of Utah 1988
             52          63-38c-401, as renumbered and amended by Chapter 275, Laws of Utah 1996
             53     
             54      Be it enacted by the Legislature of the state of Utah:
             55          Section 1. Section 11-13-302 is amended to read:
             56           11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
             57      suppliers -- Method of calculating -- Collection -- Extent of tax lien.
             58          (1) (a) Each project entity created under this chapter that owns a project and that sells


             59      any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
             60      property is not exempted by Utah Constitution Article XIII, Section 2, from the payment of ad
             61      valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
             62      this section to each taxing jurisdiction within which the project or any part of it is located.
             63          (b) For purposes of this section, "annual fee" means the annual fee described in
             64      Subsection (1)(a) that is in lieu of ad valorem property tax.
             65          (c) The requirement to pay an annual fee shall commence:
             66          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
             67      impact alleviation payments under contracts or determination orders provided for in Sections
             68      11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
             69      candidate in which the date of commercial operation of the last generating unit, other than any
             70      generating unit providing additional project capacity, of the project occurs, or, in the case of
             71      any facilities providing additional project capacity, with the fiscal year of the candidate
             72      following the fiscal year of the candidate in which the date of commercial operation of the
             73      generating unit providing the additional project capacity occurs; and
             74          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
             75      Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
             76      project commences, or, in the case of facilities providing additional project capacity, with the
             77      fiscal year of the taxing jurisdiction in which construction of those facilities commences.
             78          (d) The requirement to pay an annual fee shall continue for the period of the useful life
             79      of the project or facilities.
             80          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
             81      [because the ad valorem property tax imposed by a school district and authorized by the
             82      Legislature under Section 53A-17a-135 represents both:].
             83          [(i) a levy mandated by the state for the state minimum school program under Section
             84      53A-17a-135 ; and]
             85          [(ii) local levies for capital outlay, maintenance, transportation, and other purposes
             86      under Sections 11-2-7 , 53A-16-107 , 53A-16-110 , 53A-17a-126 , 53A-17a-127 , 53A-17a-133 ,
             87      53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 .]
             88          (b) The annual fees due a school district [shall be as follows: (i) the project entity shall
             89      pay to the school district an annual fee for the state minimum school program at the rate


             90      imposed by the school district and authorized by the Legislature under Subsection
             91      53A-17a-135 (1); and (ii) for all other] from the project entity for local property tax levies
             92      authorized to be imposed by a school district[, the project entity] shall [pay to the school
             93      district] be either:
             94          [(A)] (i) an annual fee; or
             95          [(B)] (ii) impact alleviation payments under contracts or determination orders provided
             96      for in Sections 11-13-305 and 11-13-306 .
             97          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
             98      by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
             99      multiplying the fee base or value determined in accordance with Subsection (4) for that year of
             100      the portion of the project located within the jurisdiction by the percentage of the project which
             101      is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
             102          (b) As used in this section, "tax rate," when applied in respect to a school district,
             103      includes any assessment to be made by the school district under Subsection (2) or Section
             104      63-51-6 .
             105          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
             106      an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
             107      the proceeds of which were used to provide public facilities and services for impact alleviation
             108      in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
             109          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
             110          (i) take into account the fee base or value of the percentage of the project located
             111      within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
             112      capacity, service, or other benefit sold to the supplier or suppliers; and
             113          (ii) reflect any credit to be given in that year.
             114          (4) (a) Except as otherwise provided in this section, the annual fees required by this
             115      section shall be paid, collected, and distributed to the taxing jurisdiction as if:
             116          (i) the annual fees were ad valorem property taxes; and
             117          (ii) the project were assessed at the same rate and upon the same measure of value as
             118      taxable property in the state.
             119          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
             120      this section, the fee base of a project may be determined in accordance with an agreement


             121      among:
             122          (A) the project entity; and
             123          (B) any county that:
             124          (I) is due an annual fee from the project entity; and
             125          (II) agrees to have the fee base of the project determined in accordance with the
             126      agreement described in this Subsection (4).
             127          (ii) The agreement described in Subsection (4)(b)(i):
             128          (A) shall specify each year for which the fee base determined by the agreement shall be
             129      used for purposes of an annual fee; and
             130          (B) may not modify any provision of this chapter except the method by which the fee
             131      base of a project is determined for purposes of an annual fee.
             132          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
             133      described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
             134      Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
             135      jurisdiction.
             136          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
             137      year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
             138      portion of the project for which there is not an agreement:
             139          (I) for that year; and
             140          (II) using the same measure of value as is used for taxable property in the state.
             141          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
             142      Commission in accordance with rules made by the State Tax Commission.
             143          (c) Payments of the annual fees shall be made from:
             144          (i) the proceeds of bonds issued for the project; and
             145          (ii) revenues derived by the project entity from the project.
             146          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
             147      other benefits of the project whose tangible property is not exempted by Utah Constitution
             148      Article XIII, Section 2, from the payment of ad valorem property tax shall require each
             149      purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
             150      its share, determined in accordance with the terms of the contract, of these fees.
             151          (ii) It is the responsibility of the project entity to enforce the obligations of the


             152      purchasers.
             153          (5) (a) The responsibility of the project entity to make payment of the annual fees is
             154      limited to the extent that there is legally available to the project entity, from bond proceeds or
             155      revenues, monies to make these payments, and the obligation to make payments of the annual
             156      fees is not otherwise a general obligation or liability of the project entity.
             157          (b) No tax lien may attach upon any property or money of the project entity by virtue of
             158      any failure to pay all or any part of an annual fee.
             159          (c) The project entity or any purchaser may contest the validity of an annual fee to the
             160      same extent as if the payment was a payment of the ad valorem property tax itself.
             161          (d) The payments of an annual fee shall be reduced to the extent that any contest is
             162      successful.
             163          (6) (a) Any public agency that is not a project entity and that owns an interest in
             164      facilities providing additional project capacity which, if its tangible property is not exempted
             165      by Utah Constitution, Article XIII, Section 2, from the payment of ad valorem property tax,
             166      uses any capacity, service, or other benefit from it or which sells any capacity, service, or other
             167      benefit from it to an energy supplier or suppliers whose tangible property is not exempted by
             168      Utah Constitution, Article XIII, Section 2, from the payment of ad valorem property tax, shall
             169      pay an annual fee with respect to its ownership interest, and shall have the obligations, credits,
             170      rights, and protections set forth in Subsections (1), (2), (3), (4)(a), (4)(c), (4)(d), and (5) with
             171      respect to its ownership interest as though it were a project entity.
             172          (b) The ownership interest of a public agency upon which an annual fee is payable is
             173      not subject to:
             174          (i) ad valorem property taxes under Title 59, Chapter 2, Property Tax Act; or
             175          (ii) privilege taxes under Title 59, Chapter 4, Privilege Tax.
             176          (c) Each public agency and project entity that owns an interest in facilities providing
             177      additional project capacity:
             178          (i) is subject to an annual fee only with respect to that ownership interest; and
             179          (ii) is not subject to an annual fee with respect to any portion of the facilities providing
             180      additional project capacity that it does not own.
             181          Section 2. Section 11-13-310 is amended to read:
             182           11-13-310. Termination of impact alleviation contract.


             183          If the project or any part of it or the facilities providing additional project capacity or
             184      any part of them, or the output from the project or facilities providing additional project
             185      capacity become subject, in addition to the requirements of Section 11-13-302 , to ad valorem
             186      property taxation or other payments in lieu of ad valorem property taxation, or other form of
             187      tax equivalent payments to any candidate which is a party to an impact alleviation contract with
             188      respect to the project or facilities providing additional project capacity or is receiving impact
             189      alleviation payments or means with respect to the project or facilities providing additional
             190      project capacity pursuant to a determination by the board, then the impact alleviation contract
             191      or the requirement to make impact alleviation payments or provide means therefor pursuant to
             192      the determination, as the case may be, shall, at the election of the candidate, terminate. In any
             193      event, each impact alleviation contract or determination order shall terminate upon the project,
             194      or, in the case of facilities providing additional project capacity, those facilities becoming
             195      subject to the provisions of Section 11-13-302 [, except that no impact alleviation contract or
             196      agreement entered by a school district shall terminate because of in lieu ad valorem property
             197      tax fees levied under Subsection 11-13-302 (2)(b)(i) or because of ad valorem property taxes
             198      levied under Section 53A-17a-135 for the state minimum school program]. In addition, if the
             199      construction of the project, or, in the case of facilities providing additional project capacity, of
             200      those facilities, is permanently terminated for any reason, each impact alleviation contract and
             201      determination order, and the payments and means required thereunder, shall terminate. No
             202      termination of an impact alleviation contract or determination order may terminate or reduce
             203      any liability previously incurred pursuant to the contract or determination order by the
             204      candidate beneficiary under it. If the provisions of Section 11-13-302 , or its successor, are held
             205      invalid by a court of competent jurisdiction, and no ad valorem taxes or other form of tax
             206      equivalent payments are payable, the remaining provisions of this chapter shall continue in
             207      operation without regard to the commencement of commercial operation of the last generating
             208      unit of that project or of facilities providing additional project capacity.
             209          Section 3. Section 11-13-311 is amended to read:
             210           11-13-311. Credit for impact alleviation payments against in lieu of ad valorem
             211      property taxes -- Federal or state assistance.
             212          (1) In consideration of the impact alleviation payments and means provided by the
             213      project entity or other public agency pursuant to the contracts and determination orders, the


