H.B. 77 Enrolled

1

PERSONAL PROPERTY TAX AMENDMENTS
2 2008 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John Dougall
5 Senate Sponsor: Wayne L. Niederhauser
6
7 LONG TITLE
8 General Description:
9 This bill amends the Property Tax Act and the chapter relating to the collection of
10 certain personal property taxes and the calculation of the certified tax rate.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . amends the time period within which a county assessor or treasurer is required to
15 deposit its collections of personal property tax revenue with the state treasurer or a
16 qualified depository for the credit of the state;
17 . creates a depreciation schedule for certain classes of taxable tangible personal
18 property;
19 . allows a person to elect to designate certain taxable tangible personal property as
20 "expensed personal property" for valuation and taxing purposes;
21 . starting January 1, 2010, requires the Tax Commission to develop a depreciation
22 schedule for short life expensed personal property;
23 . prohibits a county from requiring a person to itemize the person's expensed personal
24 property;
25 . amends the date within which a person is required to file a statement with the county
26 assessor's office listing the person's real and personal property;
27 . eliminates the certified mailing requirement for a county assessor when the county
28 assessor notifies a personal property taxpayer that the personal property taxpayer's
29 signed statement is past due;

30 . amends the formula for the calculation of the certified tax rate;
31 . requires the portions of the certified tax rate calculation that relate to personal
32 property values to be based on the prior year's personal property values;
33 . amends the exemption amount for certain personal property;
34 . exempts certain personal property with a residual value of 15% or less from
35 taxation;
36 . amends the time period within which a personal property tax or uniform fee is due;
37 and
38 . makes technical changes.
39 Monies Appropriated in this Bill:
40 None
41 Other Special Clauses:
42 This bill takes effect on January 1, 2009.
43 Utah Code Sections Affected:
44 AMENDS:
45 17-34-3, as last amended by Laws of Utah 2005, First Special Session, Chapter 9
46 17C-1-408, as renumbered and amended by Laws of Utah 2006, Chapter 359
47 53A-16-106, as last amended by Laws of Utah 1994, Chapter 12
48 53A-17a-103, as last amended by Laws of Utah 2007, Chapters 107 and 372
49 53A-17a-133, as last amended by Laws of Utah 2006, Chapter 26
50 53A-19-102, as last amended by Laws of Utah 2007, Chapter 92
51 53A-19-105, as last amended by Laws of Utah 2003, Chapter 122
52 59-2-102, as last amended by Laws of Utah 2007, Chapters 107, 234, and 329
53 59-2-306, as last amended by Laws of Utah 2000, Chapter 86
54 59-2-307, as last amended by Laws of Utah 2006, Chapter 39
55 59-2-908, as last amended by Laws of Utah 1995, Chapter 278
56 59-2-913, as last amended by Laws of Utah 2007, Chapter 107
57 59-2-914, as last amended by Laws of Utah 1995, Chapter 278

58 59-2-918, as last amended by Laws of Utah 2006, Chapters 26 and 104
59 59-2-924, as last amended by Laws of Utah 2007, Chapters 107, and 329
60 59-2-1115, as last amended by Laws of Utah 2007, Chapter 8
61 59-2-1302, as last amended by Laws of Utah 2007, Chapter 306
62 59-2-1330, as last amended by Laws of Utah 2002, Chapters 196 and 240
63 ENACTS:
64 59-2-108, Utah Code Annotated 1953
65 59-2-924.2, Utah Code Annotated 1953
66
67 Be it enacted by the Legislature of the state of Utah:
68 Section 1. Section 17-34-3 is amended to read:
69 17-34-3. Taxes or service charges.
70 (1) (a) If a county furnishes the municipal-type services and functions described in
71 Section 17-34-1 to areas of the county outside the limits of incorporated cities or towns, the
72 entire cost of the services or functions so furnished shall be defrayed from funds that the county
73 has derived from:
74 (i) taxes that the county may lawfully levy or impose outside the limits of incorporated
75 towns or cities;
76 (ii) service charges or fees the county may impose upon the persons benefited in any
77 way by the services or functions; or
78 (iii) a combination of these sources.
79 (b) As the taxes or service charges or fees are levied and collected, they shall be placed
80 in a special revenue fund of the county and shall be disbursed only for the rendering of the
81 services or functions established in Section 17-34-1 within the unincorporated areas of the
82 county or as provided in Subsection 10-2-121 (2).
83 (2) For the purpose of levying taxes, service charges, or fees provided in this section,
84 the county legislative body may establish a district or districts in the unincorporated areas of the
85 county.

86 (3) Nothing contained in this chapter may be construed to authorize counties to impose
87 or levy taxes not otherwise allowed by law.
88 [(4) (a) A county required under Subsection 17-34-1 (4) to provide advanced life
89 support and paramedic services to the unincorporated area of the county and that previously
90 paid for those services through a countywide levy may increase its levy under Subsection
91 (1)(a)(i) to generate in the unincorporated area of the county the same amount of revenue as the
92 county loses from that area due to the required decrease in the countywide certified tax rate
93 under Subsection 59-2-924 (2)(k)(i).]
94 [(b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and
95 hearing requirements of Sections 59-2-918 and 59-2-919 .]
96 [(5)] (4) Notwithstanding any other provision of this chapter, a county providing fire,
97 paramedic, and police protection services in a designated recreational area, as provided in
98 Subsection 17-34-1 (5), may fund those services from the county general fund with revenues
99 derived from both inside and outside the limits of cities and towns, and the funding of those
100 services is not limited to unincorporated area revenues.
101 Section 2. Section 17C-1-408 is amended to read:
102 17C-1-408. Base taxable value to be adjusted to reflect other changes.
103 (1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
104 (A) a decrease of more than 20% from the previous tax year's levy; or
105 (B) a cumulative decrease over a consecutive five-year period of more than 100% from
106 the levy in effect at the beginning of the five-year period.
107 (ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
108 fifth year of the five-year period.
109 (b) If there is a qualifying decrease in the minimum basic school levy under Section
110 59-2-902 that would result in a reduction of the amount of tax increment to be paid to an
111 agency:
112 (i) the base taxable value of taxable property within the project area shall be reduced in
113 the year of the qualifying decrease to the extent necessary, even if below zero, to provide the

114 agency with approximately the same amount of tax increment that would have been paid to the
115 agency each year had the qualifying decrease not occurred; and
116 (ii) the amount of tax increment paid to the agency each year for the payment of bonds
117 and indebtedness may not be less than what would have been paid to the agency if there had
118 been no qualifying decrease.
119 (2) (a) The amount of the base taxable value to be used in determining tax increment
120 shall be:
121 (i) increased or decreased by the amount of an increase or decrease that results from:
122 (A) a statute enacted by the Legislature or by the people through an initiative;
123 (B) a judicial decision;
124 (C) an order from the State Tax Commission to a county to adjust or factor its
125 assessment rate under Subsection 59-2-704 (2);
126 (D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
127 Section 59-2-103 ; or
128 (E) an increase or decrease in the percentage of fair market value, as defined under
129 Section 59-2-102 ; and
130 (ii) reduced for any year to the extent necessary, even if below zero, to provide an
131 agency with approximately the same amount of money the agency would have received without
132 a reduction in the county's certified tax rate if:
133 (A) in that year there is a decrease in the county's certified tax rate under Subsection
134 [ 59-2-924 (2)(c) or (d)(i)] 59-2-924.2 (2) or (3)(a);
135 (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
136 previous year; and
137 (C) the decrease would result in a reduction of the amount of tax increment to be paid
138 to the agency.
139 (b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
140 increment paid to an agency each year for payment of bonds or other indebtedness may not be
141 less than would have been paid to the agency each year if there had been no increase or decrease

142 under Subsection (2)(a).
143 Section 3. Section 53A-16-106 is amended to read:
144 53A-16-106. Annual certification of tax rate proposed by local school board --
145 Inclusion of school district budget -- Modified filing date.
146 (1) Prior to June 22 of each year, each local school board shall certify to the county
147 legislative body in which the district is located, on forms prescribed by the State Tax
148 Commission, the proposed tax rate approved by the local school board.
149 (2) A copy of the district's budget, including items under Section 53A-19-101 , and a
150 certified copy of the local school board's resolution which approved the budget and set the tax
151 rate for the subsequent school year beginning July 1 shall accompany the tax rate.
152 (3) If the tax rate approved by the board is in excess of the "certified tax rate" as
153 defined under Subsection 59-2-924 [(2)](3)(a), the date for filing the tax rate and budget
154 adopted by the board shall be that established under Section 59-2-919 .
155 Section 4. Section 53A-17a-103 is amended to read:
156 53A-17a-103. Definitions.
157 As used in this chapter:
158 (1) "Basic state-supported school program" or "basic program" means public education
159 programs for kindergarten, elementary, and secondary school students that are operated and
160 maintained for the amount derived by multiplying the number of weighted pupil units for each
161 district by $2,514, except as otherwise provided in this chapter.
162 (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of ad
163 valorem property tax revenue equal to the sum of:
164 (i) the amount of ad valorem property tax revenue to be generated statewide in the
165 previous year from imposing a minimum basic tax rate, as specified in Subsection
166 53A-17a-135 (1)(a); and
167 (ii) the product of:
168 (A) new growth, as defined in:
169 (I) Section 59-2-924 ; and

170 (II) rules of the State Tax Commission; and
171 (B) the minimum basic tax rate certified by the State Tax Commission for the previous
172 year.
173 (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
174 include property tax revenue received statewide from personal property that is:
175 (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
176 Assessment; and
177 (ii) semiconductor manufacturing equipment.
178 (c) For purposes of calculating the certified revenue levy described in this Subsection
179 (2), the State Tax Commission shall use:
180 (i) the taxable value of real property assessed by a county assessor contained on the
181 assessment roll;
182 (ii) the taxable value of real and personal property assessed by the State Tax
183 Commission; and
184 (iii) the taxable year end value of personal property assessed by a county assessor
185 contained on the prior year's assessment roll.
186 (3) "Leeway program" or "leeway" means a state-supported voted leeway program or
187 board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .
188 (4) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
189 (5) (a) "State-supported minimum school program" or "minimum school program"
190 means public school programs for kindergarten, elementary, and secondary schools as described
191 in this Subsection (5).
192 (b) The minimum school program established in the districts shall include the equivalent
193 of a school term of nine months as determined by the State Board of Education.
194 (c) (i) The board shall establish the number of days or equivalent instructional hours
195 that school is held for an academic school year.
196 (ii) Education, enhanced by utilization of technologically enriched delivery systems,
197 when approved by local school boards, shall receive full support by the State Board of

