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Second Substitute H.B. 77

Senator Wayne L. Niederhauser proposes the following substitute bill:


             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


             26      county 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
             85      the 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
             142      decrease 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
             163      ad 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 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 commission; and
             183          (iii) the taxable year end value of personal property assessed by a county assessor
             184      contained on the prior year's assessment roll.
             185          (3) "Leeway program" or "leeway" means a state-supported voted leeway program or
             186      board leeway program authorized under Section 53A-17a-133 or 53A-17a-134 .
             187          (4) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
             188          (5) (a) "State-supported minimum school program" or "minimum school program"
             189      means public school programs for kindergarten, elementary, and secondary schools as
             190      described in this Subsection (5).
             191          (b) The minimum school program established in the districts shall include the
             192      equivalent of a school term of nine months as determined by the State Board of Education.
             193          (c) (i) The board shall establish the number of days or equivalent instructional hours
             194      that school is held for an academic school year.
             195          (ii) Education, enhanced by utilization of technologically enriched delivery systems,
             196      when approved by local school boards, shall receive full support by the State Board of
             197      Education as it pertains to fulfilling the attendance requirements, excluding time spent viewing
             198      commercial advertising.
             199          (d) The program includes the total of the following annual costs:
             200          (i) the cost of a basic state-supported school program; and
             201          (ii) other amounts appropriated in this chapter in addition to the basic program.
             202          (6) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
             203      factors that is computed in accordance with this chapter for the purpose of determining the
             204      costs of a program on a uniform basis for each district.
             205          Section 5. Section 53A-17a-133 is amended to read:
             206           53A-17a-133. State-supported voted leeway program authorized -- Election
             207      requirements -- State guarantee -- Reconsideration of the program.
             208          (1) An election to consider adoption or modification of a voted leeway program is
             209      required if initiative petitions signed by 10% of the number of electors who voted at the last
             210      preceding general election are presented to the local school board or by action of the board.
             211          (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district


             212      voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
             213      special tax.
             214          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             215          (b) The district may maintain a school program which exceeds the cost of the program
             216      referred to in Section 53A-17a-145 with this voted leeway.
             217          (c) In order to receive state support the first year, a district must receive voter approval
             218      no later than December 1 of the year prior to implementation.
             219          (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
             220      to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
             221      taxable value.
             222          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             223      of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
             224      in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
             225      taxable value if a school district levies a tax rate under both programs.
             226          (c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
             227      shall be indexed each year to the value of the weighted pupil unit by making the value of the
             228      guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
             229          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             230      pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
             231      the prior year's weighted pupil unit.
             232          (d) (i) The amount of state guarantee money to which a school district would otherwise
             233      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             234      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             235      pursuant to changes in property valuation.
             236          (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
             237      the certified tax rate.
             238          (4) (a) An election to modify an existing voted leeway program is not a reconsideration
             239      of the existing program unless the proposition submitted to the electors expressly so states.
             240          (b) A majority vote opposing a modification does not deprive the district of authority to
             241      continue an existing program.
             242          (c) If adoption of a leeway program is contingent upon an offset reducing other local


             243      school board levies, the board must allow the electors, in an election, to consider modifying or
             244      discontinuing the program prior to a subsequent increase in other levies that would increase the
             245      total local school board levy.
             246          (d) Nothing contained in this section terminates, without an election, the authority of a
             247      school district to continue an existing voted leeway program previously authorized by the
             248      voters.
             249          (5) Notwithstanding Section 59-2-918 , a school district may budget an increased
             250      amount of ad valorem property tax revenue derived from a voted leeway imposed under this
             251      section in addition to revenue from new growth as defined in Subsection 59-2-924 [(2)](4),
             252      without having to comply with the advertisement requirements of Section 59-2-918 , if the
             253      voted leeway is approved:
             254          (a) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             255          (b) within the four-year period immediately preceding the year in which the school
             256      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             257      the voted leeway.
             258          (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             259      section that exceeds the certified tax rate without having to comply with the advertisement
             260      requirements of Section 59-2-919 if:
             261          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             262      increased amount of ad valorem property tax revenue derived from a voted leeway imposed
             263      under this section; and
             264          (b) if the voted leeway was approved:
             265          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             266          (ii) within the four-year period immediately preceding the year in which the school
             267      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             268      the voted leeway.
             269          Section 6. Section 53A-19-102 is amended to read:
             270           53A-19-102. Local school boards budget procedures.
             271          (1) Prior to June 22 of each year, each local school board shall adopt a budget and
             272      make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
             273      certified tax rate defined in [Subsection] Section 59-2-924 [(2)], the board shall comply with


             274      Sections 59-2-918 and 59-2-919 in adopting the budget, except as provided by Section
             275      53A-17a-133 .
             276          (2) Prior to the adoption of a budget containing a tax rate which does not exceed the
             277      certified tax rate, the board shall hold a public hearing, as defined in Section 10-9a-103 , on the
             278      proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
             279      Act, in regards to the hearing, the board shall do the following:
             280          (a) publish the required newspaper notice at least ten days prior to the hearing; and
             281          (b) file a copy of the proposed budget with the board's business administrator for public
             282      inspection at least ten days prior to the hearing.
             283          (3) The board shall file a copy of the adopted budget with the state auditor and the
             284      State Board of Education.
             285          Section 7. Section 53A-19-105 is amended to read:
             286           53A-19-105. School district interfund transfers.
             287          (1) A school district shall spend revenues only within the fund for which they were
             288      originally authorized, levied, collected, or appropriated.
             289          (2) Except as otherwise provided in this section, school district interfund transfers of
             290      residual equity are prohibited.
             291          (3) The State Board of Education may authorize school district interfund transfers of
             292      residual equity when a district states its intent to create a new fund or expand, contract, or
             293      liquidate an existing fund.
             294          (4) The State Board of Education may also authorize school district interfund transfers
             295      of residual equity for a financially distressed district if the board determines the following:
             296          (a) the district has a significant deficit in its maintenance and operations fund caused
             297      by circumstances not subject to the administrative decisions of the district;
             298          (b) the deficit cannot be reasonably reduced under Section 53A-19-104 ; and
             299          (c) without the transfer, the school district will not be capable of meeting statewide
             300      educational standards adopted by the State Board of Education.
             301          (5) The board shall develop standards for defining and aiding financially distressed
             302      school districts under this section in accordance with Title 63, Chapter 46a, Utah
             303      Administrative Rulemaking Act.
             304          (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded


             305      and reported in the debt service fund.
             306          (b) Debt service levies under Subsection 59-2-924 [(2)(a)(v)(C)](3)(e)(iii) that are not
             307      subject to the certified tax rate hearing requirements of Sections 59-2-918 and 59-2-919 may
             308      not be used for any purpose other than retiring general obligation debt.
             309          (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
             310      year shall be used in subsequent years for general obligation debt retirement.
             311          (d) Any amounts left in the debt service fund after all general obligation debt has been
             312      retired may be transferred to the capital projects fund upon completion of the budgetary hearing
             313      process required under Section 53A-19-102 .
             314          Section 8. Section 59-2-102 is amended to read:
             315           59-2-102. Definitions.
             316          As used in this chapter and title:
             317          (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
             318      engaging in dispensing activities directly affecting agriculture or horticulture with an
             319      airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
             320      rotorcraft's use for agricultural and pest control purposes.
             321          (2) "Air charter service" means an air carrier operation which requires the customer to
             322      hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
             323      trip.
             324          (3) "Air contract service" means an air carrier operation available only to customers
             325      who engage the services of the carrier through a contractual agreement and excess capacity on
             326      any trip and is not available to the public at large.
             327          (4) "Aircraft" is as defined in Section 72-10-102 .
             328          (5) "Airline" means any air carrier operating interstate routes on a scheduled basis
             329      which offers to fly passengers or cargo on the basis of available capacity on regularly scheduled
             330      routes.
             331          (6) "Assessment roll" means a permanent record of the assessment of property as
             332      assessed by the county assessor and the commission and may be maintained manually or as a
             333      computerized file as a consolidated record or as multiple records by type, classification, or
             334      categories.
             335          (7) (a) "Certified revenue levy" means a property tax levy that provides [the same


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


             367          (ii) used or licensed as taxicabs or limousines;
             368          (iii) used as rental passenger cars, travel trailers, or motor homes;
             369          (iv) used or licensed in this state for use as ambulances or hearses;
             370          (v) especially designed and used for garbage and rubbish collection; or
             371          (vi) used exclusively to transport students or their instructors to or from any private,
             372      public, or religious school or school activities.
             373          (9) (a) Except as provided in Subsection (9)(b), for purposes of Section 59-2-801 ,
             374      "designated tax area" means a tax area created by the overlapping boundaries of only the
             375      following taxing entities:
             376          (i) a county; and
             377          (ii) a school district.
             378          (b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
             379      by the overlapping boundaries of:
             380          (i) the taxing entities described in Subsection (9)(a); and
             381          (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
             382      and the boundaries of the city or town are identical; or
             383          (B) a special service district if the boundaries of the school district under Subsection
             384      (9)(a) are located entirely within the special service district.
             385          (10) "Eligible judgment" means a final and unappealable judgment or order under
             386      Section 59-2-1330 :
             387          (a) that became a final and unappealable judgment or order no more than 14 months
             388      prior to the day on which the notice required by Subsection 59-2-919 (4) is required to be
             389      mailed; and
             390          (b) for which a taxing entity's share of the final and unappealable judgment or order is
             391      greater than or equal to the lesser of:
             392          (i) $5,000; or
             393          (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
             394      previous fiscal year.
             395          (11) (a) "Escaped property" means any property, whether personal, land, or any
             396      improvements to the property, subject to taxation and is:
             397          (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed


             398      to the wrong taxpayer by the assessing authority;
             399          (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
             400      comply with the reporting requirements of this chapter; or
             401          (iii) undervalued because of errors made by the assessing authority based upon
             402      incomplete or erroneous information furnished by the taxpayer.
             403          (b) Property which is undervalued because of the use of a different valuation
             404      methodology or because of a different application of the same valuation methodology is not
             405      "escaped property."
             406          (12) "Fair market value" means the amount at which property would change hands
             407      between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
             408      and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
             409      market value" shall be determined using the current zoning laws applicable to the property in
             410      question, except in cases where there is a reasonable probability of a change in the zoning laws
             411      affecting that property in the tax year in question and the change would have an appreciable
             412      influence upon the value.
             413          (13) "Farm machinery and equipment," for purposes of the exemption provided under
             414      Section 59-2-1101 , means tractors, milking equipment and storage and cooling facilities, feed
             415      handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
             416      tools, scales, combines, spreaders, sprayers, haying equipment, and any other machinery or
             417      equipment used primarily for agricultural purposes; but does not include vehicles required to be
             418      registered with the Motor Vehicle Division or vehicles or other equipment used for business
             419      purposes other than farming.
             420          (14) "Geothermal fluid" means water in any form at temperatures greater than 120
             421      degrees centigrade naturally present in a geothermal system.
             422          (15) "Geothermal resource" means:
             423          (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
             424      and
             425          (b) the energy, in whatever form, including pressure, present in, resulting from, created
             426      by, or which may be extracted from that natural heat, directly or through a material medium.
             427          (16) (a) "Goodwill" means:
             428          (i) acquired goodwill that is reported as goodwill on the books and records:


             429          (A) of a taxpayer; and
             430          (B) that are maintained for financial reporting purposes; or
             431          (ii) the ability of a business to:
             432          (A) generate income:
             433          (I) that exceeds a normal rate of return on assets; and
             434          (II) resulting from a factor described in Subsection (16)(b); or
             435          (B) obtain an economic or competitive advantage resulting from a factor described in
             436      Subsection (16)(b).
             437          (b) The following factors apply to Subsection (16)(a)(ii):
             438          (i) superior management skills;
             439          (ii) reputation;
             440          (iii) customer relationships;
             441          (iv) patronage; or
             442          (v) a factor similar to Subsections (16)(b)(i) through (iv).
             443          (c) "Goodwill" does not include:
             444          (i) the intangible property described in Subsection (20)(a) or (b);
             445          (ii) locational attributes of real property, including:
             446          (A) zoning;
             447          (B) location;
             448          (C) view;
             449          (D) a geographic feature;
             450          (E) an easement;
             451          (F) a covenant;
             452          (G) proximity to raw materials;
             453          (H) the condition of surrounding property; or
             454          (I) proximity to markets;
             455          (iii) value attributable to the identification of an improvement to real property,
             456      including:
             457          (A) reputation of the designer, builder, or architect of the improvement;
             458          (B) a name given to, or associated with, the improvement; or
             459          (C) the historic significance of an improvement; or


             460          (iv) the enhancement or assemblage value specifically attributable to the interrelation
             461      of the existing tangible property in place working together as a unit.
             462          (17) "Governing body" means:
             463          (a) for a county, city, or town, the legislative body of the county, city, or town;
             464          (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
             465      Local Districts, the local district's board of trustees;
             466          (c) for a school district, the local board of education; or
             467          (d) for a special service district under Title 17A, Chapter 2, Part 13, Utah Special
             468      Service District Act:
             469          (i) the legislative body of the county or municipality that created the special service
             470      district, to the extent that the county or municipal legislative body has not delegated authority
             471      to an administrative control board established under Section 17A-2-1326 ; or
             472          (ii) the administrative control board, to the extent that the county or municipal
             473      legislative body has delegated authority to an administrative control board established under
             474      Section 17A-2-1326 .
             475          (18) (a) For purposes of Section 59-2-103 :
             476          (i) "household" means the association of persons who live in the same dwelling,
             477      sharing its furnishings, facilities, accommodations, and expenses; and
             478          (ii) "household" includes married individuals, who are not legally separated, that have
             479      established domiciles at separate locations within the state.
             480          (b) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             481      commission may make rules defining the term "domicile."
             482          (19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
             483      structure, fixture, fence, or other item that is permanently attached to land, regardless of
             484      whether the title has been acquired to the land, if:
             485          (i) (A) attachment to land is essential to the operation or use of the item; and
             486          (B) the manner of attachment to land suggests that the item will remain attached to the
             487      land in the same place over the useful life of the item; or
             488          (ii) removal of the item would:
             489          (A) cause substantial damage to the item; or
             490          (B) require substantial alteration or repair of a structure to which the item is attached.