             214      project entity or other public agency, as the case may be, shall be entitled to a credit against the
             215      fees paid in lieu of ad valorem property taxes as provided by Section 11-13-302 , ad valorem
             216      property or other taxation by, or other payments in lieu of ad valorem property taxation or other
             217      form of tax equivalent payments required by any candidate which is a party to an impact
             218      alleviation contract or board order.
             219          (2) Each candidate may make application to any federal or state governmental authority
             220      for any assistance that may be available from that authority to alleviate the impacts to the
             221      candidate. To the extent that the impact was attributable to the project or to the facilities
             222      providing additional project capacity, any assistance received from that authority shall be
             223      credited to the alleviation obligation with respect to the project or the facilities providing
             224      additional project capacity, as the case may be, in proportion to the percentage of impact
             225      attributable to the project or facilities providing additional project capacity, but in no event
             226      shall the candidate realize less revenues than would have been realized without receipt of any
             227      assistance.
             228          [(3) With respect to school districts the fee in lieu of ad valorem property tax for the
             229      state minimum school program required to be paid by the project entity or other public agency
             230      under Subsection 11-13-302 (2)(b)(i) shall be treated as a separate fee and shall not affect any
             231      credits for alleviation payments received by the school districts under Subsection
             232      11-13-302 (2)(b)(i), or Sections 11-13-305 and 11-13-306 .]
             233          Section 4. Section 17C-1-102 is amended to read:
             234           17C-1-102. Definitions.
             235          As used in this title:
             236          (1) "Adjusted tax increment" means:
             237          (a) for tax increment under a pre-July 1, 1993 project area plan, tax increment under
             238      Section 17C-1-403 , excluding tax increment under Subsection 17C-1-403 (3); and
             239          (b) for tax increment under a post-June 30, 1993 project area plan, tax increment under
             240      Section 17C-1-404 , excluding tax increment under Section 17C-1-406 .
             241          (2) "Affordable housing" means housing to be owned or occupied by persons and
             242      families of low or moderate income, as determined by resolution of the agency.
             243          (3) "Agency" or "community development and renewal agency" means a separate body
             244      corporate and politic, created under Section 17C-1-201 or as a redevelopment agency under


             245      previous law, that is a political subdivision of the state, that is created to undertake or promote
             246      urban renewal, economic development, or community development, or any combination of
             247      them, as provided in this title, and whose geographic boundaries are coterminous with:
             248          (a) for an agency created by a county, the unincorporated area of the county; and
             249          (b) for an agency created by a city or town, the boundaries of the city or town.
             250          (4) "Annual income" has the meaning as defined under regulations of the U.S.
             251      Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as amended or as
             252      superseded by replacement regulations.
             253          (5) "Assessment roll" has the meaning as defined in Section 59-2-102 .
             254          (6) "Base taxable value" means the taxable value of the property within a project area
             255      from which tax increment will be collected, as shown upon the assessment roll last equalized
             256      before:
             257          (a) for a pre-July 1, 1993 project area plan, the effective date of the project area plan;
             258      or
             259          (b) for a post-June 30, 1993 project area plan:
             260          (i) the date of the taxing entity committee's approval of the first project area budget; or
             261          (ii) if no taxing entity committee approval is required for the project area budget, the
             262      later of:
             263          (A) the date the project area plan is adopted by the community legislative body; and
             264          (B) the date the agency adopts the first project area budget.
             265          [(7) "Basic levy" means the portion of a school district's tax levy constituting the
             266      minimum basic levy under Section 59-2-902 .]
             267          [(8)] (7) "Blight" or "blighted" means the condition of an area that meets the
             268      requirements of Subsection 17C-2-303 (1).
             269          [(9)] (8) "Blight hearing" means a public hearing under Subsection
             270      17C-2-102 (1)(a)(iii) and Section 17C-2-302 regarding the existence or nonexistence of blight
             271      within the proposed urban renewal project area.
             272          [(10)] (9) "Blight study" means a study to determine the existence or nonexistence of
             273      blight within a survey area as provided in Section 17C-2-301 .
             274          [(11)] (10) "Board" means the governing body of an agency, as provided in Section
             275      17C-1-203 .


             276          [(12)] (11) "Budget hearing" means the public hearing on a draft project area budget
             277      required under Subsection 17C-2-201 (2)(d) for an urban renewal project area budget or
             278      Subsection 17C-3-201 (2)(d) for an economic development project area budget.
             279          [(13)] (12) "Combined incremental value" means the combined total of all incremental
             280      values from all urban renewal project areas, except project areas that contain some or all of a
             281      military installation or inactive industrial site, within the agency's boundaries under adopted
             282      project area plans and adopted project area budgets at the time that a project area budget for a
             283      new urban renewal project area is being considered.
             284          [(14)] (13) "Community" means a county, city, or town.
             285          [(15)] (14) "Community development" means development activities within a
             286      community, including the encouragement, promotion, or provision of development.
             287          [(16)] (15) "Economic development" means to promote the creation or retention of
             288      public or private jobs within the state through:
             289          (a) planning, design, development, construction, rehabilitation, business relocation, or
             290      any combination of these, within a community; and
             291          (b) the provision of office, industrial, manufacturing, warehousing, distribution,
             292      parking, public, or other facilities, or other improvements that benefit the state or a community.
             293          [(17)] (16) "Fair share ratio" means the ratio derived by:
             294          (a) for a city or town, comparing the percentage of all housing units within the city or
             295      town that are publicly subsidized income targeted housing units to the percentage of all
             296      housing units within the whole county that are publicly subsidized income targeted housing
             297      units; or
             298          (b) for the unincorporated part of a county, comparing the percentage of all housing
             299      units within the unincorporated county that are publicly subsidized income targeted housing
             300      units to the percentage of all housing units within the whole county that are publicly subsidized
             301      income targeted housing units.
             302          [(18)] (17) "Family" has the meaning as defined under regulations of the U.S.
             303      Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as amended or as
             304      superseded by replacement regulations.
             305          [(19)] (18) "Greenfield" means land not developed beyond agricultural or forestry use.
             306          [(20)] (19) "Housing funds" means the funds allocated in an urban renewal project area


             307      budget under Section 17C-2-203 for the purposes provided in Subsection 17C-1-412 (1).
             308          [(21)] (20) (a) "Inactive industrial site" means land that:
             309          (i) consists of at least 1,000 acres;
             310          (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
             311      facility; and
             312          (iii) requires remediation because of the presence of hazardous or solid waste as
             313      defined in Subsection 17B-4-604 (1)(a)(iii)(I), as last amended by Chapter 292, Laws of Utah
             314      2005.
             315          (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
             316      described in Subsection [(21)] (20)(a).
             317          [(22)] (21) "Income targeted housing" means housing to be owned or occupied by a
             318      family whose annual income is at or below 80% of the median annual income for the county in
             319      which the housing is located.
             320          [(23)] (22) "Incremental value" means a figure derived by multiplying the marginal
             321      value of the property located within an urban renewal project area on which tax increment is
             322      collected by a number that represents the percentage of adjusted tax increment from that project
             323      area that is paid to the agency.
             324          [(24)] (23) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
             325      established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
             326          [(25)] (24) "Marginal value" means the difference between actual taxable value and
             327      base taxable value.
             328          [(26)] ( 25) "Military installation project area" means a project area or a portion of a
             329      project area located within a federal military installation ordered closed by the federal Defense
             330      Base Realignment and Closure Commission.
             331          [(27)] (26) "Plan hearing" means the public hearing on a draft project area plan
             332      required under Subsection 17C-2-102 (1)(a)(viii) for an urban renewal project area plan,
             333      Subsection 17C-3-102 (1)(d) for an economic development project area plan, and Subsection
             334      17C-4-102 (1)(d) for a community development project area plan.
             335          [(28)] (27) "Post-June 30, 1993 project area plan" means a project area plan adopted on
             336      or after July 1, 1993, whether or not amended subsequent to its adoption.
             337          [(29)] (28) "Pre-July 1, 1993 project area plan" means a project area plan adopted