198 Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
199 commercial advertising.
200 (d) The program includes the total of the following annual costs:
201 (i) the cost of a basic state-supported school program; and
202 (ii) other amounts appropriated in this chapter in addition to the basic program.
203 (6) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
204 factors that is computed in accordance with this chapter for the purpose of determining the
205 costs of a program on a uniform basis for each district.
206 Section 5. Section 53A-17a-133 is amended to read:
207 53A-17a-133. State-supported voted leeway program authorized -- Election
208 requirements -- State guarantee -- Reconsideration of the program.
209 (1) An election to consider adoption or modification of a voted leeway program is
210 required if initiative petitions signed by 10% of the number of electors who voted at the last
211 preceding general election are presented to the local school board or by action of the board.
212 (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
213 voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
214 special tax.
215 (ii) The tax rate may not exceed .002 per dollar of taxable value.
216 (b) The district may maintain a school program which exceeds the cost of the program
217 referred to in Section 53A-17a-145 with this voted leeway.
218 (c) In order to receive state support the first year, a district must receive voter approval
219 no later than December 1 of the year prior to implementation.
220 (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
221 to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
222 taxable value.
223 (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
224 of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized in
225 Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of

226 taxable value if a school district levies a tax rate under both programs.
227 (c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
228 shall be indexed each year to the value of the weighted pupil unit by making the value of the
229 guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
230 (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
231 pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of the
232 prior year's weighted pupil unit.
233 (d) (i) The amount of state guarantee money to which a school district would otherwise
234 be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
235 levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
236 pursuant to changes in property valuation.
237 (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
238 the certified tax rate.
239 (4) (a) An election to modify an existing voted leeway program is not a reconsideration
240 of the existing program unless the proposition submitted to the electors expressly so states.
241 (b) A majority vote opposing a modification does not deprive the district of authority to
242 continue an existing program.
243 (c) If adoption of a leeway program is contingent upon an offset reducing other local
244 school board levies, the board must allow the electors, in an election, to consider modifying or
245 discontinuing the program prior to a subsequent increase in other levies that would increase the
246 total local school board levy.
247 (d) Nothing contained in this section terminates, without an election, the authority of a
248 school district to continue an existing voted leeway program previously authorized by the
249 voters.
250 (5) Notwithstanding Section 59-2-918 , a school district may budget an increased
251 amount of ad valorem property tax revenue derived from a voted leeway imposed under this
252 section in addition to revenue from new growth as defined in Subsection 59-2-924 [(2)](4),
253 without having to comply with the advertisement requirements of Section 59-2-918 , if the voted

254 leeway is approved:
255 (a) in accordance with Section 53A-16-110 on or after January 1, 2003; and
256 (b) within the four-year period immediately preceding the year in which the school
257 district seeks to budget an increased amount of ad valorem property tax revenue derived from
258 the voted leeway.
259 (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
260 section that exceeds the certified tax rate without having to comply with the advertisement
261 requirements of Section 59-2-919 if:
262 (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
263 increased amount of ad valorem property tax revenue derived from a voted leeway imposed
264 under this section; and
265 (b) if the voted leeway was approved:
266 (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
267 (ii) within the four-year period immediately preceding the year in which the school
268 district seeks to budget an increased amount of ad valorem property tax revenue derived from
269 the voted leeway.
270 Section 6. Section 53A-19-102 is amended to read:
271 53A-19-102. Local school boards budget procedures.
272 (1) Prior to June 22 of each year, each local school board shall adopt a budget and
273 make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
274 certified tax rate defined in [Subsection] Section 59-2-924 [(2)], the board shall comply with
275 Sections 59-2-918 and 59-2-919 in adopting the budget, except as provided by Section
276 53A-17a-133 .
277 (2) Prior to the adoption of a budget containing a tax rate which does not exceed the
278 certified tax rate, the board shall hold a public hearing, as defined in Section 10-9a-103 , on the
279 proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
280 Act, in regards to the hearing, the board shall do the following:
281 (a) publish the required newspaper notice at least ten days prior to the hearing; and

282 (b) file a copy of the proposed budget with the board's business administrator for public
283 inspection at least ten days prior to the hearing.
284 (3) The board shall file a copy of the adopted budget with the state auditor and the
285 State Board of Education.
286 Section 7. Section 53A-19-105 is amended to read:
287 53A-19-105. School district interfund transfers.
288 (1) A school district shall spend revenues only within the fund for which they were
289 originally authorized, levied, collected, or appropriated.
290 (2) Except as otherwise provided in this section, school district interfund transfers of
291 residual equity are prohibited.
292 (3) The State Board of Education may authorize school district interfund transfers of
293 residual equity when a district states its intent to create a new fund or expand, contract, or
294 liquidate an existing fund.
295 (4) The State Board of Education may also authorize school district interfund transfers
296 of residual equity for a financially distressed district if the board determines the following:
297 (a) the district has a significant deficit in its maintenance and operations fund caused by
298 circumstances not subject to the administrative decisions of the district;
299 (b) the deficit cannot be reasonably reduced under Section 53A-19-104 ; and
300 (c) without the transfer, the school district will not be capable of meeting statewide
301 educational standards adopted by the State Board of Education.
302 (5) The board shall develop standards for defining and aiding financially distressed
303 school districts under this section in accordance with Title 63, Chapter 46a, Utah Administrative
304 Rulemaking Act.
305 (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
306 and reported in the debt service fund.
307 (b) Debt service levies under Subsection 59-2-924 [(2)(a)(v)(C)](3)(e)(iii) that are not
308 subject to the certified tax rate hearing requirements of Sections 59-2-918 and 59-2-919 may
309 not be used for any purpose other than retiring general obligation debt.

310 (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
311 year shall be used in subsequent years for general obligation debt retirement.
312 (d) Any amounts left in the debt service fund after all general obligation debt has been
313 retired may be transferred to the capital projects fund upon completion of the budgetary hearing
314 process required under Section 53A-19-102 .
315 Section 8. Section 59-2-102 is amended to read:
316 59-2-102. Definitions.
317 As used in this chapter and title:
318 (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
319 engaging in dispensing activities directly affecting agriculture or horticulture with an
320 airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
321 rotorcraft's use for agricultural and pest control purposes.
322 (2) "Air charter service" means an air carrier operation which requires the customer to
323 hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
324 trip.
325 (3) "Air contract service" means an air carrier operation available only to customers
326 who engage the services of the carrier through a contractual agreement and excess capacity on
327 any trip and is not available to the public at large.
328 (4) "Aircraft" is as defined in Section 72-10-102 .
329 (5) "Airline" means any air carrier operating interstate routes on a scheduled basis
330 which offers to fly passengers or cargo on the basis of available capacity on regularly scheduled
331 routes.
332 (6) "Assessment roll" means a permanent record of the assessment of property as
333 assessed by the county assessor and the commission and may be maintained manually or as a
334 computerized file as a consolidated record or as multiple records by type, classification, or
335 categories.
336 (7) (a) "Certified revenue levy" means a property tax levy that provides [the same
337 amount of ad valorem property tax revenue as was collected for the prior year, plus new

338 growth, but exclusive of revenue from collections from redemptions, interest, and penalties.] an
339 amount of ad valorem property tax revenue equal to the sum of:
340 (i) the amount of ad valorem property tax revenue to be generated statewide in the
341 previous year from imposing a minimum basic tax rate, as specified in Subsection
342 53A-17a-135 (1)(a); and
343 (ii) the product of:
344 (A) new growth, as defined in:
345 (I) Section 59-2-924 ; and
346 (II) rules of the commission; and
347 (B) the minimum basic tax rate certified by the commission for the previous year.
348 (b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
349 include property tax revenue received by a taxing entity from personal property that is:
350 (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
351 (ii) semiconductor manufacturing equipment.
352 (c) For purposes of calculating the certified revenue levy described in this Subsection
353 (7), the commission shall use:
354 (i) the taxable value of real property assessed by a county assessor contained on the
355 assessment roll;
356 (ii) the taxable value of real and personal property assessed by the commission; and
357 (iii) the taxable year end value of personal property assessed by a county assessor
358 contained on the prior year's assessment roll.
359 (8) "County-assessed commercial vehicle" means:
360 (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
361 Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
362 property in furtherance of the owner's commercial enterprise;
363 (b) any passenger vehicle owned by a business and used by its employees for
364 transportation as a company car or vanpool vehicle; and
365 (c) vehicles which are:

366 (i) especially constructed for towing or wrecking, and which are not otherwise used to
367 transport goods, merchandise, or people for compensation;
368 (ii) used or licensed as taxicabs or limousines;
369 (iii) used as rental passenger cars, travel trailers, or motor homes;
370 (iv) used or licensed in this state for use as ambulances or hearses;
371 (v) especially designed and used for garbage and rubbish collection; or
372 (vi) used exclusively to transport students or their instructors to or from any private,
373 public, or religious school or school activities.
374 (9) (a) Except as provided in Subsection (9)(b), for purposes of Section 59-2-801 ,
375 "designated tax area" means a tax area created by the overlapping boundaries of only the
376 following taxing entities:
377 (i) a county; and
378 (ii) a school district.
379 (b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
380 by the overlapping boundaries of:
381 (i) the taxing entities described in Subsection (9)(a); and
382 (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
383 and the boundaries of the city or town are identical; or
384 (B) a special service district if the boundaries of the school district under Subsection
385 (9)(a) are located entirely within the special service district.
386 (10) "Eligible judgment" means a final and unappealable judgment or order under
387 Section 59-2-1330 :
388 (a) that became a final and unappealable judgment or order no more than 14 months
389 prior to the day on which the notice required by Subsection 59-2-919 (4) is required to be
390 mailed; and
391 (b) for which a taxing entity's share of the final and unappealable judgment or order is
392 greater than or equal to the lesser of:
393 (i) $5,000; or

