! The Capitol Complex is closed to the public due to COVID-19. All meetings will be held virtually online. View virtual meeting instructions (PDF).

Download Zipped Enrolled WordPerfect SB0048.ZIP
[Introduced][Amended][Status][Bill Documents][Fiscal Note][Bills Directory]

S.B. 48 Enrolled

             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 levy
             22      at a specified rate and allocates the revenue generated under the capital outlay levy
             23      to school districts located in the 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;
             26          .    amends the calculation of the certified tax rate with respect to the capital outlay levy;
             27      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 State
             35      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 Amendments,
             39      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
             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
             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 under


             114      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
             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 in
             124      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 by
             126      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 this
             148      section, the fee base of a project may be determined in accordance with an agreement among:
             149          (A) the project entity; and
             150          (B) any county that:
             151          (I) is due an annual fee from the project entity; and
             152          (II) agrees to have the fee base of the project determined in accordance with the
             153      agreement described in this Subsection (4).
             154          (ii) The agreement described in Subsection (4)(b)(i):
             155          (A) shall specify each year for which the fee base determined by the agreement shall be
             156      used for purposes of an annual fee; and
             157          (B) may not modify any provision of this chapter except the method by which the fee
             158      base of a project is determined for purposes of an annual fee.
             159          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
             160      described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
             161      Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
             162      jurisdiction.
             163          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
             164      year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
             165      portion of the project for which there is not an agreement:
             166          (I) for that year; and
             167          (II) using the same measure of value as is used for taxable property in the state.
             168          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
             169      Commission in accordance with rules made by the State Tax Commission.


             170          (c) Payments of the annual fees shall be made from:
             171          (i) the proceeds of bonds issued for the project; and
             172          (ii) revenues derived by the project entity from the project.
             173          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
             174      other benefits of the project whose tangible property is not exempted by Utah Constitution
             175      Article XIII, Section 3, from the payment of ad valorem property tax shall require each
             176      purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
             177      its share, determined in accordance with the terms of the contract, of these fees.
             178          (ii) It is the responsibility of the project entity to enforce the obligations of the
             179      purchasers.
             180          (5) (a) The responsibility of the project entity to make payment of the annual fees is
             181      limited to the extent that there is legally available to the project entity, from bond proceeds or
             182      revenues, monies to make these payments, and the obligation to make payments of the annual
             183      fees is not otherwise a general obligation or liability of the project entity.
             184          (b) No tax lien may attach upon any property or money of the project entity by virtue of
             185      any failure to pay all or any part of an annual fee.
             186          (c) The project entity or any purchaser may contest the validity of an annual fee to the
             187      same extent as if the payment was a payment of the ad valorem property tax itself.
             188          (d) The payments of an annual fee shall be reduced to the extent that any contest is
             189      successful.
             190          (6) (a) The annual fee described in Subsection (1):
             191          (i) shall be paid by a public agency that:
             192          (A) is not a project entity; and
             193          (B) owns an interest in a facility providing additional project capacity if the interest is
             194      otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
             195          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
             196      accordance with Subsection (6)(b).
             197          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax


             198      rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
             199          (i) the fee base or value of the facility providing additional project capacity located
             200      within the jurisdiction;
             201          (ii) the percentage of the ownership interest of the public agency in the facility; and
             202          (iii) the portion, expressed as a percentage, of the public agency's ownership interest
             203      that is attributable to the capacity, service, or other benefit from the facility that is sold by the
             204      public agency to an energy supplier or suppliers whose tangible property is not exempted by
             205      Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
             206          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
             207      obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
             208      to its ownership interest as though it were a project entity.
             209          Section 2. Section 17-34-3 is amended to read:
             210           17-34-3. Taxes or service charges.
             211          (1) (a) If a county furnishes the municipal-type services and functions described in
             212      Section 17-34-1 to areas of the county outside the limits of incorporated cities or towns, the
             213      entire cost of the services or functions so furnished shall be defrayed from funds that the county
             214      has derived from:
             215          (i) taxes that the county may lawfully levy or impose outside the limits of incorporated
             216      towns or cities;
             217          (ii) service charges or fees the county may impose upon the persons benefited in any
             218      way by the services or functions; or
             219          (iii) a combination of these sources.
             220          (b) As the taxes or service charges or fees are levied and collected, they shall be placed
             221      in a special revenue fund of the county and shall be disbursed only for the rendering of the
             222      services or functions established in Section 17-34-1 within the unincorporated areas of the
             223      county or as provided in Subsection 10-2-121 (2).
             224          (2) For the purpose of levying taxes, service charges, or fees provided in this section,
             225      the county legislative body may establish a district or districts in the unincorporated areas of the


             226      county.
             227          (3) Nothing contained in this chapter may be construed to authorize counties to impose
             228      or levy taxes not otherwise allowed by law.
             229          [(4) (a) A county required under Subsection 17-34-1 (4) to provide advanced life
             230      support and paramedic services to the unincorporated area of the county and that previously
             231      paid for those services through a countywide levy may increase its levy under Subsection
             232      (1)(a)(i) to generate in the unincorporated area of the county the same amount of revenue as the
             233      county loses from that area due to the required decrease in the countywide certified tax rate
             234      under Subsection 59-2-924 (2)(k)(i).]
             235          [(b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and
             236      hearing requirements of Sections 59-2-918 and 59-2-919 .]
             237          [(5)] (4) Notwithstanding any other provision of this chapter, a county providing fire,
             238      paramedic, and police protection services in a designated recreational area, as provided in
             239      Subsection 17-34-1 (5), may fund those services from the county general fund with revenues
             240      derived from both inside and outside the limits of cities and towns, and the funding of those
             241      services is not limited to unincorporated area revenues.
             242          Section 3. Section 17C-1-408 is amended to read:
             243           17C-1-408. Base taxable value to be adjusted to reflect other changes.
             244          (1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
             245          (A) a decrease of more than 20% from the previous tax year's levy; or
             246          (B) a cumulative decrease over a consecutive five-year period of more than 100% from
             247      the levy in effect at the beginning of the five-year period.
             248          (ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
             249      fifth year of the five-year period.
             250          (b) If there is a qualifying decrease in the minimum basic school levy under Section
             251      59-2-902 that would result in a reduction of the amount of tax increment to be paid to an
             252      agency:
             253          (i) the base taxable value of taxable property within the project area shall be reduced in


             254      the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
             255      agency with approximately the same amount of tax increment that would have been paid to the
             256      agency each year had the qualifying decrease not occurred; and
             257          (ii) the amount of tax increment paid to the agency each year for the payment of bonds
             258      and indebtedness may not be less than what would have been paid to the agency if there had
             259      been no qualifying decrease.
             260          (2) (a) The amount of the base taxable value to be used in determining tax increment
             261      shall be:
             262          (i) increased or decreased by the amount of an increase or decrease that results from:
             263          (A) a statute enacted by the Legislature or by the people through an initiative;
             264          (B) a judicial decision;
             265          (C) an order from the State Tax Commission to a county to adjust or factor its
             266      assessment rate under Subsection 59-2-704 (2);
             267          (D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
             268      Section 59-2-103 ; or
             269          (E) an increase or decrease in the percentage of fair market value, as defined under
             270      Section 59-2-102 ; and
             271          (ii) reduced for any year to the extent necessary, even if below zero, to provide an
             272      agency with approximately the same amount of money the agency would have received without
             273      a reduction in the county's certified tax rate if:
             274          (A) in that year there is a decrease in the county's certified tax rate under Subsection
             275      [ 59-2-924 (2)(c) or (d)(i)] 59-2-924.2 (2) or (3)(a);
             276          (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
             277      previous year; and
             278          (C) the decrease would result in a reduction of the amount of tax increment to be paid
             279      to the agency.
             280          (b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
             281      increment paid to an agency each year for payment of bonds or other indebtedness may not be