             491          (b) "Improvement" includes:
             492          (i) an accessory to an item described in Subsection (19)(a) if the accessory is:
             493          (A) essential to the operation of the item described in Subsection (19)(a); and
             494          (B) installed solely to serve the operation of the item described in Subsection (19)(a);
             495      and
             496          (ii) an item described in Subsection (19)(a) that:
             497          (A) is temporarily detached from the land for repairs; and
             498          (B) remains located on the land.
             499          (c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
             500          (i) an item considered to be personal property pursuant to rules made in accordance
             501      with Section 59-2-107 ;
             502          (ii) a moveable item that is attached to land:
             503          (A) for stability only; or
             504          (B) for an obvious temporary purpose;
             505          (iii) (A) manufacturing equipment and machinery; or
             506          (B) essential accessories to manufacturing equipment and machinery;
             507          (iv) an item attached to the land in a manner that facilitates removal without substantial
             508      damage to:
             509          (A) the land; or
             510          (B) the item; or
             511          (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
             512      transportable factory-built housing unit is considered to be personal property under Section
             513      59-2-1503 .
             514          (20) "Intangible property" means:
             515          (a) property that is capable of private ownership separate from tangible property,
             516      including:
             517          (i) moneys;
             518          (ii) credits;
             519          (iii) bonds;
             520          (iv) stocks;
             521          (v) representative property;


             522          (vi) franchises;
             523          (vii) licenses;
             524          (viii) trade names;
             525          (ix) copyrights; and
             526          (x) patents;
             527          (b) a low-income housing tax credit; or
             528          (c) goodwill.
             529          (21) "Low-income housing tax credit" means:
             530          (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
             531      or
             532          (b) a low-income housing tax credit under:
             533          (i) Section 59-7-607 ; or
             534          (ii) Section 59-10-1010 .
             535          (22) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
             536          (23) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
             537      valuable mineral.
             538          (24) "Mining" means the process of producing, extracting, leaching, evaporating, or
             539      otherwise removing a mineral from a mine.
             540          (25) (a) "Mobile flight equipment" means tangible personal property that is:
             541          (i) owned or operated by an:
             542          (A) air charter service;
             543          (B) air contract service; or
             544          (C) airline; and
             545          (ii) (A) capable of flight;
             546          (B) attached to an aircraft that is capable of flight; or
             547          (C) contained in an aircraft that is capable of flight if the tangible personal property is
             548      intended to be used:
             549          (I) during multiple flights;
             550          (II) during a takeoff, flight, or landing; and
             551          (III) as a service provided by an air charter service, air contract service, or airline.
             552          (b) (i) "Mobile flight equipment" does not include a spare part other than a spare


             553      engine that is rotated:
             554          (A) at regular intervals; and
             555          (B) with an engine that is attached to the aircraft.
             556          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             557      the commission may make rules defining the term "regular intervals."
             558          (26) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
             559      sand, rock, gravel, and all carboniferous materials.
             560          (27) "Personal property" includes:
             561          (a) every class of property as defined in Subsection (28) which is the subject of
             562      ownership and not included within the meaning of the terms "real estate" and "improvements";
             563          (b) gas and water mains and pipes laid in roads, streets, or alleys;
             564          (c) bridges and ferries;
             565          (d) livestock which, for the purposes of the exemption provided under Section
             566      59-2-1112 , means all domestic animals, honeybees, poultry, fur-bearing animals, and fish; and
             567          (e) outdoor advertising structures as defined in Section 72-7-502 .
             568          (28) (a) "Property" means property that is subject to assessment and taxation according
             569      to its value.
             570          (b) "Property" does not include intangible property as defined in this section.
             571          (29) "Public utility," for purposes of this chapter, means the operating property of a
             572      railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
             573      company, electrical corporation, telephone corporation, sewerage corporation, or heat
             574      corporation where the company performs the service for, or delivers the commodity to, the
             575      public generally or companies serving the public generally, or in the case of a gas corporation
             576      or an electrical corporation, where the gas or electricity is sold or furnished to any member or
             577      consumers within the state for domestic, commercial, or industrial use. Public utility also
             578      means the operating property of any entity or person defined under Section 54-2-1 except water
             579      corporations.
             580          (30) "Real estate" or "real property" includes:
             581          (a) the possession of, claim to, ownership of, or right to the possession of land;
             582          (b) all mines, minerals, and quarries in and under the land, all timber belonging to
             583      individuals or corporations growing or being on the lands of this state or the United States, and


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


             615      includes tax books, tax lists, and other similar materials.
             616          Section 9. Section 59-2-108 is enacted to read:
             617          59-2-108. Depreciation schedule for certain taxable tangible personal property.
             618          (1) As used in this section:
             619          (a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
             620      property into service; and
             621          (ii) includes:
             622          (A) the purchase price for a new or used item;
             623          (B) the cost of freight and shipping;
             624          (C) the cost of installation, engineering, erection, or assembly; and
             625          (D) sales and use taxes.
             626          (b) "Expensed personal property" means an item of taxable tangible personal property
             627      that:
             628          (i) has an acquisition cost of $1,000 or less; and
             629          (ii) a person elects to have assessed according to a schedule described in Subsection
             630      (4).
             631          (c) (i) "Item of taxable tangible personal property" does not include an improvement to
             632      real property or a part that will become an improvement.
             633          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             634      the commission may make rules defining the term "item of taxable tangible personal property."
             635          (d) (i) "Short life expensed personal property" means expensed personal property that
             636      is the same type as the following personal property:
             637          (A) short life property;
             638          (B) short life trade fixtures; or
             639          (C) computer hardware.
             640          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             641      the commission may make rules defining the following terms:
             642          (A) "short life property";
             643          (B) "short life trade fixtures"; and
             644          (C) "computer hardware."
             645          (e) "Taxable tangible personal property" means tangible personal property that is