394 (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
395 previous fiscal year.
396 (11) (a) "Escaped property" means any property, whether personal, land, or any
397 improvements to the property, subject to taxation and is:
398 (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
399 to the wrong taxpayer by the assessing authority;
400 (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
401 comply with the reporting requirements of this chapter; or
402 (iii) undervalued because of errors made by the assessing authority based upon
403 incomplete or erroneous information furnished by the taxpayer.
404 (b) Property which is undervalued because of the use of a different valuation
405 methodology or because of a different application of the same valuation methodology is not
406 "escaped property."
407 (12) "Fair market value" means the amount at which property would change hands
408 between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
409 and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
410 market value" shall be determined using the current zoning laws applicable to the property in
411 question, except in cases where there is a reasonable probability of a change in the zoning laws
412 affecting that property in the tax year in question and the change would have an appreciable
413 influence upon the value.
414 (13) "Farm machinery and equipment," for purposes of the exemption provided under
415 Section 59-2-1101 , means tractors, milking equipment and storage and cooling facilities, feed
416 handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
417 tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
418 equipment used primarily for agricultural purposes; but does not include vehicles required to be
419 registered with the Motor Vehicle Division or vehicles or other equipment used for business
420 purposes other than farming.
421 (14) "Geothermal fluid" means water in any form at temperatures greater than 120

422 degrees centigrade naturally present in a geothermal system.
423 (15) "Geothermal resource" means:
424 (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
425 and
426 (b) the energy, in whatever form, including pressure, present in, resulting from, created
427 by, or which may be extracted from that natural heat, directly or through a material medium.
428 (16) (a) "Goodwill" means:
429 (i) acquired goodwill that is reported as goodwill on the books and records:
430 (A) of a taxpayer; and
431 (B) that are maintained for financial reporting purposes; or
432 (ii) the ability of a business to:
433 (A) generate income:
434 (I) that exceeds a normal rate of return on assets; and
435 (II) resulting from a factor described in Subsection (16)(b); or
436 (B) obtain an economic or competitive advantage resulting from a factor described in
437 Subsection (16)(b).
438 (b) The following factors apply to Subsection (16)(a)(ii):
439 (i) superior management skills;
440 (ii) reputation;
441 (iii) customer relationships;
442 (iv) patronage; or
443 (v) a factor similar to Subsections (16)(b)(i) through (iv).
444 (c) "Goodwill" does not include:
445 (i) the intangible property described in Subsection (20)(a) or (b);
446 (ii) locational attributes of real property, including:
447 (A) zoning;
448 (B) location;
449 (C) view;

450 (D) a geographic feature;
451 (E) an easement;
452 (F) a covenant;
453 (G) proximity to raw materials;
454 (H) the condition of surrounding property; or
455 (I) proximity to markets;
456 (iii) value attributable to the identification of an improvement to real property,
457 including:
458 (A) reputation of the designer, builder, or architect of the improvement;
459 (B) a name given to, or associated with, the improvement; or
460 (C) the historic significance of an improvement; or
461 (iv) the enhancement or assemblage value specifically attributable to the interrelation of
462 the existing tangible property in place working together as a unit.
463 (17) "Governing body" means:
464 (a) for a county, city, or town, the legislative body of the county, city, or town;
465 (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
466 Local Districts, the local district's board of trustees;
467 (c) for a school district, the local board of education; or
468 (d) for a special service district under Title 17A, Chapter 2, Part 13, Utah Special
469 Service District Act:
470 (i) the legislative body of the county or municipality that created the special service
471 district, to the extent that the county or municipal legislative body has not delegated authority to
472 an administrative control board established under Section 17A-2-1326 ; or
473 (ii) the administrative control board, to the extent that the county or municipal
474 legislative body has delegated authority to an administrative control board established under
475 Section 17A-2-1326 .
476 (18) (a) For purposes of Section 59-2-103 :
477 (i) "household" means the association of persons who live in the same dwelling, sharing

478 its furnishings, facilities, accommodations, and expenses; and
479 (ii) "household" includes married individuals, who are not legally separated, that have
480 established domiciles at separate locations within the state.
481 (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
482 commission may make rules defining the term "domicile."
483 (19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
484 structure, fixture, fence, or other item that is permanently attached to land, regardless of
485 whether the title has been acquired to the land, if:
486 (i) (A) attachment to land is essential to the operation or use of the item; and
487 (B) the manner of attachment to land suggests that the item will remain attached to the
488 land in the same place over the useful life of the item; or
489 (ii) removal of the item would:
490 (A) cause substantial damage to the item; or
491 (B) require substantial alteration or repair of a structure to which the item is attached.
492 (b) "Improvement" includes:
493 (i) an accessory to an item described in Subsection (19)(a) if the accessory is:
494 (A) essential to the operation of the item described in Subsection (19)(a); and
495 (B) installed solely to serve the operation of the item described in Subsection (19)(a);
496 and
497 (ii) an item described in Subsection (19)(a) that:
498 (A) is temporarily detached from the land for repairs; and
499 (B) remains located on the land.
500 (c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
501 (i) an item considered to be personal property pursuant to rules made in accordance
502 with Section 59-2-107 ;
503 (ii) a moveable item that is attached to land:
504 (A) for stability only; or
505 (B) for an obvious temporary purpose;

506 (iii) (A) manufacturing equipment and machinery; or
507 (B) essential accessories to manufacturing equipment and machinery;
508 (iv) an item attached to the land in a manner that facilitates removal without substantial
509 damage to:
510 (A) the land; or
511 (B) the item; or
512 (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
513 transportable factory-built housing unit is considered to be personal property under Section
514 59-2-1503 .
515 (20) "Intangible property" means:
516 (a) property that is capable of private ownership separate from tangible property,
517 including:
518 (i) moneys;
519 (ii) credits;
520 (iii) bonds;
521 (iv) stocks;
522 (v) representative property;
523 (vi) franchises;
524 (vii) licenses;
525 (viii) trade names;
526 (ix) copyrights; and
527 (x) patents;
528 (b) a low-income housing tax credit; or
529 (c) goodwill.
530 (21) "Low-income housing tax credit" means:
531 (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
532 or
533 (b) a low-income housing tax credit under:

534 (i) Section 59-7-607 ; or
535 (ii) Section 59-10-1010 .
536 (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
537 (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous valuable
538 mineral.
539 (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
540 otherwise removing a mineral from a mine.
541 (25) (a) "Mobile flight equipment" means tangible personal property that is:
542 (i) owned or operated by an:
543 (A) air charter service;
544 (B) air contract service; or
545 (C) airline; and
546 (ii) (A) capable of flight;
547 (B) attached to an aircraft that is capable of flight; or
548 (C) contained in an aircraft that is capable of flight if the tangible personal property is
549 intended to be used:
550 (I) during multiple flights;
551 (II) during a takeoff, flight, or landing; and
552 (III) as a service provided by an air charter service, air contract service, or airline.
553 (b) (i) "Mobile flight equipment" does not include a spare part other than a spare engine
554 that is rotated:
555 (A) at regular intervals; and
556 (B) with an engine that is attached to the aircraft.
557 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
558 commission may make rules defining the term "regular intervals."
559 (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
560 sand, rock, gravel, and all carboniferous materials.
561 (27) "Personal property" includes:

562 (a) every class of property as defined in Subsection (28) which is the subject of
563 ownership and not included within the meaning of the terms "real estate" and "improvements";
564 (b) gas and water mains and pipes laid in roads, streets, or alleys;
565 (c) bridges and ferries;
566 (d) livestock which, for the purposes of the exemption provided under Section
567 59-2-1112 , means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
568 (e) outdoor advertising structures as defined in Section 72-7-502 .
569 (28) (a) "Property" means property that is subject to assessment and taxation according
570 to its value.
571 (b) "Property" does not include intangible property as defined in this section.
572 (29) "Public utility," for purposes of this chapter, means the operating property of a
573 railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
574 company, electrical corporation, telephone corporation, sewerage corporation, or heat
575 corporation where the company performs the service for, or delivers the commodity to, the
576 public generally or companies serving the public generally, or in the case of a gas corporation or
577 an electrical corporation, where the gas or electricity is sold or furnished to any member or
578 consumers within the state for domestic, commercial, or industrial use. Public utility also means
579 the operating property of any entity or person defined under Section 54-2-1 except water
580 corporations.
581 (30) "Real estate" or "real property" includes:
582 (a) the possession of, claim to, ownership of, or right to the possession of land;
583 (b) all mines, minerals, and quarries in and under the land, all timber belonging to
584 individuals or corporations growing or being on the lands of this state or the United States, and
585 all rights and privileges appertaining to these; and
586 (c) improvements.
587 (31) "Residential property," for the purposes of the reductions and adjustments under
588 this chapter, means any property used for residential purposes as a primary residence. It does
589 not include property used for transient residential use or condominiums used in rental pools.

