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H.B. 186

             1     

PROPERTY TAX - COUNTY ASSESSMENT

             2     
AND COLLECTION AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Kay L. McIff

             6     
Senate Sponsor: Lyle W. Hillyard

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions in the Property Tax Act that relate to the multicounty
             11      assessing and collecting levy.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    provides that the county additional property tax levy is subject to the property tax
             16      notice and hearing requirements if the levy is levied within certain counties;
             17          .    requires that after distributions have been made to receiving counties, money
             18      remaining in the Property Tax Valuation Fund shall be retained in the fund until the
             19      following year; and
             20          .    makes technical changes.
             21      Monies Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          This bill takes effect on January 1, 2009.
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          17C-1-102, as last amended by Laws of Utah 2007, Chapters 329 and 364


             28          59-2-911, as last amended by Laws of Utah 1997, Chapter 292
             29          59-2-924, as last amended by Laws of Utah 2007, Chapters 107 and 329
             30          59-2-926, as last amended by Laws of Utah 2003, Chapter 320
             31      ENACTS:
             32          59-2-1601, Utah Code Annotated 1953
             33      RENUMBERS AND AMENDS:
             34          59-2-1602, (Renumbered from 59-2-906.1, as last amended by Laws of Utah 2006,
             35      Chapters 67 and 359)
             36          59-2-1603, (Renumbered from 59-2-906.2, as last amended by Laws of Utah 2005,
             37      Chapter 195)
             38          59-2-1604, (Renumbered from 59-2-906.3, as last amended by Laws of Utah 2005,
             39      Chapter 195)
             40          59-2-1605, (Renumbered from 59-2-906.4, as last amended by Laws of Utah 2005,
             41      Chapter 195)
             42     
             43      Be it enacted by the Legislature of the state of Utah:
             44          Section 1. Section 17C-1-102 is amended to read:
             45           17C-1-102. Definitions.
             46          As used in this title:
             47          (1) "Adjusted tax increment" means:
             48          (a) for tax increment under a pre-July 1, 1993 project area plan, tax increment under
             49      Section 17C-1-403 , excluding tax increment under Subsection 17C-1-403 (3); and
             50          (b) for tax increment under a post-June 30, 1993 project area plan, tax increment under
             51      Section 17C-1-404 , excluding tax increment under Section 17C-1-406 .
             52          (2) "Affordable housing" means housing to be owned or occupied by persons and
             53      families of low or moderate income, as determined by resolution of the agency.
             54          (3) "Agency" or "community development and renewal agency" means a separate body
             55      corporate and politic, created under Section 17C-1-201 or as a redevelopment agency under
             56      previous law, that is a political subdivision of the state, that is created to undertake or promote
             57      urban renewal, economic development, or community development, or any combination of
             58      them, as provided in this title, and whose geographic boundaries are coterminous with:


             59          (a) for an agency created by a county, the unincorporated area of the county; and
             60          (b) for an agency created by a city or town, the boundaries of the city or town.
             61          (4) "Annual income" has the meaning as defined under regulations of the U.S.
             62      Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as amended or as
             63      superseded by replacement regulations.
             64          (5) "Assessment roll" has the meaning as defined in Section 59-2-102 .
             65          (6) "Base taxable value" means the taxable value of the property within a project area
             66      from which tax increment will be collected, as shown upon the assessment roll last equalized
             67      before:
             68          (a) for a pre-July 1, 1993 project area plan, the effective date of the project area plan;
             69          (b) for a post-June 30, 1993 project area plan:
             70          (i) the date of the taxing entity committee's approval of the first project area budget; or
             71          (ii) if no taxing entity committee approval is required for the project area budget, the
             72      later of:
             73          (A) the date the project area plan is adopted by the community legislative body; and
             74          (B) the date the agency adopts the first project area budget; or
             75          (c) for a project on an inactive industrial site, a year after the date on which the inactive
             76      industrial site is sold for remediation and development.
             77          (7) "Basic levy" means the portion of a school district's tax levy constituting the
             78      minimum basic levy under Section 59-2-902 .
             79          (8) "Blight" or "blighted" means the condition of an area that meets the requirements of
             80      Subsection 17C-2-303 (1).
             81          (9) "Blight hearing" means a public hearing under Subsection 17C-2-102 (1)(a)(i)(C)
             82      and Section 17C-2-302 regarding the existence or nonexistence of blight within the proposed
             83      urban renewal project area.
             84          (10) "Blight study" means a study to determine the existence or nonexistence of blight
             85      within a survey area as provided in Section 17C-2-301 .
             86          (11) "Board" means the governing body of an agency, as provided in Section
             87      17C-1-203 .
             88          (12) "Budget hearing" means the public hearing on a draft project area budget required
             89      under Subsection 17C-2-201 (2)(d) for an urban renewal project area budget or Subsection


             90      17C-3-201 (2)(d) for an economic development project area budget.
             91          (13) "Combined incremental value" means the combined total of all incremental values
             92      from all urban renewal project areas, except project areas that contain some or all of a military
             93      installation or inactive industrial site, within the agency's boundaries under adopted project area
             94      plans and adopted project area budgets at the time that a project area budget for a new urban
             95      renewal project area is being considered.
             96          (14) "Community" means a county, city, or town.
             97          (15) "Community development" means development activities within a community,
             98      including the encouragement, promotion, or provision of development.
             99          (16) "Economic development" means to promote the creation or retention of public or
             100      private jobs within the state through:
             101          (a) planning, design, development, construction, rehabilitation, business relocation, or
             102      any combination of these, within a community; and
             103          (b) the provision of office, industrial, manufacturing, warehousing, distribution,
             104      parking, public, or other facilities, or other improvements that benefit the state or a community.
             105          (17) "Fair share ratio" means the ratio derived by:
             106          (a) for a city or town, comparing the percentage of all housing units within the city or
             107      town that are publicly subsidized income targeted housing units to the percentage of all
             108      housing units within the whole county that are publicly subsidized income targeted housing
             109      units; or
             110          (b) for the unincorporated part of a county, comparing the percentage of all housing
             111      units within the unincorporated county that are publicly subsidized income targeted housing
             112      units to the percentage of all housing units within the whole county that are publicly subsidized
             113      income targeted housing units.
             114          (18) "Family" has the meaning as defined under regulations of the U.S. Department of
             115      Housing and Urban Development, 24 C.F.R. Section 5.403, as amended or as superseded by
             116      replacement regulations.
             117          (19) "Greenfield" means land not developed beyond agricultural or forestry use.
             118          (20) "Housing funds" means the funds allocated in an urban renewal project area
             119      budget under Section 17C-2-203 for the purposes provided in Subsection 17C-1-412 (1).
             120          (21) (a) "Inactive industrial site" means land that:


             121          (i) consists of at least 1,000 acres;
             122          (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
             123      facility; and
             124          (iii) requires remediation because of the presence of:
             125          (A) hazardous waste, defined as any substance defined, regulated, or listed as a
             126      hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant,
             127      or toxic substance, or identified as hazardous to human health or the environment under state
             128      or federal law or regulation; or
             129          (B) solid waste.
             130          (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
             131      described in Subsection (21)(a).
             132          (22) "Income targeted housing" means housing to be owned or occupied by a family
             133      whose annual income is at or below 80% of the median annual income for the county in which
             134      the housing is located.
             135          (23) "Incremental value" means a figure derived by multiplying the marginal value of
             136      the property located within an urban renewal project area on which tax increment is collected
             137      by a number that represents the percentage of adjusted tax increment from that project area that
             138      is paid to the agency.
             139          (24) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
             140      established under Title 9, Chapter 4, Part 7, Olene Walker Housing Loan Fund.
             141          (25) "Marginal value" means the difference between actual taxable value and base
             142      taxable value.
             143          (26) "Military installation project area" means a project area or a portion of a project
             144      area located within a federal military installation ordered closed by the federal Defense Base
             145      Realignment and Closure Commission.
             146          (27) "Plan hearing" means the public hearing on a draft project area plan required
             147      under Subsection 17C-2-102 (1)(a)(vi) for an urban renewal project area plan, Subsection
             148      17C-3-102 (1)(d) for an economic development project area plan, and Subsection
             149      17C-4-102 (1)(d) for a community development project area plan.
             150          (28) "Post-June 30, 1993 project area plan" means a project area plan adopted on or
             151      after July 1, 1993, whether or not amended subsequent to its adoption.


             152          (29) "Pre-July 1, 1993 project area plan" means a project area plan adopted before July
             153      1, 1993, whether or not amended subsequent to its adoption.
             154          (30) "Private," with respect to real property, means:
             155          (a) not owned by the United States or any agency of the federal government, a public
             156      entity, or any other governmental entity; and
             157          (b) not dedicated to public use.
             158          (31) "Project area" means the geographic area described in a project area plan or draft
             159      project area plan where the urban renewal, economic development, or community
             160      development, as the case may be, set forth in the project area plan or draft project area plan
             161      takes place or is proposed to take place.
             162          (32) "Project area budget" means a multiyear projection of annual or cumulative
             163      revenues and expenses and other fiscal matters pertaining to a urban renewal or economic
             164      development project area that includes:
             165          (a) the base taxable value of property in the project area;
             166          (b) the projected tax increment expected to be generated within the project area;
             167          (c) the amount of tax increment expected to be shared with other taxing entities;
             168          (d) the amount of tax increment expected to be used to implement the project area plan,
             169      including the estimated amount of tax increment to be used for land acquisition, public
             170      improvements, infrastructure improvements, and loans, grants, or other incentives to private
             171      and public entities;
             172          (e) the tax increment expected to be used to cover the cost of administering the project
             173      area plan;
             174          (f) if the area from which tax increment is to be collected is less than the entire project
             175      area:
             176          (i) the tax identification numbers of the parcels from which tax increment will be
             177      collected; or
             178          (ii) a legal description of the portion of the project area from which tax increment will
             179      be collected; and
             180          (g) for property that the agency owns and expects to sell, the expected total cost of the
             181      property to the agency and the expected selling price.
             182          (33) "Project area plan" means a written plan under Chapter 2, Part 1, Urban Renewal


             183      Project Area Plan, Chapter 3, Part 1, Economic Development Project Area Plan, or Chapter 4,
             184      Part 1, Community Development Project Area Plan, as the case may be, that, after its effective
             185      date, guides and controls the urban renewal, economic development, or community
             186      development activities within a project area.
             187          (34) "Property tax" includes privilege tax and each levy on an ad valorem basis on
             188      tangible or intangible personal or real property.
             189          (35) "Public entity" means:
             190          (a) the state, including any of its departments or agencies; or
             191          (b) a political subdivision of the state, including a county, city, town, school district,
             192      local district, special service district, or interlocal cooperation entity.
             193          (36) "Publicly owned infrastructure and improvements" means water, sewer, storm
             194      drainage, electrical, and other similar systems and lines, streets, roads, curb, gutter, sidewalk,
             195      walkways, parking facilities, public transportation facilities, and other facilities, infrastructure,
             196      and improvements benefitting the public and to be publicly owned or publicly maintained or
             197      operated.
             198          (37) "Record property owner" or "record owner of property" means the owner of real
             199      property as shown on the records of the recorder of the county in which the property is located
             200      and includes a purchaser under a real estate contract if the contract is recorded in the office of
             201      the recorder of the county in which the property is located or the purchaser gives written notice
             202      of the real estate contract to the agency.
             203          (38) "Superfund site":
             204          (a) means an area included in the National Priorities List under the Comprehensive
             205      Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
             206          (b) includes an area formerly included in the National Priorities List, as described in
             207      Subsection (38)(a), but removed from the list following remediation that leaves on site the
             208      waste that caused the area to be included in the National Priorities List.
             209          (39) "Survey area" means an area designated by a survey area resolution for study to
             210      determine whether one or more urban renewal projects within the area are feasible.
             211          (40) "Survey area resolution" means a resolution adopted by the agency board under
             212      Subsection 17C-2-101 (1)(a) designating a survey area.
             213          (41) "Taxable value" means the value of property as shown on the last equalized


             214      assessment roll as certified by the county assessor.
             215          (42) (a) "Tax increment" means, except as provided in Subsection (42)(b), the
             216      difference between:
             217          (i) the amount of property tax revenues generated each tax year by all taxing entities
             218      from the area within a project area designated in the project area plan as the area from which
             219      tax increment is to be collected, using the current assessed value of the property; and
             220          (ii) the amount of property tax revenues that would be generated from that same area
             221      using the base taxable value of the property.
             222          (b) "Tax increment" does not include taxes levied and collected under Section
             223      [ 59-2-906.1 ] 59-2-1602 on or after January 1, 1994 upon the taxable property in the project
             224      area unless:
             225          (i) the project area plan was adopted before May 4, 1993, whether or not the project
             226      area plan was subsequently amended; and
             227          (ii) the taxes were pledged to support bond indebtedness or other contractual
             228      obligations of the agency.
             229          (43) "Taxing entity" means a public entity that levies a tax on property within a
             230      community.
             231          (44) "Taxing entity committee" means a committee representing the interests of taxing
             232      entities, created as provided in Section 17C-1-402 .
             233          (45) "Unincorporated" means not within a city or town.
             234          (46) (a) "Urban renewal" means the development activities under a project area plan
             235      within an urban renewal project area, including:
             236          (i) planning, design, development, demolition, clearance, construction, rehabilitation,
             237      environmental remediation, or any combination of these, of part or all of a project area;
             238          (ii) the provision of residential, commercial, industrial, public, or other structures or
             239      spaces, including recreational and other facilities incidental or appurtenant to them;
             240          (iii) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating, or
             241      any combination of these, existing structures in a project area;
             242          (iv) providing open space, including streets and other public grounds and space around
             243      buildings;
             244          (v) providing public or private buildings, infrastructure, structures, and improvements;