             338      before July 1, 1993, whether or not amended subsequent to its adoption.
             339          [(30)] (29) "Private," with respect to real property, means:
             340          (a) not owned by the United States or any agency of the federal government, a public
             341      entity, or any other governmental entity; and
             342          (b) not dedicated to public use.
             343          [(31)] (30) "Project area" means the geographic area described in a project area plan or
             344      draft project area plan where the urban renewal, economic development, or community
             345      development, as the case may be, set forth in the project area plan or draft project area plan
             346      takes place or is proposed to take place.
             347          [(32)] (31) "Project area budget" means a multiyear projection of annual or cumulative
             348      revenues and expenses and other fiscal matters pertaining to a urban renewal or economic
             349      development project area that includes:
             350          (a) the base taxable value of property in the project area;
             351          (b) the projected tax increment expected to be generated within the project area;
             352          (c) the amount of tax increment expected to be shared with other taxing entities;
             353          (d) the amount of tax increment expected to be used to implement the project area plan,
             354      including the estimated amount of tax increment to be used for land acquisition, public
             355      improvements, infrastructure improvements, and loans, grants, or other incentives to private
             356      and public entities;
             357          (e) the tax increment expected to be used to cover the cost of administering the project
             358      area plan;
             359          (f) if the area from which tax increment is to be collected is less than the entire project
             360      area:
             361          (i) the tax identification numbers of the parcels from which tax increment will be
             362      collected; or
             363          (ii) a legal description of the portion of the project area from which tax increment will
             364      be collected; and
             365          (g) for property that the agency owns and expects to sell, the expected total cost of the
             366      property to the agency and the expected selling price.
             367          [(33)] (32) "Project area plan" means a written plan under Part 4, Project Area Plan,
             368      that, after its effective date, guides and controls the urban renewal, economic development, or


             369      community development activities within a project area.
             370          [(34)] (33) "Property tax" includes privilege tax and each levy on an ad valorem basis
             371      on tangible or intangible personal or real property.
             372          [(35)] (34) "Public entity" means:
             373          (a) the state, including any of its departments or agencies; or
             374          (b) a political subdivision of the state, including a county, city, town, school district,
             375      special district, local district, or interlocal cooperation entity.
             376          [(36)] (35) "Publicly owned infrastructure and improvements" means water, sewer,
             377      storm drainage, electrical, and other similar systems and lines, streets, roads, curb, gutter,
             378      sidewalk, walkways, parking facilities, public transportation facilities, and other facilities,
             379      infrastructure, and improvements benefitting the public and to be publicly owned or publicly
             380      maintained or operated.
             381          [(37)] (36) "Record property owner" or "record owner of property" means the owner of
             382      real property as shown on the records of the recorder of the county in which the property is
             383      located and includes a purchaser under a real estate contract if the contract is recorded in the
             384      office of the recorder of the county in which the property is located or the purchaser gives
             385      written notice of the real estate contract to the agency.
             386          [(38)] (37) "Superfund site":
             387          (a) means an area included in the National Priorities List under the Comprehensive
             388      Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
             389          (b) includes an area formerly included in the National Priorities List, as described in
             390      Subsection [(38)] (37)(a), but removed from the list following remediation that leaves on site
             391      the waste that caused the area to be included in the National Priorities List.
             392          [(39)] (38) "Survey area" means an area designated by a survey area resolution for
             393      study to determine whether one or more urban renewal projects within the area are feasible.
             394          [(40)] (39) "Survey area resolution" means a resolution adopted by the agency board
             395      under Subsection 17C-2-101 (1)(a) designating a survey area.
             396          [(41)] (40) "Taxable value" means the value of property as shown on the last equalized
             397      assessment roll as certified by the county assessor.
             398          [(42)] (41) (a) "Tax increment" means, except as provided in Subsection [(42)] (41)(b),
             399      the difference between:


             400          (i) the amount of property tax revenues generated each tax year by all taxing entities
             401      from the area within a project area designated in the project area plan as the area from which
             402      tax increment is to be collected, using the current assessed value of the property; and
             403          (ii) the amount of property tax revenues that would be generated from that same area
             404      using the base taxable value of the property.
             405          (b) "Tax increment" does not include taxes levied and collected under Section
             406      59-2-906.1 on or after January 1, 1994 upon the taxable property in the project area unless:
             407          (i) the project area plan was adopted before May 4, 1993, whether or not the project
             408      area plan was subsequently amended; and
             409          (ii) the taxes were pledged to support bond indebtedness or other contractual
             410      obligations of the agency.
             411          [(43)] (42) "Taxing entity" means a public entity that levies a tax on property within a
             412      community.
             413          [(44)] (43) "Taxing entity committee" means a committee representing the interests of
             414      taxing entities, created as provided in Section 17C-1-402 .
             415          [(45)] (44) "Unincorporated" means not within a city or town.
             416          [(46)] (45) (a) "Urban renewal" means the development activities under a project area
             417      plan within an urban renewal project area, including:
             418          (i) planning, design, development, demolition, clearance, construction, rehabilitation,
             419      or any combination of these, of part or all of a project area;
             420          (ii) the provision of residential, commercial, industrial, public, or other structures or
             421      spaces, including recreational and other facilities incidental or appurtenant to them;
             422          (iii) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
             423      any combination of these, existing structures in a project area;
             424          (iv) providing open space, including streets and other public grounds and space around
             425      buildings;
             426          (v) providing public or private buildings, infrastructure, structures, and improvements;
             427      and
             428          (vi) providing improvements of public or private recreation areas and other public
             429      grounds.
             430          (b) "Urban renewal" means "redevelopment," as defined under the law in effect before


             431      May 1, 2006, if the context requires.
             432          Section 5. Section 17C-4-201 is amended to read:
             433           17C-4-201. Consent of a taxing entity or public agency to an agency receiving tax
             434      increment or sales tax funds for community development project.
             435          (1) An agency may negotiate with a taxing entity and public agency for the taxing
             436      entity's or public agency's consent to the agency receiving the entity's or public agency's tax
             437      increment or sales tax revenues, or both, for the purpose of providing funds to carry out a
             438      proposed or adopted community development project area plan.
             439          (2) The consent of a taxing entity or public agency under Subsection (1) may be
             440      expressed in:
             441          (a) a resolution adopted by the taxing entity or public agency; or
             442          (b) an interlocal agreement, under Title 11, Chapter 13, Interlocal Cooperation Act,
             443      between the taxing entity or public agency and the agency.
             444          [(3) A school district may consent to an agency receiving tax increment from the
             445      school district's basic levy only to the extent that the school district also consents to the agency
             446      receiving tax increment from the school district's local levy.]
             447          [(4)] (3) (a) A resolution or interlocal agreement under this section may be amended
             448      from time to time.
             449          (b) Each amendment of a resolution or interlocal agreement shall be subject to and
             450      receive the benefits of the provisions of this part to the same extent as if the amendment were
             451      an original resolution or interlocal agreement.
             452          [(5)] (4) A taxing entity's or public agency's consent to an agency receiving funds under
             453      this section is not subject to the requirements of Section 10-8-2 .
             454          Section 6. Section 53A-1a-106 is amended to read:
             455           53A-1a-106. School district and individual school powers.
             456          (1) In order to acquire and develop the characteristics listed in Section 53A-1a-104 ,
             457      each school district and each public school within its respective district shall implement a
             458      comprehensive system of accountability in which students advance through public schools by
             459      demonstrating competency in required skills and mastery of required knowledge through the
             460      use of diverse assessment instruments such as authentic and criterion referenced tests, projects,
             461      and portfolios.


             462          (2) (a) Each school district and public school shall:
             463          (i) develop and implement programs integrating technology into the curriculum,
             464      instruction, and student assessment;
             465          (ii) provide for teacher and parent involvement in policymaking at the school site;
             466          (iii) implement a public school choice program to give parents, students, and teachers
             467      greater flexibility in designing and choosing among programs with different focuses through
             468      schools within the same district and other districts, subject to space availability, demographics,
             469      and legal and performance criteria;
             470          (iv) establish strategic planning at both the district and school level and site-based
             471      decision making programs at the school level;
             472          (v) provide opportunities for each student to acquire and develop academic and
             473      occupational knowledge, skills, and abilities;
             474          (vi) participate in ongoing research and development projects primarily at the school
             475      level aimed at improving the quality of education within the system; and
             476          (vii) involve business and industry in the education process through the establishment
             477      of partnerships with the business community at the district and school level.
             478          (b) (i) Each local school board, in consultation with school personnel, parents, and
             479      school community councils or similar entities shall establish policies to provide for the
             480      effective implementation of a personalized student education plan (SEP) or student
             481      education/occupation plan (SEOP) for each student at the school site.
             482          (ii) The policies shall include guidelines and expectations for:
             483          (A) recognizing the student's accomplishments, strengths, and progress towards
             484      meeting student achievement standards as defined in U-PASS;
             485          (B) planning, monitoring, and managing education and career development; and
             486          (C) involving students, parents, and school personnel in preparing and implementing
             487      SEPs and SEOPs.
             488          (iii) A parent may request conferences with school personnel in addition to SEP or
             489      SEOP conferences established by local school board policy.
             490          (iv) Time spent during the school day to implement SEPs and SEOPs is considered
             491      part of the school term referred to in Subsection 53A-17a-103 [(5)] (4).
             492          (3) A school district or public school may submit proposals to modify or waive rules or