             282      less than would have been paid to the agency each year if there had been no increase or decrease
             283      under Subsection (2)(a).
             284          Section 4. Section 53A-2-103 is amended to read:
             285           53A-2-103. Transfer of property to new school district -- Rights and obligations
             286      of new school board -- Outstanding indebtedness -- Special tax.
             287          (1) On July 1 following the approval of the creation of a new school district under
             288      Section 53A-2-102 , the local school boards of the former districts shall convey and deliver all
             289      school property to the local school board of the new district. Title vests in the new board. All
             290      rights, claims, and causes of action to or for the property, for the use or the income from the
             291      property, for conversion, disposition, or withholding of the property, or for any damage or
             292      injury to the property vest at once in the new board.
             293          (2) The new board may bring and maintain actions to recover, protect, and preserve the
             294      property and rights of the district schools and to enforce contracts.
             295          (3) The new board shall assume and be liable for all outstanding debts and obligations
             296      of each of the former school districts.
             297          (4) All of the bonded indebtedness, outstanding debts, and obligations of a former
             298      district, which cannot be reasonably paid from the assets of the former district, shall be paid by a
             299      special tax levied by the new board as needed. The tax shall be levied upon the property within
             300      the former district which was liable for the indebtedness at the time of consolidation. If bonds
             301      are approved in the new district under Section 53A-18-102 , the special tax shall be discontinued
             302      and the bonded indebtedness paid as any other bonded indebtedness of the new district.
             303          (5) Bonded indebtedness of a former district which has been refunded shall be paid in
             304      the same manner as that which the new district assumes under Section 53A-18-101 .
             305          (6) State funds received by the new district under Section [ 53A-21-103 ] 53A-21-202
             306      may be applied toward the payment of outstanding bonded indebtedness of a former district in
             307      the same proportion as the bonded indebtedness of the territory within the former district bears
             308      to the total bonded indebtedness of the districts combined.
             309          Section 5. Section 53A-2-114 is amended to read:


             310           53A-2-114. Additional levies -- School board options to abolish or continue after
             311      consolidation.
             312          (1) If a school district which has approved an additional levy under Section
             313      53A-16-110 , 53A-17a-133 , 53A-17a-134 , or 53A-17a-145 [, or 53A-21-103 ] is consolidated
             314      with a district which does not have such a levy, the board of education of the consolidated
             315      district may choose to abolish the levy, or apply it in whole or in part to the entire consolidated
             316      district.
             317          (2) If the board chooses to apply any part of the levy to the entire district, the levy may
             318      continue in force for no more than three years, unless approved by the electors of the
             319      consolidated district in the manner set forth in Section 53A-16-110 .
             320          Section 6. Section 53A-2-115 is amended to read:
             321           53A-2-115. Additional levies in transferred territory -- Transferee board option
             322      to abolish or continue.
             323          If two or more districts undergo restructuring that results in a district receiving territory
             324      that increases the population of the district by at least 25%, and if the transferred territory was,
             325      at the time of transfer, subject to an additional levy under Section 53A-16-110 , 53A-17a-133 ,
             326      53A-17a-134 , or 53A-17a-145 [, or 53A-21-103 ], the board of education of the transferee
             327      district may abolish the levy or apply the levy in whole or in part to the entire restructured
             328      district. Any such levy made applicable to the entire district may continue in force for no more
             329      than five years, unless approved by the electors of the restructured district in the manner set
             330      forth in Section 53A-16-110 .
             331          Section 7. Section 53A-2-117 is amended to read:
             332           53A-2-117. Definitions.
             333          As used in Sections 53A-2-117 through 53A-2-121 :
             334          (1) "Divided school district," "existing district," or "existing school district" means a
             335      school district from which a new district is created.
             336          (2) "New district" or "new school district" means a school district created under
             337      Section 53A-2-118 or 53A-2-118.1 .


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


             366      divided school district, as of the October 1 enrollment counts.
             367          (4) If a new school district is created or school district boundaries are adjusted, the
             368      enrollment and average annual enrollment growth for each affected school district shall be
             369      calculated on the basis of enrollment in school district schools located within that school
             370      district's newly created or adjusted boundaries, as of October 1 enrollment counts.
             371          (5) On or before December 31 of each year, the State Board of Education shall provide
             372      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             373      to distribute revenues as required by this section.
             374          (6) On or before March 31 of each year, a county treasurer in a county with a qualifying
             375      divided school district shall distribute, in accordance with Subsection (3), the revenue generated
             376      within the qualifying divided school district during the prior calendar year from the capital
             377      outlay levy required in Subsection (2).
             378          Section 9. Section 53A-16-106 is amended to read:
             379           53A-16-106. Annual certification of tax rate proposed by local school board --
             380      Inclusion of school district budget -- Modified filing date.
             381          (1) Prior to June 22 of each year, each local school board shall certify to the county
             382      legislative body in which the district is located, on forms prescribed by the State Tax
             383      Commission, the proposed tax rate approved by the local school board.
             384          (2) A copy of the district's budget, including items under Section 53A-19-101 , and a
             385      certified copy of the local school board's resolution which approved the budget and set the tax
             386      rate for the subsequent school year beginning July 1 shall accompany the tax rate.
             387          (3) If the tax rate approved by the board is in excess of the "certified tax rate" as
             388      defined under Subsection 59-2-924 [(2)] (3)(a), the date for filing the tax rate and budget
             389      adopted by the board shall be that established under Section 59-2-919 .
             390          Section 10. Section 53A-16-107 is amended to read:
             391           53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority to
             392      use proceeds of .0002 tax rate -- Restrictions and procedure.
             393          (1) [(a) A] Subject to Subsection (3), a local school board may annually impose a


             394      capital outlay levy [a tax not to exceed .0024 per dollar of taxable value for debt service and
             395      capital outlay.] not to exceed .0024 per dollar of taxable value to be used for:
             396          (a) capital outlay;
             397          (b) debt service; and
             398          (c) subject to Subsection (2), school facility maintenance.
             399          [(b) Each] (2) (a) A local school board may utilize the proceeds of a maximum of
             400      .0002 per dollar of taxable value of [its] the local school board's annual capital outlay levy for
             401      the maintenance of school [plants] facilities in [its] the school district.
             402          [(2)] (b) A local school board that uses the option provided under Subsection [(1)(b)
             403      must do the following] (2)(a) shall:
             404          [(a)] (i) maintain the same level of expenditure for maintenance in the current year as it
             405      did in the preceding year, plus the annual average percentage increase applied to the
             406      maintenance and operation budget for the current year; and
             407          [(b)] (ii) identify the expenditure of capital outlay funds for maintenance by a district
             408      project number to ensure that the funds [were] are expended in the manner intended.
             409          [(3)] (c) The State Board of Education shall establish by rule the expenditure
             410      classification for maintenance under this program using a standard classification system.
             411          (3) Beginning January 1, 2009, in order to qualify for receipt of the state contribution
             412      toward the minimum school program described in Section 53A-17a-104 , a local school board in
             413      a county of the first class shall impose a capital outlay levy of at least .0006 per dollar of taxable
             414      value.
             415          (4) (a) The county treasurer of a county of the first class shall distribute revenues
             416      generated by the .0006 portion of the capital outlay levy required in Subsection (3) to school
             417      districts within the county in accordance with Section 53A-16-107.1 .
             418          (b) If a school district in a county of the first class imposes a capital outlay levy
             419      pursuant to this section which exceeds .0006 per dollar of taxable value, the county treasurer of
             420      a county of the first class shall distribute revenues generated by the portion of the capital outlay
             421      levy which exceeds .0006 to the school district imposing the levy.


