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Fifth Substitute S.B. 48

This document includes House Floor Amendments incorporated into the bill on Fri, Feb 29, 2008 at 4:15 PM by jeyring. -->

Representative Aaron Tilton proposes the following substitute bill:


             1     
EQUALIZATION OF SCHOOL CAPITAL

             2     
OUTLAY FUNDING

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Dan R. Eastman

             6     
House Sponsor: Aaron Tilton

             7     

             8      LONG TITLE
             9      General Description:
             10          This bill amends the Public Education Capital Outlay Act and the Property Tax Act to
             11      modify school capital outlay funding.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    requires certain divided school districts to impose a capital outlay levy at a specified
             16      rate and allocates the revenue generated under the capital outlay levy to school
             17      districts located within the qualifying divided school district;
             18          .    changes the allocation methodology for the Capital Outlay Foundation Program;
             19          .    appropriates funding to the State Board of Education for the Capital Outlay
             20      Foundation Program and the Capital Outlay Enrollment Growth Program;
             21          .    requires each school district in a county of the first class to levy a capital outlay
             22      property tax at a specified rate and allocates the revenue generated under the capital
             23      outlay levy to school districts located in a county of the first class;
             24          .    amends truth in taxation notice and hearing requirements for school districts
             25      imposing the mandatory portion of the capital outlay levy;



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             26
         .    amends the calculation of the certified tax rate with respect to the capital outlay
             27      levy; and
             28          .    makes technical corrections.
             29      Monies Appropriated in this Bill:
             30          This bill appropriates:
             31          .    as an ongoing appropriation subject to future budget constraints, $27,288,900 from
             32      the Uniform School Fund for fiscal year 2008-09 to the State Board of Education;
             33      and
             34          .    $15,000,000 from the Uniform School Fund for fiscal year 2008-09 only to the
             35      State Board of Education.
             36      Other Special Clauses:
             37          This bill takes effect on July 1, 2008.
             38          This bill coordinates with H.B. 1, Minimum School Program Base Budget
             39      Amendments, by providing superseding amendments.
             40      Utah Code Sections Affected:
             41      AMENDS:
             42          11-13-302, as last amended by Laws of Utah 2007, Chapter 108
             43          17-34-3, as last amended by Laws of Utah 2005, First Special Session, Chapter 9
             44          17C-1-408, as renumbered and amended by Laws of Utah 2006, Chapter 359
             45          53A-2-103, as last amended by Laws of Utah 2002, Chapter 301
             46          53A-2-114, as last amended by Laws of Utah 1996, Chapter 326
             47          53A-2-115, as last amended by Laws of Utah 1996, Chapter 326
             48          53A-2-117, as last amended by Laws of Utah 2007, Chapters 215 and 297
             49          53A-16-106, as last amended by Laws of Utah 1994, Chapter 12
             50          53A-16-107, as last amended by Laws of Utah 1999, Chapter 332
             51          53A-16-110, as last amended by Laws of Utah 2004, Chapter 371
             52          53A-17a-133, as last amended by Laws of Utah 2006, Chapter 26
             53          53A-19-102, as last amended by Laws of Utah 2007, Chapter 92
             54          53A-19-105, as last amended by Laws of Utah 2003, Chapter 122
             55          53A-21-102, as last amended by Laws of Utah 2003, Chapters 199 and 320
             56          59-2-908, as last amended by Laws of Utah 1995, Chapter 278



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             57
         59-2-913, as last amended by Laws of Utah 2007, Chapter 107
             58          59-2-914, as last amended by Laws of Utah 1995, Chapter 278
             59          59-2-918, as last amended by Laws of Utah 2006, Chapters 26 and 104
             60          59-2-924, as last amended by Laws of Utah 2007, Chapters 107 and 329
             61          59-2-1330, as last amended by Laws of Utah 2002, Chapters 196 and 240
             62      ENACTS:
             63          53A-2-118.3, Utah Code Annotated 1953
             64          53A-16-107.1, Utah Code Annotated 1953
             65          53A-21-101.5, Utah Code Annotated 1953
             66          53A-21-201, Utah Code Annotated 1953
             67          53A-21-202, Utah Code Annotated 1953
             68          53A-21-301, Utah Code Annotated 1953
             69          53A-21-302, Utah Code Annotated 1953
             70          59-2-924.2, Utah Code Annotated 1953
             71          59-2-924.3, Utah Code Annotated 1953
             72          59-2-924.4, Utah Code Annotated 1953
             73      RENUMBERS AND AMENDS:
             74          53A-21-401, (Renumbered from 53A-21-104, as last amended by Laws of Utah 2007,
             75      Chapter 344)
             76          53A-21-501, (Renumbered from 53A-21-105, as last amended by Laws of Utah 2007,
             77      Chapter 2)
             78      REPEALS:
             79          53A-21-103, as last amended by Laws of Utah 2003, Chapter 320
             80          53A-21-103.5, as last amended by Laws of Utah 2005, Chapters 171 and 184
             81     

             82      Be it enacted by the Legislature of the state of Utah:
             83          Section 1. Section 11-13-302 is amended to read:
             84           11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
             85      suppliers -- Method of calculating -- Collection -- Extent of tax lien.
             86          (1) (a) Each project entity created under this chapter that owns a project and that sells
             87      any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible



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             88
     property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
             89      valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
             90      this section to each taxing jurisdiction within which the project or any part of it is located.
             91          (b) For purposes of this section, "annual fee" means the annual fee described in
             92      Subsection (1)(a) that is in lieu of ad valorem property tax.
             93          (c) The requirement to pay an annual fee shall commence:
             94          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
             95      impact alleviation payments under contracts or determination orders provided for in Sections
             96      11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
             97      candidate in which the date of commercial operation of the last generating unit, other than any
             98      generating unit providing additional project capacity, of the project occurs, or, in the case of
             99      any facilities providing additional project capacity, with the fiscal year of the candidate
             100      following the fiscal year of the candidate in which the date of commercial operation of the
             101      generating unit providing the additional project capacity occurs; and
             102          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
             103      Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
             104      project commences, or, in the case of facilities providing additional project capacity, with the
             105      fiscal year of the taxing jurisdiction in which construction of those facilities commences.
             106          (d) The requirement to pay an annual fee shall continue for the period of the useful life
             107      of the project or facilities.
             108          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
             109      because the ad valorem property tax imposed by a school district and authorized by the
             110      Legislature under Section 53A-17a-135 represents both:
             111          (i) a levy mandated by the state for the state minimum school program under Section
             112      53A-17a-135 ; and
             113          (ii) local levies for capital outlay, maintenance, transportation, and other purposes
             114      under Sections 11-2-7 , 53A-16-107 , 53A-16-110 , 53A-17a-126 , 53A-17a-127 , 53A-17a-133 ,
             115      53A-17a-134 , 53A-17a-143 , and 53A-17a-145 [, and 53A-21-103 ].
             116          (b) The annual fees due a school district shall be as follows:
             117          (i) the project entity shall pay to the school district an annual fee for the state minimum
             118      school program at the rate imposed by the school district and authorized by the Legislature



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             119
     under Subsection 53A-17a-135 (1); and
             120          (ii) for all other local property tax levies authorized to be imposed by a school district,
             121      the project entity shall pay to the school district either:
             122          (A) an annual fee; or
             123          (B) impact alleviation payments under contracts or determination orders provided for
             124      in Sections 11-13-305 and 11-13-306 .
             125          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
             126      by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
             127      multiplying the fee base or value determined in accordance with Subsection (4) for that year of
             128      the portion of the project located within the jurisdiction by the percentage of the project which
             129      is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
             130          (b) As used in this section, "tax rate," when applied in respect to a school district,
             131      includes any assessment to be made by the school district under Subsection (2) or Section
             132      63-51-6 .
             133          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
             134      an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
             135      the proceeds of which were used to provide public facilities and services for impact alleviation
             136      in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
             137          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
             138          (i) take into account the fee base or value of the percentage of the project located
             139      within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
             140      capacity, service, or other benefit sold to the supplier or suppliers; and
             141          (ii) reflect any credit to be given in that year.
             142          (4) (a) Except as otherwise provided in this section, the annual fees required by this
             143      section shall be paid, collected, and distributed to the taxing jurisdiction as if:
             144          (i) the annual fees were ad valorem property taxes; and
             145          (ii) the project were assessed at the same rate and upon the same measure of value as
             146      taxable property in the state.
             147          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
             148      this section, the fee base of a project may be determined in accordance with an agreement
             149      among:



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             150
         (A) the project entity; and
             151          (B) any county that:
             152          (I) is due an annual fee from the project entity; and
             153          (II) agrees to have the fee base of the project determined in accordance with the
             154      agreement described in this Subsection (4).
             155          (ii) The agreement described in Subsection (4)(b)(i):
             156          (A) shall specify each year for which the fee base determined by the agreement shall be
             157      used for purposes of an annual fee; and
             158          (B) may not modify any provision of this chapter except the method by which the fee
             159      base of a project is determined for purposes of an annual fee.
             160          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
             161      described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
             162      Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
             163      jurisdiction.
             164          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
             165      year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
             166      portion of the project for which there is not an agreement:
             167          (I) for that year; and
             168          (II) using the same measure of value as is used for taxable property in the state.
             169          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
             170      Commission in accordance with rules made by the State Tax Commission.
             171          (c) Payments of the annual fees shall be made from:
             172          (i) the proceeds of bonds issued for the project; and
             173          (ii) revenues derived by the project entity from the project.
             174          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
             175      other benefits of the project whose tangible property is not exempted by Utah Constitution
             176      Article XIII, Section 3, from the payment of ad valorem property tax shall require each
             177      purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
             178      its share, determined in accordance with the terms of the contract, of these fees.
             179          (ii) It is the responsibility of the project entity to enforce the obligations of the
             180      purchasers.



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             181
         (5) (a) The responsibility of the project entity to make payment of the annual fees is
             182      limited to the extent that there is legally available to the project entity, from bond proceeds or
             183      revenues, monies to make these payments, and the obligation to make payments of the annual
             184      fees is not otherwise a general obligation or liability of the project entity.
             185          (b) No tax lien may attach upon any property or money of the project entity by virtue of
             186      any failure to pay all or any part of an annual fee.
             187          (c) The project entity or any purchaser may contest the validity of an annual fee to the
             188      same extent as if the payment was a payment of the ad valorem property tax itself.
             189          (d) The payments of an annual fee shall be reduced to the extent that any contest is
             190      successful.
             191          (6) (a) The annual fee described in Subsection (1):
             192          (i) shall be paid by a public agency that:
             193          (A) is not a project entity; and
             194          (B) owns an interest in a facility providing additional project capacity if the interest is
             195      otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
             196          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
             197      accordance with Subsection (6)(b).
             198          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
             199      rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
             200          (i) the fee base or value of the facility providing additional project capacity located
             201      within the jurisdiction;
             202          (ii) the percentage of the ownership interest of the public agency in the facility; and
             203          (iii) the portion, expressed as a percentage, of the public agency's ownership interest
             204      that is attributable to the capacity, service, or other benefit from the facility that is sold by the
             205      public agency to an energy supplier or suppliers whose tangible property is not exempted by
             206      Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
             207          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
             208      obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
             209      to its ownership interest as though it were a project entity.
             210          Section 2. Section 17-34-3 is amended to read:
             211           17-34-3. Taxes or service charges.