             493      policies of a supervisory authority within the public education system in order to acquire or
             494      develop the characteristics listed in Section 53A-1a-104 .
             495          (4) (a) Each school district and public school shall make an annual report to its patrons
             496      on its activities under this section.
             497          (b) The reporting process shall involve participation from teachers, parents, and the
             498      community at large in determining how well the district or school is performing.
             499          Section 7. Section 53A-1a-513 is amended to read:
             500           53A-1a-513. Funding for charter schools.
             501          (1) (a) Charter schools shall receive funding as described in this section, except
             502      Subsections (2) through (7) do not apply to charter schools described in Subsection (1)(b).
             503          (b) Charter schools authorized by local school boards that are converted from district
             504      schools or operate in district facilities without paying reasonable rent shall receive funding as
             505      prescribed in Section 53A-1a-515 .
             506          (2) (a) Except as provided in Subsection (2)(b), a charter school shall receive state
             507      funds, as applicable, on the same basis as a school district receives funds.
             508          (b) In distributing funds under Title 53A, Chapter 17a, Minimum School Program Act,
             509      to charter schools, charter school pupils shall be weighted, where applicable, as follows:
             510          (i) .55 for kindergarten pupils;
             511          (ii) .9 for pupils in grades 1-6;
             512          (iii) .99 for pupils in grades 7-8; and
             513          (iv) 1.2 for pupils in grades 9-12.
             514          (c) The State Board of Education shall make rules in accordance with Title 63, Chapter
             515      46a, Utah Administrative Rulemaking Act, to administer Subsection (2)(b), including hold
             516      harmless provisions to maintain a charter elementary school's funding level for a period of two
             517      years after the effective date of the distribution formula.
             518          (d) Subsection (2)(b) does not apply to funds appropriated to charter schools to replace
             519      local property tax revenues.
             520          (3) The State Board of Education shall adopt rules to provide for the distribution of
             521      monies to charter schools under this section.
             522          (4) (a) The Legislature shall provide an appropriation for charter schools for each of
             523      their students to replace some of the local property tax revenues that are not available to charter


             524      schools. The amount of money provided for each charter school student shall be determined
             525      by:
             526          (i) calculating the sum of:
             527          (A) school districts' operations and maintenance revenues derived from local property
             528      taxes[, except revenues from imposing a minimum basic tax rate pursuant to Section
             529      53A-17a-135 ];
             530          (B) school districts' capital projects revenues derived from local property taxes; and
             531          (C) school districts' expenditures for interest on debt; and
             532          (ii) dividing the sum by the total average daily membership of the districts' schools.
             533          (b) Of the monies provided to a charter school under Subsection (4)(a), 10% shall be
             534      expended for funding school facilities only.
             535          (c) To qualify for money under Subsection (4)(a), a new charter school shall, by
             536      September 30 of the school year prior to the school year it intends to begin operations:
             537          (i) obtain approval of its application for a charter from:
             538          (A) the State Board of Education, pursuant to Section 53A-1a-505 ; or
             539          (B) a local school board, pursuant to Section 53A-1a-515 ; and
             540          (ii) submit to the chartering entity an estimate of the charter school's first year
             541      enrollment.
             542          (d) Subsection (4)(c) does not apply to charter schools beginning operations in the
             543      2005-06 school year.
             544          (e) By December 1, the State Charter School Board shall submit to the Governor's
             545      Office of Planning and Budget and the Office of the Legislative Fiscal Analyst an estimate of
             546      total charter school enrollment in the state for the following school year.
             547          (5) Charter schools are eligible to receive federal funds if they meet all applicable
             548      federal requirements and comply with relevant federal regulations.
             549          (6) The State Board of Education shall distribute funds for charter school students
             550      directly to the charter school.
             551          (7) (a) Notwithstanding Subsection (2), a charter school is not eligible to receive state
             552      transportation funding.
             553          (b) The board shall also adopt rules relating to the transportation of students to and
             554      from charter schools, taking into account Sections 53A-2-210 and 53A-17a-127 .


             555          (c) The governing body of the charter school may provide transportation through an
             556      agreement or contract with the local school board, a private provider, or with parents.
             557          (8) (a) (i) The state superintendent of public instruction may allocate grants for both
             558      start-up and ongoing costs to eligible charter school applicants from monies appropriated for
             559      the implementation of this part.
             560          (ii) Applications for the grants shall be filed on a form determined by the state
             561      superintendent and in conjunction with the application for a charter.
             562          (iii) The amount of a grant may vary based upon the size, scope, and special
             563      circumstances of the charter school.
             564          (iv) The governing board of the charter school shall use the grant to meet the expenses
             565      of the school as established in the school's charter.
             566          (b) The State Board of Education shall coordinate the distribution of federal monies
             567      appropriated to help fund costs for establishing and maintaining charter schools within the
             568      state.
             569          (9) (a) A charter school may receive, hold, manage and use any devise, bequest, grant,
             570      endowment, gift, or donation of any property made to the school for any of the purposes of this
             571      part.
             572          (b) It is unlawful for any person affiliated with a charter school to demand or request
             573      any gift, donation, or contribution from a parent, teacher, employee, or other person affiliated
             574      with the charter school as a condition for employment or enrollment at the school or continued
             575      attendance at the school.
             576          (10) The State Office of Education shall use up to $1,044,000 of funding provided for
             577      new growth to fund additional growth needs in charter schools in fiscal year 2005.
             578          Section 8. Section 53A-3-415 is amended to read:
             579           53A-3-415. School board policy on detaining students after school.
             580          (1) Each local school board shall establish a policy on detaining students after regular
             581      school hours as a part of the districtwide discipline plan required under [Section 53A-17a-135 ]
             582      Chapter 11, Part 9, School Discipline and Conduct Plans.
             583          (2) The policy shall apply to elementary school students, grades kindergarten through
             584      six. The board shall receive input from teachers, school administrators, and parents and
             585      guardians of the affected students before adopting the policy.


             586          (3) The policy shall provide for notice to the parent or guardian of a student prior to
             587      holding the student after school on a particular day. The policy shall also provide for
             588      exceptions to the notice provision if detention is necessary for the student's health or safety.
             589          Section 9. Section 53A-17a-103 is amended to read:
             590           53A-17a-103. Definitions.
             591          As used in this chapter:
             592          (1) "Basic state-supported school program" or "basic program" means public education
             593      programs for kindergarten, elementary, and secondary school students that are operated and
             594      maintained for the amount derived by multiplying the number of weighted pupil units for each
             595      district by $2,417, except as otherwise provided in this chapter.
             596          [(2) "Certified revenue levy" means a property tax levy that provides an amount of ad
             597      valorem property tax revenue equal to the sum of:]
             598          [(a) the amount of property tax revenue to be generated statewide in the previous year
             599      from imposing a minimum basic tax rate, as specified in Subsection 53A-17a-135 (1)(a); and]
             600          [(b) the product of:]
             601          [(i) new growth, as defined in Section 59-2-924 and rules of the State Tax
             602      Commission; and]
             603          [(ii) the minimum basic tax rate certified by the State Tax Commission for the previous
             604      year.]
             605          [(3)] (2) "Leeway program" or "leeway" means a state-supported voted leeway program
             606      or board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .
             607          [(4)] (3) "Pupil in average daily membership (ADM)" means a full-day equivalent
             608      pupil.
             609          [(5)] (4) (a) "State-supported minimum school program" or "minimum school
             610      program" means public school programs for kindergarten, elementary, and secondary schools
             611      as described in this Subsection [(5)] (4).
             612          (b) The minimum school program established in the districts shall include the
             613      equivalent of a school term of nine months as determined by the State Board of Education.
             614          (c) (i) The board shall establish the number of days or equivalent instructional hours
             615      that school is held for an academic school year.
             616          (ii) Education, enhanced by utilization of technologically enriched delivery systems,


             617      when approved by local school boards, shall receive full support by the State Board of
             618      Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
             619      commercial advertising.
             620          (d) The program includes the total of the following annual costs:
             621          (i) the cost of a basic state-supported school program; and
             622          (ii) other amounts appropriated in this chapter in addition to the basic program.
             623          [(6)] (5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
             624      factors that is computed in accordance with this chapter for the purpose of determining the
             625      costs of a program on a uniform basis for each district.
             626          Section 10. Section 53A-17a-136 is amended to read:
             627           53A-17a-136. Cost of operation and maintenance of minimum school program --
             628      Division between state and school districts.
             629          (1) The total cost of operation and maintenance of the minimum school program in the
             630      state is divided between the state and school districts as follows:
             631          [(a) Each school district shall impose a minimum basic tax rate on all taxable, tangible
             632      property in the school district and shall contribute the tax proceeds toward the cost of the basic
             633      program as provided in this chapter.]
             634          [(b)] (a) Each school district may [also] impose a levy for the purpose of participating
             635      in the leeway programs provided in this chapter.
             636          [(c)] (b) The state shall contribute the balance of the total costs.
             637          (2) The contributions by the school districts and by the state are computed separately
             638      for the purpose of determining their respective contributions to the basic program and to the
             639      leeway programs provided in this chapter.
             640          Section 11. Section 53A-17a-143 is amended to read:
             641           53A-17a-143. District tax rate -- Increase of local property tax rate --
             642      Termination.
             643          (1) [In addition to the revenues received from the levy imposed by each school district
             644      and authorized by the Legislature under Section 53A-17a-135 , a] A local school board may
             645      increase its tax rate to provide an amount equal to the difference between the district's
             646      anticipated receipts under the entitlement for the fiscal year from Public Law 81-874 and the
             647      amount the district actually received from this source for the next preceding fiscal year.