             422          Section 11. Section 53A-16-107.1 is enacted to read:
             423          53A-16-107.1. School capital outlay in counties of the first class -- Allocation.
             424          (1) The county treasurer of a county of the first class shall distribute revenues generated
             425      by the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3) to school
             426      districts located within the county of the first class as follows:
             427          (a) 25% of the revenues shall be distributed in proportion to a school district's
             428      percentage of the total enrollment growth in all of the school districts within the county that
             429      have an increase in enrollment, calculated on the basis of the average annual enrollment growth
             430      over the prior three years in all of the school districts within the county that have an increase in
             431      enrollment over the prior three years, as of the October 1 enrollment counts; and
             432          (b) 75% of the revenues shall be distributed in proportion to a school district's
             433      percentage of the total current year enrollment in all of the school districts within the county, as
             434      of the October 1 enrollment counts.
             435          (2) If a new school district is created or school district boundaries are adjusted, the
             436      enrollment and average annual enrollment growth for each affected school district shall be
             437      calculated on the basis of enrollment in school district schools located within that school
             438      district's newly created or adjusted boundaries, as of October 1 enrollment counts.
             439          (3) On or before December 31 of each year, the State Board of Education shall provide
             440      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             441      to distribute revenues as required by this section.
             442          (4) On or before March 31 of each year, a county treasurer in a county of the first class
             443      shall distribute the revenue generated within the county of the first class during the prior
             444      calendar year from the capital outlay levy described in Section 53A-16-107 .
             445          Section 12. Section 53A-16-110 is amended to read:
             446           53A-16-110. Special tax to buy school building sites, build and furnish
             447      schoolhouses, or improve school property.
             448          (1) (a) A local school board may, by following the process for special elections
             449      established in Sections 20A-1-203 and 20A-1-204 , call a special election to determine whether a


             450      special property tax should be levied for one or more years to buy building sites, build and
             451      furnish schoolhouses, or improve the school property under its control.
             452          (b) The tax may not exceed .2% of the taxable value of all taxable property in the
             453      district in any one year.
             454          (2) The board shall give reasonable notice of the election and follow the same
             455      procedure used in elections for the issuance of bonds.
             456          (3) If a majority of those voting on the proposition vote in favor of the tax, it is levied
             457      in addition to [those] a levy authorized under [Sections] Section 53A-17a-145 [and
             458      53A-21-103 ] and computed on the valuation of the county assessment roll for that year.
             459          (4) (a) Within 20 days after the election, the board shall certify the amount of the
             460      approved tax to the governing body of the county in which the school district is located.
             461          (b) The governing body shall acknowledge receipt of the certification and levy and
             462      collect the special tax.
             463          (c) It shall then distribute the collected taxes to the business administrator of the school
             464      district at the end of each calendar month.
             465          (5) The special tax becomes due and delinquent and attaches to and becomes a lien on
             466      real and personal property at the same time as state and county taxes.
             467          Section 13. Section 53A-17a-133 is amended to read:
             468           53A-17a-133. State-supported voted leeway program authorized -- Election
             469      requirements -- State guarantee -- Reconsideration of the program.
             470          (1) An election to consider adoption or modification of a voted leeway program is
             471      required if initiative petitions signed by 10% of the number of electors who voted at the last
             472      preceding general election are presented to the local school board or by action of the board.
             473          (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
             474      voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
             475      special tax.
             476          (ii) The tax rate may not exceed .002 per dollar of taxable value.
             477          (b) The district may maintain a school program which exceeds the cost of the program


             478      referred to in Section 53A-17a-145 with this voted leeway.
             479          (c) In order to receive state support the first year, a district must receive voter approval
             480      no later than December 1 of the year prior to implementation.
             481          (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
             482      to guarantee $17.54 per weighted pupil unit for each .0001 of the first .0016 per dollar of
             483      taxable value.
             484          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             485      of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized in
             486      Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
             487      taxable value if a school district levies a tax rate under both programs.
             488          (c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
             489      shall be indexed each year to the value of the weighted pupil unit by making the value of the
             490      guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
             491          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             492      pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of the
             493      prior year's weighted pupil unit.
             494          (d) (i) The amount of state guarantee money to which a school district would otherwise
             495      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             496      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             497      pursuant to changes in property valuation.
             498          (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
             499      the certified tax rate.
             500          (4) (a) An election to modify an existing voted leeway program is not a reconsideration
             501      of the existing program unless the proposition submitted to the electors expressly so states.
             502          (b) A majority vote opposing a modification does not deprive the district of authority to
             503      continue an existing program.
             504          (c) If adoption of a leeway program is contingent upon an offset reducing other local
             505      school board levies, the board must allow the electors, in an election, to consider modifying or


             506      discontinuing the program prior to a subsequent increase in other levies that would increase the
             507      total local school board levy.
             508          (d) Nothing contained in this section terminates, without an election, the authority of a
             509      school district to continue an existing voted leeway program previously authorized by the
             510      voters.
             511          (5) Notwithstanding Section 59-2-918 , a school district may budget an increased
             512      amount of ad valorem property tax revenue derived from a voted leeway imposed under this
             513      section in addition to revenue from new growth as defined in Subsection 59-2-924 [(2)] (4),
             514      without having to comply with the advertisement requirements of Section 59-2-918 , if the voted
             515      leeway is approved:
             516          (a) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             517          (b) within the four-year period immediately preceding the year in which the school
             518      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             519      the voted leeway.
             520          (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             521      section that exceeds the certified tax rate without having to comply with the advertisement
             522      requirements of Section 59-2-919 if:
             523          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             524      increased amount of ad valorem property tax revenue derived from a voted leeway imposed
             525      under this section; and
             526          (b) if the voted leeway was approved:
             527          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             528          (ii) within the four-year period immediately preceding the year in which the school
             529      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             530      the voted leeway.
             531          Section 14. Section 53A-19-102 is amended to read:
             532           53A-19-102. Local school boards budget procedures.
             533          (1) Prior to June 22 of each year, each local school board shall adopt a budget and


             534      make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
             535      certified tax rate defined in [Subsection] Section 59-2-924 [(2)], the board shall comply with
             536      Sections 59-2-918 and 59-2-919 in adopting the budget, except as provided by Section
             537      53A-17a-133 .
             538          (2) Prior to the adoption of a budget containing a tax rate which does not exceed the
             539      certified tax rate, the board shall hold a public hearing, as defined in Section 10-9a-103 , on the
             540      proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
             541      Act, in regards to the hearing, the board shall do the following:
             542          (a) publish the required newspaper notice at least ten days prior to the hearing; and
             543          (b) file a copy of the proposed budget with the board's business administrator for public
             544      inspection at least ten days prior to the hearing.
             545          (3) The board shall file a copy of the adopted budget with the state auditor and the
             546      State Board of Education.
             547          Section 15. Section 53A-19-105 is amended to read:
             548           53A-19-105. School district interfund transfers.
             549          (1) A school district shall spend revenues only within the fund for which they were
             550      originally authorized, levied, collected, or appropriated.
             551          (2) Except as otherwise provided in this section, school district interfund transfers of
             552      residual equity are prohibited.
             553          (3) The State Board of Education may authorize school district interfund transfers of
             554      residual equity when a district states its intent to create a new fund or expand, contract, or
             555      liquidate an existing fund.
             556          (4) The State Board of Education may also authorize school district interfund transfers
             557      of residual equity for a financially distressed district if the board determines the following:
             558          (a) the district has a significant deficit in its maintenance and operations fund caused by
             559      circumstances not subject to the administrative decisions of the district;
             560          (b) the deficit cannot be reasonably reduced under Section 53A-19-104 ; and
             561          (c) without the transfer, the school district will not be capable of meeting statewide