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             212
         (1) (a) If a county furnishes the municipal-type services and functions described in
             213      Section 17-34-1 to areas of the county outside the limits of incorporated cities or towns, the
             214      entire cost of the services or functions so furnished shall be defrayed from funds that the county
             215      has derived from:
             216          (i) taxes that the county may lawfully levy or impose outside the limits of incorporated
             217      towns or cities;
             218          (ii) service charges or fees the county may impose upon the persons benefited in any
             219      way by the services or functions; or
             220          (iii) a combination of these sources.
             221          (b) As the taxes or service charges or fees are levied and collected, they shall be placed
             222      in a special revenue fund of the county and shall be disbursed only for the rendering of the
             223      services or functions established in Section 17-34-1 within the unincorporated areas of the
             224      county or as provided in Subsection 10-2-121 (2).
             225          (2) For the purpose of levying taxes, service charges, or fees provided in this section,
             226      the county legislative body may establish a district or districts in the unincorporated areas of
             227      the county.
             228          (3) Nothing contained in this chapter may be construed to authorize counties to impose
             229      or levy taxes not otherwise allowed by law.
             230          [(4) (a) A county required under Subsection 17-34-1 (4) to provide advanced life
             231      support and paramedic services to the unincorporated area of the county and that previously
             232      paid for those services through a countywide levy may increase its levy under Subsection
             233      (1)(a)(i) to generate in the unincorporated area of the county the same amount of revenue as the
             234      county loses from that area due to the required decrease in the countywide certified tax rate
             235      under Subsection 59-2-924 (2)(k)(i).]
             236          [(b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and
             237      hearing requirements of Sections 59-2-918 and 59-2-919 .]
             238          [(5)] (4) Notwithstanding any other provision of this chapter, a county providing fire,
             239      paramedic, and police protection services in a designated recreational area, as provided in
             240      Subsection 17-34-1 (5), may fund those services from the county general fund with revenues
             241      derived from both inside and outside the limits of cities and towns, and the funding of those
             242      services is not limited to unincorporated area revenues.



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             243
         Section 3. Section 17C-1-408 is amended to read:
             244           17C-1-408. Base taxable value to be adjusted to reflect other changes.
             245          (1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
             246          (A) a decrease of more than 20% from the previous tax year's levy; or
             247          (B) a cumulative decrease over a consecutive five-year period of more than 100% from
             248      the levy in effect at the beginning of the five-year period.
             249          (ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
             250      fifth year of the five-year period.
             251          (b) If there is a qualifying decrease in the minimum basic school levy under Section
             252      59-2-902 that would result in a reduction of the amount of tax increment to be paid to an
             253      agency:
             254          (i) the base taxable value of taxable property within the project area shall be reduced in
             255      the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
             256      agency with approximately the same amount of tax increment that would have been paid to the
             257      agency each year had the qualifying decrease not occurred; and
             258          (ii) the amount of tax increment paid to the agency each year for the payment of bonds
             259      and indebtedness may not be less than what would have been paid to the agency if there had
             260      been no qualifying decrease.
             261          (2) (a) The amount of the base taxable value to be used in determining tax increment
             262      shall be:
             263          (i) increased or decreased by the amount of an increase or decrease that results from:
             264          (A) a statute enacted by the Legislature or by the people through an initiative;
             265          (B) a judicial decision;
             266          (C) an order from the State Tax Commission to a county to adjust or factor its
             267      assessment rate under Subsection 59-2-704 (2);
             268          (D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
             269      Section 59-2-103 ; or
             270          (E) an increase or decrease in the percentage of fair market value, as defined under
             271      Section 59-2-102 ; and
             272          (ii) reduced for any year to the extent necessary, even if below zero, to provide an
             273      agency with approximately the same amount of money the agency would have received without



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             274
     a reduction in the county's certified tax rate if:
             275          (A) in that year there is a decrease in the county's certified tax rate under Subsection
             276      [ 59-2-924 (2)(c) or (d)(i)] 59-2-924.2 (2) or (3)(a);
             277          (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
             278      previous year; and
             279          (C) the decrease would result in a reduction of the amount of tax increment to be paid
             280      to the agency.
             281          (b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
             282      increment paid to an agency each year for payment of bonds or other indebtedness may not be
             283      less than would have been paid to the agency each year if there had been no increase or
             284      decrease under Subsection (2)(a).
             285          Section 4. Section 53A-2-103 is amended to read:
             286           53A-2-103. Transfer of property to new school district -- Rights and obligations
             287      of new school board -- Outstanding indebtedness -- Special tax.
             288          (1) On July 1 following the approval of the creation of a new school district under
             289      Section 53A-2-102 , the local school boards of the former districts shall convey and deliver all
             290      school property to the local school board of the new district. Title vests in the new board. All
             291      rights, claims, and causes of action to or for the property, for the use or the income from the
             292      property, for conversion, disposition, or withholding of the property, or for any damage or
             293      injury to the property vest at once in the new board.
             294          (2) The new board may bring and maintain actions to recover, protect, and preserve the
             295      property and rights of the district schools and to enforce contracts.
             296          (3) The new board shall assume and be liable for all outstanding debts and obligations
             297      of each of the former school districts.
             298          (4) All of the bonded indebtedness, outstanding debts, and obligations of a former
             299      district, which cannot be reasonably paid from the assets of the former district, shall be paid by
             300      a special tax levied by the new board as needed. The tax shall be levied upon the property
             301      within the former district which was liable for the indebtedness at the time of consolidation. If
             302      bonds are approved in the new district under Section 53A-18-102 , the special tax shall be
             303      discontinued and the bonded indebtedness paid as any other bonded indebtedness of the new
             304      district.



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             305
         (5) Bonded indebtedness of a former district which has been refunded shall be paid in
             306      the same manner as that which the new district assumes under Section 53A-18-101 .
             307          (6) State funds received by the new district under Section [ 53A-21-103 ] 53A-21-202
             308      may be applied toward the payment of outstanding bonded indebtedness of a former district in
             309      the same proportion as the bonded indebtedness of the territory within the former district bears
             310      to the total bonded indebtedness of the districts combined.
             311          Section 5. Section 53A-2-114 is amended to read:
             312           53A-2-114. Additional levies -- School board options to abolish or continue after
             313      consolidation.
             314          (1) If a school district which has approved an additional levy under Section
             315      53A-16-110 , 53A-17a-133 , 53A-17a-134 , or 53A-17a-145 [, or 53A-21-103 ] is consolidated
             316      with a district which does not have such a levy, the board of education of the consolidated
             317      district may choose to abolish the levy, or apply it in whole or in part to the entire consolidated
             318      district.
             319          (2) If the board chooses to apply any part of the levy to the entire district, the levy may
             320      continue in force for no more than three years, unless approved by the electors of the
             321      consolidated district in the manner set forth in Section 53A-16-110 .
             322          Section 6. Section 53A-2-115 is amended to read:
             323           53A-2-115. Additional levies in transferred territory -- Transferee board option
             324      to abolish or continue.
             325          If two or more districts undergo restructuring that results in a district receiving territory
             326      that increases the population of the district by at least 25%, and if the transferred territory was,
             327      at the time of transfer, subject to an additional levy under Section 53A-16-110 , 53A-17a-133 ,
             328      53A-17a-134 , or 53A-17a-145 [, or 53A-21-103 ], the board of education of the transferee
             329      district may abolish the levy or apply the levy in whole or in part to the entire restructured
             330      district. Any such levy made applicable to the entire district may continue in force for no more
             331      than five years, unless approved by the electors of the restructured district in the manner set
             332      forth in Section 53A-16-110 .
             333          Section 7. Section 53A-2-117 is amended to read:
             334           53A-2-117. Definitions.
             335          As used in Sections 53A-2-117 through 53A-2-121 :



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             336
         (1) "Divided school district," "existing district," or "existing school district" means a
             337      school district from which a new district is created.
             338          (2) "New district" or "new school district" means a school district created under
             339      Section 53A-2-118 or 53A-2-118.1 .
             340          (3) "Remaining district" or "remaining school district" means an existing district after
             341      the creation of a new district.
             342          Section 8. Section 53A-2-118.3 is enacted to read:
             343          53A-2-118.3. Imposition of the capital outlay levy in qualifying divided school
             344      districts.
             345          (1) For purposes of this section:
             346          (a) "Qualifying divided school district" means a divided school district:
             347          (i) located within a county of the second through sixth class; and
             348          (ii) with a new school district created under Section 53A-2-118.1 that begins to provide
             349      educational services after July 1, 2008.
             350          (b) "Qualifying taxable year" means the calendar year in which a new school district
             351      begins to provide educational services.
             352          (2) Beginning with the qualifying taxable year, in order to qualify for receipt of the
             353      state contribution toward the minimum school program described in Section 53A-17a-104 , a
             354      school district within a qualifying divided school district shall impose a capital outlay levy
             355      described in Section 53A-16-107 of at least .0006 per dollar of taxable value.
             356          (3) The county treasurer of a county with a qualifying divided school district shall
             357      distribute revenues generated by the .0006 portion of the capital outlay levy required in
             358      Subsection (2) to the school districts located within the boundaries of the qualifying divided
             359      school district as follows:
             360          (a) 25% of the revenues shall be distributed in proportion to a school district's
             361      percentage of the total enrollment growth in all of the school districts within the qualifying
             362      divided school district that have an increase in enrollment, calculated on the basis of the
             363      average annual enrollment growth over the prior three years in all of the school districts within
             364      the qualifying divided school district that have an increase in enrollment over the prior three
             365      years, as of the October 1 enrollment counts; and
             366          (b) 75% of the revenues shall be distributed in proportion to a school district's



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             367
     percentage of the total current year enrollment in all of the school districts within the qualifying
             368      divided school district, as of the October 1 enrollment counts.
             369          (4) If a new school district is created or school district boundaries are adjusted, the
             370      enrollment and average annual enrollment growth for each affected school district shall be
             371      calculated on the basis of enrollment in school district schools located within that school
             372      district's newly created or adjusted boundaries, as of October 1 enrollment counts.
             373          (5) On or before December 31 of each year, the State Board of Education shall provide
             374      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             375      to distribute revenues as required by this section.
             376          (6) On or before March 31 of each year, a county treasurer in a county with a
             377      qualifying divided school district shall distribute, in accordance with Subsection (3), the
             378      revenue generated within the qualifying divided school district during the prior calendar year
             379      from the capital outlay levy required in Subsection (2).
             380          Section 9. Section 53A-16-106 is amended to read:
             381           53A-16-106. Annual certification of tax rate proposed by local school board --
             382      Inclusion of school district budget -- Modified filing date.
             383          (1) Prior to June 22 of each year, each local school board shall certify to the county
             384      legislative body in which the district is located, on forms prescribed by the State Tax
             385      Commission, the proposed tax rate approved by the local school board.
             386          (2) A copy of the district's budget, including items under Section 53A-19-101 , and a
             387      certified copy of the local school board's resolution which approved the budget and set the tax
             388      rate for the subsequent school year beginning July 1 shall accompany the tax rate.
             389          (3) If the tax rate approved by the board is in excess of the "certified tax rate" as
             390      defined under Subsection 59-2-924 [(2)] (3)(a), the date for filing the tax rate and budget
             391      adopted by the board shall be that established under Section 59-2-919 .
             392          Section 10. Section 53A-16-107 is amended to read:
             393           53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority to
             394      use proceeds of .0002 tax rate -- Restrictions and procedure.
             395          (1) [(a) A] Subject to Subsection (3), a local school board may annually impose a
             396      capital outlay levy [a tax not to exceed .0024 per dollar of taxable value for debt service and
             397      capital outlay.] not to exceed .0024 per dollar of taxable value to be used for:



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             398
         (a) capital outlay;
             399          (b) debt service; and
             400          (c) subject to Subsection (2), school facility maintenance.
             401          [(b) Each] (2) (a) A local school board may utilize the proceeds of a maximum of
             402      .0002 per dollar of taxable value of [its] the local school board's annual capital outlay levy for
             403      the maintenance of school [plants] facilities in [its] the school district.
             404          [(2)] (b) A local school board that uses the option provided under Subsection [(1)(b)
             405      must do the following] (2)(a) shall:
             406          [(a)] (i) maintain the same level of expenditure for maintenance in the current year as it
             407      did in the preceding year, plus the annual average percentage increase applied to the
             408      maintenance and operation budget for the current year; and
             409          [(b)] (ii) identify the expenditure of capital outlay funds for maintenance by a district
             410      project number to ensure that the funds [were] are expended in the manner intended.
             411          [(3)] (c) The State Board of Education shall establish by rule the expenditure
             412      classification for maintenance under this program using a standard classification system.
             413          (3) Beginning January 1, 2009, in order to qualify for receipt of the state contribution
             414      toward the minimum school program described in Section 53A-17a-104 , a local school board
             415      in a county of the first class shall impose a capital outlay levy of at least .0006 per dollar of
             416      taxable value.
             417          (4) (a) The county treasurer of a county of the first class shall distribute revenues
             418      generated by the .0006 portion of the capital outlay levy required in Subsection (3) to school
             419      districts within the county in accordance with Section 53A-16-107.1 .
             420          (b) If a school district in a county of the first class imposes a capital outlay levy
             421      pursuant to this section which exceeds .0006 per dollar of taxable value, the county treasurer of
             422      a county of the first class shall distribute revenues generated by the portion of the capital outlay
             423      levy which exceeds .0006 to the school district imposing the levy.
             424          Section 11. Section 53A-16-107.1 is enacted to read:
             425          53A-16-107.1. School capital outlay in counties of the first class -- Allocation.
             426          (1) The county treasurer of a county of the first class shall distribute revenues
             427      generated by the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3)
             428      to school districts located within the county of the first class as follows:



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             429
         (a) 25% of the revenues shall be distributed in proportion to a school district's
             430      percentage of the total enrollment growth in all of the school districts within the county that
             431      have an increase in enrollment, calculated on the basis of the average annual enrollment growth
             432      over the prior three years in all of the school districts within the county that have an increase in
             433      enrollment over the prior three years, as of the October 1 enrollment counts; and
             434          (b) 75% of the revenues shall be distributed in proportion to a school district's
             435      percentage of the total current year enrollment in all of the school districts within the county, as
             436      of the October 1 enrollment counts.
             437          (2) If a new school district is created or school district boundaries are adjusted, the
             438      enrollment and average annual enrollment growth for each affected school district shall be
             439      calculated on the basis of enrollment in school district schools located within that school
             440      district's newly created or adjusted boundaries, as of October 1 enrollment counts.
             441          (3) On or before December 31 of each year, the State Board of Education shall provide
             442      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             443      to distribute revenues as required by this section.
             444          (4) On or before March 31 of each year, a county treasurer in a county of the first class
             445      shall distribute the revenue generated within the county of the first class during the prior
             446      calendar year from the capital outlay levy described in Section 53A-16-107 .
             447          Section 12. Section 53A-16-110 is amended to read:
             448           53A-16-110. Special tax to buy school building sites, build and furnish
             449      schoolhouses, or improve school property.
             450          (1) (a) A local school board may, by following the process for special elections
             451      established in Sections 20A-1-203 and 20A-1-204 , call a special election to determine whether
             452      a special property tax should be levied for one or more years to buy building sites, build and
             453      furnish schoolhouses, or improve the school property under its control.
             454          (b) The tax may not exceed .2% of the taxable value of all taxable property in the
             455      district in any one year.
             456          (2) The board shall give reasonable notice of the election and follow the same
             457      procedure used in elections for the issuance of bonds.
             458          (3) If a majority of those voting on the proposition vote in favor of the tax, it is levied
             459      in addition to [those] a levy authorized under [Sections] Section 53A-17a-145 [and



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             460
     53A-21-103 ] and computed on the valuation of the county assessment roll for that year.
             461          (4) (a) Within 20 days after the election, the board shall certify the amount of the
             462      approved tax to the governing body of the county in which the school district is located.
             463          (b) The governing body shall acknowledge receipt of the certification and levy and
             464      collect the special tax.
             465          (c) It shall then distribute the collected taxes to the business administrator of the school
             466      district at the end of each calendar month.
             467          (5) The special tax becomes due and delinquent and attaches to and becomes a lien on
             468      real and personal property at the same time as state and county taxes.
             469          Section 13. Section 53A-17a-133 is amended to read:
             470           53A-17a-133. State-supported voted leeway program authorized -- Election
             471      requirements -- State guarantee -- Reconsideration of the program.
             472          (1) An election to consider adoption or modification of a voted leeway program is
             473      required if initiative petitions signed by 10% of the number of electors who voted at the last
             474      preceding general election are presented to the local school board or by action of the board.
             475          (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
             476      voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
             477      special tax.
             478          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             479          (b) The district may maintain a school program which exceeds the cost of the program
             480      referred to in Section 53A-17a-145 with this voted leeway.
             481          (c) In order to receive state support the first year, a district must receive voter approval
             482      no later than December 1 of the year prior to implementation.
             483          (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
             484      to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
             485      taxable value.
             486          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             487      of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
             488      in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
             489      taxable value if a school district levies a tax rate under both programs.
             490          (c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)



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             491
     shall be indexed each year to the value of the weighted pupil unit by making the value of the
             492      guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
             493          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             494      pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
             495      the prior year's weighted pupil unit.
             496          (d) (i) The amount of state guarantee money to which a school district would otherwise
             497      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             498      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             499      pursuant to changes in property valuation.
             500          (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
             501      the certified tax rate.
             502          (4) (a) An election to modify an existing voted leeway program is not a reconsideration
             503      of the existing program unless the proposition submitted to the electors expressly so states.
             504          (b) A majority vote opposing a modification does not deprive the district of authority to
             505      continue an existing program.
             506          (c) If adoption of a leeway program is contingent upon an offset reducing other local
             507      school board levies, the board must allow the electors, in an election, to consider modifying or
             508      discontinuing the program prior to a subsequent increase in other levies that would increase the
             509      total local school board levy.
             510          (d) Nothing contained in this section terminates, without an election, the authority of a
             511      school district to continue an existing voted leeway program previously authorized by the
             512      voters.
             513          (5) Notwithstanding Section 59-2-918 , a school district may budget an increased
             514      amount of ad valorem property tax revenue derived from a voted leeway imposed under this
             515      section in addition to revenue from new growth as defined in Subsection 59-2-924 [(2)] (4),
             516      without having to comply with the advertisement requirements of Section 59-2-918 , if the
             517      voted leeway is approved:
             518          (a) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             519          (b) within the four-year period immediately preceding the year in which the school
             520      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             521      the voted leeway.



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             522
         (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             523      section that exceeds the certified tax rate without having to comply with the advertisement
             524      requirements of Section 59-2-919 if:
             525          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             526      increased amount of ad valorem property tax revenue derived from a voted leeway imposed
             527      under this section; and
             528          (b) if the voted leeway was approved:
             529          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             530          (ii) within the four-year period immediately preceding the year in which the school
             531      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             532      the voted leeway.
             533          Section 14. Section 53A-19-102 is amended to read:
             534           53A-19-102. Local school boards budget procedures.
             535          (1) Prior to June 22 of each year, each local school board shall adopt a budget and
             536      make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
             537      certified tax rate defined in [Subsection] Section 59-2-924 [(2)], the board shall comply with
             538      Sections 59-2-918 and 59-2-919 in adopting the budget, except as provided by Section
             539      53A-17a-133 .
             540          (2) Prior to the adoption of a budget containing a tax rate which does not exceed the
             541      certified tax rate, the board shall hold a public hearing, as defined in Section 10-9a-103 , on the
             542      proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
             543      Act, in regards to the hearing, the board shall do the following:
             544          (a) publish the required newspaper notice at least ten days prior to the hearing; and
             545          (b) file a copy of the proposed budget with the board's business administrator for public
             546      inspection at least ten days prior to the hearing.
             547          (3) The board shall file a copy of the adopted budget with the state auditor and the
             548      State Board of Education.
             549          Section 15. Section 53A-19-105 is amended to read:
             550           53A-19-105. School district interfund transfers.
             551          (1) A school district shall spend revenues only within the fund for which they were
             552      originally authorized, levied, collected, or appropriated.



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             553
         (2) Except as otherwise provided in this section, school district interfund transfers of
             554      residual equity are prohibited.
             555          (3) The State Board of Education may authorize school district interfund transfers of
             556      residual equity when a district states its intent to create a new fund or expand, contract, or
             557      liquidate an existing fund.
             558          (4) The State Board of Education may also authorize school district interfund transfers
             559      of residual equity for a financially distressed district if the board determines the following:
             560          (a) the district has a significant deficit in its maintenance and operations fund caused
             561      by circumstances not subject to the administrative decisions of the district;
             562          (b) the deficit cannot be reasonably reduced under Section 53A-19-104 ; and
             563          (c) without the transfer, the school district will not be capable of meeting statewide
             564      educational standards adopted by the State Board of Education.
             565          (5) The board shall develop standards for defining and aiding financially distressed
             566      school districts under this section in accordance with Title 63, Chapter 46a, Utah
             567      Administrative Rulemaking Act.
             568          (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
             569      and reported in the debt service fund.
             570          (b) Debt service levies under Subsection 59-2-924 [(2)(a)(v)(C)] (3)(e)(iii) that are not
             571      subject to the certified tax rate hearing requirements of Sections 59-2-918 and 59-2-919 may
             572      not be used for any purpose other than retiring general obligation debt.
             573          (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
             574      year shall be used in subsequent years for general obligation debt retirement.
             575          (d) Any amounts left in the debt service fund after all general obligation debt has been
             576      retired may be transferred to the capital projects fund upon completion of the budgetary hearing
             577      process required under Section 53A-19-102 .
             578          Section 16. Section 53A-21-101.5 is enacted to read:
             579     
Part 1. General Provisions

             580          53A-21-101.5. Definitions.
             581          As used in this chapter:
             582          (1) "ADM" or "pupil in average daily membership" is as defined in Section
             583      53A-17a-103 .