590 (32) For purposes of Subsection 59-2-801 (1)(e), "route miles" means the number of
591 miles calculated by the commission that is:
592 (a) measured in a straight line by the commission; and
593 (b) equal to the distance between a geographical location that begins or ends:
594 (i) at a boundary of the state; and
595 (ii) where an aircraft:
596 (A) takes off; or
597 (B) lands.
598 (33) (a) "State-assessed commercial vehicle" means:
599 (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
600 to transport passengers, freight, merchandise, or other property for hire; or
601 (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
602 transports the vehicle owner's goods or property in furtherance of the owner's commercial
603 enterprise.
604 (b) "State-assessed commercial vehicle" does not include vehicles used for hire which
605 are specified in Subsection (8)(c) as county-assessed commercial vehicles.
606 (34) "Taxable value" means fair market value less any applicable reduction allowed for
607 residential property under Section 59-2-103 .
608 (35) "Tax area" means a geographic area created by the overlapping boundaries of one
609 or more taxing entities.
610 (36) "Taxing entity" means any county, city, town, school district, special taxing
611 district, local district under Title 17B, Limited Purpose Local Government Entities - Local
612 Districts, or other political subdivision of the state with the authority to levy a tax on property.
613 (37) "Tax roll" means a permanent record of the taxes charged on property, as extended
614 on the assessment roll and may be maintained on the same record or records as the assessment
615 roll or may be maintained on a separate record properly indexed to the assessment roll. It
616 includes tax books, tax lists, and other similar materials.
617 Section 9. Section 59-2-108 is enacted to read:

618 59-2-108. Depreciation schedule for certain taxable tangible personal property.
619 (1) As used in this section:
620 (a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
621 property into service; and
622 (ii) includes:
623 (A) the purchase price for a new or used item;
624 (B) the cost of freight and shipping;
625 (C) the cost of installation, engineering, erection, or assembly; and
626 (D) sales and use taxes.
627 (b) "Expensed personal property" means an item of taxable tangible personal property
628 that:
629 (i) has an acquisition cost of $1,000 or less; and
630 (ii) a person elects to have assessed according to a schedule described in Subsection
631 (4).
632 (c) (i) "Item of taxable tangible personal property" does not include an improvement to
633 real property or a part that will become an improvement.
634 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
635 commission may make rules defining the term "item of taxable tangible personal property."
636 (d) (i) "Short life expensed personal property" means expensed personal property that is
637 the same type as the following personal property:
638 (A) short life property;
639 (B) short life trade fixtures; or
640 (C) computer hardware.
641 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
642 commission may make rules defining the following terms:
643 (A) "short life property";
644 (B) "short life trade fixtures"; and
645 (C) "computer hardware."

646 (e) "Taxable tangible personal property" means tangible personal property that is
647 subject to taxation under this chapter.
648 (2) (a) A person may elect to designate taxable tangible personal property as expensed
649 personal property.
650 (b) A county shall not require a person to:
651 (i) itemize expensed personal property on the signed statement described in Section
652 59-2-306 ; and
653 (ii) track expensed personal property.
654 (c) If a taxpayer's expensed personal property is audited in accordance with Subsection
655 59-2-306 (3), a taxpayer shall provide proof of the acquisition cost of the expensed personal
656 property.
657 (3) (a) An election to designate taxable tangible personal property as expensed personal
658 property under this section may not be revoked.
659 (b) Except as provided in Subsection (3)(d), if an item of taxable tangible personal
660 property is designated as expensed personal property, the person must pay taxes according to
661 the taxable value determined by the schedule for a term designated by a schedule described in
662 Subsection (4).
663 (c) If a person sells or otherwise disposes of an item of expensed personal property
664 prior to the time period described in Subsection (3)(b) or (d), the person shall continue to pay
665 taxes according to the schedule described in Subsection (4).
666 (d) If a person elects to designate an item of taxable tangible personal property acquired
667 before December 31, 2008, as expensed personal property at a time after the first year after the
668 item is acquired, the person must pay taxes according to the taxable value determined by the
669 schedule for a time period that equals:
670 (i) the time period designated in Subsection (3)(b); less
671 (ii) the time period beginning when the person acquired the item of expensed personal
672 property and ending when the person designated the item as short life expensed personal
673 property.

674 (e) If a person elects to designate taxable tangible personal property as expensed
675 personal property in accordance with Subsection (2)(a), the person may not appeal the values
676 described in Subsection (4).
677 (4) (a) For the taxable year beginning on January 1, 2009 and ending on December 31,
678 2009, the taxable value of short life expensed personal property is calculated by applying the
679 percent good factor against the acquisition cost of the property as follows:
680 Short Life Expensed Personal Property Schedule
681 Year of Percent Good of
682 Acquisition Acquisition Cost
683 2008 69%
684 2007 52%
685 2006 30%
686 2005 17%
687 2004 11%
688 (b) For taxable years beginning on or after January 1, 2010, the taxable value of short
689 life expensed personal property shall be assessed according to a schedule developed by the
690 commission in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
691 Section 10. Section 59-2-306 is amended to read:
692 59-2-306. Statements by taxpayers -- Power of assessors respecting statements.
693 (1) The county assessor may request a signed statement from any person setting forth
694 all the real and personal property assessable by the assessor which is owned, possessed,
695 managed, or under the control of the person at 12 [o'clock] noon on January 1. [This
696 statement]
697 (2) (a) Except as provided in Subsection (2)(b) or (c), a signed statement described in
698 Subsection (1) shall be filed on or before May 15 of the year the statement described in
699 Subsection (1) is requested by the county assessor.
700 (b) For a county of the first class, the signed statement described in Subsection (1) shall
701 be filed [within 30] on the later of:

702 (i) 60 days after requested by the assessor[.]; or
703 (ii) on or before May 15 of the year the statement described in Subsection (1) is
704 requested by the county assessor if, by resolution, the county legislative body of that county
705 adopts the deadline described in Subsection (2)(a).
706 (c) If a county assessor requests a signed statement described in Subsection (1) on or
707 after March 16, the person shall file the signed statement within 60 days after requested by the
708 assessor.
709 [(2)] (3) The signed statement shall include the following:
710 (a) all property belonging to, claimed by, or in the possession, control, or management
711 of the person, any firm of which the person is a member, or any corporation of which the person
712 is president, secretary, cashier, or managing agent;
713 (b) the county in which the property is located or in which it is taxable; and, if taxable in
714 the county in which the signed statement was made, also the city, town, school district, road
715 district, or other taxing district in which it is located or taxable; and
716 (c) all lands in parcels or subdivisions not exceeding 640 acres each, the sections and
717 fractional sections of all tracts of land containing more than 640 acres which have been
718 sectionized by the United States Government, and the improvements on those lands.
719 [(3)] (4) Every assessor may subpoena and examine any person in any county in relation
720 to any signed statement but may not require that person to appear in any county other than the
721 county in which the subpoena is served.
722 Section 11. Section 59-2-307 is amended to read:
723 59-2-307. Refusal by taxpayer to file signed statement -- Penalty -- Assessor to
724 estimate value -- Reporting information to other counties.
725 (1) (a) Each person who fails to file the signed statement required by Section 59-2-306 ,
726 fails to file the signed statement with respect to name and place of residence, or fails to appear
727 and testify when requested by the assessor, shall pay a penalty equal to 10% of the estimated tax
728 due, but not less than $100 for each failure to file a signed and completed statement.
729 (b) Each penalty under Subsection (1)(a) shall be collected in the manner provided by

730 Sections 59-2-1302 and 59-2-1303 , except as otherwise provided for in this section, or by a
731 judicial proceeding brought in the name of the assessor.
732 (c) All money recovered by any assessor under this section shall be paid into the county
733 treasury.
734 (2) (a) The penalty imposed by Subsection (1)(a) may not be waived or reduced by the
735 assessor, county, county Board of Equalization, or commission except pursuant to a procedure
736 for the review and approval of reductions and waivers adopted by county ordinance, or by
737 administrative rule adopted in accordance with Title 63, Chapter 46a, Utah Administrative
738 Rulemaking Act.
739 (b) The penalty under Subsection (1)(a) for failure to appear and testify when requested
740 by the assessor may not be imposed until 30 days after the [certified] postmark date of mailing
741 of a subsequent [certified] notice.
742 (3) (a) If [any] an owner neglects or refuses to file [the] a signed statement [within 30
743 days of the date the first county request was sent] requested by an assessor of a county of the
744 first class as required under Section 59-2-306 , the assessor [shall] of a county of the first class:
745 (i) shall make:
746 (A) a subsequent request by [certified] mail for the signed statement, informing the
747 owner of the consequences of not filing a signed statement; and
748 (B) a record of the failure to file and an estimate of the value of the property of the
749 owner based on known facts and circumstances; and
750 (ii) may impose a fee for the actual and necessary expenses of the [certified] mailing
751 under Subsection (3)(a)(i)(A).
752 (b) The value fixed by the assessor may not be reduced by the county board of
753 equalization or by the commission.
754 (4) If the signed statement discloses property in any other county, the assessor shall file
755 the signed statement and send a [certified] copy to the assessor of each county in which the
756 property is located.
757 Section 12. Section 59-2-908 is amended to read:

758 59-2-908. Single aggregate limitation -- Maximum levy.
759 (1) Except as provided in Subsection (2), each county shall have a single aggregate
760 limitation on the property tax levied for all purposes by the county. Except as provided in
761 Section 59-2-911 , this limitation may not exceed the maximum set forth in this section. The
762 maximum is:
763 (a) .0032 per dollar of taxable value in all counties with a total taxable value of more
764 than $100,000,000; and
765 (b) .0036 per dollar of taxable value in all counties with a total taxable value of less than
766 $100,000,000.
767 (2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
768 limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
769 generates revenues for the county in an amount that is less than the revenues that would be
770 generated by the county under the certified tax rate established in [Subsection] Section
771 59-2-924 [(2)].
772 (b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that
773 does not exceed the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
774 Section 13. Section 59-2-913 is amended to read:
775 59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
776 statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
777 establishing tax levies -- Format of statement.
778 (1) As used in this section, "budgeted property tax revenues" does not include property
779 tax revenue received by a taxing entity from personal property that is:
780 (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
781 (b) semiconductor manufacturing equipment.
782 (2) (a) The legislative body of each taxing entity shall file a statement as provided in this
783 section with the county auditor of the county in which the taxing entity is located.
784 (b) The auditor shall annually transmit the statement to the commission:
785 (i) before June 22; or