             646      subject to taxation under this chapter.
             647          (2) (a) A person may elect to designate taxable tangible personal property as expensed
             648      personal property.
             649          (b) A county shall not require a person to:
             650          (i) itemize expensed personal property on the signed statement described in Section
             651      59-2-306 ; and
             652          (ii) track expensed personal property.
             653          (c) If a taxpayer's expensed personal property is audited in accordance with Subsection
             654      59-2-306 (3), a taxpayer shall provide proof of the acquisition cost of the expensed personal
             655      property.
             656          (3) (a) An election to designate taxable tangible personal property as expensed personal
             657      property under this section may not be revoked.
             658          (b) Except as provided in Subsection (3)(d), if an item of taxable tangible personal
             659      property is designated as expensed personal property, the person must pay taxes according to
             660      the taxable value determined by the schedule for a term designated by a schedule described in
             661      Subsection (4).
             662          (c) If a person sells or otherwise disposes of an item of expensed personal property
             663      prior to the time period described in Subsection (3)(b) or (d), the person shall continue to pay
             664      taxes according to the schedule described in Subsection (4).
             665          (d) If a person elects to designate an item of taxable tangible personal property
             666      acquired before December 31, 2008, as expensed personal property at a time after the first year
             667      after the item is acquired, the person must pay taxes according to the taxable value determined
             668      by the schedule for a time period that equals:
             669          (i) the time period designated in Subsection (3)(b); less
             670          (ii) the time period beginning when the person acquired the item of expensed personal
             671      property and ending when the person designated the item as short life expensed personal
             672      property.
             673          (e) If a person elects to designate taxable tangible personal property as expensed
             674      personal property in accordance with Subsection (2)(a), the person may not appeal the values
             675      described in Subsection (4).
             676          (4) (a) For the taxable year beginning on January 1, 2009 and ending on December 31,


             677      2009, the taxable value of short life expensed personal property is calculated by applying the
             678      percent good factor against the acquisition cost of the property as follows:
             679     
Short Life Expensed Personal Property Schedule

             680              Year of                        Percent Good of
             681              Acquisition                        Acquisition Cost
             682              2008                                69%
             683              2007                                52%
             684              2006                                30%
             685              2005                                17%
             686              2004                                11%
             687          (b) For taxable years beginning on or after January 1, 2010, the taxable value of short
             688      life expensed personal property shall be assessed according to a schedule developed by the
             689      commission in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             690          Section 10. Section 59-2-306 is amended to read:
             691           59-2-306. Statements by taxpayers -- Power of assessors respecting statements.
             692          (1) The county assessor may request a signed statement from any person setting forth
             693      all the real and personal property assessable by the assessor which is owned, possessed,
             694      managed, or under the control of the person at 12 [o'clock] noon on January 1. [This
             695      statement]
             696          (2) (a) Except as provided in Subsection (2)(b) or (c), a signed statement described in
             697      Subsection (1) shall be filed on or before May 15 of the year the statement described in
             698      Subsection (1) is requested by the county assessor.
             699          (b) For a county of the first class, the signed statement described in Subsection (1) shall
             700      be filed [within 30] on the later of:
             701          (i) 60 days after requested by the assessor[.]; or
             702          (ii) on or before May 15 of the year the statement described in Subsection (1) is
             703      requested by the county assessor if, by resolution, the county legislative body of that county
             704      adopts the deadline described in Subsection (2)(a).
             705          (c) If a county assessor requests a signed statement described in Subsection (1) on or
             706      after March 16, the person shall file the signed statement within 60 days after requested by the
             707      assessor.


             708          [(2)] (3) The signed statement shall include the following:
             709          (a) all property belonging to, claimed by, or in the possession, control, or management
             710      of the person, any firm of which the person is a member, or any corporation of which the
             711      person is president, secretary, cashier, or managing agent;
             712          (b) the county in which the property is located or in which it is taxable; and, if taxable
             713      in the county in which the signed statement was made, also the city, town, school district, road
             714      district, or other taxing district in which it is located or taxable; and
             715          (c) all lands in parcels or subdivisions not exceeding 640 acres each, the sections and
             716      fractional sections of all tracts of land containing more than 640 acres which have been
             717      sectionized by the United States Government, and the improvements on those lands.
             718          [(3)] (4) Every assessor may subpoena and examine any person in any county in
             719      relation to any signed statement but may not require that person to appear in any county other
             720      than the county in which the subpoena is served.
             721          Section 11. Section 59-2-307 is amended to read:
             722           59-2-307. Refusal by taxpayer to file signed statement -- Penalty -- Assessor to
             723      estimate value -- Reporting information to other counties.
             724          (1) (a) Each person who fails to file the signed statement required by Section 59-2-306 ,
             725      fails to file the signed statement with respect to name and place of residence, or fails to appear
             726      and testify when requested by the assessor, shall pay a penalty equal to 10% of the estimated
             727      tax due, but not less than $100 for each failure to file a signed and completed statement.
             728          (b) Each penalty under Subsection (1)(a) shall be collected in the manner provided by
             729      Sections 59-2-1302 and 59-2-1303 , except as otherwise provided for in this section, or by a
             730      judicial proceeding brought in the name of the assessor.
             731          (c) All money recovered by any assessor under this section shall be paid into the county
             732      treasury.
             733          (2) (a) The penalty imposed by Subsection (1)(a) may not be waived or reduced by the
             734      assessor, county, county Board of Equalization, or commission except pursuant to a procedure
             735      for the review and approval of reductions and waivers adopted by county ordinance, or by
             736      administrative rule adopted in accordance with Title 63, Chapter 46a, Utah Administrative
             737      Rulemaking Act.
             738          (b) The penalty under Subsection (1)(a) for failure to appear and testify when requested


             739      by the assessor may not be imposed until 30 days after the [certified] postmark date of mailing
             740      of a subsequent [certified] notice.
             741          (3) (a) If [any] an owner neglects or refuses to file [the] a signed statement [within 30
             742      days of the date the first county request was sent] requested by an assessor of a county of the
             743      first class as required under Section 59-2-306 , the assessor [shall] of a county of the first class:
             744          (i) shall make:
             745          (A) a subsequent request by [certified] mail for the signed statement, informing the
             746      owner of the consequences of not filing a signed statement; and
             747          (B) a record of the failure to file and an estimate of the value of the property of the
             748      owner based on known facts and circumstances; and
             749          (ii) may impose a fee for the actual and necessary expenses of the [certified] mailing
             750      under Subsection (3)(a)(i)(A).
             751          (b) The value fixed by the assessor may not be reduced by the county board of
             752      equalization or by the commission.
             753          (4) If the signed statement discloses property in any other county, the assessor shall file
             754      the signed statement and send a [certified] copy to the assessor of each county in which the
             755      property is located.
             756          Section 12. Section 59-2-908 is amended to read:
             757           59-2-908. Single aggregate limitation -- Maximum levy.
             758          (1) Except as provided in Subsection (2), each county shall have a single aggregate
             759      limitation on the property tax levied for all purposes by the county. Except as provided in
             760      Section 59-2-911 , this limitation may not exceed the maximum set forth in this section. The
             761      maximum is:
             762          (a) .0032 per dollar of taxable value in all counties with a total taxable value of more
             763      than $100,000,000; and
             764          (b) .0036 per dollar of taxable value in all counties with a total taxable value of less
             765      than $100,000,000.
             766          (2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
             767      limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
             768      generates revenues for the county in an amount that is less than the revenues that would be
             769      generated by the county under the certified tax rate established in [Subsection] Section