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             584
         (2) "Combined capital levy rate" means a rate that includes the sum of the following
             585      property tax levies:
             586          (a) the capital outlay levy authorized in Section 53A-16-107 ;
             587          (b) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
             588      budgeted for debt service or capital outlay;
             589          (c) the debt service levy authorized in Section 11-14-310 ; and
             590          (d) the voted capital outlay leeway authorized in Section 53A-16-110 .
             591          (3) "Derived net taxable value" means the quotient of:
             592          (a) the total current property tax collections from April 1 through the following March
             593      31 for a school district; divided by
             594          (b) the school district's total tax rate for the calendar year preceding the March 31
             595      referenced in Subsection (3)(a).
             596          (4) "Highest combined capital levy rate" means the highest combined capital levy rate
             597      imposed by any school district within the state for a fiscal year.
             597a      H. (5) "Property tax base per ADM" means the quotient of:
             597b          (a) a school district's derived net taxable value; divided by
             597c          (b) the school district's ADM for the same year.
             598           [ (5) ] (6) .H "Property tax yield per ADM" means:
             599          (a) the product of:
             600          (i) a school district's derived net taxable value; and
             601          (ii) the highest combined capital levy rate for the fiscal year of the March 31 referenced
             602      in Subsection (3)(a); divided by
             603          (b) the school district's ADM for the same fiscal year.
             603a      H. (7) "Statewide average property tax base per ADM" means the quotient of:
             603b          (a) the sum of all school districts' derived net taxable value; divided by
             603c          (b) the sum of all school districts' ADM statewide for the same year. .H
             604          Section 17. Section 53A-21-102 is amended to read:
             605           53A-21-102. Capital outlay programs -- Use of funds.
             606          [(1) The Capital Outlay Foundation Program and the Enrollment Growth Program are
             607      established to provide revenues to school districts for the purposes of capital outlay bonding,
             608      construction, and renovation.]
             609          [(2) The Capital Outlay Loan Program is established to provide:]
             610          [(a) short-term help to school districts to meet district needs for school building
             611      construction and renovation; and]
             612          [(b) assistance to charter schools to meet school building construction and renovation
             613      needs.]
             614          [(3) School districts shall] A school district may only use the monies provided [to



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             615
     them] under [the programs established by this section solely] this chapter for school district
             616      capital outlay and debt service purposes.
             617          Section 18. Section 53A-21-201 is enacted to read:
             618     
Part 2. Capital Outlay Foundation Program

             619          53A-21-201. Capital Outlay Foundation Program -- Creation -- Definitions.
             620          (1) There is created the Capital Outlay Foundation Program to provide capital outlay
             621      funding to a school district based on a district's local property tax effort and property tax yield
             622      per student compared to a foundation guarantee funding level.
             623          (2) As used in this part:
             624          (a) "Foundation guarantee level per ADM" means a minimum revenue amount per
             625      ADM generated by the highest combined capital levy rate, including the following:
             626          (i) the revenue generated locally from a school district's combined capital levy rate; and
             627          (ii) the revenue allocated to a school district by the State Board of Education in
             628      accordance with Section 53A-21-202 .
             629          (b) "Qualifying school district" means a school district with a property tax yield per
             630      ADM less than the foundation guarantee level per ADM.
             631          Section 19. Section 53A-21-202 is enacted to read:
             632          53A-21-202. Capital Outlay Foundation Program -- Distribution formulas --
             633      Allocations.
             634          (1) For fiscal years beginning on or after July 1, 2008, the State Board of Education
             635      shall determine the foundation guarantee level per ADM that fully allocates the funds
             636      appropriated to the State Board of Education for distribution under this section.
             637          (2) By June 1, a county treasurer shall report to the State Board of Education the actual
             638      collections of property taxes in the school districts located within the county treasurer's county
             639      for the period beginning April 1 through the following March 31 immediately preceding that
             640      June 1.
             641          (3) If a qualifying school district imposes the highest combined capital levy rate in the
             642      prior year, the State Board of Education shall allocate to the qualifying school district an
             643      amount equal to the product of the following:
             644          (a) the qualifying school district's prior year ADM; and
             645          (b) an amount equal to the difference between the following:



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             646
         (i) the foundation guarantee level per ADM for that fiscal year, as determined in
             647      accordance with Subsection (1); and
             648          (ii) the qualifying school district's prior year property tax yield per ADM.
             649          (4) If a qualifying school district imposes a prior year combined capital levy rate less
             650      than the highest combined capital levy rate, the State Board of Education shall allocate to the
             651      qualifying school district an amount equal to the product of the following:
             652          (a) the qualifying school district's prior year ADM;
             653          (b) an amount equal to the difference between the following:
             654          (i) the foundation guarantee level per ADM for that fiscal year, as determined in
             655      accordance with Subsection (1); and
             656          (ii) the qualifying school district's prior year property tax yield per ADM; and
             657          (c) a percentage equal to:
             658          (i) the qualifying school district's prior year combined capital levy rate; divided by
             659          (ii) the highest combined capital levy rate.
             659a      H. (5)(a) The State Board of Education shall allocate:
             659b          (i) a minimum of $200,000 to each school district with a property tax base per ADM
             659c      less than or equal to the statewide average property tax base per ADM;
             659d          (ii) a minimum of $100,000 to each school district with a property tax base per ADM
             659e      that is:
             659f          (A) greater than the statewide average property tax base per ADM; and
             659g          (B) less than or equal to two times the statewide average property tax base per ADM;
             659h      and
             659i          (iii) a minimum of $50,000 to each school district with a property tax base per ADM
             659j      that is:
             659k          (A) greater than two times the statewide average property tax base per ADM; and
             659l          (B) less than or equal to five times the statewide average property tax base per ADM.
             659m          (b) The State Board of Education shall incorporate the minimum allocations described
             659n      in Subsection (5)(a) in its calculation of the foundation guarantee level per ADM determined in
             659o      accordance with Subsection (1). .H
             660          Section 20. Section 53A-21-301 is enacted to read:
             661     
Part 3. Capital Outlay Enrollment Growth Program

             662          53A-21-301. Capital Outlay Enrollment Growth Program - Definitions.
             663          (1) There is created the Capital Outlay Enrollment Growth Program to provide capital
             664      outlay funding to school districts experiencing net enrollment increases.


            
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House Floor Amendments 2-29-2008 je/ado
665
         (2) As used in this part:
             666          (a) "Average annual net enrollment increase" means the quotient of:
             667          (i) (A) enrollment in the current year, based on October 1 enrollment counts; minus
             668          (B) enrollment in the year three years prior, based on October 1 enrollment counts;
             669      divided by
             670          (ii) three.
             671          (b) "Eligible district" or "eligible school district" means a school district that:
             672          (i) has an average annual net enrollment increase; and
             673          (ii) has a prior year property tax base per student that is less than two times the prior
             674      year statewide average property tax base per student.
             675           H. [ (c) "Property tax base per student" means the quotient of:
             676          (i) a school district's derived net taxable value; divided by



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House Floor Amendments 2-29-2008 je/ado
             677
         (ii) the school district's ADM.
             678          (d) "Statewide average property tax base per student" means the quotient of:
             679          (i) the sum of all school districts' derived net taxable value; divided by
             680          (ii) the sum of total school district ADM statewide for the same year.
] .H

             681          Section 21. Section 53A-21-302 is enacted to read:
             682          53A-21-302. Capital Outlay Enrollment Growth Program -- Distribution
             683      formulas -- Allocations.
             684          (1) For fiscal years beginning on or after July 1, 2008, the State Board of Education
             685      shall annually allocate appropriated funds to eligible school districts in accordance with
             686      Subsection (2).
             687          (2) The State Board of Education shall allocate to an eligible school district an amount
             688      equal to the product of:
             689          (a) the quotient of:
             690          (i) the eligible school district's average annual net enrollment increase; divided by
             691          (ii) the sum of the average annual net enrollment increase in all eligible school
             692      districts; and
             693          (b) the total amount appropriated for the Capital Outlay Enrollment Growth Program in
             694      that fiscal year.
             695          Section 22. Section 53A-21-401 , which is renumbered from Section 53A-21-104 is
             696      renumbered and amended to read:
             697     
Part 4. Capital Outlay Loan Program

             698           [53A-21-104].     53A-21-401. Capital Outlay Loan Program -- School
             699      Building Revolving Account -- Access to the account.
             700          (1) There is created:
             701          (a) the "Capital Outlay Loan Program" to provide:
             702          (i) short-term help to school districts to meet district needs for school building
             703      construction and renovation; and
             704          (ii) assistance to charter schools to meet school building construction and renovation
             705      needs; and
             706          (b) a nonlapsing "School Building Revolving Account" administered within the
             707      Uniform School Fund by the state superintendent of public instruction in accordance with rules



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             708
     adopted by the State Board of Education.
             709          (2) [Monies received by a school district] The State Board of Education may not
             710      allocate funds from the School Building Revolving Account [may not] that exceed [the] a
             711      school district's bonding limit minus its outstanding bonds.
             712          (3) In order to receive monies from the account, a school district [must do the
             713      following] shall:
             714          (a) levy a [tax of] combined capital levy rate of at least .0024 [for capital outlay and
             715      debt service];
             716          (b) contract with the state superintendent of public instruction to repay the monies,
             717      with interest at a rate established by the state superintendent, within five years of [their] receipt,
             718      using future state [building monies or] capital outlay allocations, local revenues, or both;
             719          (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan
             720      repayments, unless the state superintendent of public instruction alters the payment schedule to
             721      improve a hardship situation; and
             722          (d) meet any other condition established by the State Board of Education pertinent to
             723      the loan.
             724          (4) (a) The state superintendent shall establish a committee, including representatives
             725      from state and local education entities, to:
             726          (i) review requests by school districts for loans under this section; and
             727          (ii) make recommendations regarding approval or disapproval of the loan applications
             728      to the state superintendent.
             729          (b) If the committee recommends approval of a loan application under Subsection
             730      (4)(a)(ii), the committee's recommendation shall include:
             731          (i) the recommended amount of the loan;
             732          (ii) the payback schedule; and
             733          (iii) the interest rate to be charged.
             734          (5) (a) There is established within the School Building Revolving Account the Charter
             735      School Building Subaccount administered by the State Board of Education, in consultation
             736      with the State Charter School Board, in accordance with rules adopted by the State Board of
             737      Education.
             738          (b) The Charter School Building Subaccount shall consist of:



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             739
         (i) money appropriated to the subaccount by the Legislature;
             740          (ii) money received from the repayment of loans made from the subaccount; and
             741          (iii) interest earned on monies in the subaccount.
             742          (c) The state superintendent of public instruction shall make loans to charter schools
             743      from the Charter School Building Subaccount to pay for the costs of:
             744          (i) planning expenses;
             745          (ii) constructing or renovating charter school buildings;
             746          (iii) equipment and supplies; or
             747          (iv) other start-up or expansion expenses.
             748          (d) Loans to new charter schools or charter schools with urgent facility needs may be
             749      given priority.
             750          (6) (a) The State Board of Education shall establish a committee, which shall include
             751      individuals who have expertise or experience in finance, real estate, and charter school
             752      administration, one of whom shall be nominated by the governor to:
             753          (i) review requests by charter schools for loans under this section; and
             754          (ii) make recommendations regarding approval or disapproval of the loan applications
             755      to the State Charter School Board and the State Board of Education.
             756          (b) If the committee recommends approval of a loan application under Subsection
             757      (6)(a)(ii), the committee's recommendation shall include:
             758          (i) the recommended amount of the loan;
             759          (ii) the payback schedule; and
             760          (iii) the interest rate to be charged.
             761          (c) The committee members may not:
             762          (i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or
             763          (ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
             764      or entity that contracts with a loan applicant.
             765          (7) The State Board of Education, in consultation with the State Charter School Board,
             766      shall approve all loans to a charter [schools] school under this section.
             767          (8) [Loans] The term of a loan to a charter [schools] school under this section may not
             768      exceed [a term of] five years.
             769          (9) The State Board of Education may not approve loans to charter schools under this



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             770
     section that exceed a total of $2,000,000 in any year.
             771          Section 23. Section 53A-21-501 , which is renumbered from Section 53A-21-105 is
             772      renumbered and amended to read:
             773     
Part 5. Fiscal Matters