             562      educational standards adopted by the State Board of Education.
             563          (5) The board shall develop standards for defining and aiding financially distressed
             564      school districts under this section in accordance with Title 63, Chapter 46a, Utah Administrative
             565      Rulemaking Act.
             566          (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
             567      and reported in the debt service fund.
             568          (b) Debt service levies under Subsection 59-2-924 [(2)(a)(v)(C)] (3)(e)(iii) that are not
             569      subject to the certified tax rate hearing requirements of Sections 59-2-918 and 59-2-919 may
             570      not be used for any purpose other than retiring general obligation debt.
             571          (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
             572      year shall be used in subsequent years for general obligation debt retirement.
             573          (d) Any amounts left in the debt service fund after all general obligation debt has been
             574      retired may be transferred to the capital projects fund upon completion of the budgetary hearing
             575      process required under Section 53A-19-102 .
             576          Section 16. Section 53A-21-101.5 is enacted to read:
             577     
Part 1. General Provisions

             578          53A-21-101.5. Definitions.
             579          As used in this chapter:
             580          (1) "ADM" or "pupil in average daily membership" is as defined in Section
             581      53A-17a-103 .
             582          (2) "Combined capital levy rate" means a rate that includes the sum of the following
             583      property tax levies:
             584          (a) the capital outlay levy authorized in Section 53A-16-107 ;
             585          (b) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
             586      budgeted for debt service or capital outlay;
             587          (c) the debt service levy authorized in Section 11-14-310 ; and
             588          (d) the voted capital outlay leeway authorized in Section 53A-16-110 .
             589          (3) "Derived net taxable value" means the quotient of:


             590          (a) the total current property tax collections from April 1 through the following March
             591      31 for a school district; divided by
             592          (b) the school district's total tax rate for the calendar year preceding the March 31
             593      referenced in Subsection (3)(a).
             594          (4) "Highest combined capital levy rate" means the highest combined capital levy rate
             595      imposed by any school district within the state for a fiscal year.
             596          (5) "Property tax base per ADM" means the quotient of:
             597          (a) a school district's derived net taxable value; divided by
             598          (b) the school district's ADM for the same year.
             599          (6) "Property tax yield per ADM" means:
             600          (a) the product of:
             601          (i) a school district's derived net taxable value; and
             602          (ii) the highest combined capital levy rate for the fiscal year of the March 31 referenced
             603      in Subsection (3)(a); divided by
             604          (b) the school district's ADM for the same fiscal year.
             605          (7) "Statewide average property tax base per ADM" means the quotient of:
             606          (a) the sum of all school districts' derived net taxable value; divided by
             607          (b) the sum of all school districts' ADM statewide for the same year.
             608          Section 17. Section 53A-21-102 is amended to read:
             609           53A-21-102. Capital outlay programs -- Use of funds.
             610          [(1) The Capital Outlay Foundation Program and the Enrollment Growth Program are
             611      established to provide revenues to school districts for the purposes of capital outlay bonding,
             612      construction, and renovation.]
             613          [(2) The Capital Outlay Loan Program is established to provide:]
             614          [(a) short-term help to school districts to meet district needs for school building
             615      construction and renovation; and]
             616          [(b) assistance to charter schools to meet school building construction and renovation
             617      needs.]


             618          [(3) School districts shall] A school district may only use the monies provided [to them]
             619      under [the programs established by this section solely] this chapter for school district capital
             620      outlay and debt service purposes.
             621          Section 18. Section 53A-21-201 is enacted to read:
             622     
Part 2. Capital Outlay Foundation Program

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


             646      prior year, the State Board of Education shall allocate to the qualifying school district an
             647      amount equal to the product of the following:
             648          (a) the qualifying school district's prior year ADM; and
             649          (b) an amount equal to the difference between the following:
             650          (i) the foundation guarantee level per ADM for that fiscal year, as determined in
             651      accordance with Subsection (1); and
             652          (ii) the qualifying school district's prior year property tax yield per ADM.
             653          (4) If a qualifying school district imposes a prior year combined capital levy rate less
             654      than the highest combined capital levy rate, the State Board of Education shall allocate to the
             655      qualifying school district an amount equal to the product of the following:
             656          (a) the qualifying school district's prior year ADM;
             657          (b) an amount equal to the difference between the following:
             658          (i) the foundation guarantee level per ADM for that fiscal year, as determined in
             659      accordance with Subsection (1); and
             660          (ii) the qualifying school district's prior year property tax yield per ADM; and
             661          (c) a percentage equal to:
             662          (i) the qualifying school district's prior year combined capital levy rate; divided by
             663          (ii) the highest combined capital levy rate.
             664          (5) (a) The State Board of Education shall allocate:
             665          (i) a minimum of $200,000 to each school district with a property tax base per ADM
             666      less than or equal to the statewide average property tax base per ADM;
             667          (ii) a minimum of $100,000 to each school district with a property tax base per ADM
             668      that is:
             669          (A) greater than the statewide average property tax base per ADM; and
             670          (B) less than or equal to two times the statewide average property tax base per ADM;
             671      and
             672          (iii) a minimum of $50,000 to each school district with a property tax base per ADM
             673      that is:


             674          (A) greater than two times the statewide average property tax base per ADM; and
             675          (B) less than or equal to five times the statewide average property tax base per ADM.
             676          (b) The State Board of Education shall incorporate the minimum allocations described
             677      in Subsection (5)(a) in its calculation of the foundation guarantee level per ADM determined in
             678      accordance with Subsection (1).
             679          Section 20. Section 53A-21-301 is enacted to read:
             680     
Part 3. Capital Outlay Enrollment Growth Program

             681          53A-21-301. Capital Outlay Enrollment Growth Program -- Definitions.
             682          (1) There is created the Capital Outlay Enrollment Growth Program to provide capital
             683      outlay funding to school districts experiencing net enrollment increases.
             684          (2) As used in this part:
             685          (a) "Average annual net enrollment increase" means the quotient of:
             686          (i) (A) enrollment in the current year, based on October 1 enrollment counts; minus
             687          (B) enrollment in the year three years prior, based on October 1 enrollment counts;
             688      divided by
             689          (ii) three.
             690          (b) "Eligible district" or "eligible school district" means a school district that:
             691          (i) has an average annual net enrollment increase; and
             692          (ii) has a prior year property tax base per student that is less than two times the prior
             693      year statewide average property tax base per student.
             694          Section 21. Section 53A-21-302 is enacted to read:
             695          53A-21-302. Capital Outlay Enrollment Growth Program -- Distribution formulas
             696      -- Allocations.
             697          (1) For fiscal years beginning on or after July 1, 2008, the State Board of Education
             698      shall annually allocate appropriated funds to eligible school districts in accordance with
             699      Subsection (2).
             700          (2) The State Board of Education shall allocate to an eligible school district an amount
             701      equal to the product of:


             702          (a) the quotient of:
             703          (i) the eligible school district's average annual net enrollment increase; divided by
             704          (ii) the sum of the average annual net enrollment increase in all eligible school districts;
             705      and
             706          (b) the total amount appropriated for the Capital Outlay Enrollment Growth Program in
             707      that fiscal year.
             708          Section 22. Section 53A-21-401 , which is renumbered from Section 53A-21-104 is
             709      renumbered and amended to read:
             710     
Part 4. Capital Outlay Loan Program