             245      and
             246          (vi) providing improvements of public or private recreation areas and other public
             247      grounds.
             248          (b) "Urban renewal" means "redevelopment," as defined under the law in effect before
             249      May 1, 2006, if the context requires.
             250          Section 2. Section 59-2-911 is amended to read:
             251           59-2-911. Exceptions to maximum levy limitation.
             252          (1) The maximum levies set forth in Section 59-2-908 do not apply to and do not
             253      include:
             254          (a) levies made to pay outstanding judgment debts;
             255          (b) levies made in any special improvement districts;
             256          (c) levies made for extended services in any county service area;
             257          (d) levies made for county library services;
             258          (e) levies made to be used for storm water, flood, and water quality control;
             259          (f) levies made to share disaster recovery expenses for public facilities and structures as
             260      a condition of state assistance when a Presidential Declaration has been issued under the
             261      Disaster Relief Act of 1974, 42 U.S.C. Sec. 5121;
             262          (g) levies made to pay interest and provide for a sinking fund in connection with any
             263      bonded or voter authorized indebtedness, including the bonded or voter authorized
             264      indebtedness of county service areas, special service districts, and special improvement
             265      districts;
             266          (h) levies made to fund local health departments;
             267          (i) levies made to fund public transit districts;
             268          (j) levies made to establish, maintain, and replenish special improvement guaranty
             269      funds;
             270          (k) levies made in any special service district;
             271          (l) levies made to fund municipal-type services to unincorporated areas of counties
             272      under Title 17, Chapter 34, Municipal-type Services to Unincorporated Areas;
             273          (m) levies made to fund the purchase of paramedic or ambulance facilities and
             274      equipment and to defray administration, personnel, and other costs of providing emergency
             275      medical and paramedic services, but this exception only applies to those counties in which a


             276      resolution setting forth the intention to make those levies has been duly adopted by the county
             277      legislative body and approved by a majority of the voters of the county voting at a special or
             278      general election;
             279          (n) levies made to pay for the costs of state legislative mandates or judicial or
             280      administrative orders under Section [ 59-2-906.3 ] 59-2-1604 ;
             281          (o) the multicounty and county assessing and collecting levies made to promote
             282      accurate property valuations, uniform assessment levels, and the efficient administration of the
             283      property tax system under Section [ 59-2-906.1 ] 59-2-1602 ; and
             284          (p) all other exceptions to the maximum levy limitation pursuant to statute.
             285          (2) (a) Upon the retirement of bonds issued for the development of a convention
             286      complex described in Section 17-12-4 , and notwithstanding Section 59-2-908 , any county of
             287      the first class may continue to impose a property tax levy equivalent to the average property tax
             288      levy previously imposed to pay debt service on those retired bonds.
             289          (b) Notwithstanding that the imposition of the levy set forth in Subsection (2)(a) may
             290      not result in an increased amount of ad valorem tax revenue, it is subject to the notice
             291      requirements of Sections 59-2-918 and 59-2-919 .
             292          (c) The revenues from this continued levy shall be used only for the funding of
             293      convention facilities as defined in Section 59-12-602 .
             294          Section 3. Section 59-2-924 is amended to read:
             295           59-2-924. Report of valuation of property to county auditor and commission --
             296      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
             297      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             298          (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to
             299      the county auditor and the commission the following statements:
             300          (i) a statement containing the aggregate valuation of all taxable property in each taxing
             301      entity; and
             302          (ii) a statement containing the taxable value of any additional personal property
             303      estimated by the county assessor to be subject to taxation in the current year.
             304          (b) The county auditor shall, on or before June 8, transmit to the governing body of
             305      each taxing entity:
             306          (i) the statements described in Subsections (1)(a)(i) and (ii);


             307          (ii) an estimate of the revenue from personal property;
             308          (iii) the certified tax rate; and
             309          (iv) all forms necessary to submit a tax levy request.
             310          (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad
             311      valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
             312      prior year.
             313          (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
             314      include:
             315          (A) collections from redemptions;
             316          (B) interest;
             317          (C) penalties; and
             318          (D) revenue received by a taxing entity from personal property that is:
             319          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             320          (II) semiconductor manufacturing equipment.
             321          (iii) (A) Except as otherwise provided in this section, the certified tax rate shall be
             322      calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
             323      taxing entity by the amount calculated under Subsection (2)(a)(iii)(B).
             324          (B) For purposes of Subsection (2)(a)(iii)(A), the legislative body of a taxing entity
             325      shall calculate an amount as follows:
             326          (I) calculate for the taxing entity the difference between:
             327          (Aa) the aggregate taxable value of all property taxed; and
             328          (Bb) any redevelopment adjustments for the current calendar year;
             329          (II) after making the calculation required by Subsection (2)(a)(iii)(B)(I), calculate an
             330      amount determined by increasing or decreasing the amount calculated under Subsection
             331      (2)(a)(iii)(B)(I) by the average of the percentage net change in the value of taxable property for
             332      the equalization period for the three calendar years immediately preceding the current calendar
             333      year;
             334          (III) after making the calculation required by Subsection (2)(a)(iii)(B)(II), calculate the
             335      product of:
             336          (Aa) the amount calculated under Subsection (2)(a)(iii)(B)(II); and
             337          (Bb) the percentage of property taxes collected for the five calendar years immediately