             770      59-2-924 [(2)].
             771          (b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that
             772      does not exceed the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
             773          Section 13. Section 59-2-913 is amended to read:
             774           59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
             775      statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
             776      establishing tax levies -- Format of statement.
             777          (1) As used in this section, "budgeted property tax revenues" does not include property
             778      tax revenue received by a taxing entity from personal property that is:
             779          (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
             780          (b) semiconductor manufacturing equipment.
             781          (2) (a) The legislative body of each taxing entity shall file a statement as provided in
             782      this section with the county auditor of the county in which the taxing entity is located.
             783          (b) The auditor shall annually transmit the statement to the commission:
             784          (i) before June 22; or
             785          (ii) with the approval of the commission, on a subsequent date prior to the date
             786      established under Section 59-2-1317 for mailing tax notices.
             787          (c) The statement shall contain the amount and purpose of each levy fixed by the
             788      legislative body of the taxing entity.
             789          (3) For purposes of establishing the levy set for each of a taxing entity's applicable
             790      funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
             791      the budgeted property tax revenues, specified in a budget which has been adopted and
             792      approved prior to setting the levy, by the amount calculated under Subsections
             793      59-2-924 [(2)(a)(iii)(B)(I) through (III)] (3)(c)(ii)(A) through (C).
             794          (4) The format of the statement under this section shall:
             795          (a) be determined by the commission; and
             796          (b) cite any applicable statutory provisions that:
             797          (i) require a specific levy; or
             798          (ii) limit the property tax levy for any taxing entity.
             799          (5) The commission may require certification that the information submitted on a
             800      statement under this section is true and correct.


             801          Section 14. Section 59-2-914 is amended to read:
             802           59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement
             803      adjusted levies to county auditor.
             804          (1) If the commission determines that a levy established for a taxing entity set under
             805      Section 59-2-913 is in excess of the maximum levy permitted by law, the commission shall:
             806          (a) lower the levy so that it is set at the maximum level permitted by law;
             807          (b) notify the taxing entity which set the excessive rate that the rate has been lowered;
             808      and
             809          (c) notify the county auditor of the county or counties in which the taxing entity is
             810      located to implement the rate established by the commission.
             811          (2) A levy set for a taxing entity by the commission under this section shall be the
             812      official levy for that taxing entity unless:
             813          (a) the taxing entity lowers the levy established by the commission; or
             814          (b) the levy is subsequently modified by a court order.
             815          (3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
             816      a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the
             817      rate established by the taxing entity for the current year generates revenues for the taxing entity
             818      in an amount that is less than the revenues that would be generated by the taxing entity under
             819      the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
             820          (b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax
             821      rate that does not exceed the certified rate established in [Subsection] Section 59-2-924 [(2)].
             822          Section 15. Section 59-2-918 is amended to read:
             823           59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
             824          (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
             825      increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
             826      in Subsection 59-2-924 [(2)](4) unless it advertises its intention to do so at the same time that it
             827      advertises its intention to fix its budget for the forthcoming fiscal year.
             828          (b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             829      advertisement or hearing requirements of this section if:
             830          (A) the taxing entity:
             831          (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;


             832      or
             833          (II) is expressly exempted by law from complying with the requirements of this
             834      section; or
             835          (B) the increased amount of ad valorem tax revenue results from a tax rate increase that
             836      is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and hearing
             837      requirements of Section 59-2-919 .
             838          (ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             839      advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
             840      budget an increased amount of ad valorem property tax revenue without having to comply with
             841      the advertisement requirements of this section.
             842          (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
             843      advertisement required by this section may be combined with the advertisement required by
             844      Section 59-2-919 .
             845          (b) For taxing entities operating under a January 1 through December 31 fiscal year,
             846      the advertisement required by this section shall meet the size, type, placement, and frequency
             847      requirements established under Section 59-2-919 .
             848          (3) The form of the advertisement required by this section shall meet the size, type,
             849      placement, and frequency requirements established under Section 59-2-919 and shall be
             850      substantially as follows:
             851     
"NOTICE OF PROPOSED TAX INCREASE

             852     
(NAME OF TAXING ENTITY)

             853          The (name of the taxing entity) is proposing to increase its property tax revenue.
             854          *    If the proposed budget is approved, this would be an increase of _____% above
             855      the (name of the taxing entity) property tax budgeted revenue for the prior year.
             856          *    The (name of the taxing entity) tax on a (insert the average value of a residence
             857      in the taxing entity rounded to the nearest thousand dollars) residence would
             858      increase from $______ to $________, which is $_______ per year.
             859          *    The (name of the taxing entity) tax on a (insert the value of a business having
             860      the same value as the average value of a residence in the taxing entity) business
             861      would increase from $________ to $_______, which is $______ per year.
             862          All concerned citizens are invited to a public hearing on the tax increase.


             863     
PUBLIC HEARING

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


             894          [(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
             895          [(ii)] (b) an estimate of the revenue from personal property;
             896          [(iii)] (c) the certified tax rate; and
             897          [(iv)] (d) all forms necessary to submit a tax levy request.
             898          [(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad
             899      valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
             900      prior year.
             901          [(ii)] (b) For purposes of this Subsection [(2), "ad] (3):
             902          (i) "Ad valorem property tax revenues" do not include:
             903          (A) collections from redemptions;
             904          (B) interest;
             905          (C) penalties; and
             906          (D) revenue received by a taxing entity from personal property that is:
             907          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             908          (II) semiconductor manufacturing equipment.
             909          (ii) "Aggregate taxable value of all property taxed" means:
             910          (A) the aggregate taxable value of all real property assessed by a county assessor in
             911      accordance with Part 3, County Assessment, for the current year;
             912          (B) the aggregate taxable year end value of all personal property assessed by a county
             913      assessor in accordance with Part 3, County Assessment, for the prior year; and
             914          (C) the aggregate taxable value of all real and personal property assessed by the
             915      commission in accordance with Part 2, Assessment of Property, for the current year.
             916          [(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
             917      be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
             918      the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
             919          [(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
             920      taxing entity shall calculate an amount as follows:
             921          [(I)] (A) calculate for the taxing entity the difference between:
             922          [(Aa)] (I) the aggregate taxable value of all property taxed; and
             923          [(Bb)] (II) any redevelopment adjustments for the current calendar year;
             924          [(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]