             774           [53A-21-105].     53A-21-501. State contribution to capital outlay programs.
             775          (1) As an ongoing appropriation subject to future budget constraints, there is
             776      appropriated from the Uniform School Fund for fiscal year [2007-08] 2008-09, $27,288,900 to
             777      the State Board of Education for the capital outlay programs created in [Section 53A-21-102 ]
             778      this chapter.
             779          (2) Of the monies appropriated in Subsection (1), the State Board of Education shall
             780      distribute:
             781          (a) $24,358,000 in accordance with the Capital Outlay Foundation Program [described
             782      in Section 53A-21-103 ] pursuant to Section 53A-21-202 ; and
             783          (b) $2,930,900 in accordance with the Capital Outlay Enrollment Growth Program
             784      [described in Section 53A-21-103.5 ] pursuant to Section 53A-21-302 .
             785          Section 24. Section 59-2-908 is amended to read:
             786           59-2-908. Single aggregate limitation -- Maximum levy.
             787          (1) Except as provided in Subsection (2), each county shall have a single aggregate
             788      limitation on the property tax levied for all purposes by the county. Except as provided in
             789      Section 59-2-911 , this limitation may not exceed the maximum set forth in this section. The
             790      maximum is:
             791          (a) .0032 per dollar of taxable value in all counties with a total taxable value of more
             792      than $100,000,000; and
             793          (b) .0036 per dollar of taxable value in all counties with a total taxable value of less
             794      than $100,000,000.
             795          (2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
             796      limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
             797      generates revenues for the county in an amount that is less than the revenues that would be
             798      generated by the county under the certified tax rate established in [Subsection] Section
             799      59-2-924 [(2)].
             800          (b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that



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             801
     does not exceed the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
             802          Section 25. Section 59-2-913 is amended to read:
             803           59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
             804      statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
             805      establishing tax levies -- Format of statement.
             806          (1) As used in this section, "budgeted property tax revenues" does not include property
             807      tax revenue received by a taxing entity from personal property that is:
             808          (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
             809          (b) semiconductor manufacturing equipment.
             810          (2) (a) The legislative body of each taxing entity shall file a statement as provided in
             811      this section with the county auditor of the county in which the taxing entity is located.
             812          (b) The auditor shall annually transmit the statement to the commission:
             813          (i) before June 22; or
             814          (ii) with the approval of the commission, on a subsequent date prior to the date
             815      established under Section 59-2-1317 for mailing tax notices.
             816          (c) The statement shall contain the amount and purpose of each levy fixed by the
             817      legislative body of the taxing entity.
             818          (3) For purposes of establishing the levy set for each of a taxing entity's applicable
             819      funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
             820      the budgeted property tax revenues, specified in a budget which has been adopted and
             821      approved prior to setting the levy, by the amount calculated under Subsections
             822      59-2-924 [(2)(a)(iii)(B)(I) through (III)] (3)(c)(ii)(A) through (C).
             823          (4) The format of the statement under this section shall:
             824          (a) be determined by the commission; and
             825          (b) cite any applicable statutory provisions that:
             826          (i) require a specific levy; or
             827          (ii) limit the property tax levy for any taxing entity.
             828          (5) The commission may require certification that the information submitted on a
             829      statement under this section is true and correct.
             830          Section 26. Section 59-2-914 is amended to read:
             831           59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement



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             832
     adjusted levies to county auditor.
             833          (1) If the commission determines that a levy established for a taxing entity set under
             834      Section 59-2-913 is in excess of the maximum levy permitted by law, the commission shall:
             835          (a) lower the levy so that it is set at the maximum level permitted by law;
             836          (b) notify the taxing entity which set the excessive rate that the rate has been lowered;
             837      and
             838          (c) notify the county auditor of the county or counties in which the taxing entity is
             839      located to implement the rate established by the commission.
             840          (2) A levy set for a taxing entity by the commission under this section shall be the
             841      official levy for that taxing entity unless:
             842          (a) the taxing entity lowers the levy established by the commission; or
             843          (b) the levy is subsequently modified by a court order.
             844          (3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
             845      a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the
             846      rate established by the taxing entity for the current year generates revenues for the taxing entity
             847      in an amount that is less than the revenues that would be generated by the taxing entity under
             848      the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
             849          (b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax
             850      rate that does not exceed the certified rate established in [Subsection] Section 59-2-924 [(2)].
             851          Section 27. Section 59-2-918 is amended to read:
             852           59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
             853          (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
             854      increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
             855      in Subsection 59-2-924 [(2)] (4) unless it advertises its intention to do so at the same time that it
             856      advertises its intention to fix its budget for the forthcoming fiscal year.
             857          (b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             858      advertisement or hearing requirements of this section if:
             859          (A) the taxing entity:
             860          (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
             861      or
             862          (II) is expressly exempted by law from complying with the requirements of this



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             863
     section; or
             864          (B) the increased amount of ad valorem tax revenue results from a tax rate increase that
             865      is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and hearing
             866      requirements of Section 59-2-919 .
             867          (ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             868      advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
             869      budget an increased amount of ad valorem property tax revenue without having to comply with
             870      the advertisement requirements of this section.
             871          (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
             872      advertisement required by this section may be combined with the advertisement required by
             873      Section 59-2-919 .
             874          (b) For taxing entities operating under a January 1 through December 31 fiscal year,
             875      the advertisement required by this section shall meet the size, type, placement, and frequency
             876      requirements established under Section 59-2-919 .
             877          (3) The form of the advertisement required by this section shall meet the size, type,
             878      placement, and frequency requirements established under Section 59-2-919 and shall be
             879      substantially as follows:
             880     
"NOTICE OF PROPOSED TAX INCREASE

             881     
(NAME OF TAXING ENTITY)

             882          The (name of the taxing entity) is proposing to increase its property tax revenue.
             883          *    If the proposed budget is approved, this would be an increase of _____% above
             884      the (name of the taxing entity) property tax budgeted revenue for the prior year.
             885          *    The (name of the taxing entity) tax on a (insert the average value of a residence
             886      in the taxing entity rounded to the nearest thousand dollars) residence would
             887      increase from $______ to $________, which is $_______ per year.
             888          *    The (name of the taxing entity) tax on a (insert the value of a business having
             889      the same value as the average value of a residence in the taxing entity) business
             890      would increase from $________ to $_______, which is $______ per year.
             891          All concerned citizens are invited to a public hearing on the tax increase.
             892     
PUBLIC HEARING

             893          Date/Time:    (date) (time)



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             894
         Location:    (name of meeting place and address of meeting place)
             895          To obtain more information regarding the tax increase, citizens may contact the (name
             896      of the taxing entity) at (phone number of taxing entity)."
             897          (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
             898      revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
             899      announce at the public hearing the scheduled time and place for consideration and adoption of
             900      the proposed budget increase.
             901          (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
             902      year shall by March 1 notify the county of the date, time, and place of the public hearing at
             903      which the budget for the following fiscal year will be considered.
             904          (b) The county shall include the information described in Subsection (5)(a) with the tax
             905      notice.
             906          (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
             907      p.m.
             908          Section 28. Section 59-2-924 is amended to read:
             909           59-2-924. Report of valuation of property to county auditor and commission --
             910      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
             911      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             912          (1) [(a)] Before June 1 of each year, the county assessor of each county shall deliver to
             913      the county auditor and the commission the following statements:
             914          [(i)] (a) a statement containing the aggregate valuation of all taxable property in each
             915      taxing entity; and
             916          [(ii)] (b) a statement containing the taxable value of any additional personal property
             917      estimated by the county assessor to be subject to taxation in the current year.
             918          [(b)] (2) The county auditor shall, on or before June 8, transmit to the governing body
             919      of each taxing entity:
             920          [(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
             921          [(ii)] (b) an estimate of the revenue from personal property;
             922          [(iii)] (c) the certified tax rate; and
             923          [(iv)] (d) all forms necessary to submit a tax levy request.
             924          [(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad



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             925
     valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
             926      prior year.
             927          [(ii)] (b) For purposes of this Subsection [(2)](3), "ad valorem property tax revenues"
             928      do not include:
             929          [(A)] (i) collections from redemptions;
             930          [(B)] (ii) interest;
             931          [(C)] (iii) penalties; and
             932          [(D)] (iv) revenue received by a taxing entity from personal property that is:
             933          [(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
             934      and
             935          [(II)] (B) semiconductor manufacturing equipment.
             936          [(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
             937      be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
             938      the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
             939          [(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
             940      taxing entity shall calculate an amount as follows:
             941          [(I)] (A) calculate for the taxing entity the difference between:
             942          [(Aa)] (I) the aggregate taxable value of all property taxed; and
             943          [(Bb)] (II) any redevelopment adjustments for the current calendar year;
             944          [(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]
             945      (3)(c)(ii)(A), calculate an amount determined by increasing or decreasing the amount
             946      calculated under Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A) by the average of the percentage net
             947      change in the value of taxable property for the equalization period for the three calendar years
             948      immediately preceding the current calendar year;
             949          [(III)] (C) after making the calculation required by Subsection [(2)(a)(iii)(B)(II)]
             950      (3)(c)(ii)(B), calculate the product of:
             951          [(Aa)] (I) the amount calculated under Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B); and
             952          [(Bb)] (II) the percentage of property taxes collected for the five calendar years
             953      immediately preceding the current calendar year; and
             954          [(IV)] (D) after making the calculation required by Subsection [(2)(a)(iii)(B)(III)]
             955      (3)(c)(ii)(C), calculate an amount determined by subtracting from the amount calculated under



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             956
     Subsection [(2)(a)(iii)(B)(III)] (3)(c)(ii)(C) any new growth as defined in this section:
             957          [(Aa)] (I) within the taxing entity; and
             958          [(Bb)] (II) for the current calendar year.
             959          [(C)] (iii) For purposes of Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A), the aggregate
             960      taxable value of all property taxed:
             961          [(I)] (A) except as provided in Subsection [(2)(a)(iii)(C)(II)] (3)(c)(iii)(B), includes the
             962      total taxable value of the real and personal property contained on the tax rolls of the taxing
             963      entity; and
             964          [(II)] (B) does not include the total taxable value of personal property contained on the
             965      tax rolls of the taxing entity that is:
             966          [(Aa)] (I) assessed by a county assessor in accordance with Part 3, County Assessment;
             967      and
             968          [(Bb)] (II) semiconductor manufacturing equipment.
             969          [(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
             970      beginning on or after January 1, 2007, the value of taxable property does not include the value
             971      of personal property that is:
             972          [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
             973      3, County Assessment; and
             974          [(II)] (B) semiconductor manufacturing equipment.
             975          [(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
             976      calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
             977      does not include property taxes collected from personal property that is:
             978          [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
             979      3, County Assessment; and
             980          [(II)] (B) semiconductor manufacturing equipment.
             981          [(F)] (vi) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             982      Act, the commission may prescribe rules for calculating redevelopment adjustments for a
             983      calendar year.
             984          [(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
             985      Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
             986      property tax revenues budgeted by a taxing entity.