             338      preceding the current calendar year; and
             339          (IV) after making the calculation required by Subsection (2)(a)(iii)(B)(III), calculate an
             340      amount determined by subtracting from the amount calculated under Subsection
             341      (2)(a)(iii)(B)(III) any new growth as defined in this section:
             342          (Aa) within the taxing entity; and
             343          (Bb) for the current calendar year.
             344          (C) For purposes of Subsection (2)(a)(iii)(B)(I), the aggregate taxable value of all
             345      property taxed:
             346          (I) except as provided in Subsection (2)(a)(iii)(C)(II), includes the total taxable value of
             347      the real and personal property contained on the tax rolls of the taxing entity; and
             348          (II) does not include the total taxable value of personal property contained on the tax
             349      rolls of the taxing entity that is:
             350          (Aa) assessed by a county assessor in accordance with Part 3, County Assessment; and
             351          (Bb) semiconductor manufacturing equipment.
             352          (D) For purposes of Subsection (2)(a)(iii)(B)(II), for calendar years beginning on or
             353      after January 1, 2007, the value of taxable property does not include the value of personal
             354      property that is:
             355          (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
             356      County Assessment; and
             357          (II) semiconductor manufacturing equipment.
             358          (E) For purposes of Subsection (2)(a)(iii)(B)(III)(Bb), for calendar years beginning on
             359      or after January 1, 2007, the percentage of property taxes collected does not include property
             360      taxes collected from personal property that is:
             361          (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
             362      County Assessment; and
             363          (II) semiconductor manufacturing equipment.
             364          (F) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             365      the commission may prescribe rules for calculating redevelopment adjustments for a calendar
             366      year.
             367          (iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             368      Act, the commission shall make rules determining the calculation of ad valorem property tax


             369      revenues budgeted by a taxing entity.
             370          (B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues
             371      budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax
             372      revenues are calculated for purposes of Section 59-2-913 .
             373          (v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v)
             374      shall be calculated as follows:
             375          (A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified
             376      tax rate is zero;
             377          (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             378          (I) in a county of the first, second, or third class, the levy imposed for municipal-type
             379      services under Sections 17-34-1 and 17-36-9 ; and
             380          (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             381      purposes and such other levies imposed solely for the municipal-type services identified in
             382      Section 17-34-1 and Subsection 17-36-3 (22); and
             383          (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
             384      imposed by that section, except that the certified tax rates for the following levies shall be
             385      calculated in accordance with Section 59-2-913 and this section:
             386          (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
             387      53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
             388          (II) levies to pay for the costs of state legislative mandates or judicial or administrative
             389      orders under Section [ 59-2-906.3 ] 59-2-1604 .
             390          (vi) (A) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
             391      established at that rate which is sufficient to generate only the revenue required to satisfy one
             392      or more eligible judgments, as defined in Section 59-2-102 .
             393          (B) The ad valorem property tax revenue generated by the judgment levy shall not be
             394      considered in establishing the taxing entity's aggregate certified tax rate.
             395          (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use
             396      the taxable value of property on the assessment roll.
             397          (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the
             398      assessment roll does not include:
             399          (A) new growth as defined in Subsection (2)(b)(iii); or


             400          (B) the total taxable value of personal property contained on the tax rolls of the taxing
             401      entity that is:
             402          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             403          (II) semiconductor manufacturing equipment.
             404          (iii) "New growth" means:
             405          (A) the difference between the increase in taxable value of the taxing entity from the
             406      previous calendar year to the current year; minus
             407          (B) the amount of an increase in taxable value described in Subsection (2)(b)(v).
             408          (iv) For purposes of Subsection (2)(b)(iii), the taxable value of the taxing entity does
             409      not include the taxable value of personal property that is:
             410          (A) contained on the tax rolls of the taxing entity if that property is assessed by a
             411      county assessor in accordance with Part 3, County Assessment; and
             412          (B) semiconductor manufacturing equipment.
             413          (v) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
             414          (A) the amount of increase to locally assessed real property taxable values resulting
             415      from factoring, reappraisal, or any other adjustments; or
             416          (B) the amount of an increase in the taxable value of property assessed by the
             417      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             418      taxable value prescribed by:
             419          (I) the Legislature;
             420          (II) a court;
             421          (III) the commission in an administrative rule; or
             422          (IV) the commission in an administrative order.
             423          (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             424      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             425      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             426      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             427      rate to offset the increased revenues.
             428          (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             429      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
             430          (A) decreased on a one-time basis by the amount of the estimated sales and use tax


             431      revenue to be distributed to the county under Subsection 59-12-1102 (3); and
             432          (B) increased by the amount necessary to offset the county's reduction in revenue from
             433      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             434      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             435      (2)(d)(i)(A).
             436          (ii) The commission shall determine estimates of sales and use tax distributions for
             437      purposes of Subsection (2)(d)(i).
             438          (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             439      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             440      decreased on a one-time basis by the amount necessary to offset the first 12 months of
             441      estimated revenue from the additional resort communities sales and use tax imposed under
             442      Section 59-12-402 .
             443          (f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
             444      Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
             445      unincorporated area of the county shall be decreased by the amount necessary to reduce
             446      revenues in that fiscal year by an amount equal to the difference between the amount the county
             447      budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
             448      countywide and the amount the county spent during fiscal year 2000 for those services,
             449      excluding amounts spent from a municipal services fund for those services.
             450          (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
             451      (2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
             452      year by the amount that the county spent during fiscal year 2000 for advanced life support and
             453      paramedic services countywide, excluding amounts spent from a municipal services fund for
             454      those services.
             455          (ii) (A) A city or town located within a county of the first class to which Subsection
             456      (2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
             457      the city or town the same amount of revenues as the county would collect from that city or
             458      town if the decrease under Subsection (2)(f)(i) did not occur.
             459          (B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal year
             460      or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
             461      Sections 59-2-918 and 59-2-919 .


             462          (g) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
             463      provide detective investigative services to the unincorporated area of the county shall be
             464      decreased:
             465          (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
             466      by at least $4,400,000; and
             467          (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
             468      by an amount equal to the difference between $9,258,412 and the amount of the reduction in
             469      revenues under Subsection (2)(g)(i)(A).
             470          (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             471      county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
             472      within the city or town the same amount of revenue as the county would have collected during
             473      county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).
             474          (II) Beginning with municipal fiscal year 2003, a city or town located within a county
             475      to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
             476      city or town the same amount of revenue as the county would have collected during county
             477      fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).
             478          (B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
             479      town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
             480      or spread over multiple fiscal years, is subject to the notice and hearing requirements of
             481      Sections 59-2-918 and 59-2-919 .
             482          (II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does not
             483      exceed the same amount of revenue as the county would have collected except for Subsection
             484      (2)(g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
             485          (Aa) publishes a notice that meets the size, type, placement, and frequency
             486      requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
             487      by the county to one imposed by the city or town, and explains how the revenues from the tax
             488      increase will be used; and
             489          (Bb) holds a public hearing on the tax shift that may be held in conjunction with the
             490      city or town's regular budget hearing.
             491          (h) (i) This Subsection (2)(h) applies to each county that:
             492          (A) establishes a countywide special service district under Title 17A, Chapter 2, Part