             711           [53A-21-104].     53A-21-401. Capital Outlay Loan Program -- School
             712      Building Revolving Account -- Access to the account.
             713          (1) There is created:
             714          (a) the "Capital Outlay Loan Program" to provide:
             715          (i) short-term help to school districts to meet district needs for school building
             716      construction and renovation; and
             717          (ii) assistance to charter schools to meet school building construction and renovation
             718      needs; and
             719          (b) a nonlapsing "School Building Revolving Account" administered within the Uniform
             720      School Fund by the state superintendent of public instruction in accordance with rules adopted
             721      by the State Board of Education.
             722          (2) [Monies received by a school district] The State Board of Education may not
             723      allocate funds from the School Building Revolving Account [may not] that exceed [the] a
             724      school district's bonding limit minus its outstanding bonds.
             725          (3) In order to receive monies from the account, a school district [must do the
             726      following] shall:
             727          (a) levy a [tax of] combined capital levy rate of at least .0024 [for capital outlay and
             728      debt service];
             729          (b) contract with the state superintendent of public instruction to repay the monies, with


             730      interest at a rate established by the state superintendent, within five years of [their] receipt,
             731      using future state [building monies or] capital outlay allocations, local revenues, or both;
             732          (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan
             733      repayments, unless the state superintendent of public instruction alters the payment schedule to
             734      improve a hardship situation; and
             735          (d) meet any other condition established by the State Board of Education pertinent to
             736      the loan.
             737          (4) (a) The state superintendent shall establish a committee, including representatives
             738      from state and local education entities, to:
             739          (i) review requests by school districts for loans under this section; and
             740          (ii) make recommendations regarding approval or disapproval of the loan applications
             741      to the state superintendent.
             742          (b) If the committee recommends approval of a loan application under Subsection
             743      (4)(a)(ii), the committee's recommendation shall include:
             744          (i) the recommended amount of the loan;
             745          (ii) the payback schedule; and
             746          (iii) the interest rate to be charged.
             747          (5) (a) There is established within the School Building Revolving Account the Charter
             748      School Building Subaccount administered by the State Board of Education, in consultation with
             749      the State Charter School Board, in accordance with rules adopted by the State Board of
             750      Education.
             751          (b) The Charter School Building Subaccount shall consist of:
             752          (i) money appropriated to the subaccount by the Legislature;
             753          (ii) money received from the repayment of loans made from the subaccount; and
             754          (iii) interest earned on monies in the subaccount.
             755          (c) The state superintendent of public instruction shall make loans to charter schools
             756      from the Charter School Building Subaccount to pay for the costs of:
             757          (i) planning expenses;


             758          (ii) constructing or renovating charter school buildings;
             759          (iii) equipment and supplies; or
             760          (iv) other start-up or expansion expenses.
             761          (d) Loans to new charter schools or charter schools with urgent facility needs may be
             762      given priority.
             763          (6) (a) The State Board of Education shall establish a committee, which shall include
             764      individuals who have expertise or experience in finance, real estate, and charter school
             765      administration, one of whom shall be nominated by the governor to:
             766          (i) review requests by charter schools for loans under this section; and
             767          (ii) make recommendations regarding approval or disapproval of the loan applications
             768      to the State Charter School Board and the State Board of Education.
             769          (b) If the committee recommends approval of a loan application under Subsection
             770      (6)(a)(ii), the committee's recommendation shall include:
             771          (i) the recommended amount of the loan;
             772          (ii) the payback schedule; and
             773          (iii) the interest rate to be charged.
             774          (c) The committee members may not:
             775          (i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or
             776          (ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
             777      or entity that contracts with a loan applicant.
             778          (7) The State Board of Education, in consultation with the State Charter School Board,
             779      shall approve all loans to a charter [schools] school under this section.
             780          (8) [Loans] The term of a loan to a charter [schools] school under this section may not
             781      exceed [a term of] five years.
             782          (9) The State Board of Education may not approve loans to charter schools under this
             783      section that exceed a total of $2,000,000 in any year.
             784          Section 23. Section 53A-21-501 , which is renumbered from Section 53A-21-105 is
             785      renumbered and amended to read:


             786     
Part 5. Fiscal Matters

             787           [53A-21-105].     53A-21-501. State contribution to capital outlay programs.
             788          (1) As an ongoing appropriation subject to future budget constraints, there is
             789      appropriated from the Uniform School Fund for fiscal year [2007-08] 2008-09, $27,288,900 to
             790      the State Board of Education for the capital outlay programs created in [Section 53A-21-102 ]
             791      this chapter.
             792          (2) Of the monies appropriated in Subsection (1), the State Board of Education shall
             793      distribute:
             794          (a) $24,358,000 in accordance with the Capital Outlay Foundation Program [described
             795      in Section 53A-21-103 ] pursuant to Section 53A-21-202 ; and
             796          (b) $2,930,900 in accordance with the Capital Outlay Enrollment Growth Program
             797      [described in Section 53A-21-103.5 ] pursuant to Section 53A-21-302 .
             798          Section 24. Section 59-2-908 is amended to read:
             799           59-2-908. Single aggregate limitation -- Maximum levy.
             800          (1) Except as provided in Subsection (2), each county shall have a single aggregate
             801      limitation on the property tax levied for all purposes by the county. Except as provided in
             802      Section 59-2-911 , this limitation may not exceed the maximum set forth in this section. The
             803      maximum is:
             804          (a) .0032 per dollar of taxable value in all counties with a total taxable value of more
             805      than $100,000,000; and
             806          (b) .0036 per dollar of taxable value in all counties with a total taxable value of less than
             807      $100,000,000.
             808          (2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
             809      limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
             810      generates revenues for the county in an amount that is less than the revenues that would be
             811      generated by the county under the certified tax rate established in [Subsection] Section
             812      59-2-924 [(2)].
             813          (b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that


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


             842      statement under this section is true and correct.
             843          Section 26. Section 59-2-914 is amended to read:
             844           59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement
             845      adjusted levies to county auditor.
             846          (1) If the commission determines that a levy established for a taxing entity set under
             847      Section 59-2-913 is in excess of the maximum levy permitted by law, the commission shall:
             848          (a) lower the levy so that it is set at the maximum level permitted by law;
             849          (b) notify the taxing entity which set the excessive rate that the rate has been lowered;
             850      and
             851          (c) notify the county auditor of the county or counties in which the taxing entity is
             852      located to implement the rate established by the commission.
             853          (2) A levy set for a taxing entity by the commission under this section shall be the
             854      official levy for that taxing entity unless:
             855          (a) the taxing entity lowers the levy established by the commission; or
             856          (b) the levy is subsequently modified by a court order.
             857          (3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
             858      a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the rate
             859      established by the taxing entity for the current year generates revenues for the taxing entity in an
             860      amount that is less than the revenues that would be generated by the taxing entity under the
             861      certified tax rate established in [Subsection] Section 59-2-924 [(2)].
             862          (b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax rate
             863      that does not exceed the certified rate established in [Subsection] Section 59-2-924 [(2)].
             864          Section 27. Section 59-2-918 is amended to read:
             865           59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
             866          (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
             867      increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
             868      in Subsection 59-2-924 [(2)] (4) unless it advertises its intention to do so at the same time that it
             869      advertises its intention to fix its budget for the forthcoming fiscal year.