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             987
         [(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
             988      revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted
             989      property tax revenues are calculated for purposes of Section 59-2-913 .
             990          [(v)] (e) The certified tax rates for the taxing entities described in this Subsection
             991      [(2)(a)(v)] (3)(e) shall be calculated as follows:
             992          [(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
             993      entities the certified tax rate is zero;
             994          [(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax
             995      rate is:
             996          [(I)] (A) in a county of the first, second, or third class, the levy imposed for
             997      municipal-type services under Sections 17-34-1 and 17-36-9 ; and
             998          [(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
             999      county purposes and such other levies imposed solely for the municipal-type services identified
             1000      in Section 17-34-1 and Subsection 17-36-3 (22); and
             1001          [(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
             1002      actual levy imposed by that section, except that the certified tax rates for the following levies
             1003      shall be calculated in accordance with Section 59-2-913 and this section:
             1004          [(I)] (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 ,
             1005      [ 53A-17a-125 ,] 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , and 53A-17a-145 [,
             1006      and 53A-21-103 ]; and
             1007          [(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
             1008      administrative orders under Section 59-2-906.3 .
             1009          [(vi) (A)] (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall
             1010      be established at that rate which is sufficient to generate only the revenue required to satisfy
             1011      one or more eligible judgments, as defined in Section 59-2-102 .
             1012          [(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
             1013      be considered in establishing the taxing entity's aggregate certified tax rate.
             1014          (g) The ad valorem property tax revenue generated by the capital outlay levy described
             1015      in Section 53A-16-107 within a taxing entity in a county of the first class:
             1016          (i) may not be considered in establishing the school district's aggregate certified tax
             1017      rate; and



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             1018
         (ii) shall be included by the commission in establishing a certified tax rate for that
             1019      capital outlay levy determined in accordance with the calculation described in Subsection
             1020      59-2-913 (3).
             1021          [(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
             1022      shall use the taxable value of property on the assessment roll.
             1023          [(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
             1024      property on the assessment roll does not include:
             1025          [(A)] (i) new growth as defined in Subsection [(2)(b)(iii); or] (4)(c); or
             1026          [(B)] (ii) the total taxable value of personal property contained on the tax rolls of the
             1027      taxing entity that is:
             1028          [(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
             1029      and
             1030          [(II)] (B) semiconductor manufacturing equipment.
             1031          [(iii)] (c) "New growth" means:
             1032          [(A)] (i) the difference between the increase in taxable value of the taxing entity from
             1033      the previous calendar year to the current year; minus
             1034          [(B)] (ii) the amount of an increase in taxable value described in Subsection [(2)(b)(v)]
             1035      (4)(e).
             1036          [(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of the
             1037      taxing entity does not include the taxable value of personal property that is:
             1038          [(A)] (i) contained on the tax rolls of the taxing entity if that property is assessed by a
             1039      county assessor in accordance with Part 3, County Assessment; and
             1040          [(B)] (ii) semiconductor manufacturing equipment.
             1041          [(v)] (e) Subsection [(2)(b)(iii)(B)] (4)(c)(ii) applies to the following increases in
             1042      taxable value:
             1043          [(A)] (i) the amount of increase to locally assessed real property taxable values
             1044      resulting from factoring, reappraisal, or any other adjustments; or
             1045          [(B)] (ii) the amount of an increase in the taxable value of property assessed by the
             1046      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             1047      taxable value prescribed by:
             1048          [(I)] (A) the Legislature;



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             1049
         [(II)] (B) a court;
             1050          [(III)] (C) the commission in an administrative rule; or
             1051          [(IV)] (D) the commission in an administrative order.
             1052          [(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             1053      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1054      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             1055      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             1056      rate to offset the increased revenues.]
             1057          [(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             1058      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:]
             1059          [(A) decreased on a one-time basis by the amount of the estimated sales and use tax
             1060      revenue to be distributed to the county under Subsection 59-12-1102 (3); and]
             1061          [(B) increased by the amount necessary to offset the county's reduction in revenue
             1062      from uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1063      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             1064      (2)(d)(i)(A).]
             1065          [(ii) The commission shall determine estimates of sales and use tax distributions for
             1066      purposes of Subsection (2)(d)(i).]
             1067          [(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             1068      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             1069      decreased on a one-time basis by the amount necessary to offset the first 12 months of
             1070      estimated revenue from the additional resort communities sales and use tax imposed under
             1071      Section 59-12-402 .]
             1072          [(f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
             1073      Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
             1074      unincorporated area of the county shall be decreased by the amount necessary to reduce
             1075      revenues in that fiscal year by an amount equal to the difference between the amount the county
             1076      budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
             1077      countywide and the amount the county spent during fiscal year 2000 for those services,
             1078      excluding amounts spent from a municipal services fund for those services.]
             1079          [(B) For fiscal year 2001, the certified tax rate of each county to which Subsection



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             1080
     (2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
             1081      year by the amount that the county spent during fiscal year 2000 for advanced life support and
             1082      paramedic services countywide, excluding amounts spent from a municipal services fund for
             1083      those services.]
             1084          [(ii) (A) A city or town located within a county of the first class to which Subsection
             1085      (2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
             1086      the city or town the same amount of revenues as the county would collect from that city or
             1087      town if the decrease under Subsection (2)(f)(i) did not occur.]
             1088          [(B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal
             1089      year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
             1090      of Sections 59-2-918 and 59-2-919 .]
             1091          [(g) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
             1092      provide detective investigative services to the unincorporated area of the county shall be
             1093      decreased:]
             1094          [(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
             1095      by at least $4,400,000; and]
             1096          [(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
             1097      by an amount equal to the difference between $9,258,412 and the amount of the reduction in
             1098      revenues under Subsection (2)(g)(i)(A).]
             1099          [(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             1100      county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
             1101      within the city or town the same amount of revenue as the county would have collected during
             1102      county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).]
             1103          [(II) Beginning with municipal fiscal year 2003, a city or town located within a county
             1104      to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
             1105      city or town the same amount of revenue as the county would have collected during county
             1106      fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).]
             1107          [(B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
             1108      town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
             1109      or spread over multiple fiscal years, is subject to the notice and hearing requirements of
             1110      Sections 59-2-918 and 59-2-919 .]



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             1111
         [(II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does
             1112      not exceed the same amount of revenue as the county would have collected except for
             1113      Subsection (2)(g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the
             1114      city or town:]
             1115          [(Aa) publishes a notice that meets the size, type, placement, and frequency
             1116      requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
             1117      by the county to one imposed by the city or town, and explains how the revenues from the tax
             1118      increase will be used; and]
             1119          [(Bb) holds a public hearing on the tax shift that may be held in conjunction with the
             1120      city or town's regular budget hearing.]
             1121          [(h) (i) This Subsection (2)(h) applies to each county that:]
             1122          [(A) establishes a countywide special service district under Title 17A, Chapter 2, Part
             1123      13, Utah Special Service District Act, to provide jail service, as provided in Subsection
             1124      17A-2-1304 (1)(a)(x); and]
             1125          [(B) levies a property tax on behalf of the special service district under Section
             1126      17A-2-1322 .]
             1127          [(ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
             1128      shall be decreased by the amount necessary to reduce county revenues by the same amount of
             1129      revenues that will be generated by the property tax imposed on behalf of the special service
             1130      district.]
             1131          [(B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
             1132      the levy on behalf of the special service district under Section 17A-2-1322 .]
             1133          [(i) (i) As used in this Subsection (2)(i):]
             1134          [(A) "Annexing county" means a county whose unincorporated area is included within
             1135      a fire district by annexation.]
             1136          [(B) "Annexing municipality" means a municipality whose area is included within a
             1137      fire district by annexation.]
             1138          [(C) "Equalized fire protection tax rate" means the tax rate that results from:]
             1139          [(I) calculating, for each participating county and each participating municipality, the
             1140      property tax revenue necessary to cover all of the costs associated with providing fire
             1141      protection, paramedic, and emergency services:]



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             1142
         [(Aa) for a participating county, in the unincorporated area of the county; and]
             1143          [(Bb) for a participating municipality, in the municipality; and]
             1144          [(II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
             1145      participating counties and all participating municipalities and then dividing that sum by the
             1146      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :]
             1147          [(Aa) for participating counties, in the unincorporated area of all participating counties;
             1148      and]
             1149          [(Bb) for participating municipalities, in all the participating municipalities.]
             1150          [(D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
             1151      Area Act, in the creation of which an election was not required under Subsection
             1152      17B-1-214 (3)(c).]
             1153          [(E) "Fire protection tax rate" means:]
             1154          [(I) for an annexing county, the property tax rate that, when applied to taxable property
             1155      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             1156      costs associated with providing fire protection, paramedic, and emergency services in the
             1157      unincorporated area of the county; and]
             1158          [(II) for an annexing municipality, the property tax rate that generates enough property
             1159      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             1160      paramedic, and emergency services in the municipality.]
             1161          [(F) "Participating county" means a county whose unincorporated area is included
             1162      within a fire district at the time of the creation of the fire district.]
             1163          [(G) "Participating municipality" means a municipality whose area is included within a
             1164      fire district at the time of the creation of the fire district.]
             1165          [(ii) In the first year following creation of a fire district, the certified tax rate of each
             1166      participating county and each participating municipality shall be decreased by the amount of
             1167      the equalized fire protection tax rate.]
             1168          [(iii) In the first year following annexation to a fire district, the certified tax rate of each
             1169      annexing county and each annexing municipality shall be decreased by the fire protection tax
             1170      rate.]
             1171          [(iv) Each tax levied under this section by a fire district shall be considered to be levied
             1172      by:]



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             1173
         [(A) each participating county and each annexing county for purposes of the county's
             1174      tax limitation under Section 59-2-908 ; and]
             1175          [(B) each participating municipality and each annexing municipality for purposes of
             1176      the municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
             1177      city.]
             1178          [(j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             1179      entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
             1180      certified tax rate that may result from excluding the following from the certified tax rate under
             1181      Subsection (2)(a) enacted by the Legislature during the 2007 General Session:]
             1182          [(i) personal property tax revenue:]
             1183          [(A) received by a taxing entity;]
             1184          [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
             1185          [(C) for personal property that is semiconductor manufacturing equipment; or]
             1186          [(ii) the taxable value of personal property:]
             1187          [(A) contained on the tax rolls of a taxing entity;]
             1188          [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
             1189          [(C) that is semiconductor manufacturing equipment.]
             1190          [(3)] (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative
             1191      budget.
             1192          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             1193      auditor of:
             1194          (i) its intent to exceed the certified tax rate; and
             1195          (ii) the amount by which it proposes to exceed the certified tax rate.
             1196          (c) The county auditor shall notify all property owners of any intent to exceed the
             1197      certified tax rate in accordance with Subsection 59-2-919 [(2)] (3).
             1198          [(4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             1199      reduced for any year to the extent necessary to provide a community development and renewal
             1200      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             1201      Development and Renewal Agencies, with approximately the same amount of money the
             1202      agency would have received without a reduction in the county's certified tax rate if:]
             1203          [(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or



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             1204
     (2)(d)(i);]
             1205          [(ii) the amount of the decrease is more than 20% of the county's certified tax rate of
             1206      the previous year; and]
             1207          [(iii) the decrease results in a reduction of the amount to be paid to the agency under
             1208      Section 17C-1-403 or 17C-1-404 .]
             1209          [(b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             1210      year to the extent necessary to provide a community development and renewal agency with
             1211      approximately the same amount of money as the agency would have received without an
             1212      increase in the certified tax rate that year if:]
             1213          [(i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             1214      a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and]
             1215          [(ii) The certified tax rate of a city, school district, local district, or special service
             1216      district increases independent of the adjustment to the taxable value of the base year.]
             1217          [(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
             1218      (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
             1219      development and renewal agency established under Title 17C, Limited Purpose Local
             1220      Government Entities - Community Development and Renewal Agencies, for the payment of
             1221      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             1222      amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
             1223      (2)(d)(i).]
             1224          Section 29. Section 59-2-924.2 is enacted to read:
             1225          59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
             1226          (1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
             1227      in accordance with Section 59-2-924 .
             1228          (2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             1229      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1230      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             1231      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             1232      rate to offset the increased revenues.
             1233          (3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             1234      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:



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             1235
         (i) decreased on a one-time basis by the amount of the estimated sales and use tax
             1236      revenue to be distributed to the county under Subsection 59-12-1102 (3); and
             1237          (ii) increased by the amount necessary to offset the county's reduction in revenue from
             1238      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1239      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             1240      (3)(a)(i).
             1241          (b) The commission shall determine estimates of sales and use tax distributions for
             1242      purposes of Subsection (3)(a).
             1243          (4) Beginning January 1, 1998, if a municipality has imposed an additional resort
             1244      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             1245      decreased on a one-time basis by the amount necessary to offset the first 12 months of
             1246      estimated revenue from the additional resort communities sales and use tax imposed under
             1247      Section 59-12-402 .
             1248          (5) (a) This Subsection (5) applies to each county that:
             1249          (i) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
             1250      Utah Special Service District Act, to provide jail service, as provided in Subsection
             1251      17A-2-1304 (1)(a)(x); and
             1252          (ii) levies a property tax on behalf of the special service district under Section
             1253      17A-2-1322 .
             1254          (b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
             1255      decreased by the amount necessary to reduce county revenues by the same amount of revenues
             1256      that will be generated by the property tax imposed on behalf of the special service district.
             1257          (ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
             1258      levy on behalf of the special service district under Section 17A-2-1322 .
             1259          (6) (a) As used in this Subsection (6):
             1260          (i) "Annexing county" means a county whose unincorporated area is included within a
             1261      fire district by annexation.
             1262          (ii) "Annexing municipality" means a municipality whose area is included within a fire
             1263      district by annexation.
             1264          (iii) "Equalized fire protection tax rate" means the tax rate that results from:
             1265          (A) calculating, for each participating county and each participating municipality, the



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             1266
     property tax revenue necessary to cover all of the costs associated with providing fire
             1267      protection, paramedic, and emergency services:
             1268          (I) for a participating county, in the unincorporated area of the county; and
             1269          (II) for a participating municipality, in the municipality; and
             1270          (B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
             1271      participating counties and all participating municipalities and then dividing that sum by the
             1272      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
             1273          (I) for participating counties, in the unincorporated area of all participating counties;
             1274      and
             1275          (II) for participating municipalities, in all the participating municipalities.
             1276          (iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
             1277      Area Act, in the creation of which an election was not required under Subsection
             1278      17B-1-214 (3)(c).
             1279          (v) "Fire protection tax rate" means:
             1280          (A) for an annexing county, the property tax rate that, when applied to taxable property
             1281      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             1282      costs associated with providing fire protection, paramedic, and emergency services in the
             1283      unincorporated area of the county; and
             1284          (B) for an annexing municipality, the property tax rate that generates enough property
             1285      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             1286      paramedic, and emergency services in the municipality.
             1287          (vi) "Participating county" means a county whose unincorporated area is included
             1288      within a fire district at the time of the creation of the fire district.
             1289          (vii) "Participating municipality" means a municipality whose area is included within a
             1290      fire district at the time of the creation of the fire district.
             1291          (b) In the first year following creation of a fire district, the certified tax rate of each
             1292      participating county and each participating municipality shall be decreased by the amount of
             1293      the equalized fire protection tax rate.
             1294          (c) In the first year following annexation to a fire district, the certified tax rate of each
             1295      annexing county and each annexing municipality shall be decreased by the fire protection tax
             1296      rate.



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             1297
         (d) Each tax levied under this section by a fire district shall be considered to be levied
             1298      by:
             1299          (i) each participating county and each annexing county for purposes of the county's tax
             1300      limitation under Section 59-2-908 ; and
             1301          (ii) each participating municipality and each annexing municipality for purposes of the
             1302      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
             1303      city.
             1304          (7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             1305      entity's certified tax rate, calculated in accordance with Section 59-2-924 , shall be adjusted by
             1306      the amount necessary to offset any change in the certified tax rate that may result from
             1307      excluding the following from the certified tax rate under Subsection 59-2-924 (3) enacted by the
             1308      Legislature during the 2007 General Session:
             1309          (a) personal property tax revenue:
             1310          (i) received by a taxing entity;
             1311          (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1312          (iii) for personal property that is semiconductor manufacturing equipment; or
             1313          (b) the taxable value of personal property:
             1314          (i) contained on the tax rolls of a taxing entity;
             1315          (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1316          (iii) that is semiconductor manufacturing equipment.
             1317          (8) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             1318      reduced for any year to the extent necessary to provide a community development and renewal
             1319      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             1320      Development and Renewal Agencies, with approximately the same amount of money the
             1321      agency would have received without a reduction in the county's certified tax rate, calculated in
             1322      accordance with Section 59-2-924 , if:
             1323          (i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
             1324          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             1325      previous year; and
             1326          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             1327      Section 17C-1-403 or 17C-1-404 .



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             1328
         (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             1329      year to the extent necessary to provide a community development and renewal agency with
             1330      approximately the same amount of money as the agency would have received without an
             1331      increase in the certified tax rate that year if:
             1332          (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             1333      a decrease in the certified tax rate under Subsection (2) or (3)(a); and
             1334          (ii) the certified tax rate of a city, school district, local district, or special service
             1335      district increases independent of the adjustment to the taxable value of the base year.
             1336          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
             1337      the amount of money allocated and, when collected, paid each year to a community
             1338      development and renewal agency established under Title 17C, Limited Purpose Local
             1339      Government Entities - Community Development and Renewal Agencies, for the payment of
             1340      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             1341      amount would have been without a decrease in the certified tax rate under Subsection (2) or
             1342      (3)(a).
             1343          Section 30. Section 59-2-924.3 is enacted to read:
             1344          59-2-924.3. Adjustment of the calculation of the certified tax rate for a school
             1345      district imposing a capital outlay levy in a county of the first class.
             1346          (1) As used in this section:
             1347          (a) "Capital outlay increment" means the amount of revenue equal to the difference
             1348      between:
             1349          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1350      within a school district during a fiscal year; and
             1351          (ii) the amount of revenue the school district received during the same fiscal year from
             1352      the distribution described in Subsection 53A-16-107.1 (1).
             1353          (b) "Contributing school district" means a school district in a county of the first class
             1354      that in a fiscal year receives less revenue from the distribution described in Subsection
             1355      53A-16-107.1 (1) than it would have received during the same fiscal year from a levy imposed
             1356      within the school district of .0006 per dollar of taxable value.
             1357          (c) "Receiving school district" means a school district in a county of the first class that
             1358      in a fiscal year receives more revenue from the distribution described in Subsection



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             1359
     53A-16-107.1 (1) than it would have received during the same fiscal year from a levy imposed
             1360      within the school district of .0006 per dollar of taxable value.
             1361          (2) For fiscal year 2009-10, a receiving school district shall decrease its capital outlay
             1362      certified tax rate under Subsection 59-2-924 (3)(g)(ii) by an amount required to offset the
             1363      receiving school district's estimated capital outlay increment for the current fiscal year.
             1364          (3) Beginning with fiscal year 2010-11, a receiving school district shall decrease its
             1365      capital outlay certified tax rate under Subsection 59-2-924 (3)(g)(ii) by the amount required to
             1366      offset the receiving school district's capital outlay increment for the prior fiscal year.
             1367          (4) For fiscal year 2009-10, a contributing school district is exempt from the public
             1368      notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school district's
             1369      capital outlay levy certified tax rate calculated pursuant to Subsection 59-2-924 (3)(g)(ii) if:
             1370          (a) the contributing school district budgets an increased amount of ad valorem property
             1371      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
             1372      outlay levy described in Section 53A-16-107 ; and
             1373          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1374      (4)(a) is less than or equal to that contributing school district's estimated capital outlay
             1375      increment for the current fiscal year.
             1376          (5) Beginning with fiscal year 2010-11, a contributing school district is exempt from
             1377      the public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
             1378      district's capital outlay levy certified tax rate calculated pursuant to Subsection
             1379      59-2-924 (3)(g)(ii) if:
             1380          (a) the contributing school district budgets an increased amount of ad valorem property
             1381      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
             1382      outlay levy described in Section 53A-16-107 ; and
             1383          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1384      (5)(a) is less than or equal to that contributing school district's capital outlay increment for the
             1385      prior year.
             1386          (6) Beginning with fiscal year 2011-12, a contributing school district is exempt from
             1387      the public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
             1388      district's capital outlay levy certified tax rate calculated pursuant to Subsection
             1389      59-2-924 (3)(g)(ii) if:



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House Floor Amendments 2-29-2008 je/ado
             1390
         (a) the contributing school district budgets an increased amount of ad valorem property
             1391      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
             1392      outlay levy described in Section 53A-16-107 ; and
             1393          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1394      (6)(a) is less than or equal to the difference between:
             1395          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1396      imposed within the contributing school district during the current taxable year; and
             1397          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1398      imposed within the contributing school district during the prior taxable year.
             1399          (7) Regardless of the amount a school district receives from the revenue collected from
             1400      the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3), the revenue
             1401      generated within the school district from the .0006 portion of the capital outlay levy required in
             1402      Subsection 53A-16-107 (3) shall be considered to be budgeted ad valorem property tax
             1403      revenues of the school district that levies the .0006 portion of the capital outlay levy for
             1404      purposes of calculating the school district's certified tax rate in accordance with Subsection
             1405      59-2-924 (3)(g)(ii).
             1406          Section 31. Section 59-2-924.4 is enacted to read:
             1407          59-2-924.4. Adjustment of the calculation of the certified tax rate for certain
             1408      divided school districts.
             1409          (1) As used in this section:
             1410          (a) "Capital outlay increment" means the amount of revenue equal to the difference
             1411      between:
             1412          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1413      within a qualifying divided school district during a fiscal year; and
             1414          (ii) the amount of revenue the qualifying divided school district received during the
             1415      same fiscal year from the distribution described in Section 53A-2-118.3 .
             1416          (b) "Contributing divided school district" means a school district located within a
             1417      qualifying divided school district that in a fiscal year receives less revenue from the distribution
             1418      described in H. [ Subsection 53A-16-107.1 (1) ] Section 53A-2-118.3 .H than it would have
             1418a      received during the same fiscal
             1419      year from a levy imposed within the school district of .0006 per dollar of taxable value.
             1420          (c) "Divided school district" means a school district from which a new school district is



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             1421
     created.
             1422          (d) "New school district" means a school district:
             1423          (i) created under Section 53A-2-118.1 ;
             1424          (ii) that begins to provide educational services after July 1, 2008; and
             1425          (iii) located in a qualifying divided school district.
             1426          (e) "Qualifying divided school district" means a divided school district:
             1427          (i) located within a county of the second through sixth class; and
             1428          (ii) with a new school district created under Section 53A-2-118.1 that begins to provide
             1429      educational services after July 1, 2008.
             1430          (f) "Qualifying fiscal year" means the first fiscal year that a new school district begins
             1431      to provide educational services.
             1432          (g) "Receiving divided school district" means a school district located within a
             1433      qualifying divided school district that in a fiscal year receives more revenue from the
             1434      distribution described in Section 53A-2-118.3 than it would have received during the same
             1435      fiscal year from a levy imposed within the school district of .0006 per dollar of taxable value.
             1436          (2) A receiving divided school district shall decrease its certified tax rate calculated in
             1437      accordance with Section 59-2-924 by the amount required to offset the receiving divided
             1438      school district's capital outlay increment for the prior fiscal year.
             1439          (3) Beginning with the fiscal year after the qualifying fiscal year, a contributing divided
             1440      school district is exempt from the public notice and hearing requirements of Sections 59-2-918
             1441      and 59-2-919 for the contributing divided school district's certified tax rate calculated pursuant
             1442      to Section 59-2-924 if:
             1443          (a) the contributing divided school district budgets an increased amount of ad valorem
             1444      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1445      capital outlay levy required in Section 53A-2-118.3 ; and
             1446          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1447      (3)(a) is less than or equal to that contributing divided school district's capital outlay increment
             1448      for the prior year.
             1449          (4) Beginning with the fiscal year after the qualifying fiscal year, a contributing divided
             1450      school district is exempt from the public notice and hearing requirements of Sections 59-2-918
             1451      and 59-2-919 for the contributing divided school district's certified tax rate calculated pursuant