786 (ii) with the approval of the commission, on a subsequent date prior to the date
787 established under Section 59-2-1317 for mailing tax notices.
788 (c) The statement shall contain the amount and purpose of each levy fixed by the
789 legislative body of the taxing entity.
790 (3) For purposes of establishing the levy set for each of a taxing entity's applicable
791 funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
792 the budgeted property tax revenues, specified in a budget which has been adopted and approved
793 prior to setting the levy, by the amount calculated under Subsections 59-2-924 [(2)(a)(iii)(B)(I)
794 through (III)] (3)(c)(ii)(A) through (C).
795 (4) The format of the statement under this section shall:
796 (a) be determined by the commission; and
797 (b) cite any applicable statutory provisions that:
798 (i) require a specific levy; or
799 (ii) limit the property tax levy for any taxing entity.
800 (5) The commission may require certification that the information submitted on a
801 statement under this section is true and correct.
802 Section 14. Section 59-2-914 is amended to read:
803 59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement
804 adjusted levies to county auditor.
805 (1) If the commission determines that a levy established for a taxing entity set under
806 Section 59-2-913 is in excess of the maximum levy permitted by law, the commission shall:
807 (a) lower the levy so that it is set at the maximum level permitted by law;
808 (b) notify the taxing entity which set the excessive rate that the rate has been lowered;
809 and
810 (c) notify the county auditor of the county or counties in which the taxing entity is
811 located to implement the rate established by the commission.
812 (2) A levy set for a taxing entity by the commission under this section shall be the
813 official levy for that taxing entity unless:

814 (a) the taxing entity lowers the levy established by the commission; or
815 (b) the levy is subsequently modified by a court order.
816 (3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
817 a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the rate
818 established by the taxing entity for the current year generates revenues for the taxing entity in an
819 amount that is less than the revenues that would be generated by the taxing entity under the
820 certified tax rate established in [Subsection] Section 59-2-924 [(2)].
821 (b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax rate
822 that does not exceed the certified rate established in [Subsection] Section 59-2-924 [(2)].
823 Section 15. Section 59-2-918 is amended to read:
824 59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
825 (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
826 increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
827 in Subsection 59-2-924 [(2)](4) unless it advertises its intention to do so at the same time that it
828 advertises its intention to fix its budget for the forthcoming fiscal year.
829 (b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
830 advertisement or hearing requirements of this section if:
831 (A) the taxing entity:
832 (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
833 or
834 (II) is expressly exempted by law from complying with the requirements of this section;
835 or
836 (B) the increased amount of ad valorem tax revenue results from a tax rate increase that
837 is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and hearing
838 requirements of Section 59-2-919 .
839 (ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
840 advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
841 budget an increased amount of ad valorem property tax revenue without having to comply with

842 the advertisement requirements of this section.
843 (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
844 advertisement required by this section may be combined with the advertisement required by
845 Section 59-2-919 .
846 (b) For taxing entities operating under a January 1 through December 31 fiscal year, the
847 advertisement required by this section shall meet the size, type, placement, and frequency
848 requirements established under Section 59-2-919 .
849 (3) The form of the advertisement required by this section shall meet the size, type,
850 placement, and frequency requirements established under Section 59-2-919 and shall be
851 substantially as follows:
852 "NOTICE OF PROPOSED TAX INCREASE
853 (NAME OF TAXING ENTITY)
854 The (name of the taxing entity) is proposing to increase its property tax revenue.
855 * If the proposed budget is approved, this would be an increase of _____% above
856 the (name of the taxing entity) property tax budgeted revenue for the prior year.
857 * The (name of the taxing entity) tax on a (insert the average value of a residence
858 in the taxing entity rounded to the nearest thousand dollars) residence would
859 increase from $______ to $________, which is $_______ per year.
860 * The (name of the taxing entity) tax on a (insert the value of a business having the
861 same value as the average value of a residence in the taxing entity) business
862 would increase from $________ to $_______, which is $______ per year.
863 All concerned citizens are invited to a public hearing on the tax increase.
864 PUBLIC HEARING
865 Date/Time: (date) (time)
866 Location: (name of meeting place and address of meeting place)
867 To obtain more information regarding the tax increase, citizens may contact the (name
868 of the taxing entity) at (phone number of taxing entity)."
869 (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax

870 revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
871 announce at the public hearing the scheduled time and place for consideration and adoption of
872 the proposed budget increase.
873 (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
874 year shall by March 1 notify the county of the date, time, and place of the public hearing at
875 which the budget for the following fiscal year will be considered.
876 (b) The county shall include the information described in Subsection (5)(a) with the tax
877 notice.
878 (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
879 p.m.
880 Section 16. Section 59-2-924 is amended to read:
881 59-2-924. Report of valuation of property to county auditor and commission --
882 Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
883 tax rate -- Rulemaking authority -- Adoption of tentative budget.
884 (1) [(a)] Before June 1 of each year, the county assessor of each county shall deliver to
885 the county auditor and the commission the following statements:
886 [(i)] (a) a statement containing the aggregate valuation of all taxable real property [in]
887 assessed by a county assessor in accordance with Part 3, County Assessment, for each taxing
888 entity; and
889 [(ii)] (b) a statement containing the taxable value of [any additional] all personal
890 property [estimated by the county assessor to be subject to taxation in the current year] assessed
891 by a county assessor in accordance with Part 3, County Assessment, from the prior year end
892 values.
893 [(b)] (2) The county auditor shall, on or before June 8, transmit to the governing body
894 of each taxing entity:
895 [(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
896 [(ii)] (b) an estimate of the revenue from personal property;
897 [(iii)] (c) the certified tax rate; and

898 [(iv)] (d) all forms necessary to submit a tax levy request.
899 [(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad
900 valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
901 prior year.
902 [(ii)] (b) For purposes of this Subsection [(2), "ad] (3):
903 (i) "Ad valorem property tax revenues" do not include:
904 (A) collections from redemptions;
905 (B) interest;
906 (C) penalties; and
907 (D) revenue received by a taxing entity from personal property that is:
908 (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
909 (II) semiconductor manufacturing equipment.
910 (ii) "Aggregate taxable value of all property taxed" means:
911 (A) the aggregate taxable value of all real property assessed by a county assessor in
912 accordance with Part 3, County Assessment, for the current year;
913 (B) the aggregate taxable year end value of all personal property assessed by a county
914 assessor in accordance with Part 3, County Assessment, for the prior year; and
915 (C) the aggregate taxable value of all real and personal property assessed by the
916 commission in accordance with Part 2, Assessment of Property, for the current year.
917 [(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
918 be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
919 the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
920 [(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
921 taxing entity shall calculate an amount as follows:
922 [(I)] (A) calculate for the taxing entity the difference between:
923 [(Aa)] (I) the aggregate taxable value of all property taxed; and
924 [(Bb)] (II) any redevelopment adjustments for the current calendar year;
925 [(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]

926 (3)(c)(ii)(A), calculate an amount determined by increasing or decreasing the amount calculated
927 under Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A) by the average of the percentage net change in
928 the value of taxable property for the equalization period for the three calendar years
929 immediately preceding the current calendar year;
930 [(III)] (C) after making the calculation required by Subsection [(2)(a)(iii)(B)(II)]
931 (3)(c)(ii)(B), calculate the product of:
932 [(Aa)] (I) the amount calculated under Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B); and
933 [(Bb)] (II) the percentage of property taxes collected for the five calendar years
934 immediately preceding the current calendar year; and
935 [(IV)] (D) after making the calculation required by Subsection [(2)(a)(iii)(B)(III)]
936 (3)(c)(ii)(C), calculate an amount determined by subtracting from the amount calculated under
937 Subsection [(2)(a)(iii)(B)(III)] (3)(c)(ii)(C) any new growth as defined in this section:
938 [(Aa)] (I) within the taxing entity; and
939 [(Bb)] (II) for the following calendar year:
940 (Aa) for new growth from real property assessed by a county assessor in accordance
941 with Part 3, County Assessment and all property assessed by the commission in accordance with
942 Section 59-2-201 , the current calendar year[.]; and
943 (Bb) for new growth from personal property assessed by a county assessor in
944 accordance with Part 3, County Assessment, the prior calendar year.
945 [(C)] (iii) For purposes of Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A), the aggregate
946 taxable value of all property taxed:
947 [(I)] (A) except as provided in Subsection [(2)(a)(iii)(C)(II), includes the total taxable
948 value of the real and personal property contained on the tax rolls of the taxing entity; and]
949 (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in Subsection (3)(b)(ii);
950 [(II)] (B) does not include the total taxable value of personal property contained on the
951 tax rolls of the taxing entity that is:
952 [(Aa)] (I) assessed by a county assessor in accordance with Part 3, County Assessment;
953 and

954 [(Bb)] (II) semiconductor manufacturing equipment[.]; and
955 (C) for personal property assessed by a county assessor in accordance with Part 3,
956 County Assessment, the taxable value of personal property is the year end value of the personal
957 property contained on the prior year's tax rolls of the entity.
958 [(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
959 beginning on or after January 1, 2007, the value of taxable property does not include the value
960 of personal property that is:
961 [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
962 3, County Assessment; and
963 [(II)] (B) semiconductor manufacturing equipment.
964 [(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
965 calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
966 does not include property taxes collected from personal property that is:
967 [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
968 3, County Assessment; and
969 [(II)] (B) semiconductor manufacturing equipment.
970 [(F)] (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or
971 after January 1, 2009, the value of taxable property does not include the value of personal
972 property that is within the taxing entity assessed by a county assessor in accordance with Part 3,
973 County Assessment.
974 (vii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
975 the commission may prescribe rules for calculating redevelopment adjustments for a calendar
976 year.
977 [(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
978 Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
979 property tax revenues budgeted by a taxing entity.
980 [(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
981 revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted

982 property tax revenues are calculated for purposes of Section 59-2-913 .
983 [(v)] (e) The certified tax rates for the taxing entities described in this Subsection
984 [(2)(a)(v)] (3)(e) shall be calculated as follows:
985 [(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
986 entities the certified tax rate is zero;
987 [(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax
988 rate is:
989 [(I)] (A) in a county of the first, second, or third class, the levy imposed for
990 municipal-type services under Sections 17-34-1 and 17-36-9 ; and
991 [(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
992 county purposes and such other levies imposed solely for the municipal-type services identified
993 in Section 17-34-1 and Subsection 17-36-3 (22); and
994 [(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
995 actual levy imposed by that section, except that the certified tax rates for the following levies
996 shall be calculated in accordance with Section 59-2-913 and this section:
997 [(I)] (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 ,
998 53A-17a-125 , 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and
999 53A-21-103 ; and
1000 [(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
1001 administrative orders under Section 59-2-906.3 .
1002 [(vi) (A)] (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall
1003 be established at that rate which is sufficient to generate only the revenue required to satisfy one
1004 or more eligible judgments, as defined in Section 59-2-102 .
1005 [(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
1006 be considered in establishing the taxing entity's aggregate certified tax rate.
1007 [(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
1008 shall use:
1009 (i) the taxable value of real property assessed by a county assessor contained on the