             870          (b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             871      advertisement or hearing requirements of this section if:
             872          (A) the taxing entity:
             873          (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
             874      or
             875          (II) is expressly exempted by law from complying with the requirements of this section;
             876      or
             877          (B) the increased amount of ad valorem tax revenue results from a tax rate increase that
             878      is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and hearing
             879      requirements of Section 59-2-919 .
             880          (ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             881      advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
             882      budget an increased amount of ad valorem property tax revenue without having to comply with
             883      the advertisement requirements of this section.
             884          (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the
             885      advertisement required by this section may be combined with the advertisement required by
             886      Section 59-2-919 .
             887          (b) For taxing entities operating under a January 1 through December 31 fiscal year, the
             888      advertisement required by this section shall meet the size, type, placement, and frequency
             889      requirements established under Section 59-2-919 .
             890          (3) The form of the advertisement required by this section shall meet the size, type,
             891      placement, and frequency requirements established under Section 59-2-919 and shall be
             892      substantially as follows:
             893     
"NOTICE OF PROPOSED TAX INCREASE

             894     
(NAME OF TAXING ENTITY)

             895          The (name of the taxing entity) is proposing to increase its property tax revenue.
             896          *    If the proposed budget is approved, this would be an increase of _____% above
             897      the (name of the taxing entity) property tax budgeted revenue for the prior year.


             898          *    The (name of the taxing entity) tax on a (insert the average value of a residence
             899      in the taxing entity rounded to the nearest thousand dollars) residence would
             900      increase from $______ to $________, which is $_______ per year.
             901          *    The (name of the taxing entity) tax on a (insert the value of a business having the
             902      same value as the average value of a residence in the taxing entity) business
             903      would increase from $________ to $_______, which is $______ per year.
             904          All concerned citizens are invited to a public hearing on the tax increase.
             905     
PUBLIC HEARING

             906          Date/Time:    (date) (time)
             907          Location:    (name of meeting place and address of meeting place)
             908          To obtain more information regarding the tax increase, citizens may contact the (name
             909      of the taxing entity) at (phone number of taxing entity)."
             910          (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
             911      revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
             912      announce at the public hearing the scheduled time and place for consideration and adoption of
             913      the proposed budget increase.
             914          (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
             915      year shall by March 1 notify the county of the date, time, and place of the public hearing at
             916      which the budget for the following fiscal year will be considered.
             917          (b) The county shall include the information described in Subsection (5)(a) with the tax
             918      notice.
             919          (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
             920      p.m.
             921          Section 28. Section 59-2-924 is amended to read:
             922           59-2-924. Report of valuation of property to county auditor and commission --
             923      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
             924      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             925          (1) [(a)] Before June 1 of each year, the county assessor of each county shall deliver to


             926      the county auditor and the commission the following statements:
             927          [(i)] (a) a statement containing the aggregate valuation of all taxable property in each
             928      taxing entity; and
             929          [(ii)] (b) a statement containing the taxable value of any additional personal property
             930      estimated by the county assessor to be subject to taxation in the current year.
             931          [(b)] (2) The county auditor shall, on or before June 8, transmit to the governing body
             932      of each taxing entity:
             933          [(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
             934          [(ii)] (b) an estimate of the revenue from personal property;
             935          [(iii)] (c) the certified tax rate; and
             936          [(iv)] (d) all forms necessary to submit a tax levy request.
             937          [(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad
             938      valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
             939      prior year.
             940          [(ii)] (b) For purposes of this Subsection [(2)](3), "ad valorem property tax revenues"
             941      do not include:
             942          [(A)] (i) collections from redemptions;
             943          [(B)] (ii) interest;
             944          [(C)] (iii) penalties; and
             945          [(D)] (iv) revenue received by a taxing entity from personal property that is:
             946          [(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
             947      and
             948          [(II)] (B) semiconductor manufacturing equipment.
             949          [(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
             950      be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
             951      the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
             952          [(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
             953      taxing entity shall calculate an amount as follows:


             954          [(I)] (A) calculate for the taxing entity the difference between:
             955          [(Aa)] (I) the aggregate taxable value of all property taxed; and
             956          [(Bb)] (II) any redevelopment adjustments for the current calendar year;
             957          [(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]
             958      (3)(c)(ii)(A), calculate an amount determined by increasing or decreasing the amount calculated
             959      under Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A) by the average of the percentage net change in
             960      the value of taxable property for the equalization period for the three calendar years
             961      immediately preceding the current calendar year;
             962          [(III)] (C) after making the calculation required by Subsection [(2)(a)(iii)(B)(II)]
             963      (3)(c)(ii)(B), calculate the product of:
             964          [(Aa)] (I) the amount calculated under Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B); and
             965          [(Bb)] (II) the percentage of property taxes collected for the five calendar years
             966      immediately preceding the current calendar year; and
             967          [(IV)] (D) after making the calculation required by Subsection [(2)(a)(iii)(B)(III)]
             968      (3)(c)(ii)(C), calculate an amount determined by subtracting from the amount calculated under
             969      Subsection [(2)(a)(iii)(B)(III)] (3)(c)(ii)(C) any new growth as defined in this section:
             970          [(Aa)] (I) within the taxing entity; and
             971          [(Bb)] (II) for the current calendar year.
             972          [(C)] (iii) For purposes of Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A), the aggregate
             973      taxable value of all property taxed:
             974          [(I)] (A) except as provided in Subsection [(2)(a)(iii)(C)(II)] (3)(c)(iii)(B), includes the
             975      total taxable value of the real and personal property contained on the tax rolls of the taxing
             976      entity; and
             977          [(II)] (B) does not include the total taxable value of personal property contained on the
             978      tax rolls of the taxing entity that is:
             979          [(Aa)] (I) assessed by a county assessor in accordance with Part 3, County Assessment;
             980      and
             981          [(Bb)] (II) semiconductor manufacturing equipment.


             982          [(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
             983      beginning on or after January 1, 2007, the value of taxable property does not include the value
             984      of personal property that is:
             985          [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
             986      3, County Assessment; and
             987          [(II)] (B) semiconductor manufacturing equipment.
             988          [(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
             989      calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
             990      does not include property taxes collected from personal property that is:
             991          [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
             992      3, County Assessment; and
             993          [(II)] (B) semiconductor manufacturing equipment.
             994          [(F)] (vi) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             995      Act, the commission may prescribe rules for calculating redevelopment adjustments for a
             996      calendar year.
             997          [(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
             998      Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
             999      property tax revenues budgeted by a taxing entity.
             1000          [(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
             1001      revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted
             1002      property tax revenues are calculated for purposes of Section 59-2-913 .
             1003          [(v)] (e) The certified tax rates for the taxing entities described in this Subsection
             1004      [(2)(a)(v)] (3)(e) shall be calculated as follows:
             1005          [(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
             1006      entities the certified tax rate is zero;
             1007          [(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax
             1008      rate is:
             1009          [(I)] (A) in a county of the first, second, or third class, the levy imposed for


             1010      municipal-type services under Sections 17-34-1 and 17-36-9 ; and
             1011          [(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
             1012      county purposes and such other levies imposed solely for the municipal-type services identified
             1013      in Section 17-34-1 and Subsection 17-36-3 (22); and
             1014          [(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
             1015      actual levy imposed by that section, except that the certified tax rates for the following levies
             1016      shall be calculated in accordance with Section 59-2-913 and this section:
             1017          [(I)] (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 ,
             1018      [ 53A-17a-125 ,] 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , and 53A-17a-145 [,
             1019      and 53A-21-103 ]; and
             1020          [(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
             1021      administrative orders under Section 59-2-906.3 .
             1022          [(vi) (A)] (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall
             1023      be established at that rate which is sufficient to generate only the revenue required to satisfy one
             1024      or more eligible judgments, as defined in Section 59-2-102 .
             1025          [(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
             1026      be considered in establishing the taxing entity's aggregate certified tax rate.
             1027          (g) The ad valorem property tax revenue generated by the capital outlay levy described
             1028      in Section 53A-16-107 within a taxing entity in a county of the first class:
             1029          (i) may not be considered in establishing the school district's aggregate certified tax
             1030      rate; and
             1031          (ii) shall be included by the commission in establishing a certified tax rate for that capital
             1032      outlay levy determined in accordance with the calculation described in Subsection 59-2-913 (3).
             1033          [(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
             1034      shall use the taxable value of property on the assessment roll.
             1035          [(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
             1036      property on the assessment roll does not include:
             1037          [(A)] (i) new growth as defined in Subsection [(2)(b)(iii); or] (4)(c); or