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             1452
     to Section 59-2-924 if:
             1453          (a) the contributing divided school district budgets an increased amount of ad valorem
             1454      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1455      capital outlay levy described in Section 53A-2-118.3 ; and
             1456          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1457      (4)(a) is less than or equal to the difference between:
             1458          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1459      imposed within the contributing divided school district during the current taxable year; and
             1460          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1461      imposed within the contributing divided school district during the prior taxable year.
             1462          (5) Regardless of the amount a school district receives from the revenue collected from
             1463      the .0006 portion of the capital outlay levy described in Section 53A-2-118.3 , the revenue
             1464      generated within the school district from the .0006 portion of the capital outlay levy described
             1465      in Section 53A-2-118.3 shall be considered to be budgeted ad valorem property tax revenues of
             1466      the school district that levies the .0006 portion of the capital outlay levy for purposes of
             1467      calculating the school district's certified tax rate in accordance with Section 59-2-924 .
             1468          Section 32. Section 59-2-1330 is amended to read:
             1469           59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
             1470      entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
             1471      Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
             1472      commission -- Time periods for making payments to taxpayer.
             1473          (1) Unless otherwise specifically provided by statute, property taxes shall be paid
             1474      directly to the county assessor or the county treasurer:
             1475          (a) on the date that the property taxes are due; and
             1476          (b) as provided in this chapter.
             1477          (2) A taxpayer shall receive payment as provided in this section if a reduction in the
             1478      amount of any tax levied against any property for which the taxpayer paid a tax or any portion
             1479      of a tax under this chapter for a calendar year is required by a final and unappealable judgment
             1480      or order described in Subsection (3) issued by:
             1481          (a) a county board of equalization;
             1482          (b) the commission; or



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             1483
         (c) a court of competent jurisdiction.
             1484          (3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
             1485      property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
             1486      shall pay the taxpayer if:
             1487          (i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
             1488      authorized officer of the:
             1489          (A) county; or
             1490          (B) state;
             1491          (ii) the taxpayer obtains a final and unappealable judgment or order:
             1492          (A) from:
             1493          (I) a county board of equalization;
             1494          (II) the commission; or
             1495          (III) a court of competent jurisdiction;
             1496          (B) against:
             1497          (I) the taxing entity or an authorized officer of the taxing entity; or
             1498          (II) the state or an authorized officer of the state; and
             1499          (C) ordering a reduction in the amount of any tax levied against any property for which
             1500      a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
             1501          (b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
             1502      in accordance with Subsections (4) through (7).
             1503          (4) For purposes of Subsections (2) and (3), the amount the state shall pay to a taxpayer
             1504      is equal to the sum of:
             1505          (a) if the difference described in this Subsection (4)(a) is greater than $0, the difference
             1506      between:
             1507          (i) the tax the taxpayer paid to the state in accordance with Subsection (2); and
             1508          (ii) the amount of the taxpayer's tax liability to the state after the reduction in the
             1509      amount of tax levied against the property in accordance with the final and unappealable
             1510      judgment or order described in Subsection (3);
             1511          (b) if the difference described in this Subsection (4)(b) is greater than $0, the difference
             1512      between:
             1513          (i) any penalties the taxpayer paid to the state in accordance with Section 59-2-1331 ;



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             1514
     and
             1515          (ii) the amount of penalties the taxpayer is liable to pay to the state in accordance with
             1516      Section 59-2-1331 after the reduction in the amount of tax levied against the property in
             1517      accordance with the final and unappealable judgment or order described in Subsection (3);
             1518          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
             1519      Section 59-2-1331 on the amounts described in Subsections (4)(a) and (4)(b); and
             1520          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
             1521          (i) Subsection (4)(a);
             1522          (ii) Subsection (4)(b); and
             1523          (iii) Subsection (4)(c).
             1524          (5) For purposes of Subsections (2) and (3), the amount a taxing entity shall pay to a
             1525      taxpayer is equal to the sum of:
             1526          (a) if the difference described in this Subsection (5)(a) is greater than $0, the difference
             1527      between:
             1528          (i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (2); and
             1529          (ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in
             1530      the amount of tax levied against the property in accordance with the final and unappealable
             1531      judgment or order described in Subsection (3);
             1532          (b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
             1533      between:
             1534          (i) any penalties the taxpayer paid to the taxing entity in accordance with Section
             1535      59-2-1331 ; and
             1536          (ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in
             1537      accordance with Section 59-2-1331 after the reduction in the amount of tax levied against the
             1538      property in accordance with the final and unappealable judgment or order described in
             1539      Subsection (3); and
             1540          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
             1541      Section 59-2-1331 on the amounts described in Subsections (5)(a) and (5)(b); and
             1542          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
             1543          (i) Subsection (5)(a);
             1544          (ii) Subsection (5)(b); and



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             1545
         (iii) Subsection (5)(c).
             1546          (6) Except as provided in Subsection (7):
             1547          (a) interest shall be refunded to a taxpayer on the amount described in Subsection
             1548      (4)(c) or (5)(c) in an amount equal to the amount of interest the taxpayer paid in accordance
             1549      with Section 59-2-1331 ; and
             1550          (b) interest shall be paid to a taxpayer on the amount described in Subsection (4)(d) or
             1551      (5)(d):
             1552          (i) beginning on the later of:
             1553          (A) the day on which the taxpayer paid the tax in accordance with Subsection (2); or
             1554          (B) January 1 of the calendar year immediately following the calendar year for which
             1555      the tax was due;
             1556          (ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
             1557      amount required by Subsection (4) or (5); and
             1558          (iii) at the interest rate earned by the state treasurer on public funds transferred to the
             1559      state treasurer in accordance with Section 51-7-5.
             1560          (7) Notwithstanding Subsection (6):
             1561          (a) the state may not pay or refund interest to a taxpayer under Subsection (6) on any
             1562      tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax levied
             1563      by the state for that calendar year as stated on the notice required by Section 59-2-1317 ; and
             1564          (b) a taxing entity may not pay or refund interest to a taxpayer under Subsection (6) on
             1565      any tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax
             1566      levied by the taxing entity for that calendar year as stated on the notice required by Section
             1567      59-2-1317.
             1568          (8) (a) Each taxing entity may levy a tax to pay its share of the final and unappealable
             1569      judgment or order described in Subsection (3) if:
             1570          (i) the final and unappealable judgment or order is issued no later than 15 days prior to
             1571      the date the levy is set under Subsection 59-2-924 [(2)] (3)(a);
             1572          (ii) the amount of the judgment levy is included on the notice under Section 59-2-919 ;
             1573      and
             1574          (iii) the final and unappealable judgment or order is an eligible judgment, as defined in
             1575      Section 59-2-102 .



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             1576
         (b) The levy under Subsection (8)(a) is in addition to, and exempt from, the maximum
             1577      levy established for the taxing entity.
             1578          (9) (a) A taxpayer that objects to the assessment of property assessed by the
             1579      commission shall pay, on or before the date of delinquency established under Subsection
             1580      59-2-1331 (1) or Section 59-2-1332 , the full amount of taxes stated on the notice required by
             1581      Section 59-2-1317 if:
             1582          (i) the taxpayer has applied to the commission for a hearing in accordance with Section
             1583      59-2-1007 on the objection to the assessment; and
             1584          (ii) the commission has not issued a written decision on the objection to the assessment
             1585      in accordance with Section 59-2-1007 .
             1586          (b) A taxpayer that pays the full amount of taxes due under Subsection (9)(a) is not
             1587      required to pay penalties or interest on an assessment described in Subsection (9)(a) unless:
             1588          (i) a final and unappealable judgment or order establishing that the property described
             1589      in Subsection (9)(a) has a value greater than the value stated on the notice required by Section
             1590      59-2-1317 is issued by:
             1591          (A) the commission; or
             1592          (B) a court of competent jurisdiction; and
             1593          (ii) the taxpayer fails to pay the additional tax liability resulting from the final and
             1594      unappealable judgment or order described in Subsection (9)(b)(i) within a 45-day period after
             1595      the county bills the taxpayer for the additional tax liability.
             1596          (10) (a) Except as provided in Subsection (10)(b), a payment that is required by this
             1597      section shall be paid to a taxpayer:
             1598          (i) within 60 days after the day on which the final and unappealable judgment or order
             1599      is issued in accordance with Subsection (3); or
             1600          (ii) if a judgment levy is imposed in accordance with Subsection (8):
             1601          (A) if the payment to the taxpayer required by this section is $5,000 or more, no later
             1602      than December 31 of the year in which the judgment levy is imposed; and
             1603          (B) if the payment to the taxpayer required by this section is less than $5,000, within
             1604      60 days after the date the final and unappealable judgment or order is issued in accordance with
             1605      Subsection (3).
             1606          (b) Notwithstanding Subsection (10)(a), a taxpayer may enter into an agreement:



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             1607
         (i) that establishes a time period other than a time period described in Subsection
             1608      (10)(a) for making a payment to the taxpayer that is required by this section; and
             1609          (ii) with:
             1610          (A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
             1611          (B) an authorized officer of the state for a tax imposed by the state.
             1612          Section 33. Repealer.
             1613          This bill repeals:
             1614          Section 53A-21-103, Qualifications for participation in the foundation program --
             1615      Distribution of monies -- Distribution formulas.
             1616          Section 53A-21-103.5, Qualifications for participation in the Enrollment Growth
             1617      Program -- State Board of Education rules -- Distribution formula.
             1618          Section 34. Appropriation.
             1619          In addition to the amounts appropriated in Section 53A-21-501 , there is appropriated
             1620      from the Uniform School Fund for fiscal year 2008-09 only:
             1621          (1) $7,500,000 to the State Board of Education for the Capital Outlay Foundation
             1622      Program for allocation pursuant to Section 53A-21-202 ; and
             1623          (2) $7,500,000 to the State Board of Education for the Capital Outlay Enrollment
             1624      Growth Program for allocation pursuant to Section 53A-21-302 .
             1625          Section 35. Effective date.
             1626          This bill takes effect on July 1, 2008.
             1627          Section 36. Coordinating S.B. 48 with H.B. 1 -- Superseding amendments.
             1628          If this S.B. 48 and H.B. 1, Minimum School Program Base Budget Amendments, both
             1629      pass, it is the intent of the Legislature that the amendments to Section 53A-21-501 , renumbered
             1630      from Section 53A-21-105 , in this bill supersede the amendments to Section 53A-21-105 in
             1631      H.B. 1 when the Office of Legislative Research and General Counsel prepares the Utah Code
             1632      database for publication.


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