             493      13, Utah Special Service District Act, to provide jail service, as provided in Subsection
             494      17A-2-1304 (1)(a)(x); and
             495          (B) levies a property tax on behalf of the special service district under Section
             496      17A-2-1322 .
             497          (ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
             498      shall be decreased by the amount necessary to reduce county revenues by the same amount of
             499      revenues that will be generated by the property tax imposed on behalf of the special service
             500      district.
             501          (B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
             502      the levy on behalf of the special service district under Section 17A-2-1322 .
             503          (i) (i) As used in this Subsection (2)(i):
             504          (A) "Annexing county" means a county whose unincorporated area is included within a
             505      fire district by annexation.
             506          (B) "Annexing municipality" means a municipality whose area is included within a fire
             507      district by annexation.
             508          (C) "Equalized fire protection tax rate" means the tax rate that results from:
             509          (I) calculating, for each participating county and each participating municipality, the
             510      property tax revenue necessary to cover all of the costs associated with providing fire
             511      protection, paramedic, and emergency services:
             512          (Aa) for a participating county, in the unincorporated area of the county; and
             513          (Bb) for a participating municipality, in the municipality; and
             514          (II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
             515      participating counties and all participating municipalities and then dividing that sum by the
             516      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
             517          (Aa) for participating counties, in the unincorporated area of all participating counties;
             518      and
             519          (Bb) for participating municipalities, in all the participating municipalities.
             520          (D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
             521      Area Act, in the creation of which an election was not required under Subsection
             522      17B-1-214 (3)(c).
             523          (E) "Fire protection tax rate" means:


             524          (I) for an annexing county, the property tax rate that, when applied to taxable property
             525      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             526      costs associated with providing fire protection, paramedic, and emergency services in the
             527      unincorporated area of the county; and
             528          (II) for an annexing municipality, the property tax rate that generates enough property
             529      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             530      paramedic, and emergency services in the municipality.
             531          (F) "Participating county" means a county whose unincorporated area is included
             532      within a fire district at the time of the creation of the fire district.
             533          (G) "Participating municipality" means a municipality whose area is included within a
             534      fire district at the time of the creation of the fire district.
             535          (ii) In the first year following creation of a fire district, the certified tax rate of each
             536      participating county and each participating municipality shall be decreased by the amount of
             537      the equalized fire protection tax rate.
             538          (iii) In the first year following annexation to a fire district, the certified tax rate of each
             539      annexing county and each annexing municipality shall be decreased by the fire protection tax
             540      rate.
             541          (iv) Each tax levied under this section by a fire district shall be considered to be levied
             542      by:
             543          (A) each participating county and each annexing county for purposes of the county's
             544      tax limitation under Section 59-2-908 ; and
             545          (B) each participating municipality and each annexing municipality for purposes of the
             546      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
             547      city.
             548          (j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             549      entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
             550      certified tax rate that may result from excluding the following from the certified tax rate under
             551      Subsection (2)(a) enacted by the Legislature during the 2007 General Session:
             552          (i) personal property tax revenue:
             553          (A) received by a taxing entity;
             554          (B) assessed by a county assessor in accordance with Part 3, County Assessment; and


             555          (C) for personal property that is semiconductor manufacturing equipment; or
             556          (ii) the taxable value of personal property:
             557          (A) contained on the tax rolls of a taxing entity;
             558          (B) assessed by a county assessor in accordance with Part 3, County Assessment; and
             559          (C) that is semiconductor manufacturing equipment.
             560          (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             561          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             562      auditor of:
             563          (i) its intent to exceed the certified tax rate; and
             564          (ii) the amount by which it proposes to exceed the certified tax rate.
             565          (c) The county auditor shall notify all property owners of any intent to exceed the
             566      certified tax rate in accordance with Subsection 59-2-919 (2).
             567          (4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             568      reduced for any year to the extent necessary to provide a community development and renewal
             569      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             570      Development and Renewal Agencies, with approximately the same amount of money the
             571      agency would have received without a reduction in the county's certified tax rate if:
             572          (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             573      (2)(d)(i);
             574          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             575      previous year; and
             576          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             577      Section 17C-1-403 or 17C-1-404 .
             578          (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             579      year to the extent necessary to provide a community development and renewal agency with
             580      approximately the same amount of money as the agency would have received without an
             581      increase in the certified tax rate that year if:
             582          (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             583      a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and
             584          (ii) The certified tax rate of a city, school district, local district, or special service
             585      district increases independent of the adjustment to the taxable value of the base year.


             586          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
             587      (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
             588      development and renewal agency established under Title 17C, Limited Purpose Local
             589      Government Entities - Community Development and Renewal Agencies, for the payment of
             590      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             591      amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
             592      (2)(d)(i).
             593          Section 4. Section 59-2-926 is amended to read:
             594           59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
             595          If the state authorizes a levy pursuant to Section 53A-17a-135 that exceeds the certified
             596      revenue levy as defined in Section 53A-17a-103 or authorizes a levy pursuant to Section
             597      [ 59-2-906.1 ] 59-2-1602 that exceeds the certified revenue levy as defined in Section 59-2-102 ,
             598      the state shall publish a notice no later than ten days after the last day of the annual legislative
             599      general session that meets the following requirements:
             600          (1) The Office of the Legislative Fiscal Analyst shall advertise that the state authorized
             601      a levy that generates revenue in excess of the previous year's ad valorem tax revenue, plus new
             602      growth, but exclusive of revenue from collections from redemptions, interest, and penalties in a
             603      newspaper of general circulation in the state. The advertisement shall be no less than 1/4 page
             604      in size and the type used shall be no smaller than 18 point, and surrounded by a 1/4-inch
             605      border. The advertisement may not be placed in that portion of the newspaper where legal
             606      notices and classified advertisements appear. The advertisement shall be run once.
             607          (2) The form and content of the notice shall be substantially as follows:
             608     
"NOTICE OF TAX INCREASE

             609          The state has budgeted an increase in its property tax revenue from $__________ to
             610      $__________ or ____%. The increase in property tax revenues will come from the following
             611      sources (include all of the following provisions):
             612          (a) $__________ of the increase will come from (provide an explanation of the cause
             613      of adjustment or increased revenues, such as reappraisals or factoring orders);
             614          (b) $__________ of the increase will come from natural increases in the value of the
             615      tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
             616          (c) a home valued at $100,000 in the state of Utah which based on last year's (levy for


             617      the basic state-supported school program, levy for the Property Tax Valuation Agency Fund, or
             618      both) paid $____________ in property taxes would pay the following:
             619          (i) $__________ if the state of Utah did not budget an increase in property tax revenue
             620      exclusive of new growth; and
             621          (ii) $__________ under the increased property tax revenues exclusive of new growth
             622      budgeted by the state of Utah."
             623          Section 5. Section 59-2-1601 is enacted to read:
             624     
Part 16. Multicounty Assessing and Collecting Levy