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


             956      property contained on the prior year's tax rolls of the entity.
             957          [(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
             958      beginning on or after January 1, 2007, the value of taxable property does not include the value
             959      of personal property that is:
             960          [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
             961      3, County Assessment; and
             962          [(II)] (B) semiconductor manufacturing equipment.
             963          [(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
             964      calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
             965      does not include property taxes collected from personal property that is:
             966          [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
             967      3, County Assessment; and
             968          [(II)] (B) semiconductor manufacturing equipment.
             969          [(F)] (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or
             970      after January 1, 2009, the value of taxable property does not include the value of personal
             971      property that is within the taxing entity assessed by a county assessor in accordance with Part 3,
             972      County Assessment.
             973          (vii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             974      the commission may prescribe rules for calculating redevelopment adjustments for a calendar
             975      year.
             976          [(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
             977      Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
             978      property tax revenues budgeted by a taxing entity.
             979          [(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
             980      revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted
             981      property tax revenues are calculated for purposes of Section 59-2-913 .
             982          [(v)] (e) The certified tax rates for the taxing entities described in this Subsection
             983      [(2)(a)(v)] (3)(e) shall be calculated as follows:
             984          [(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
             985      entities the certified tax rate is zero;
             986          [(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax


             987      rate is:
             988          [(I)] (A) in a county of the first, second, or third class, the levy imposed for
             989      municipal-type services under Sections 17-34-1 and 17-36-9 ; and
             990          [(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
             991      county purposes and such other levies imposed solely for the municipal-type services identified
             992      in Section 17-34-1 and Subsection 17-36-3 (22); and
             993          [(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
             994      actual levy imposed by that section, except that the certified tax rates for the following levies
             995      shall be calculated in accordance with Section 59-2-913 and this section:
             996          [(I)] (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 ,
             997      53A-17a-125 , 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and
             998      53A-21-103 ; and
             999          [(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
             1000      administrative orders under Section 59-2-906.3 .
             1001          [(vi) (A)] (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall
             1002      be established at that rate which is sufficient to generate only the revenue required to satisfy
             1003      one or more eligible judgments, as defined in Section 59-2-102 .
             1004          [(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
             1005      be considered in establishing the taxing entity's aggregate certified tax rate.
             1006          [(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
             1007      shall use:
             1008          (i) the taxable value of real property assessed by a county assessor contained on the
             1009      assessment roll[.];
             1010          (ii) the taxable value of real and personal property assessed by the commission; and
             1011          (iii) the taxable year end value of personal property assessed by a county assessor
             1012      contained on the prior year's assessment roll.
             1013          [(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
             1014      property on the assessment roll does not include[: (A)] new growth as defined in Subsection
             1015      [(2)(b)(iii); or] (4)(c).
             1016          [(B) the total taxable value of personal property contained on the tax rolls of the taxing
             1017      entity that is:]


             1018          [(I) assessed by a county assessor in accordance with Part 3, County Assessment; and]
             1019          [(II) semiconductor manufacturing equipment.]
             1020          [(iii)] (c) "New growth" means:
             1021          [(A)] (i) the difference between the increase in taxable value of the following property
             1022      of the taxing entity from the previous calendar year to the current year[;]:
             1023          (A) real property assessed by a county assessor in accordance with Part 3, County
             1024      Assessment; and
             1025          (B) property assessed by the commission under Section 59-2-201 ; plus
             1026          (ii) the difference between the increase in taxable year end value of personal property
             1027      of the taxing entity from the year prior to the previous calendar year to the previous calendar
             1028      year; minus
             1029          [(B)] (iii) the amount of an increase in taxable value described in Subsection
             1030      [(2)(b)(v)] (4)(e).
             1031          [(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of
             1032      personal property of the taxing entity does not include the taxable value of personal property
             1033      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
             1040      resulting 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
             1065      from 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
             1073      estimated revenue from the additional resort communities sales and use tax imposed under
             1074      Section 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
             1092      year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
             1093      of 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
             1113      Sections 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
             1138      a fire district by annexation.]
             1139          [(B) "Annexing municipality" means a municipality whose area is included within a
             1140      fire 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
             1170      the 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
             1179      the 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
             1205      agency 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
             1249      estimated revenue from the additional resort communities sales and use tax imposed under
             1250      Section 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
             1296      the 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
             1306      city.
             1307          (7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             1308      entity's certified tax rate, calculated in accordance with Section 59-2-924 , shall be adjusted by
             1309      the amount necessary to offset any change in the certified tax rate that may result from
             1310      excluding the following from the certified tax rate under Subsection 59-2-924 (3) enacted by the
             1311      Legislature during the 2007 General Session:
             1312          (a) personal property tax revenue:
             1313          (i) received by a taxing entity;
             1314          (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1315          (iii) for personal property that is semiconductor manufacturing equipment; or
             1316          (b) the taxable value of personal property:
             1317          (i) contained on the tax rolls of a taxing entity;
             1318          (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1319          (iii) that is semiconductor manufacturing equipment.
             1320          (8) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             1321      reduced for any year to the extent necessary to provide a community development and renewal
             1322      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             1323      Development and Renewal Agencies, with approximately the same amount of money the
             1324      agency would have received without a reduction in the county's certified tax rate, calculated in
             1325      accordance with Section 59-2-924 , if:
             1326          (i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
             1327          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the


             1328      previous year; and
             1329          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             1330      Section 17C-1-403 or 17C-1-404 .
             1331          (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             1332      year to the extent necessary to provide a community development and renewal agency with
             1333      approximately the same amount of money as the agency would have received without an
             1334      increase in the certified tax rate that year if:
             1335          (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             1336      a decrease in the certified tax rate under Subsection (2) or (3)(a); and
             1337          (ii) the certified tax rate of a city, school district, local district, or special service
             1338      district increases independent of the adjustment to the taxable value of the base year.
             1339          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
             1340      the amount of money allocated and, when collected, paid each year to a community
             1341      development and renewal agency established under Title 17C, Limited Purpose Local
             1342      Government Entities - Community Development and Renewal Agencies, for the payment of
             1343      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             1344      amount would have been without a decrease in the certified tax rate under Subsection (2) or
             1345      (3)(a).
             1346          Section 18. Section 59-2-1115 is amended to read:
             1347           59-2-1115. Exemption of certain tangible personal property.
             1348          (1) For purposes of this section:
             1349          (a) (i) "Acquisition cost" means all costs required to put an item of tangible personal
             1350      property into service; and
             1351          (ii) includes:
             1352          (A) the purchase price for a new or used item;
             1353          (B) the cost of freight and shipping;
             1354          (C) the cost of installation, engineering, erection, or assembly; and
             1355          (D) sales and use taxes.
             1356          (b) (i) "Item of taxable tangible personal property" does not include an improvement to
             1357      real property or a part that will become an improvement.
             1358          (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,