1010 assessment roll[.];
1011 (ii) the taxable value of real and personal property assessed by the commission; and
1012 (iii) the taxable year end value of personal property assessed by a county assessor
1013 contained on the prior year's assessment roll.
1014 [(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
1015 property on the assessment roll does not include[: (A)] new growth as defined in Subsection
1016 [(2)(b)(iii); or] (4)(c).
1017 [(B) the total taxable value of personal property contained on the tax rolls of the taxing
1018 entity that is:]
1019 [(I) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1020 [(II) semiconductor manufacturing equipment.]
1021 [(iii)] (c) "New growth" means:
1022 [(A)] (i) the difference between the increase in taxable value of the following property
1023 of the taxing entity from the previous calendar year to the current year[;]:
1024 (A) real property assessed by a county assessor in accordance with Part 3, County
1025 Assessment; and
1026 (B) property assessed by the commission under Section 59-2-201 ; plus
1027 (ii) the difference between the increase in taxable year end value of personal property of
1028 the taxing entity from the year prior to the previous calendar year to the previous calendar year;
1029 minus
1030 [(B)] (iii) the amount of an increase in taxable value described in Subsection [(2)(b)(v)]
1031 (4)(e).
1032 [(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of personal
1033 property of the taxing entity does not include the taxable value of personal property that is:
1034 [(A)] (i) contained on the tax rolls of the taxing entity if that property is assessed by a
1035 county assessor in accordance with Part 3, County Assessment; and
1036 [(B)] (ii) semiconductor manufacturing equipment.
1037 [(v)] (e) Subsection [(2)(b)(iii)(B)] (4)(c)(iii) applies to the following increases in

1038 taxable value:
1039 [(A)] (i) the amount of increase to locally assessed real property taxable values resulting
1040 from factoring, reappraisal, or any other adjustments; or
1041 [(B)] (ii) the amount of an increase in the taxable value of property assessed by the
1042 commission under Section 59-2-201 resulting from a change in the method of apportioning the
1043 taxable value prescribed by:
1044 [(I)] (A) the Legislature;
1045 [(II)] (B) a court;
1046 [(III)] (C) the commission in an administrative rule; or
1047 [(IV)] (D) the commission in an administrative order.
1048 (f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
1049 property on the prior year's assessment roll does not include:
1050 (i) new growth as defined in Subsection (4)(c); or
1051 (ii) the total taxable year end value of personal property contained on the prior year's
1052 tax rolls of the taxing entity that is:
1053 (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
1054 (B) semiconductor manufacturing equipment.
1055 [(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1056 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
1057 59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
1058 12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1059 rate to offset the increased revenues.]
1060 [(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1061 Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:]
1062 [(A) decreased on a one-time basis by the amount of the estimated sales and use tax
1063 revenue to be distributed to the county under Subsection 59-12-1102 (3); and]
1064 [(B) increased by the amount necessary to offset the county's reduction in revenue from
1065 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,

1066 59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
1067 (2)(d)(i)(A).]
1068 [(ii) The commission shall determine estimates of sales and use tax distributions for
1069 purposes of Subsection (2)(d)(i).]
1070 [(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
1071 communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
1072 decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
1073 revenue from the additional resort communities sales and use tax imposed under Section
1074 59-12-402 .]
1075 [(f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
1076 Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
1077 unincorporated area of the county shall be decreased by the amount necessary to reduce
1078 revenues in that fiscal year by an amount equal to the difference between the amount the county
1079 budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
1080 countywide and the amount the county spent during fiscal year 2000 for those services,
1081 excluding amounts spent from a municipal services fund for those services.]
1082 [(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
1083 (2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
1084 year by the amount that the county spent during fiscal year 2000 for advanced life support and
1085 paramedic services countywide, excluding amounts spent from a municipal services fund for
1086 those services.]
1087 [(ii) (A) A city or town located within a county of the first class to which Subsection
1088 (2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
1089 the city or town the same amount of revenues as the county would collect from that city or
1090 town if the decrease under Subsection (2)(f)(i) did not occur.]
1091 [(B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal year
1092 or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
1093 Sections 59-2-918 and 59-2-919 .]

1094 [(g) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
1095 provide detective investigative services to the unincorporated area of the county shall be
1096 decreased:]
1097 [(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
1098 by at least $4,400,000; and]
1099 [(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
1100 by an amount equal to the difference between $9,258,412 and the amount of the reduction in
1101 revenues under Subsection (2)(g)(i)(A).]
1102 [(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
1103 county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
1104 within the city or town the same amount of revenue as the county would have collected during
1105 county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).]
1106 [(II) Beginning with municipal fiscal year 2003, a city or town located within a county
1107 to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
1108 city or town the same amount of revenue as the county would have collected during county
1109 fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).]
1110 [(B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
1111 town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
1112 or spread over multiple fiscal years, is subject to the notice and hearing requirements of Sections
1113 59-2-918 and 59-2-919 .]
1114 [(II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does
1115 not exceed the same amount of revenue as the county would have collected except for
1116 Subsection (2)(g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the
1117 city or town:]
1118 [(Aa) publishes a notice that meets the size, type, placement, and frequency
1119 requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
1120 by the county to one imposed by the city or town, and explains how the revenues from the tax
1121 increase will be used; and]

1122 [(Bb) holds a public hearing on the tax shift that may be held in conjunction with the
1123 city or town's regular budget hearing.]
1124 [(h) (i) This Subsection (2)(h) applies to each county that:]
1125 [(A) establishes a countywide special service district under Title 17A, Chapter 2, Part
1126 13, Utah Special Service District Act, to provide jail service, as provided in Subsection
1127 17A-2-1304 (1)(a)(x); and]
1128 [(B) levies a property tax on behalf of the special service district under Section
1129 17A-2-1322 .]
1130 [(ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
1131 shall be decreased by the amount necessary to reduce county revenues by the same amount of
1132 revenues that will be generated by the property tax imposed on behalf of the special service
1133 district.]
1134 [(B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
1135 the levy on behalf of the special service district under Section 17A-2-1322 .]
1136 [(i) (i) As used in this Subsection (2)(i):]
1137 [(A) "Annexing county" means a county whose unincorporated area is included within a
1138 fire district by annexation.]
1139 [(B) "Annexing municipality" means a municipality whose area is included within a fire
1140 district by annexation.]
1141 [(C) "Equalized fire protection tax rate" means the tax rate that results from:]
1142 [(I) calculating, for each participating county and each participating municipality, the
1143 property tax revenue necessary to cover all of the costs associated with providing fire
1144 protection, paramedic, and emergency services:]
1145 [(Aa) for a participating county, in the unincorporated area of the county; and]
1146 [(Bb) for a participating municipality, in the municipality; and]
1147 [(II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
1148 participating counties and all participating municipalities and then dividing that sum by the
1149 aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :]

1150 [(Aa) for participating counties, in the unincorporated area of all participating counties;
1151 and]
1152 [(Bb) for participating municipalities, in all the participating municipalities.]
1153 [(D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1154 Area Act, in the creation of which an election was not required under Subsection
1155 17B-1-214 (3)(c).]
1156 [(E) "Fire protection tax rate" means:]
1157 [(I) for an annexing county, the property tax rate that, when applied to taxable property
1158 in the unincorporated area of the county, generates enough property tax revenue to cover all the
1159 costs associated with providing fire protection, paramedic, and emergency services in the
1160 unincorporated area of the county; and]
1161 [(II) for an annexing municipality, the property tax rate that generates enough property
1162 tax revenue in the municipality to cover all the costs associated with providing fire protection,
1163 paramedic, and emergency services in the municipality.]
1164 [(F) "Participating county" means a county whose unincorporated area is included
1165 within a fire district at the time of the creation of the fire district.]
1166 [(G) "Participating municipality" means a municipality whose area is included within a
1167 fire district at the time of the creation of the fire district.]
1168 [(ii) In the first year following creation of a fire district, the certified tax rate of each
1169 participating county and each participating municipality shall be decreased by the amount of the
1170 equalized fire protection tax rate.]
1171 [(iii) In the first year following annexation to a fire district, the certified tax rate of each
1172 annexing county and each annexing municipality shall be decreased by the fire protection tax
1173 rate.]
1174 [(iv) Each tax levied under this section by a fire district shall be considered to be levied
1175 by:]
1176 [(A) each participating county and each annexing county for purposes of the county's
1177 tax limitation under Section 59-2-908 ; and]

1178 [(B) each participating municipality and each annexing municipality for purposes of the
1179 municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
1180 city.]
1181 [(j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1182 entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
1183 certified tax rate that may result from excluding the following from the certified tax rate under
1184 Subsection (2)(a) enacted by the Legislature during the 2007 General Session:]
1185 [(i) personal property tax revenue:]
1186 [(A) received by a taxing entity;]
1187 [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1188 [(C) for personal property that is semiconductor manufacturing equipment; or]
1189 [(ii) the taxable value of personal property:]
1190 [(A) contained on the tax rolls of a taxing entity;]
1191 [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1192 [(C) that is semiconductor manufacturing equipment.]
1193 [(3)] (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative
1194 budget.
1195 (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
1196 auditor of:
1197 (i) its intent to exceed the certified tax rate; and
1198 (ii) the amount by which it proposes to exceed the certified tax rate.
1199 (c) The county auditor shall notify all property owners of any intent to exceed the
1200 certified tax rate in accordance with Subsection 59-2-919 (2).
1201 [(4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
1202 reduced for any year to the extent necessary to provide a community development and renewal
1203 agency established under Title 17C, Limited Purpose Local Government Entities - Community
1204 Development and Renewal Agencies, with approximately the same amount of money the agency
1205 would have received without a reduction in the county's certified tax rate if:]