             625          59-2-1601. Definitions.
             626          As used in this part:
             627          (1) "Contributing county" means a county that:
             628          (a) retains less revenue from the imposition of the multicounty assessing and collecting
             629      levy within the county pursuant to Section 59-2-1603 than it collects; and
             630          (b) transmits a portion of the revenue collected from the imposition of the multicounty
             631      assessing and collecting levy to the Property Tax Valuation Agency Fund pursuant to Section
             632      59-2-1603 .
             633          (2) "Contributing county surplus revenue" means an amount equal to the difference
             634      between the following:
             635          (a) the revenue collected by a county from imposing the multicounty assessing and
             636      collecting levy during a calendar year; and
             637          (b) the county's multicounty assessing and collecting allocation as calculated in
             638      accordance with Subsection 59-2-1603 (3).
             639          (3) "County additional property tax" means the property tax levy described in
             640      Subsection 59-2-1602 (4).
             641          (4) "Fund" means the Property Tax Valuation Agency Fund created in Section
             642      59-2-1602 .
             643          (5) "Maximum county contribution" means an amount equal to the following:
             644          (a) for a county of the first class, $500,000;
             645          (b) for a county of the second class, $250,000;
             646          (c) for a county of the third class, $250,000; and
             647          (d) for a county of the fourth class, $100,000.


             648          (6) "Minimum county contribution" means an amount equal to the following:
             649          (a) for a county of the first class, $250,000; and
             650          (b) for a county of the second class, $100,000.
             651          (7) "Multicounty assessing and collecting allocation" means the revenue a county is
             652      entitled to retain from the statewide imposition of the multicounty assessing and collecting
             653      levy, as determined in accordance with the calculation described in Subsection 59-2-1603 (3).
             654          (8) "Multicounty assessing and collecting levy" means a property tax not to exceed
             655      .0002 per dollar of taxable value levied in accordance with Section 59-2-1602 .
             656          (9) (a) "Parcel" means an identifiable unit of real property that is treated as separate for
             657      valuation or zoning purposes and includes any improvements on that unit of real property.
             658          (b) "Parcel" or "other parcel" does not include an item of personal property.
             659          (10) "Receiving county" means a county that:
             660          (a) receives a disbursement from the Property Tax Valuation Agency Fund in
             661      accordance with Section 59-2-1603 ; and
             662          (b) levies a county additional property tax of at least .0003 per dollar of taxable value
             663      in accordance with Subsection 59-2-1602 (4).
             664          Section 6. Section 59-2-1602 , which is renumbered from Section 59-2-906.1 is
             665      renumbered and amended to read:
             666           [59-2-906.1].     59-2-1602. Property Tax Valuation Agency Fund -- Creation
             667      -- Statewide levy -- Additional county levy permitted.
             668          (1) (a) There is created the Property Tax Valuation Agency Fund, to be funded by [a]
             669      the revenue collected from the multicounty assessing and collecting levy [not to exceed .0002]
             670      as provided in Subsection [(2)] (3)(c) and Section 59-2-1603 .
             671          [(b) The multicounty assessing and collecting levy under Subsection (1)(a) shall be
             672      imposed annually by each county in the state.]
             673          [(c)] (b) The purpose of the multicounty assessing and collecting levy [created]
             674      required under Subsection [(1)(a)](2) and the disbursement formulas established in Section
             675      [ 59-2-906.2 ] 59-2-1603 is to promote the:
             676          (i) accurate valuation of property;
             677          (ii) establishment and maintenance of uniform assessment levels within and among
             678      counties; and


             679          (iii) efficient administration of the property tax system, including the costs of
             680      assessment, collection, and distribution of property taxes.
             681          [(d)] (c) Income derived from the investment of money in the fund created in this
             682      Subsection (1) shall be deposited in and become part of the fund.
             683          (2) (a) Annually, each county shall impose a multicounty assessing and collecting levy
             684      not to exceed .0002 per dollar of taxable value as authorized by the Legislature as provided in
             685      Subsection (2)(b).
             686          [(2) (a)] (b) Subject to Subsections (2)[(b),](c), and (5)[, and (6)], in order to fund the
             687      Property Tax Valuation Agency Fund, the Legislature shall authorize the amount of the
             688      multicounty assessing and collecting levy.
             689          [(b)] (c) The multicounty assessing and collecting levy may not exceed the certified
             690      revenue levy as defined in Section 59-2-102 , unless:
             691          (i) the Legislature authorizes a multicounty assessing and collecting levy that exceeds
             692      the certified revenue levy; and
             693          (ii) the state complies with the notice requirements of Section 59-2-926 .
             694          (3) (a) The multicounty assessing and collecting levy authorized by the Legislature
             695      under Subsection (2) shall be separately stated on the tax notice as a multicounty assessing and
             696      collecting levy.
             697          (b) The multicounty assessing and collecting levy authorized by the Legislature under
             698      Subsection (2) is:
             699          (i) exempt from the provisions of Sections 17C-1-403 and 17C-1-404 ;
             700          (ii) in addition to and exempt from the maximum levies allowable under Section
             701      59-2-908 ; and
             702          (iii) exempt from the notice requirements of Sections 59-2-918 and 59-2-919 .
             703          (c) (i) Each contributing county shall transmit quarterly to the state treasurer the
             704      portion of the [.0002] multicounty assessing and collecting levy which is above the amount to
             705      which that county is entitled to under Section [ 59-2-906.2 ] 59-2-1603 .
             706          (ii) The revenue transmitted under Subsection (3)(c)(i) shall be transmitted no later
             707      than the tenth day of the month following the end of the quarter in which the revenue is
             708      collected.
             709          (iii) If revenue transmitted under Subsection (3)(c)(i) is transmitted after the tenth day


             710      of the month following the end of the quarter in which the revenue is collected, the county shall
             711      pay an interest penalty at the rate of 10% each year until the revenue is transmitted.
             712          (iv) Each contributing county that transmits to the state treasurer a portion of the
             713      [.0002] multicounty assessing and collecting levy in accordance with Subsection (3)(c) shall
             714      levy sufficient property taxes to fund its county assessing and collecting budgets.
             715          (d) The state treasurer shall deposit in the [Property Tax Valuation Agency Fund] fund
             716      the:
             717          (i) revenue [from the multicounty assessing and collecting levy] transmitted to the fund
             718      by contributing counties;
             719          (ii) interest accrued from that levy; and
             720          (iii) penalties received under Subsection (3)(c)(iii).
             721          (4) (a) A county may levy [an] a county additional property tax in accordance with this
             722      Subsection (4).
             723          (b) A receiving county may not receive funds from the Property Tax Valuation Agency
             724      Fund unless the receiving county levies [an] a county additional property tax of at least .0003
             725      per dollar of taxable value of taxable property as reported by each county.
             726          (c) The [levy] county additional property tax described in Subsection (4)(a) shall be
             727      levied by the county and stated on the tax notice as a county assessing and collecting levy.
             728          (d) The purpose of the [levy] county additional property tax established in this
             729      Subsection (4) is to promote the:
             730          (i) accurate valuation of property;
             731          (ii) establishment and maintenance of uniform assessment levels within and among
             732      counties; and
             733          (iii) efficient administration of the property tax system, including the costs of
             734      assessment, collection, and distribution of property taxes.
             735          (e) A [levy] county additional property tax levy established in Subsection (4)(a) is:
             736          (i) exempt from the provisions of Sections 17C-1-403 and 17C-1-404 ;
             737          (ii) in addition to and exempt from the maximum levies allowable under Section
             738      59-2-908 ; and
             739          (iii) beginning on January 1, [2006,] 2009:
             740          (A) for a county that was designated as a receiving county by the state auditor during