             648          (2) The tax rate for this purpose may not exceed .0008 per dollar of taxable value in
             649      any fiscal year.
             650          (3) This authorization terminates for each district at the end of the third year it is used.
             651          (4) If at the end of a fiscal year the sum of the receipts of a school district from this
             652      special tax rate plus allocation from Public Law 81-874 for that fiscal year exceeds the amount
             653      allocated to the district from Public Law 81-874 for the next preceding fiscal year, the excess
             654      funds are carried into the next succeeding fiscal year and become in that year a part of the
             655      district's contribution to its basic program for operation and maintenance under the state
             656      minimum school finance law.
             657          (5) During that year the district's required tax rate for the basic program shall be
             658      reduced so that the yield from the reduced tax rate plus the carryover funds equal the district's
             659      required contribution to its basic program.
             660          (6) A district that reduces its basic tax rate under this section shall receive state
             661      minimum school program funds as though the reduction in the tax rate had not been made.
             662          Section 12. Section 53A-17a-144 is amended to read:
             663           53A-17a-144. Contribution of state to cost of minimum school program --
             664      Determination of amounts -- Levy on taxable property -- Disbursal -- Deficiency.
             665          [The state's contribution to the total cost of the minimum school program is determined
             666      and distributed as follows:]
             667          [(1) The State Tax Commission shall levy an amount determined by the Legislature on
             668      all taxable property of the state.]
             669          [(a) This amount, together with other funds provided by law, is the state's contribution
             670      to the minimum school program.]
             671          [(b) The statewide levy is set at zero until changed by the Legislature.]
             672          [(2) During the first week in November, the State Tax Commission shall certify to the
             673      State Board of Education the amounts designated as state aid for each district under Section
             674      59-2-902 .]
             675          [(3) (a) The actual amounts computed under Section 59-2-902 are the state's
             676      contribution to the minimum school program of each district.]
             677          [(b) The state board shall provide each district with a statement of the amount of state
             678      aid.]


             679          [(4) Prior to the first day of each month, the state treasurer and the Division of Finance,
             680      with the approval of the State Board of Education, shall disburse 1/12 of the state's contribution
             681      to the cost of the minimum school program to each school district.]
             682          [(a) A disbursement may not be made to a district whose payments have been
             683      interrupted under Subsection (4)(d).]
             684          [(b) Discrepancies between the monthly disbursements and the actual cost of the
             685      program shall be adjusted in the final settlement under Subsection (5).]
             686          [(c) If the monthly distributions overdraw the money in the Uniform School Fund, the
             687      Division of Finance is authorized to run this fund in a deficit position.]
             688          [(d) The state board may interrupt disbursements to a district if, in the judgment of the
             689      board, the district is failing to comply with the minimum school program, is operating
             690      programs that are not approved by the state board, or has not submitted reports required by law
             691      or the state board.]
             692          [(i) Disbursements shall be resumed upon request of the state board.]
             693          [(ii) Back disbursements shall be included in the next regular disbursement, and the
             694      amount disbursed certified to the State Division of Finance and state treasurer by the state
             695      board.]
             696          [(e) The State Board of Education may authorize exceptions to the 1/12 per month
             697      disbursement formula for grant funds if the board determines that a different disbursement
             698      formula would better serve the purposes of the grant.]
             699          [(5) (a)] (1) If monies in the Uniform School Fund are insufficient to meet the state's
             700      contribution to the minimum school program as appropriated, the amount of the deficiency thus
             701      created shall be carried as a deficiency in the Uniform School Fund until the next session of the
             702      Legislature, at which time the Legislature shall appropriate funds to cover the deficiency.
             703          [(b)] (2) If there is an operating deficit in public education Uniform School Fund
             704      appropriations, the Legislature shall eliminate the deficit by:
             705          [(i)] (a) budget transfers or other legal means;
             706          [(ii)] (b) appropriating money from the Education Budget Reserve Account;
             707          [(iii)] (c) appropriating up to 25% of the balance in the General Fund Budget Reserve
             708      Account; or
             709          [(iv)] (d) some combination of Subsections [(5)(b)(i), (ii), and (iii)] (2)(a), (b), and (c).


             710          [(c)] (3) Nothing in Subsection [(5)(b)] (2) precludes the Legislature from
             711      appropriating more than 25% of the balance in the General Fund Budget Reserve Account to
             712      fund operating deficits in public education appropriations.
             713          Section 13. Section 59-2-904 is amended to read:
             714           59-2-904. Participation by district in state's contributions to state-supported
             715      leeway program.
             716          [In addition to the basic state contribution provided in Section 59-2-902 , each] Each
             717      school district may participate in the state's contributions to the state-supported leeway program
             718      by conforming to the requirements of the Minimum School Program Act and by making the
             719      required additional levy. Each district shall participate in the state-supported leeway program,
             720      and certify to the State Board of Education the results of its determination and the amount of
             721      additional levy which the district will impose.
             722          Section 14. Section 59-2-919 is amended to read:
             723           59-2-919. Resolution proposing tax increases -- Notice -- Contents of notice of
             724      proposed tax increase -- Personal mailed notice in addition to advertisement -- Contents
             725      of personal mailed notice -- Hearing -- Dates.
             726          A tax rate in excess of the certified tax rate may not be levied until a resolution has
             727      been approved by the taxing entity in accordance with the following procedure:
             728          (1) (a) (i) The taxing entity shall advertise its intent to exceed the certified tax rate in a
             729      newspaper or combination of newspapers of general circulation in the taxing entity.
             730          (ii) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
             731      advertisement or hearing requirements of this section if:
             732          (A) the taxing entity:
             733          (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
             734      or
             735          (II) is expressly exempted by law from complying with the requirements of this
             736      section; or
             737          (B) (I) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,
             738      Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
             739      emergency, and emergency medical services;
             740          (II) the tax rate increase is approved by the taxing entity's voters at an election held for


             741      that purpose on or before December 31, 2010;
             742          (III) the purpose of the tax rate increase is to pay for fire protection, emergency, and
             743      emergency medical services provided by the interlocal entity; and
             744          (IV) at least 30 days before its annual budget hearing, the taxing entity:
             745          (Aa) adopts a resolution certifying that the taxing entity will dedicate all revenue from
             746      the tax rate increase exclusively to pay for fire protection, emergency, and emergency medical
             747      services provided by the interlocal entity and that the amount of other revenues, independent of
             748      the revenue generated from the tax rate increase, that the taxing entity spends for fire
             749      protection, emergency, and emergency medical services each year after the tax rate increase
             750      will not decrease below the amount spent by the taxing entity during the year immediately
             751      before the tax rate increase without a corresponding decrease in the taxing entity's property tax
             752      revenues used in calculating the taxing entity's certified tax rate; and
             753          (Bb) sends a copy of the resolution to the commission.
             754          (iii) The exception under Subsection (1)(a)(ii)(B) from the advertisement and hearing
             755      requirements of this section does not apply to an increase in a taxing entity's tax rate that occurs
             756      after December 31, 2010, even if the tax rate increase is approved by the taxing entity's voters
             757      before that date.
             758          (iv) Notwithstanding Subsection (1)(a)(i), a taxing entity is not required to meet the
             759      advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
             760      levy a tax rate that exceeds that certified tax rate without having to comply with the
             761      advertisement requirements of this section.
             762          (b) The advertisement described in this section shall:
             763          (i) be no less than 1/4 page in size;
             764          (ii) use type no smaller than 18 point; and
             765          (iii) be surrounded by a 1/4-inch border.
             766          (c) The advertisement described in this section may not be placed in that portion of the
             767      newspaper where legal notices and classified advertisements appear.
             768          (d) It is the intent of the Legislature that:
             769          (i) whenever possible, the advertisement described in this section appear in a
             770      newspaper that is published at least one day per week; and
             771          (ii) the newspaper or combination of newspapers selected:


             772          (A) be of general interest and readership in the taxing entity; and
             773          (B) not be of limited subject matter.
             774          (e) The advertisement described in this section shall:
             775          (i) be run once each week for the two weeks preceding the adoption of the final budget;
             776      and
             777          (ii) state that the taxing entity will meet on a certain day, time, and place fixed in the
             778      advertisement, which shall be not less than seven days after the day the first advertisement is
             779      published, for the purpose of hearing comments regarding any proposed increase and to explain
             780      the reasons for the proposed increase.
             781          (f) The meeting on the proposed increase may coincide with the hearing on the
             782      proposed budget of the taxing entity.
             783          (2) The form and content of the notice shall be substantially as follows:
             784     
"NOTICE OF PROPOSED TAX INCREASE

             785     
(NAME OF TAXING ENTITY)

             786          The (name of the taxing entity) is proposing to increase its property tax revenue.
             787          *    If the proposed budget is approved, this would be an increase of _____% above
             788      the (name of the taxing entity) property tax budgeted revenue for the prior year.
             789          *    The (name of the taxing entity) tax on a (insert the average value of a residence
             790      in the taxing entity rounded to the nearest thousand dollars) residence would
             791      increase from $______ to $________, which is $_______ per year.
             792          *    The (name of the taxing entity) tax on a (insert the value of a business having
             793      the same value as the average value of a residence in the taxing entity) business
             794      would increase from $________ to $_______, which is $______ per year.
             795          (Name of taxing entity) property tax revenue from new growth and other sources will
             796      increase from $_______________ to $______________.
             797          All concerned citizens are invited to a public hearing on the tax increase.
             798     
PUBLIC HEARING

             799          Date/Time:    (date) (time)
             800          Location:    (name of meeting place and address of meeting place)
             801          To obtain more information regarding the tax increase, citizens may contact the (name
             802      of the taxing entity) at (phone number of taxing entity)."


             803          (3) The commission:
             804          (a) shall adopt rules governing the joint use of one advertisement under this section or
             805      Section 59-2-918 by two or more taxing entities; and
             806          (b) may, upon petition by any taxing entity, authorize either:
             807          (i) the use of weekly newspapers in counties having both daily and weekly newspapers
             808      where the weekly newspaper would provide equal or greater notice to the taxpayer; or
             809          (ii) the use of a commission-approved direct notice to each taxpayer if the:
             810          (A) cost of the advertisement would cause undue hardship; and
             811          (B) direct notice is different and separate from that provided for in Subsection (4).
             812          (4) (a) In addition to providing the notice required by Subsections (1) and (2), the
             813      county auditor, on or before July 22 of each year, shall notify, by mail, each owner of real
             814      estate as defined in Section 59-2-102 who is listed on the assessment roll.
             815          (b) The notice described in Subsection (4)(a) shall:
             816          (i) be sent to all owners of real property by mail not less than ten days before the day
             817      on which:
             818          (A) the county board of equalization meets; and
             819          (B) the taxing entity holds a public hearing on the proposed increase in the certified tax
             820      rate;
             821          (ii) be printed on a form that is:
             822          (A) approved by the commission; and
             823          (B) uniform in content in all counties in the state; and
             824          (iii) contain for each property:
             825          (A) the value of the property;
             826          (B) the date the county board of equalization will meet to hear complaints on the
             827      valuation;
             828          (C) itemized tax information for all taxing entities[, including a separate statement for
             829      the minimum school levy under Section 53A-17a-135 ] stating:
             830          (I) the dollar amount the taxpayer would have paid based on last year's rate; and
             831          (II) the amount of the taxpayer's liability under the current rate;
             832          (D) the tax impact on the property;
             833          (E) the time and place of the required public hearing for each entity;


             834          (F) property tax information pertaining to:
             835          (I) taxpayer relief;
             836          (II) options for payment of taxes; and
             837          (III) collection procedures;
             838          (G) information specifically authorized to be included on the notice under Title 59,
             839      Chapter 2, Property Tax Act; and
             840          (H) other property tax information approved by the commission.
             841          (5) (a) The taxing entity, after holding a hearing as provided in this section, may adopt
             842      a resolution levying a tax rate in excess of the certified tax rate.
             843          (b) If a resolution adopting a tax rate is not adopted on the day of the public hearing,
             844      the scheduled time and place for consideration and adoption of the resolution shall be
             845      announced at the public hearing.
             846          (c) If a resolution adopting a tax rate is to be considered at a day and time that is more
             847      than two weeks after the public hearing described in Subsection (4)(b)(iii)(E), a taxing entity,
             848      other than a taxing entity described in Subsection (1)(a)(ii), shall advertise the date of the
             849      proposed adoption of the resolution in the same manner as provided under Subsections (1) and
             850      (2).
             851          (6) (a) All hearings described in this section shall be open to the public.
             852          (b) The governing body of a taxing entity conducting a hearing shall permit all
             853      interested parties desiring to be heard an opportunity to present oral testimony within
             854      reasonable time limits.
             855          (7) (a) Each taxing entity shall notify the county legislative body by March 1 of each
             856      year of the date, time, and place a public hearing is held by the taxing entity pursuant to this
             857      section.
             858          (b) A taxing entity may not schedule a hearing described in this section at the same
             859      time as another overlapping taxing entity in the same county, but all taxing entities in which the
             860      power to set tax levies is vested in the same governing board or authority may consolidate the
             861      required hearings into one hearing.
             862          (c) The county legislative body shall resolve any conflicts in hearing dates and times
             863      after consultation with each affected taxing entity.
             864          (8) A taxing entity shall hold a public hearing under this section beginning at or after 6


             865      p.m.
             866          Section 15. Section 59-2-924 is amended to read:
             867           59-2-924. Report of valuation of property to county auditor and commission --
             868      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
             869      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             870          (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to
             871      the county auditor and the commission the following statements:
             872          (i) a statement containing the aggregate valuation of all taxable property in each taxing
             873      entity; and
             874          (ii) a statement containing the taxable value of any additional personal property
             875      estimated by the county assessor to be subject to taxation in the current year.
             876          (b) The county auditor shall, on or before June 8, transmit to the governing body of
             877      each taxing entity:
             878          (i) the statements described in Subsections (1)(a)(i) and (ii);
             879          (ii) an estimate of the revenue from personal property;
             880          (iii) the certified tax rate; and
             881          (iv) all forms necessary to submit a tax levy request.
             882          (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad
             883      valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
             884      prior year.
             885          (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
             886      include:
             887          (A) collections from redemptions;
             888          (B) interest; and
             889          (C) penalties.
             890          (iii) (A) Except as provided in Subsection (2)(a)(v), the certified tax rate shall be
             891      calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
             892      taxing entity by the amount calculated under Subsection (2)(a)(iii)(B).
             893          (B) For purposes of Subsection (2)(a)(iii)(A), the legislative body of a taxing entity
             894      shall calculate an amount as follows:
             895          (I) calculate for the taxing entity the difference between:


             896          (Aa) the aggregate taxable value of all property taxed; and
             897          (Bb) any redevelopment adjustments for the current calendar year;
             898          (II) after making the calculation required by Subsection (2)(a)(iii)(B)(I), calculate an
             899      amount determined by increasing or decreasing the amount calculated under Subsection
             900      (2)(a)(iii)(B)(I) by the average of the percentage net change in the value of taxable property for
             901      the equalization period for the three calendar years immediately preceding the current calendar
             902      year;
             903          (III) after making the calculation required by Subsection (2)(a)(iii)(B)(II), calculate the
             904      product of:
             905          (Aa) the amount calculated under Subsection (2)(a)(iii)(B)(II); and
             906          (Bb) the percentage of property taxes collected for the five calendar years immediately
             907      preceding the current calendar year; and
             908          (IV) after making the calculation required by Subsection (2)(a)(iii)(B)(III), calculate an
             909      amount determined by subtracting from the amount calculated under Subsection
             910      (2)(a)(iii)(B)(III) any new growth as defined in this section:
             911          (Aa) within the taxing entity; and
             912          (Bb) for the current calendar year.
             913          (C) For purposes of Subsection (2)(a)(iii)(B)(I), the aggregate taxable value of all
             914      property taxed includes:
             915          (I) the total taxable value of the real and personal property contained on the tax rolls;
             916      and
             917          (II) the taxable value of any additional personal property estimated by the county
             918      assessor to be subject to taxation in the current year.
             919          (D) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             920      the commission may prescribe rules for calculating redevelopment adjustments for a calendar
             921      year.
             922          (iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             923      Act, the commission shall make rules determining the calculation of ad valorem property tax
             924      revenues budgeted by a taxing entity.
             925          (B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues
             926      budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax


             927      revenues are calculated for purposes of Section 59-2-913 .
             928          (v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v)
             929      shall be calculated as follows:
             930          (A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified
             931      tax rate is zero;
             932          (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             933          (I) in a county of the first, second, or third class, the levy imposed for municipal-type
             934      services under Sections 17-34-1 and 17-36-9 ; and
             935          (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             936      purposes and such other levies imposed solely for the municipal-type services identified in
             937      Section 17-34-1 and Subsection 17-36-3 (22); and
             938          (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
             939      imposed by that section, except that the certified tax rates for the following levies shall be
             940      calculated in accordance with Section 59-2-913 and this section:
             941          (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
             942      53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
             943          (II) levies to pay for the costs of state legislative mandates or judicial or administrative
             944      orders under Section 59-2-906.3 .
             945          (vi) (A) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
             946      established at that rate which is sufficient to generate only the revenue required to satisfy one
             947      or more eligible judgments, as defined in Section 59-2-102 .
             948          (B) The ad valorem property tax revenue generated by the judgment levy shall not be
             949      considered in establishing the taxing entity's aggregate certified tax rate.
             950          (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use
             951      the taxable value of property on the assessment roll.
             952          (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the
             953      assessment roll does not include new growth as defined in Subsection (2)(b)(iii).
             954          (iii) "New growth" means:
             955          (A) the difference between the increase in taxable value of the taxing entity from the
             956      previous calendar year to the current year; minus
             957          (B) the amount of an increase in taxable value described in Subsection (2)(b)(iv).