1206 [(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
1207 (2)(d)(i);]
1208 [(ii) the amount of the decrease is more than 20% of the county's certified tax rate of
1209 the previous year; and]
1210 [(iii) the decrease results in a reduction of the amount to be paid to the agency under
1211 Section 17C-1-403 or 17C-1-404 .]
1212 [(b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
1213 year to the extent necessary to provide a community development and renewal agency with
1214 approximately the same amount of money as the agency would have received without an
1215 increase in the certified tax rate that year if:]
1216 [(i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
1217 a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and]
1218 [(ii) The certified tax rate of a city, school district, local district, or special service
1219 district increases independent of the adjustment to the taxable value of the base year.]
1220 [(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
1221 (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
1222 development and renewal agency established under Title 17C, Limited Purpose Local
1223 Government Entities - Community Development and Renewal Agencies, for the payment of
1224 bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1225 amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
1226 (2)(d)(i).]
1227 Section 17. Section 59-2-924.2 is enacted to read:
1228 59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
1229 (1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
1230 in accordance with Section 59-2-924 .
1231 (2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
1232 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
1233 59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter

1234 12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
1235 rate to offset the increased revenues.
1236 (3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
1237 Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
1238 (i) decreased on a one-time basis by the amount of the estimated sales and use tax
1239 revenue to be distributed to the county under Subsection 59-12-1102 (3); and
1240 (ii) increased by the amount necessary to offset the county's reduction in revenue from
1241 uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
1242 59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
1243 (3)(a)(i).
1244 (b) The commission shall determine estimates of sales and use tax distributions for
1245 purposes of Subsection (3)(a).
1246 (4) Beginning January 1, 1998, if a municipality has imposed an additional resort
1247 communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
1248 decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
1249 revenue from the additional resort communities sales and use tax imposed under Section
1250 59-12-402 .
1251 (5) (a) This Subsection (5) applies to each county that:
1252 (i) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
1253 Utah Special Service District Act, to provide jail service, as provided in Subsection
1254 17A-2-1304 (1)(a)(x); and
1255 (ii) levies a property tax on behalf of the special service district under Section
1256 17A-2-1322 .
1257 (b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
1258 decreased by the amount necessary to reduce county revenues by the same amount of revenues
1259 that will be generated by the property tax imposed on behalf of the special service district.
1260 (ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
1261 levy on behalf of the special service district under Section 17A-2-1322 .

1262 (6) (a) As used in this Subsection (6):
1263 (i) "Annexing county" means a county whose unincorporated area is included within a
1264 fire district by annexation.
1265 (ii) "Annexing municipality" means a municipality whose area is included within a fire
1266 district by annexation.
1267 (iii) "Equalized fire protection tax rate" means the tax rate that results from:
1268 (A) calculating, for each participating county and each participating municipality, the
1269 property tax revenue necessary to cover all of the costs associated with providing fire
1270 protection, paramedic, and emergency services:
1271 (I) for a participating county, in the unincorporated area of the county; and
1272 (II) for a participating municipality, in the municipality; and
1273 (B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
1274 participating counties and all participating municipalities and then dividing that sum by the
1275 aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
1276 (I) for participating counties, in the unincorporated area of all participating counties;
1277 and
1278 (II) for participating municipalities, in all the participating municipalities.
1279 (iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
1280 Area Act, in the creation of which an election was not required under Subsection
1281 17B-1-214 (3)(c).
1282 (v) "Fire protection tax rate" means:
1283 (A) for an annexing county, the property tax rate that, when applied to taxable property
1284 in the unincorporated area of the county, generates enough property tax revenue to cover all the
1285 costs associated with providing fire protection, paramedic, and emergency services in the
1286 unincorporated area of the county; and
1287 (B) for an annexing municipality, the property tax rate that generates enough property
1288 tax revenue in the municipality to cover all the costs associated with providing fire protection,
1289 paramedic, and emergency services in the municipality.

1290 (vi) "Participating county" means a county whose unincorporated area is included
1291 within a fire district at the time of the creation of the fire district.
1292 (vii) "Participating municipality" means a municipality whose area is included within a
1293 fire district at the time of the creation of the fire district.
1294 (b) In the first year following creation of a fire district, the certified tax rate of each
1295 participating county and each participating municipality shall be decreased by the amount of the
1296 equalized fire protection tax rate.
1297 (c) In the first year following annexation to a fire district, the certified tax rate of each
1298 annexing county and each annexing municipality shall be decreased by the fire protection tax
1299 rate.
1300 (d) Each tax levied under this section by a fire district shall be considered to be levied
1301 by:
1302 (i) each participating county and each annexing county for purposes of the county's tax
1303 limitation under Section 59-2-908 ; and
1304 (ii) each participating municipality and each annexing municipality for purposes of the
1305 municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a city.
1306 (7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
1307 entity's certified tax rate, calculated in accordance with Section 59-2-924 , shall be adjusted by
1308 the amount necessary to offset any change in the certified tax rate that may result from
1309 excluding the following from the certified tax rate under Subsection 59-2-924 (3) enacted by the
1310 Legislature during the 2007 General Session:
1311 (a) personal property tax revenue:
1312 (i) received by a taxing entity;
1313 (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
1314 (iii) for personal property that is semiconductor manufacturing equipment; or
1315 (b) the taxable value of personal property:
1316 (i) contained on the tax rolls of a taxing entity;
1317 (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and

1318 (iii) that is semiconductor manufacturing equipment.
1319 (8) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
1320 reduced for any year to the extent necessary to provide a community development and renewal
1321 agency established under Title 17C, Limited Purpose Local Government Entities - Community
1322 Development and Renewal Agencies, with approximately the same amount of money the agency
1323 would have received without a reduction in the county's certified tax rate, calculated in
1324 accordance with Section 59-2-924 , if:
1325 (i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
1326 (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
1327 previous year; and
1328 (iii) the decrease results in a reduction of the amount to be paid to the agency under
1329 Section 17C-1-403 or 17C-1-404 .
1330 (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
1331 year to the extent necessary to provide a community development and renewal agency with
1332 approximately the same amount of money as the agency would have received without an
1333 increase in the certified tax rate that year if:
1334 (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
1335 a decrease in the certified tax rate under Subsection (2) or (3)(a); and
1336 (ii) the certified tax rate of a city, school district, local district, or special service district
1337 increases independent of the adjustment to the taxable value of the base year.
1338 (c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
1339 the amount of money allocated and, when collected, paid each year to a community
1340 development and renewal agency established under Title 17C, Limited Purpose Local
1341 Government Entities - Community Development and Renewal Agencies, for the payment of
1342 bonds or other contract indebtedness, but not for administrative costs, may not be less than that
1343 amount would have been without a decrease in the certified tax rate under Subsection (2) or
1344 (3)(a).
1345 Section 18. Section 59-2-1115 is amended to read:

1346 59-2-1115. Exemption of certain tangible personal property.
1347 (1) For purposes of this section:
1348 (a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
1349 property into service; and
1350 (ii) includes:
1351 (A) the purchase price for a new or used item;
1352 (B) the cost of freight and shipping;
1353 (C) the cost of installation, engineering, erection, or assembly; and
1354 (D) sales and use taxes.
1355 (b) (i) "Item of taxable tangible personal property" does not include an improvement to
1356 real property or a part that will become an improvement.
1357 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
1358 commission may make rules defining the term "item of taxable tangible personal property."
1359 (c) (i) "Taxable tangible personal property" means tangible personal property that is
1360 subject to taxation under this chapter.
1361 (ii) "Taxable tangible personal property" does not include:
1362 (A) tangible personal property required by law to be registered with the state before it is
1363 used:
1364 (I) on a public highway;
1365 (II) on a public waterway;
1366 (III) on public land; or
1367 (IV) in the air;
1368 (B) a mobile home as defined in Section 41-1a-102 ; or
1369 (C) a manufactured home as defined in Section 41-1a-102 .
1370 [(1)] (2) (a) The taxable tangible personal property of a taxpayer is exempt from
1371 taxation if the taxable tangible personal property has a total aggregate fair market value per
1372 county of $3,500 or less.
1373 [(b) For purposes of this section, "taxable tangible personal property" does not include:]

1374 [(i) tangible personal property required by law to be registered with the state before it is
1375 used:]
1376 [(A) on a public highway;]
1377 [(B) on a public waterway;]
1378 [(C) on public land; or]
1379 [(D) in the air;]
1380 [(ii) a mobile home as defined in Section 41-1a-102 ; or]
1381 [(iii) a manufactured home as defined in Section 41-1a-102 .]
1382 (b) An item of taxable tangible personal property is exempt from taxation if the item of
1383 taxable tangible personal property:
1384 (i) has an acquisition cost of $1,000 or less;
1385 (ii) has reached a percent good of 15% or less according to a personal property
1386 schedule:
1387 (A) published by the commission pursuant to Section 59-2-107 ; or
1388 (B) for an item of personal property that is designated as expensed personal property in
1389 accordance with Section 59-2-108 , described in Section 59-2-108 ; and
1390 (iii) is in a personal property schedule with a residual value of 15% or less.
1391 [(2)] (3) (a) For calendar years beginning on or after January 1, 2008, the commission
1392 shall increase the dollar amount described in Subsection [(1)] (2)(a):
1393 (i) by a percentage equal to the percentage difference between the consumer price index
1394 for the preceding calendar year and the consumer price index for calendar year 2006[.]; and
1395 (ii) up to the nearest $100 increment.
1396 (b) For purposes of this Subsection [(2)](3), the commission shall calculate the
1397 consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
1398 (c) If the percentage difference under Subsection [(2)](3)(a)(i) is zero or a negative
1399 percentage, the consumer price index increase for the year is zero.
1400 [(3)] (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
1401 Act, the commission may make rules to administer this section and provide for uniform

1402 implementation.
1403 Section 19. Section 59-2-1302 is amended to read:
1404 59-2-1302. Assessor or treasurer's duties -- Collection of uniform fees and taxes
1405 on personal property -- Unpaid tax or unpaid uniform fee is a lien -- Delinquency interest
1406 -- Rate.
1407 (1) After the assessor assesses taxes or uniform fees on personal property, the assessor
1408 or, if this duty has been reassigned in an ordinance under Section 17-16-5.5 , the treasurer shall:
1409 (a) list the personal property tax or uniform fee as provided in Subsection (3) with the
1410 real property of the owner in the manner required by law if the assessor or treasurer, as the case
1411 may be, determines that the real property is sufficient to secure the payment of the personal
1412 property taxes or uniform fees;
1413 (b) immediately collect the taxes or uniform fees due on the personal property; or
1414 (c) on or before the day on which the tax or uniform fee on personal property is due,
1415 obtain from the taxpayer a bond that is:
1416 (i) payable to the county in an amount equal to the amount of the tax or uniform fee
1417 due, plus 20% of the amount of the tax or uniform fee due; and
1418 (ii) conditioned for the payment of the tax or uniform fee on or before November 30.
1419 (2) (a) An unpaid tax as defined in Section 59-1-705 , or unpaid uniform fee upon
1420 personal property listed with the real property is a lien upon the owner's real property as of 12
1421 o'clock noon of January 1 of each year.
1422 (b) An unpaid tax as defined in Section 59-1-705 , or unpaid uniform fee upon personal
1423 property not listed with the real property is a lien upon the owner's personal property as of 12
1424 o'clock noon of January 1 of each year.
1425 (3) The assessor or treasurer, as the case may be, shall make the listing under this
1426 section:
1427 (a) on the record of assessment of the real property; or
1428 (b) by entering a reference showing the record of the assessment of the personal
1429 property on the record of assessment of the real property.