             741      the prior calendar year, subject to the notice and hearing requirements of Sections 59-2-918 and
             742      59-2-919 [if the] only if the county additional property tax levied by that county levy is raised
             743      to a rate in excess of .0003[.]; and
             744          [(5) (a) As used in this Subsection (5) and Subsection (6), "receiving county" means a
             745      county that receives a disbursement from the Property Tax Valuation Agency Fund in
             746      accordance with Section 59-2-906.2 .]
             747          [(b) Subject to Subsection (7), for the calendar year beginning on January 1, 2006, the
             748      amount of the multicounty assessing and collecting levy described in this section shall be set at
             749      an amount that is equal to the difference between:]
             750          [(i) the amount of revenue collected from the multicounty assessing and collecting levy
             751      during the calendar year beginning on January 1, 2004; and]
             752          [(ii) the amount of revenue budgeted:]
             753          [(A) by each receiving county for the calendar year beginning on January 1, 2006;] and
             754          [(B) for the county levy described in Subsection (4)(a).]
             755          (B) except as provided in Subsection (4)(f), for a county that was designated as a
             756      contributing county by the state auditor during the prior calendar year, subject to the notice and
             757      hearing requirements of Sections 59-2-918 and 59-2-919 .
             758          (f) A county additional property tax levy in a county that was not a receiving county
             759      during the prior year shall be subject to the notice and hearing requirements described in
             760      Subsection (4)(e)(iii)(A) if the county would have been designated as a receiving county during
             761      the prior calendar year if the county had levied a county additional property tax of at least .0003
             762      per dollar of taxable value.
             763          [(6)] (5) Subject to Subsection [(7)] (6), for calendar years beginning on or after
             764      January 1, 2007, the amount of the multicounty assessing and collecting levy described in this
             765      section shall be reduced by an amount equal to the difference between:
             766          (a) the amount of revenue budgeted:
             767          (i) by each receiving county for that calendar year; and
             768          (ii) for the county additional property tax levy described in Subsection (4)(a); and
             769          (b) the amount of revenue budgeted:
             770          (i) by each receiving county for the calendar year immediately preceding the calendar
             771      year described in Subsection [(6)] (7)(a); and


             772          (ii) for the county additional property tax levy described in Subsection (4)(a).
             773          [(7)] (6) The amounts described in the calculations required by [Subsections]
             774      Subsection (5) [and (6)] are exclusive of new growth.
             775          Section 7. Section 59-2-1603 , which is renumbered from Section 59-2-906.2 is
             776      renumbered and amended to read:
             777           [59-2-906.2].     59-2-1603. Disbursement of monies in the Property Tax
             778      Valuation Agency Fund -- Use of funds.
             779          (1) [Beginning January 1, 1994, the] The state auditor shall authorize disbursement of
             780      money from the Property Tax Valuation Agency Fund to each receiving county [as follows:] in
             781      accordance with this section.
             782          [(a) subject to Subsection (6), each county of the first class shall receive a
             783      disbursement of 94.5% of the funds transmitted to the Property Tax Valuation Agency Fund by
             784      such counties; and]
             785          [(b) subject to Subsection (7), money]
             786          (2) Money derived from funds transmitted by contributing counties [of the second
             787      through sixth class and any remaining monies not distributed under Subsection (1)(a)] shall be
             788      disbursed pro rata to receiving counties of the second through sixth class based upon the
             789      number of adjusted parcel units in each county as determined in Subsection [(2)] (3).
             790          [(2) (a) The number of adjusted parcel units in a county shall be determined by]
             791          (3) (a) The state auditor shall determine the amount of each county's multicounty
             792      assessing and collecting allocation in accordance with this Subsection (3).
             793          (b) For a county of the first class, the county's multicounty assessing and collecting
             794      allocation shall be 94.5% of the revenue it collects from imposing the multicounty assessing
             795      and collecting levy.
             796          (c) For counties of the second through sixth class, a county's multicounty assessing and
             797      collecting allocation shall be the product of:
             798          (i) the county's adjusted parcel ratio; and
             799          (ii) the amount of all revenue generated statewide by the imposition of the multicounty
             800      assessing and collecting levy.
             801          (d) For purposes of this section, a county's adjusted parcel ratio shall be determined by
             802      multiplying the sum of the following by the county parcel factor:


             803          (i) the number of residential parcels multiplied by 2;
             804          (ii) the number of commercial parcels multiplied by 4; and
             805          (iii) the number of all other parcels multiplied by 1.
             806          [(b)] (e) For purposes of this Subsection (3), the county parcel factor is:
             807          (i) 0.9 for counties of the second class;
             808          (ii) 1.0 for counties of the third class;
             809          (iii) 1.05 for counties of the fourth class;
             810          (iv) 1.15 for counties of the fifth class; and
             811          (v) 1.3 for counties of the sixth class.
             812          (f) The commission shall provide the state auditor a list of each county's parcel counts
             813      described in Subsection (3)(d).
             814          (4) (a) A first class county shall transmit to the fund an amount equal to the greater of
             815      the following:
             816          (i) $250,000; or
             817          (ii) the lesser of the following:
             818          (A) 5.5% of the of the revenue it collects from imposing the multicounty assessing and
             819      collecting levy during a calendar year; or
             820          (B) $500,000.
             821          (b) A second, third, or fourth class contributing county shall transmit to the fund an
             822      amount equal to the following:
             823          (i) if the contributing county's surplus revenue is equal to or less than the contributing
             824      county's minimum county contribution, the minimum county contribution;
             825          (ii) if the contributing county's surplus revenue is more than the county's minimum
             826      county contribution and less than the county's maximum county contribution, the contributing
             827      county's surplus revenue; or
             828          (iii) if the contributing county's surplus revenue is equal to or greater than the county's
             829      maximum county contribution, the contributing county's maximum county contribution.
             830          [(3)] (5) Money in the Property Tax Valuation Agency Fund on the 10th day of the
             831      month following the end of the quarter in which the revenue is collected shall, upon
             832      authorization by the state auditor, be transmitted by the state treasurer according to the
             833      disbursement formula determined under Subsection [(2)] (3) no later than five working days