             1038          [(B)] (ii) the total taxable value of personal property contained on the tax rolls of the
             1039      taxing entity that is:
             1040          [(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
             1041      and
             1042          [(II)] (B) semiconductor manufacturing equipment.
             1043          [(iii)] (c) "New growth" means:
             1044          [(A)] (i) the difference between the increase in taxable value of the taxing entity from
             1045      the previous calendar year to the current year; minus
             1046          [(B)] (ii) the amount of an increase in taxable value described in Subsection [(2)(b)(v)]
             1047      (4)(e).
             1048          [(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of the
             1049      taxing entity does not include the taxable value of personal property that is:
             1050          [(A)] (i) contained on the tax rolls of the taxing entity if that property is assessed by a
             1051      county assessor in accordance with Part 3, County Assessment; and
             1052          [(B)] (ii) semiconductor manufacturing equipment.
             1053          [(v)] (e) Subsection [(2)(b)(iii)(B)] (4)(c)(ii) applies to the following increases in
             1054      taxable value:
             1055          [(A)] (i) the amount of increase to locally assessed real property taxable values resulting
             1056      from factoring, reappraisal, or any other adjustments; or
             1057          [(B)] (ii) the amount of an increase in the taxable value of property assessed by the
             1058      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             1059      taxable value prescribed by:
             1060          [(I)] (A) the Legislature;
             1061          [(II)] (B) a court;
             1062          [(III)] (C) the commission in an administrative rule; or
             1063          [(IV)] (D) the commission in an administrative order.
             1064          [(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             1065      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,


             1066      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             1067      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             1068      rate to offset the increased revenues.]
             1069          [(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             1070      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:]
             1071          [(A) decreased on a one-time basis by the amount of the estimated sales and use tax
             1072      revenue to be distributed to the county under Subsection 59-12-1102 (3); and]
             1073          [(B) increased by the amount necessary to offset the county's reduction in revenue from
             1074      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1075      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             1076      (2)(d)(i)(A).]
             1077          [(ii) The commission shall determine estimates of sales and use tax distributions for
             1078      purposes of Subsection (2)(d)(i).]
             1079          [(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             1080      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             1081      decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
             1082      revenue from the additional resort communities sales and use tax imposed under Section
             1083      59-12-402 .]
             1084          [(f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
             1085      Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
             1086      unincorporated area of the county shall be decreased by the amount necessary to reduce
             1087      revenues in that fiscal year by an amount equal to the difference between the amount the county
             1088      budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
             1089      countywide and the amount the county spent during fiscal year 2000 for those services,
             1090      excluding amounts spent from a municipal services fund for those services.]
             1091          [(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
             1092      (2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
             1093      year by the amount that the county spent during fiscal year 2000 for advanced life support and


             1094      paramedic services countywide, excluding amounts spent from a municipal services fund for
             1095      those services.]
             1096          [(ii) (A) A city or town located within a county of the first class to which Subsection
             1097      (2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
             1098      the city or town the same amount of revenues as the county would collect from that city or
             1099      town if the decrease under Subsection (2)(f)(i) did not occur.]
             1100          [(B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal year
             1101      or spread over multiple fiscal years, is not subject to the notice and hearing requirements of
             1102      Sections 59-2-918 and 59-2-919 .]
             1103          [(g) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
             1104      provide detective investigative services to the unincorporated area of the county shall be
             1105      decreased:]
             1106          [(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
             1107      by at least $4,400,000; and]
             1108          [(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
             1109      by an amount equal to the difference between $9,258,412 and the amount of the reduction in
             1110      revenues under Subsection (2)(g)(i)(A).]
             1111          [(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             1112      county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
             1113      within the city or town the same amount of revenue as the county would have collected during
             1114      county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).]
             1115          [(II) Beginning with municipal fiscal year 2003, a city or town located within a county
             1116      to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
             1117      city or town the same amount of revenue as the county would have collected during county
             1118      fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).]
             1119          [(B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
             1120      town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
             1121      or spread over multiple fiscal years, is subject to the notice and hearing requirements of Sections


             1122      59-2-918 and 59-2-919 .]
             1123          [(II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does
             1124      not exceed the same amount of revenue as the county would have collected except for
             1125      Subsection (2)(g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the
             1126      city or town:]
             1127          [(Aa) publishes a notice that meets the size, type, placement, and frequency
             1128      requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
             1129      by the county to one imposed by the city or town, and explains how the revenues from the tax
             1130      increase will be used; and]
             1131          [(Bb) holds a public hearing on the tax shift that may be held in conjunction with the
             1132      city or town's regular budget hearing.]
             1133          [(h) (i) This Subsection (2)(h) applies to each county that:]
             1134          [(A) establishes a countywide special service district under Title 17A, Chapter 2, Part
             1135      13, Utah Special Service District Act, to provide jail service, as provided in Subsection
             1136      17A-2-1304 (1)(a)(x); and]
             1137          [(B) levies a property tax on behalf of the special service district under Section
             1138      17A-2-1322 .]
             1139          [(ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
             1140      shall be decreased by the amount necessary to reduce county revenues by the same amount of
             1141      revenues that will be generated by the property tax imposed on behalf of the special service
             1142      district.]
             1143          [(B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
             1144      the levy on behalf of the special service district under Section 17A-2-1322 .]
             1145          [(i) (i) As used in this Subsection (2)(i):]
             1146          [(A) "Annexing county" means a county whose unincorporated area is included within a
             1147      fire district by annexation.]
             1148          [(B) "Annexing municipality" means a municipality whose area is included within a fire
             1149      district by annexation.]


             1150          [(C) "Equalized fire protection tax rate" means the tax rate that results from:]
             1151          [(I) calculating, for each participating county and each participating municipality, the
             1152      property tax revenue necessary to cover all of the costs associated with providing fire
             1153      protection, paramedic, and emergency services:]
             1154          [(Aa) for a participating county, in the unincorporated area of the county; and]
             1155          [(Bb) for a participating municipality, in the municipality; and]
             1156          [(II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
             1157      participating counties and all participating municipalities and then dividing that sum by the
             1158      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :]
             1159          [(Aa) for participating counties, in the unincorporated area of all participating counties;
             1160      and]
             1161          [(Bb) for participating municipalities, in all the participating municipalities.]
             1162          [(D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
             1163      Area Act, in the creation of which an election was not required under Subsection
             1164      17B-1-214 (3)(c).]
             1165          [(E) "Fire protection tax rate" means:]
             1166          [(I) for an annexing county, the property tax rate that, when applied to taxable property
             1167      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             1168      costs associated with providing fire protection, paramedic, and emergency services in the
             1169      unincorporated area of the county; and]
             1170          [(II) for an annexing municipality, the property tax rate that generates enough property
             1171      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             1172      paramedic, and emergency services in the municipality.]
             1173          [(F) "Participating county" means a county whose unincorporated area is included
             1174      within a fire district at the time of the creation of the fire district.]
             1175          [(G) "Participating municipality" means a municipality whose area is included within a
             1176      fire district at the time of the creation of the fire district.]
             1177          [(ii) In the first year following creation of a fire district, the certified tax rate of each