1430 (4) (a) The amount of tax or uniform fee assessed upon personal property is delinquent
1431 if the tax or uniform fee is not paid [within 30 days after] on the day on which the tax notice or
1432 the combined signed statement and tax notice [due] under Section 59-2-306 is [mailed] due.
1433 (b) Delinquent taxes or uniform fees under Subsection (4)(a) shall bear interest from the
1434 date of delinquency until the day on which the delinquent tax or uniform fee is paid at an
1435 interest rate equal to the sum of:
1436 (i) 6%; and
1437 (ii) the federal funds rate target:
1438 (A) established by the Federal Open Markets Committee; and
1439 (B) that exists on the January 1 immediately preceding the date of delinquency.
1440 (5) A county assessor or treasurer shall deposit all collections of public funds from a
1441 personal property tax or personal property uniform fee no later than once every seven banking
1442 days with:
1443 (a) the state treasurer; or
1444 (b) a qualified depository for the credit of the county.
1445 Section 20. Section 59-2-1330 is amended to read:
1446 59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
1447 entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
1448 Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
1449 commission -- Time periods for making payments to taxpayer.
1450 (1) Unless otherwise specifically provided by statute, property taxes shall be paid
1451 directly to the county assessor or the county treasurer:
1452 (a) on the date that the property taxes are due; and
1453 (b) as provided in this chapter.
1454 (2) A taxpayer shall receive payment as provided in this section if a reduction in the
1455 amount of any tax levied against any property for which the taxpayer paid a tax or any portion
1456 of a tax under this chapter for a calendar year is required by a final and unappealable judgment
1457 or order described in Subsection (3) issued by:

1458 (a) a county board of equalization;
1459 (b) the commission; or
1460 (c) a court of competent jurisdiction.
1461 (3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
1462 property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
1463 shall pay the taxpayer if:
1464 (i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
1465 authorized officer of the:
1466 (A) county; or
1467 (B) state;
1468 (ii) the taxpayer obtains a final and unappealable judgment or order:
1469 (A) from:
1470 (I) a county board of equalization;
1471 (II) the commission; or
1472 (III) a court of competent jurisdiction;
1473 (B) against:
1474 (I) the taxing entity or an authorized officer of the taxing entity; or
1475 (II) the state or an authorized officer of the state; and
1476 (C) ordering a reduction in the amount of any tax levied against any property for which
1477 a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
1478 (b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
1479 in accordance with Subsections (4) through (7).
1480 (4) For purposes of Subsections (2) and (3), the amount the state shall pay to a
1481 taxpayer is equal to the sum of:
1482 (a) if the difference described in this Subsection (4)(a) is greater than $0, the difference
1483 between:
1484 (i) the tax the taxpayer paid to the state in accordance with Subsection (2); and
1485 (ii) the amount of the taxpayer's tax liability to the state after the reduction in the

1486 amount of tax levied against the property in accordance with the final and unappealable
1487 judgment or order described in Subsection (3);
1488 (b) if the difference described in this Subsection (4)(b) is greater than $0, the difference
1489 between:
1490 (i) any penalties the taxpayer paid to the state in accordance with Section 59-2-1331 ;
1491 and
1492 (ii) the amount of penalties the taxpayer is liable to pay to the state in accordance with
1493 Section 59-2-1331 after the reduction in the amount of tax levied against the property in
1494 accordance with the final and unappealable judgment or order described in Subsection (3);
1495 (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
1496 Section 59-2-1331 on the amounts described in Subsections (4)(a) and (4)(b); and
1497 (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
1498 (i) Subsection (4)(a);
1499 (ii) Subsection (4)(b); and
1500 (iii) Subsection (4)(c).
1501 (5) For purposes of Subsections (2) and (3), the amount a taxing entity shall pay to a
1502 taxpayer is equal to the sum of:
1503 (a) if the difference described in this Subsection (5)(a) is greater than $0, the difference
1504 between:
1505 (i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (2); and
1506 (ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in
1507 the amount of tax levied against the property in accordance with the final and unappealable
1508 judgment or order described in Subsection (3);
1509 (b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
1510 between:
1511 (i) any penalties the taxpayer paid to the taxing entity in accordance with Section
1512 59-2-1331 ; and
1513 (ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in

1514 accordance with Section 59-2-1331 after the reduction in the amount of tax levied against the
1515 property in accordance with the final and unappealable judgment or order described in
1516 Subsection (3); and
1517 (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
1518 Section 59-2-1331 on the amounts described in Subsections (5)(a) and (5)(b); and
1519 (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
1520 (i) Subsection (5)(a);
1521 (ii) Subsection (5)(b); and
1522 (iii) Subsection (5)(c).
1523 (6) Except as provided in Subsection (7):
1524 (a) interest shall be refunded to a taxpayer on the amount described in Subsection (4)(c)
1525 or (5)(c) in an amount equal to the amount of interest the taxpayer paid in accordance with
1526 Section 59-2-1331 ; and
1527 (b) interest shall be paid to a taxpayer on the amount described in Subsection (4)(d) or
1528 (5)(d):
1529 (i) beginning on the later of:
1530 (A) the day on which the taxpayer paid the tax in accordance with Subsection (2); or
1531 (B) January 1 of the calendar year immediately following the calendar year for which
1532 the tax was due;
1533 (ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
1534 amount required by Subsection (4) or (5); and
1535 (iii) at the interest rate earned by the state treasurer on public funds transferred to the
1536 state treasurer in accordance with Section 51-7-5.
1537 (7) Notwithstanding Subsection (6):
1538 (a) the state may not pay or refund interest to a taxpayer under Subsection (6) on any
1539 tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax levied
1540 by the state for that calendar year as stated on the notice required by Section 59-2-1317 ; and
1541 (b) a taxing entity may not pay or refund interest to a taxpayer under Subsection (6) on

1542 any tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax
1543 levied by the taxing entity for that calendar year as stated on the notice required by Section
1544 59-2-1317.
1545 (8) (a) Each taxing entity may levy a tax to pay its share of the final and unappealable
1546 judgment or order described in Subsection (3) if:
1547 (i) the final and unappealable judgment or order is issued no later than 15 days prior to
1548 the date the levy is set under Subsection 59-2-924[(2)](3) (a);
1549 (ii) the amount of the judgment levy is included on the notice under Section 59-2-919 ;
1550 and
1551 (iii) the final and unappealable judgment or order is an eligible judgment, as defined in
1552 Section 59-2-102 .
1553 (b) The levy under Subsection (8)(a) is in addition to, and exempt from, the maximum
1554 levy established for the taxing entity.
1555 (9) (a) A taxpayer that objects to the assessment of property assessed by the
1556 commission shall pay, on or before the date of delinquency established under Subsection
1557 59-2-1331 (1) or Section 59-2-1332 , the full amount of taxes stated on the notice required by
1558 Section 59-2-1317 if:
1559 (i) the taxpayer has applied to the commission for a hearing in accordance with Section
1560 59-2-1007 on the objection to the assessment; and
1561 (ii) the commission has not issued a written decision on the objection to the assessment
1562 in accordance with Section 59-2-1007 .
1563 (b) A taxpayer that pays the full amount of taxes due under Subsection (9)(a) is not
1564 required to pay penalties or interest on an assessment described in Subsection (9)(a) unless:
1565 (i) a final and unappealable judgment or order establishing that the property described in
1566 Subsection (9)(a) has a value greater than the value stated on the notice required by Section
1567 59-2-1317 is issued by:
1568 (A) the commission; or
1569 (B) a court of competent jurisdiction; and

1570 (ii) the taxpayer fails to pay the additional tax liability resulting from the final and
1571 unappealable judgment or order described in Subsection (9)(b)(i) within a 45-day period after
1572 the county bills the taxpayer for the additional tax liability.
1573 (10) (a) Except as provided in Subsection (10)(b), a payment that is required by this
1574 section shall be paid to a taxpayer:
1575 (i) within 60 days after the day on which the final and unappealable judgment or order is
1576 issued in accordance with Subsection (3); or
1577 (ii) if a judgment levy is imposed in accordance with Subsection (8):
1578 (A) if the payment to the taxpayer required by this section is $5,000 or more, no later
1579 than December 31 of the year in which the judgment levy is imposed; and
1580 (B) if the payment to the taxpayer required by this section is less than $5,000, within 60
1581 days after the date the final and unappealable judgment or order is issued in accordance with
1582 Subsection (3).
1583 (b) Notwithstanding Subsection (10)(a), a taxpayer may enter into an agreement:
1584 (i) that establishes a time period other than a time period described in Subsection
1585 (10)(a) for making a payment to the taxpayer that is required by this section; and
1586 (ii) with:
1587 (A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
1588 (B) an authorized officer of the state for a tax imposed by the state.
1589 Section 21. Effective date.
1590 This bill takes effect on January 1, 2009.