             1359      the commission may make rules defining the term "item of taxable tangible personal property."
             1360          (c) (i) "Taxable tangible personal property" means tangible personal property that is
             1361      subject to taxation under this chapter.
             1362          (ii) "Taxable tangible personal property" does not include:
             1363          (A) tangible personal property required by law to be registered with the state before it
             1364      is used:
             1365          (I) on a public highway;
             1366          (II) on a public waterway;
             1367          (III) on public land; or
             1368          (IV) in the air;
             1369          (B) a mobile home as defined in Section 41-1a-102 ; or
             1370          (C) a manufactured home as defined in Section 41-1a-102 .
             1371          [(1)] (2) (a) The taxable tangible personal property of a taxpayer is exempt from
             1372      taxation if the taxable tangible personal property has a total aggregate fair market value per
             1373      county of $3,500 or less.
             1374          [(b) For purposes of this section, "taxable tangible personal property" does not
             1375      include:]
             1376          [(i) tangible personal property required by law to be registered with the state before it is
             1377      used:]
             1378          [(A) on a public highway;]
             1379          [(B) on a public waterway;]
             1380          [(C) on public land; or]
             1381          [(D) in the air;]
             1382          [(ii) a mobile home as defined in Section 41-1a-102 ; or]
             1383          [(iii) a manufactured home as defined in Section 41-1a-102 .]
             1384          (b) An item of taxable tangible personal property is exempt from taxation if the item of
             1385      taxable tangible personal property:
             1386          (i) has an acquisition cost of $1,000 or less;
             1387          (ii) has reached a percent good of 15% or less according to a personal property
             1388      schedule:
             1389          (A) published by the commission pursuant to Section 59-2-107 ; or


             1390          (B) for an item of personal property that is designated as expensed personal property in
             1391      accordance with Section 59-2-108 , described in Section 59-2-108 ; and
             1392          (iii) is in a personal property schedule with a residual value of 15% or less.
             1393          [(2)] (3) (a) For calendar years beginning on or after January 1, 2008, the commission
             1394      shall increase the dollar amount described in Subsection [(1)] (2)(a):
             1395          (i) by a percentage equal to the percentage difference between the consumer price
             1396      index for the preceding calendar year and the consumer price index for calendar year 2006[.];
             1397      and
             1398          (ii) up to the nearest $100 increment.
             1399          (b) For purposes of this Subsection [(2)](3), the commission shall calculate the
             1400      consumer price index as provided in Sections 1(f)(4) and 1(f)(5), Internal Revenue Code.
             1401          (c) If the percentage difference under Subsection [(2)](3)(a)(i) is zero or a negative
             1402      percentage, the consumer price index increase for the year is zero.
             1403          [(3)] (4) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             1404      Act, the commission may make rules to administer this section and provide for uniform
             1405      implementation.
             1406          Section 19. Section 59-2-1302 is amended to read:
             1407           59-2-1302. Assessor or treasurer's duties -- Collection of uniform fees and taxes
             1408      on personal property -- Unpaid tax or unpaid uniform fee is a lien -- Delinquency interest
             1409      -- Rate.
             1410          (1) After the assessor assesses taxes or uniform fees on personal property, the assessor
             1411      or, if this duty has been reassigned in an ordinance under Section 17-16-5.5 , the treasurer shall:
             1412          (a) list the personal property tax or uniform fee as provided in Subsection (3) with the
             1413      real property of the owner in the manner required by law if the assessor or treasurer, as the case
             1414      may be, determines that the real property is sufficient to secure the payment of the personal
             1415      property taxes or uniform fees;
             1416          (b) immediately collect the taxes or uniform fees due on the personal property; or
             1417          (c) on or before the day on which the tax or uniform fee on personal property is due,
             1418      obtain from the taxpayer a bond that is:
             1419          (i) payable to the county in an amount equal to the amount of the tax or uniform fee
             1420      due, plus 20% of the amount of the tax or uniform fee due; and


             1421          (ii) conditioned for the payment of the tax or uniform fee on or before November 30.
             1422          (2) (a) An unpaid tax as defined in Section 59-1-705 , or unpaid uniform fee upon
             1423      personal property listed with the real property is a lien upon the owner's real property as of 12
             1424      o'clock noon of January 1 of each year.
             1425          (b) An unpaid tax as defined in Section 59-1-705 , or unpaid uniform fee upon personal
             1426      property not listed with the real property is a lien upon the owner's personal property as of 12
             1427      o'clock noon of January 1 of each year.
             1428          (3) The assessor or treasurer, as the case may be, shall make the listing under this
             1429      section:
             1430          (a) on the record of assessment of the real property; or
             1431          (b) by entering a reference showing the record of the assessment of the personal
             1432      property on the record of assessment of the real property.
             1433          (4) (a) The amount of tax or uniform fee assessed upon personal property is delinquent
             1434      if the tax or uniform fee is not paid [within 30 days after] on the day on which the tax notice or
             1435      the combined signed statement and tax notice [due] under Section 59-2-306 is [mailed] due.
             1436          (b) Delinquent taxes or uniform fees under Subsection (4)(a) shall bear interest from
             1437      the date of delinquency until the day on which the delinquent tax or uniform fee is paid at an
             1438      interest rate equal to the sum of:
             1439          (i) 6%; and
             1440          (ii) the federal funds rate target:
             1441          (A) established by the Federal Open Markets Committee; and
             1442          (B) that exists on the January 1 immediately preceding the date of delinquency.
             1443          (5) A county assessor or treasurer shall deposit all collections of public funds from a
             1444      personal property tax or personal property uniform fee no later than once every seven banking
             1445      days with:
             1446          (a) the state treasurer; or
             1447          (b) a qualified depository for the credit of the county.
             1448          Section 20. Section 59-2-1330 is amended to read:
             1449           59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
             1450      entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
             1451      Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the


             1452      commission -- Time periods for making payments to taxpayer.
             1453          (1) Unless otherwise specifically provided by statute, property taxes shall be paid
             1454      directly to the county assessor or the county treasurer:
             1455          (a) on the date that the property taxes are due; and
             1456          (b) as provided in this chapter.
             1457          (2) A taxpayer shall receive payment as provided in this section if a reduction in the
             1458      amount of any tax levied against any property for which the taxpayer paid a tax or any portion
             1459      of a tax under this chapter for a calendar year is required by a final and unappealable judgment
             1460      or order described in Subsection (3) issued by:
             1461          (a) a county board of equalization;
             1462          (b) the commission; or
             1463          (c) a court of competent jurisdiction.
             1464          (3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
             1465      property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
             1466      shall pay the taxpayer if:
             1467          (i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
             1468      authorized officer of the:
             1469          (A) county; or
             1470          (B) state;
             1471          (ii) the taxpayer obtains a final and unappealable judgment or order:
             1472          (A) from:
             1473          (I) a county board of equalization;
             1474          (II) the commission; or
             1475          (III) a court of competent jurisdiction;
             1476          (B) against:
             1477          (I) the taxing entity or an authorized officer of the taxing entity; or
             1478          (II) the state or an authorized officer of the state; and
             1479          (C) ordering a reduction in the amount of any tax levied against any property for which
             1480      a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
             1481          (b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
             1482      in accordance with Subsections (4) through (7).