             834      after the 10th day of the month following the end of the quarter in which the revenue is
             835      collected.
             836          [(4)] (6) If money in the Property Tax Valuation Agency Fund on the 10th day of the
             837      month following the end of the quarter in which the revenue is collected is not transmitted to a
             838      receiving county within five working days of the 10th day of that month, except as provided for
             839      in Subsection [(3)] (5), income from the investment of that money shall be:
             840          (a) deposited in and become part of the Property Tax Valuation Agency Fund; and
             841          (b) disbursed to [the county] the receiving county in the next quarter.
             842          [(5)] (7) A county shall use money disbursed from the Property Tax Valuation Agency
             843      Fund for:
             844          (a) establishing and maintaining accurate property valuations and uniform assessment
             845      levels as required by Section 59-2-103 ; and
             846          (b) improving the efficiency of the property tax system.
             847          (8) If collections from the statewide imposition of the multicounty assessing and
             848      collecting levy are less than the amount of revenue the levy was expected to generate in a
             849      calendar year, the state auditor shall pro rata:
             850          (a) decrease each receiving county's multicounty assessing and collecting allocation;
             851      and
             852          (b) for each contributing county that did not transmit its maximum county contribution
             853      to the fund during the same calendar year, increase the contributing county's contribution to the
             854      fund.
             855          (9) If money remains in the fund after all allocations have been distributed to receiving
             856      counties in a calendar year, the state auditor shall retain the money in the fund for distribution
             857      the following calendar year.
             858          [(6) (a) For purposes of this Subsection (6), "retained funds" means the difference
             859      between:]
             860          [(i) the funds transmitted by a county of the first class to the Property Tax Valuation
             861      Agency Fund under Subsection (1)(a) ; and]
             862          [(ii) the disbursement described in Subsection (1)(a).]
             863          [(b) Notwithstanding Subsection (1)(a), if the retained funds are:]
             864          [(i) less than $250,000, the disbursement described in Subsection (1)(a) shall be


             865      reduced by the difference between:]
             866          [(A) $250,000; and]
             867          [(B) the retained funds; and]
             868          [(ii) more than $500,000, the disbursement described in Subsection (1)(a) shall be
             869      increased by the difference between:]
             870          [(A) the retained funds; and]
             871          [(B) $500,000.]
             872          [(7) Notwithstanding Subsection (1)(b):]
             873          [(a) if the amount transmitted under Subsection (1)(b) by a county of the second class
             874      is:]
             875          [(i) less than $100,000, the amount disbursed under Subsection (1)(b) to a county of
             876      the second class shall be reduced by the difference between:]
             877          [(A) $100,000; and]
             878          [(B) the amount transmitted under Subsection (1)(b) by a county of the second class;
             879      and]
             880          [(ii) more than $250,000, the amount disbursed under Subsection (1)(b) to a county of
             881      the second class shall be increased by the difference between:]
             882          [(A) the amount transmitted under Subsection (1)(b) by a county of the second class;
             883      and]
             884          [(B) $250,000;]
             885          [(b) if the amount transmitted under Subsection (1)(b) by a county of the third class is
             886      more than $250,000, the amount disbursed under Subsection (1)(b) to a county of the third
             887      class shall be increased by the difference between:]
             888          [(i) the amount transmitted under Subsection (1)(b) by a county of the third class; and]
             889          [(ii) $250,000;]
             890          [(c) if the amount transmitted under Subsection (1)(b) by a county of the fourth class is
             891      more than $100,000, the amount disbursed under Subsection (1)(b) to a county of the fourth
             892      class shall be increased by the difference between:]
             893          [(i) the amount transmitted under Subsection (1)(b) by a county of the fourth class;
             894      and]
             895          [(ii) $100,000; and]


             896          [(d) the amount disbursed under Subsection (1)(b) to a county of the fifth or sixth class
             897      shall not be less than the amount transmitted under Subsection (1)(b) by a county of the fifth or
             898      sixth class.]
             899          Section 8. Section 59-2-1604 , which is renumbered from Section 59-2-906.3 is
             900      renumbered and amended to read:
             901           [59-2-906.3].     59-2-1604. Additional levies by counties.
             902          (1) (a) A county may levy an additional tax to fund state mandated actions to meet
             903      legislative mandates or judicial or administrative orders which relate to promoting the accurate
             904      valuation of property, the establishment and maintenance of uniform assessment levels within
             905      and among counties, and the administration of the property tax system.
             906          (b) An additional rate levied under Subsection (1)(a):
             907          (i) shall be stated on the tax notice;
             908          (ii) may be included on the tax notice with the county [assessing and collecting levy]
             909      levies authorized under [Subsection 59-2-906.1 (4)] Section 59-2-1602 as part of the
             910      countywide aggregate tax rate;
             911          (iii) may not be included in determining the maximum allowable levy for the county or
             912      other taxing entities; and
             913          (iv) is subject to the notice requirements of Sections 59-2-918 and 59-2-919 .
             914          (2) (a) A county may levy an additional tax for reappraisal programs that:
             915          (i) are formally adopted by the county legislative body; and
             916          (ii) conform to tax commission rules.
             917          (b) An additional rate levied under Subsection (2)(a):
             918          (i) shall be stated on the tax notice;
             919          (ii) may be included on the tax notice with the county [assessing and collecting levy]
             920      levies authorized under [Subsection 59-2-906.1 (4)] Section 59-2-1602 as part of the
             921      countywide aggregate tax rate;
             922          (iii) may not be included in determining the maximum allowable levy for the county or
             923      other taxing entities; and
             924          (iv) is subject to the notice requirements of Sections 59-2-918 and 59-2-919 .
             925          Section 9. Section 59-2-1605 , which is renumbered from Section 59-2-906.4 is
             926      renumbered and amended to read:


             927           [59-2-906.4].     59-2-1605. Accounting records for levies.
             928          Each county shall separately budget and account for the use of any monies received or
             929      expended under a levy imposed under Section [ 59-2-906.1 , 59-2-906.2 , or 59-2-906.3 ]
             930      59-2-1602 , 59-2-1603 , or 59-2-1604 .
             931          Section 10. Effective date.
             932          This bill takes effect on January 1, 2009.




Legislative Review Note
    as of 1-31-08 2:16 PM


Office of Legislative Research and General Counsel


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