             958          (iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
             959          (A) the amount of increase to locally assessed real property taxable values resulting
             960      from factoring, reappraisal, or any other adjustments; or
             961          (B) the amount of an increase in the taxable value of property assessed by the
             962      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             963      taxable value prescribed by:
             964          (I) the Legislature;
             965          (II) a court;
             966          (III) the commission in an administrative rule; or
             967          (IV) the commission in an administrative order.
             968          (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             969      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             970      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             971      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             972      rate to offset the increased revenues.
             973          (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             974      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
             975          (A) decreased on a one-time basis by the amount of the estimated sales and use tax
             976      revenue to be distributed to the county under Subsection 59-12-1102 (3); and
             977          (B) increased by the amount necessary to offset the county's reduction in revenue from
             978      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             979      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             980      (2)(d)(i)(A).
             981          (ii) The commission shall determine estimates of sales and use tax distributions for
             982      purposes of Subsection (2)(d)(i).
             983          (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             984      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             985      decreased on a one-time basis by the amount necessary to offset the first 12 months of
             986      estimated revenue from the additional resort communities sales and use tax imposed under
             987      Section 59-12-402 .
             988          (f) For the calendar year beginning on January 1, 1999, and ending on December 31,


             989      1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
             990      adjustment in revenues from uniform fees on tangible personal property under Section
             991      59-2-405.1 as a result of the adjustment in uniform fees on tangible personal property under
             992      Section 59-2-405.1 enacted by the Legislature during the 1998 Annual General Session.
             993          (g) For purposes of Subsections (2)(h) through (j):
             994          (i) "1998 actual collections" means the amount of revenues a taxing entity actually
             995      collected for the calendar year beginning on January 1, 1998, under Section 59-2-405 for:
             996          (A) motor vehicles required to be registered with the state that weigh 12,000 pounds or
             997      less; and
             998          (B) state-assessed commercial vehicles required to be registered with the state that
             999      weigh 12,000 pounds or less.
             1000          (ii) "1999 actual collections" means the amount of revenues a taxing entity actually
             1001      collected for the calendar year beginning on January 1, 1999, under Section 59-2-405.1 .
             1002          (h) For the calendar year beginning on January 1, 2000, the commission shall make the
             1003      following adjustments:
             1004          (i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for
             1005      the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were
             1006      greater than the sum of:
             1007          (A) the taxing entity's 1999 actual collections; and
             1008          (B) any adjustments the commission made under Subsection (2)(f);
             1009          (ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for
             1010      the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were
             1011      greater than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual
             1012      collections were less than the sum of:
             1013          (A) the taxing entity's 1999 actual collections; and
             1014          (B) any adjustments the commission made under Subsection (2)(f); and
             1015          (iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for
             1016      the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were
             1017      less than the taxing entity's 1999 actual collections.
             1018          (i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing
             1019      entity's certified tax rate under this section and a taxing entity's certified revenue levy under


             1020      Section 59-2-906.1 by the amount necessary to offset the difference between:
             1021          (A) the taxing entity's 1998 actual collections; and
             1022          (B) the sum of:
             1023          (I) the taxing entity's 1999 actual collections; and
             1024          (II) any adjustments the commission made under Subsection (2)(f).
             1025          (ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing
             1026      entity's certified tax rate under this section and a taxing entity's certified revenue levy under
             1027      Section 59-2-906.1 by the amount necessary to offset the difference between:
             1028          (A) the sum of:
             1029          (I) the taxing entity's 1999 actual collections; and
             1030          (II) any adjustments the commission made under Subsection (2)(f); and
             1031          (B) the taxing entity's 1998 actual collections.
             1032          (iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing
             1033      entity's certified tax rate under this section and a taxing entity's certified revenue levy under
             1034      Section 59-2-906.1 by the amount of any adjustments the commission made under Subsection
             1035      (2)(f).
             1036          (j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
             1037      purposes of Subsections (2)(f) through (i), the commission may make rules establishing the
             1038      method for determining a taxing entity's 1998 actual collections and 1999 actual collections.
             1039          (k) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
             1040      Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
             1041      unincorporated area of the county shall be decreased by the amount necessary to reduce
             1042      revenues in that fiscal year by an amount equal to the difference between the amount the county
             1043      budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
             1044      countywide and the amount the county spent during fiscal year 2000 for those services,
             1045      excluding amounts spent from a municipal services fund for those services.
             1046          (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
             1047      (2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
             1048      year by the amount that the county spent during fiscal year 2000 for advanced life support and
             1049      paramedic services countywide, excluding amounts spent from a municipal services fund for
             1050      those services.


             1051          (ii) (A) A city or town located within a county of the first class to which Subsection
             1052      (2)(k)(i) applies may increase its certified tax rate by the amount necessary to generate within
             1053      the city or town the same amount of revenues as the county would collect from that city or
             1054      town if the decrease under Subsection (2)(k)(i) did not occur.
             1055          (B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal
             1056      year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
             1057      of Sections 59-2-918 and 59-2-919 .
             1058          (l) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
             1059      provide detective investigative services to the unincorporated area of the county shall be
             1060      decreased:
             1061          (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
             1062      by at least $4,400,000; and
             1063          (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
             1064      by an amount equal to the difference between $9,258,412 and the amount of the reduction in
             1065      revenues under Subsection (2)(l)(i)(A).
             1066          (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             1067      county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate
             1068      within the city or town the same amount of revenue as the county would have collected during
             1069      county fiscal year 2001 from within the city or town except for Subsection (2)(l)(i)(A).
             1070          (II) Beginning with municipal fiscal year 2003, a city or town located within a county
             1071      to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the
             1072      city or town the same amount of revenue as the county would have collected during county
             1073      fiscal year 2002 from within the city or town except for Subsection (2)(l)(i)(B).
             1074          (B) (I) Except as provided in Subsection (2)(l)(ii)(B)(II), an increase in the city or
             1075      town's certified tax rate under Subsection (2)(l)(ii)(A), whether occurring in a single fiscal year
             1076      or spread over multiple fiscal years, is subject to the notice and hearing requirements of
             1077      Sections 59-2-918 and 59-2-919 .
             1078          (II) For an increase under this Subsection (2)(l)(ii) that generates revenue that does not
             1079      exceed the same amount of revenue as the county would have collected except for Subsection
             1080      (2)(l)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
             1081          (Aa) publishes a notice that meets the size, type, placement, and frequency


             1082      requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
             1083      by the county to one imposed by the city or town, and explains how the revenues from the tax
             1084      increase will be used; and
             1085          (Bb) holds a public hearing on the tax shift that may be held in conjunction with the
             1086      city or town's regular budget hearing.
             1087          (m) (i) This Subsection (2)(m) applies to each county that:
             1088          (A) establishes a countywide special service district under Title 17A, Chapter 2, Part
             1089      13, Utah Special Service District Act, to provide jail service, as provided in Subsection
             1090      17A-2-1304 (1)(a)(x); and
             1091          (B) levies a property tax on behalf of the special service district under Section
             1092      17A-2-1322 .
             1093          (ii) (A) The certified tax rate of each county to which this Subsection (2)(m) applies
             1094      shall be decreased by the amount necessary to reduce county revenues by the same amount of
             1095      revenues that will be generated by the property tax imposed on behalf of the special service
             1096      district.
             1097          (B) Each decrease under Subsection (2)(m)(ii)(A) shall occur contemporaneously with
             1098      the levy on behalf of the special service district under Section 17A-2-1322 .
             1099          (n) (i) As used in this Subsection (2)(n):
             1100          (A) "Annexing county" means a county whose unincorporated area is included within a
             1101      fire district by annexation.
             1102          (B) "Annexing municipality" means a municipality whose area is included within a fire
             1103      district by annexation.
             1104          (C) "Equalized fire protection tax rate" means the tax rate that results from:
             1105          (I) calculating, for each participating county and each participating municipality, the
             1106      property tax revenue necessary to cover all of the costs associated with providing fire
             1107      protection, paramedic, and emergency services:
             1108          (Aa) for a participating county, in the unincorporated area of the county; and
             1109          (Bb) for a participating municipality, in the municipality; and
             1110          (II) adding all the amounts calculated under Subsection (2)(n)(i)(C)(I) for all
             1111      participating counties and all participating municipalities and then dividing that sum by the
             1112      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :


             1113          (Aa) for participating counties, in the unincorporated area of all participating counties;
             1114      and
             1115          (Bb) for participating municipalities, in all the participating municipalities.
             1116          (D) "Fire district" means a county service area under Title 17A, Chapter 2, Part 4,
             1117      County Service Area Act, in the creation of which an election was not required under
             1118      Subsection 17B-2-214 (3)(c).
             1119          (E) "Fire protection tax rate" means:
             1120          (I) for an annexing county, the property tax rate that, when applied to taxable property
             1121      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             1122      costs associated with providing fire protection, paramedic, and emergency services in the
             1123      unincorporated area of the county; and
             1124          (II) for an annexing municipality, the property tax rate that generates enough property
             1125      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             1126      paramedic, and emergency services in the municipality.
             1127          (F) "Participating county" means a county whose unincorporated area is included
             1128      within a fire district at the time of the creation of the fire district.
             1129          (G) "Participating municipality" means a municipality whose area is included within a
             1130      fire district at the time of the creation of the fire district.
             1131          (ii) In the first year following creation of a fire district, the certified tax rate of each
             1132      participating county and each participating municipality shall be decreased by the amount of
             1133      the equalized fire protection tax rate.
             1134          (iii) In the first year following annexation to a fire district, the certified tax rate of each
             1135      annexing county and each annexing municipality shall be decreased by the fire protection tax
             1136      rate.
             1137          (iv) Each tax levied under this section by a fire district shall be considered to be levied
             1138      by:
             1139          (A) each participating county and each annexing county for purposes of the county's
             1140      tax limitation under Section 59-2-908 ; and
             1141          (B) each participating municipality and each annexing municipality for purposes of the
             1142      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
             1143      city.


             1144          (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             1145          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             1146      auditor of:
             1147          (i) its intent to exceed the certified tax rate; and
             1148          (ii) the amount by which it proposes to exceed the certified tax rate.
             1149          (c) The county auditor shall notify all property owners of any intent to exceed the
             1150      certified tax rate in accordance with Subsection 59-2-919 (2).
             1151          (4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             1152      reduced for any year to the extent necessary to provide a community development and renewal
             1153      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             1154      Development and Renewal Agencies, with approximately the same amount of money the
             1155      agency would have received without a reduction in the county's certified tax rate if:
             1156          (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             1157      (2)(d)(i);
             1158          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             1159      previous year; and
             1160          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             1161      Section 17C-1-403 or 17C-1-404 .
             1162          (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             1163      year to the extent necessary to provide a community development and renewal agency with
             1164      approximately the same amount of money as the agency would have received without an
             1165      increase in the certified tax rate that year if:
             1166          (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             1167      a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and
             1168          (ii) The certified tax rate of a city, school district, or special district increases
             1169      independent of the adjustment to the taxable value of the base year.
             1170          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
             1171      (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
             1172      development and renewal agency established under Title 17C, Limited Purpose Local
             1173      Government Entities - Community Development and Renewal Agencies, for the payment of
             1174      bonds or other contract indebtedness, but not for administrative costs, may not be less than that


             1175      amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
             1176      (2)(d)(i).
             1177          (5) (a) For the calendar year beginning on January 1, 2008, and ending December 31,
             1178      2008, to impose a tax rate that exceeds the certified tax rate established in Subsection (2), a
             1179      taxing entity shall obtain approval for the tax increase by a majority vote of the:
             1180          (i) governing body; and
             1181          (ii) people as provided in Subsection (5)(b).
             1182          (b) To obtain voter approval for a tax increase under Subsection (5)(a), a taxing entity
             1183      shall hold an election:
             1184          (i) at a regular election conducted in accordance with the procedures and requirements
             1185      of Title 20A, Election Code, governing regular elections; or
             1186          (ii) at a special election called by the county legislative body that is:
             1187          (A) held only on the date of a municipal general election as provided in Subsection
             1188      20A-1-202 (1); and
             1189          (B) authorized in accordance with the procedures and requirements of Section
             1190      20A-1-203 .
             1191          (c) A tax rate imposed by a taxing entity under this Subsection (5) may not exceed the
             1192      maximum levy permitted by law under Section 59-2-908 .
             1193          Section 16. Section 59-2-926 is amended to read:
             1194           59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
             1195          If the state authorizes a levy [pursuant to Section 53A-17a-135 that exceeds the
             1196      certified revenue levy as defined in Section 53A-17a-103 or authorizes a levy] pursuant to
             1197      Section 59-2-906.1 that exceeds the certified revenue levy as defined in Section 59-2-102 , the
             1198      state shall publish a notice no later than ten days after the last day of the annual legislative
             1199      general session that meets the following requirements:
             1200          (1) The Office of the Legislative Fiscal Analyst shall advertise that the state authorized
             1201      a levy that generates revenue in excess of the previous year's ad valorem tax revenue, plus new
             1202      growth, but exclusive of revenue from collections from redemptions, interest, and penalties in a
             1203      newspaper of general circulation in the state. The advertisement shall be no less than 1/4 page
             1204      in size and the type used shall be no smaller than 18 point, and surrounded by a 1/4-inch
             1205      border. The advertisement may not be placed in that portion of the newspaper where legal


             1206      notices and classified advertisements appear. The advertisement shall be run once.
             1207          (2) The form and content of the notice shall be substantially as follows:
             1208     
"NOTICE OF TAX INCREASE

             1209          The state has budgeted an increase in its property tax revenue from $__________ to
             1210      $__________ or ____%. The increase in property tax revenues will come from the following
             1211      sources (include all of the following provisions):
             1212          (a) $__________ of the increase will come from (provide an explanation of the cause
             1213      of adjustment or increased revenues, such as reappraisals or factoring orders);
             1214          (b) $__________ of the increase will come from natural increases in the value of the
             1215      tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
             1216          (c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
             1217      the basic state-supported school program, levy for the Property Tax Valuation Agency Fund, or
             1218      both) paid $____________ in property taxes would pay the following:
             1219          (i) $__________ if the state of Utah did not budget an increase in property tax revenue
             1220      exclusive of new growth; and
             1221          (ii) $__________ under the increased property tax revenues exclusive of new growth
             1222      budgeted by the state of Utah."
             1223          Section 17. Section 63-38c-102 is amended to read:
             1224           63-38c-102. Purpose of chapter -- Limitations on state mandated property tax,
             1225      state appropriations, and state debt.
             1226          (1) (a) It is the purpose of this chapter to:
             1227          [(i) place a limitation on the state mandated property tax rate under Title 53A, Chapter
             1228      17a, Minimum School Program Act;]
             1229          [(ii)] (i) place limitations on state government appropriations based upon the combined
             1230      changes in population and inflation; and
             1231          [(iii)] (ii) place a limitation on the state's outstanding general obligation debt.
             1232          (b) The limitations imposed by this chapter are in addition to limitations on tax levies,
             1233      rates, and revenues otherwise provided for by law.
             1234          (2) (a) This chapter may not be construed as requiring the state to collect the full
             1235      amount of tax revenues permitted to be appropriated by this chapter.
             1236          (b) This chapter's purpose is to provide a ceiling, not a floor, limitation on the


             1237      appropriations of state government.
             1238          (3) The recommendations and budget analysis prepared by the Governor's Office of
             1239      Planning and Budget and the Office of the Legislative Fiscal Analyst, as required by Title 36,
             1240      Chapter 12, Legislative Organization, shall be in strict compliance with the limitations imposed
             1241      under this chapter.
             1242          Section 18. Repealer.
             1243          This bill repeals:
             1244          Section 53A-17a-135, Minimum basic tax rate -- Certified revenue levy.
             1245          Section 59-2-902, Minimum basic tax levy for school districts.
             1246          Section 59-2-903, Remittance to credit of Uniform School Fund of moneys in excess
             1247      of basic state-supported school program -- Manner.
             1248          Section 59-2-905, Legislature to set minimum rate of levy for state's contribution
             1249      to minimum school program -- Matters to be considered -- Commission to transmit rate
             1250      to auditors -- Acknowledgment of receipt.
             1251          Section 63-38c-401, State mandated property tax limitation -- Vote requirement
             1252      needed to exceed limitation.
             1253          Section 19. Effective date.
             1254          This bill takes effect on January 1, 2008.




Legislative Review Note
    as of 1-25-07 1:45 PM


Office of Legislative Research and General Counsel


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