             1483          (4) For purposes of Subsections (2) and (3), the amount the state shall pay to a taxpayer
             1484      is equal to the sum of:
             1485          (a) if the difference described in this Subsection (4)(a) is greater than $0, the difference
             1486      between:
             1487          (i) the tax the taxpayer paid to the state in accordance with Subsection (2); and
             1488          (ii) the amount of the taxpayer's tax liability to the state after the reduction in the
             1489      amount of tax levied against the property in accordance with the final and unappealable
             1490      judgment or order described in Subsection (3);
             1491          (b) if the difference described in this Subsection (4)(b) is greater than $0, the difference
             1492      between:
             1493          (i) any penalties the taxpayer paid to the state in accordance with Section 59-2-1331 ;
             1494      and
             1495          (ii) the amount of penalties the taxpayer is liable to pay to the state in accordance with
             1496      Section 59-2-1331 after the reduction in the amount of tax levied against the property in
             1497      accordance with the final and unappealable judgment or order described in Subsection (3);
             1498          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
             1499      Section 59-2-1331 on the amounts described in Subsections (4)(a) and (4)(b); and
             1500          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
             1501          (i) Subsection (4)(a);
             1502          (ii) Subsection (4)(b); and
             1503          (iii) Subsection (4)(c).
             1504          (5) For purposes of Subsections (2) and (3), the amount a taxing entity shall pay to a
             1505      taxpayer is equal to the sum of:
             1506          (a) if the difference described in this Subsection (5)(a) is greater than $0, the difference
             1507      between:
             1508          (i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (2); and
             1509          (ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in
             1510      the amount of tax levied against the property in accordance with the final and unappealable
             1511      judgment or order described in Subsection (3);
             1512          (b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
             1513      between:


             1514          (i) any penalties the taxpayer paid to the taxing entity in accordance with Section
             1515      59-2-1331 ; and
             1516          (ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in
             1517      accordance with Section 59-2-1331 after the reduction in the amount of tax levied against the
             1518      property in accordance with the final and unappealable judgment or order described in
             1519      Subsection (3); and
             1520          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
             1521      Section 59-2-1331 on the amounts described in Subsections (5)(a) and (5)(b); and
             1522          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
             1523          (i) Subsection (5)(a);
             1524          (ii) Subsection (5)(b); and
             1525          (iii) Subsection (5)(c).
             1526          (6) Except as provided in Subsection (7):
             1527          (a) interest shall be refunded to a taxpayer on the amount described in Subsection
             1528      (4)(c) or (5)(c) in an amount equal to the amount of interest the taxpayer paid in accordance
             1529      with Section 59-2-1331 ; and
             1530          (b) interest shall be paid to a taxpayer on the amount described in Subsection (4)(d) or
             1531      (5)(d):
             1532          (i) beginning on the later of:
             1533          (A) the day on which the taxpayer paid the tax in accordance with Subsection (2); or
             1534          (B) January 1 of the calendar year immediately following the calendar year for which
             1535      the tax was due;
             1536          (ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
             1537      amount required by Subsection (4) or (5); and
             1538          (iii) at the interest rate earned by the state treasurer on public funds transferred to the
             1539      state treasurer in accordance with Section 51-7-5.
             1540          (7) Notwithstanding Subsection (6):
             1541          (a) the state may not pay or refund interest to a taxpayer under Subsection (6) on any
             1542      tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax levied
             1543      by the state for that calendar year as stated on the notice required by Section 59-2-1317 ; and
             1544          (b) a taxing entity may not pay or refund interest to a taxpayer under Subsection (6) on


             1545      any tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax
             1546      levied by the taxing entity for that calendar year as stated on the notice required by Section
             1547      59-2-1317.
             1548          (8) (a) Each taxing entity may levy a tax to pay its share of the final and unappealable
             1549      judgment or order described in Subsection (3) if:
             1550          (i) the final and unappealable judgment or order is issued no later than 15 days prior to
             1551      the date the levy is set under Subsection 59-2-924[(2)](3) (a);
             1552          (ii) the amount of the judgment levy is included on the notice under Section 59-2-919 ;
             1553      and
             1554          (iii) the final and unappealable judgment or order is an eligible judgment, as defined in
             1555      Section 59-2-102 .
             1556          (b) The levy under Subsection (8)(a) is in addition to, and exempt from, the maximum
             1557      levy established for the taxing entity.
             1558          (9) (a) A taxpayer that objects to the assessment of property assessed by the
             1559      commission shall pay, on or before the date of delinquency established under Subsection
             1560      59-2-1331 (1) or Section 59-2-1332 , the full amount of taxes stated on the notice required by
             1561      Section 59-2-1317 if:
             1562          (i) the taxpayer has applied to the commission for a hearing in accordance with Section
             1563      59-2-1007 on the objection to the assessment; and
             1564          (ii) the commission has not issued a written decision on the objection to the assessment
             1565      in accordance with Section 59-2-1007 .
             1566          (b) A taxpayer that pays the full amount of taxes due under Subsection (9)(a) is not
             1567      required to pay penalties or interest on an assessment described in Subsection (9)(a) unless:
             1568          (i) a final and unappealable judgment or order establishing that the property described
             1569      in Subsection (9)(a) has a value greater than the value stated on the notice required by Section
             1570      59-2-1317 is issued by:
             1571          (A) the commission; or
             1572          (B) a court of competent jurisdiction; and
             1573          (ii) the taxpayer fails to pay the additional tax liability resulting from the final and
             1574      unappealable judgment or order described in Subsection (9)(b)(i) within a 45-day period after
             1575      the county bills the taxpayer for the additional tax liability.


             1576          (10) (a) Except as provided in Subsection (10)(b), a payment that is required by this
             1577      section shall be paid to a taxpayer:
             1578          (i) within 60 days after the day on which the final and unappealable judgment or order
             1579      is issued in accordance with Subsection (3); or
             1580          (ii) if a judgment levy is imposed in accordance with Subsection (8):
             1581          (A) if the payment to the taxpayer required by this section is $5,000 or more, no later
             1582      than December 31 of the year in which the judgment levy is imposed; and
             1583          (B) if the payment to the taxpayer required by this section is less than $5,000, within
             1584      60 days after the date the final and unappealable judgment or order is issued in accordance with
             1585      Subsection (3).
             1586          (b) Notwithstanding Subsection (10)(a), a taxpayer may enter into an agreement:
             1587          (i) that establishes a time period other than a time period described in Subsection
             1588      (10)(a) for making a payment to the taxpayer that is required by this section; and
             1589          (ii) with:
             1590          (A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
             1591          (B) an authorized officer of the state for a tax imposed by the state.
             1592          Section 21. Effective date.
             1593          This bill takes effect on January 1, 2009.


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