             1178      participating county and each participating municipality shall be decreased by the amount of the
             1179      equalized fire protection tax rate.]
             1180          [(iii) In the first year following annexation to a fire district, the certified tax rate of each
             1181      annexing county and each annexing municipality shall be decreased by the fire protection tax
             1182      rate.]
             1183          [(iv) Each tax levied under this section by a fire district shall be considered to be levied
             1184      by:]
             1185          [(A) each participating county and each annexing county for purposes of the county's
             1186      tax limitation under Section 59-2-908 ; and]
             1187          [(B) each participating municipality and each annexing municipality for purposes of the
             1188      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
             1189      city.]
             1190          [(j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             1191      entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
             1192      certified tax rate that may result from excluding the following from the certified tax rate under
             1193      Subsection (2)(a) enacted by the Legislature during the 2007 General Session:]
             1194          [(i) personal property tax revenue:]
             1195          [(A) received by a taxing entity;]
             1196          [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
             1197          [(C) for personal property that is semiconductor manufacturing equipment; or]
             1198          [(ii) the taxable value of personal property:]
             1199          [(A) contained on the tax rolls of a taxing entity;]
             1200          [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
             1201          [(C) that is semiconductor manufacturing equipment.]
             1202          [(3)] (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative
             1203      budget.
             1204          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             1205      auditor of:


             1206          (i) its intent to exceed the certified tax rate; and
             1207          (ii) the amount by which it proposes to exceed the certified tax rate.
             1208          (c) The county auditor shall notify all property owners of any intent to exceed the
             1209      certified tax rate in accordance with Subsection 59-2-919 [(2)] (3).
             1210          [(4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             1211      reduced for any year to the extent necessary to provide a community development and renewal
             1212      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             1213      Development and Renewal Agencies, with approximately the same amount of money the agency
             1214      would have received without a reduction in the county's certified tax rate if:]
             1215          [(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             1216      (2)(d)(i);]
             1217          [(ii) the amount of the decrease is more than 20% of the county's certified tax rate of
             1218      the previous year; and]
             1219          [(iii) the decrease results in a reduction of the amount to be paid to the agency under
             1220      Section 17C-1-403 or 17C-1-404 .]
             1221          [(b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             1222      year to the extent necessary to provide a community development and renewal agency with
             1223      approximately the same amount of money as the agency would have received without an
             1224      increase in the certified tax rate that year if:]
             1225          [(i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             1226      a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and]
             1227          [(ii) The certified tax rate of a city, school district, local district, or special service
             1228      district increases independent of the adjustment to the taxable value of the base year.]
             1229          [(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
             1230      (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
             1231      development and renewal agency established under Title 17C, Limited Purpose Local
             1232      Government Entities - Community Development and Renewal Agencies, for the payment of
             1233      bonds or other contract indebtedness, but not for administrative costs, may not be less than that


             1234      amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
             1235      (2)(d)(i).]
             1236          Section 29. Section 59-2-924.2 is enacted to read:
             1237          59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
             1238          (1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
             1239      in accordance with Section 59-2-924 .
             1240          (2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             1241      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1242      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             1243      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             1244      rate to offset the increased revenues.
             1245          (3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             1246      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
             1247          (i) decreased on a one-time basis by the amount of the estimated sales and use tax
             1248      revenue to be distributed to the county under Subsection 59-12-1102 (3); and
             1249          (ii) increased by the amount necessary to offset the county's reduction in revenue from
             1250      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1251      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             1252      (3)(a)(i).
             1253          (b) The commission shall determine estimates of sales and use tax distributions for
             1254      purposes of Subsection (3)(a).
             1255          (4) Beginning January 1, 1998, if a municipality has imposed an additional resort
             1256      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             1257      decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
             1258      revenue from the additional resort communities sales and use tax imposed under Section
             1259      59-12-402 .
             1260          (5) (a) This Subsection (5) applies to each county that:
             1261          (i) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,


             1262      Utah Special Service District Act, to provide jail service, as provided in Subsection
             1263      17A-2-1304 (1)(a)(x); and
             1264          (ii) levies a property tax on behalf of the special service district under Section
             1265      17A-2-1322 .
             1266          (b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
             1267      decreased by the amount necessary to reduce county revenues by the same amount of revenues
             1268      that will be generated by the property tax imposed on behalf of the special service district.
             1269          (ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
             1270      levy on behalf of the special service district under Section 17A-2-1322 .
             1271          (6) (a) As used in this Subsection (6):
             1272          (i) "Annexing county" means a county whose unincorporated area is included within a
             1273      fire district by annexation.
             1274          (ii) "Annexing municipality" means a municipality whose area is included within a fire
             1275      district by annexation.
             1276          (iii) "Equalized fire protection tax rate" means the tax rate that results from:
             1277          (A) calculating, for each participating county and each participating municipality, the
             1278      property tax revenue necessary to cover all of the costs associated with providing fire
             1279      protection, paramedic, and emergency services:
             1280          (I) for a participating county, in the unincorporated area of the county; and
             1281          (II) for a participating municipality, in the municipality; and
             1282          (B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
             1283      participating counties and all participating municipalities and then dividing that sum by the
             1284      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
             1285          (I) for participating counties, in the unincorporated area of all participating counties;
             1286      and
             1287          (II) for participating municipalities, in all the participating municipalities.
             1288          (iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
             1289      Area Act, in the creation of which an election was not required under Subsection


             1290      17B-1-214 (3)(c).
             1291          (v) "Fire protection tax rate" means:
             1292          (A) for an annexing county, the property tax rate that, when applied to taxable property
             1293      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             1294      costs associated with providing fire protection, paramedic, and emergency services in the
             1295      unincorporated area of the county; and
             1296          (B) for an annexing municipality, the property tax rate that generates enough property
             1297      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             1298      paramedic, and emergency services in the municipality.
             1299          (vi) "Participating county" means a county whose unincorporated area is included
             1300      within a fire district at the time of the creation of the fire district.
             1301          (vii) "Participating municipality" means a municipality whose area is included within a
             1302      fire district at the time of the creation of the fire district.
             1303          (b) In the first year following creation of a fire district, the certified tax rate of each
             1304      participating county and each participating municipality shall be decreased by the amount of the
             1305      equalized fire protection tax rate.
             1306          (c) In the first year following annexation to a fire district, the certified tax rate of each
             1307      annexing county and each annexing municipality shall be decreased by the fire protection tax
             1308      rate.
             1309          (d) Each tax levied under this section by a fire district shall be considered to be levied
             1310      by:
             1311          (i) each participating county and each annexing county for purposes of the county's tax
             1312      limitation under Section 59-2-908 ; and
             1313          (ii) each participating municipality and each annexing municipality for purposes of the
             1314      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a city.
             1315          (7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             1316      entity's certified tax rate, calculated in accordance with Section 59-2-924 , shall be adjusted by
             1317      the amount necessary to offset any change in the certified tax rate that may result from


             1318      excluding the following from the certified tax rate under Subsection 59-2-924 (3) enacted by the
             1319      Legislature during the 2007 General Session:
             1320          (a) personal property tax revenue:
             1321          (i) received by a taxing entity;
             1322          (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1323          (iii) for personal property that is semiconductor manufacturing equipment; or
             1324          (b) the taxable value of personal property:
             1325          (i) contained on the tax rolls of a taxing entity;
             1326          (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1327          (iii) that is semiconductor manufacturing equipment.
             1328          (8) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             1329      reduced for any year to the extent necessary to provide a community development and renewal
             1330      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             1331      Development and Renewal Agencies, with approximately the same amount of money the agency
             1332      would have received without a reduction in the county's certified tax rate, calculated in
             1333      accordance with Section 59-2-924 , if:
             1334          (i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
             1335          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             1336      previous year; and
             1337          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             1338      Section 17C-1-403 or 17C-1-404 .
             1339          (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             1340      year to the extent necessary to provide a community development and renewal agency with
             1341      approximately the same amount of money as the agency would have received without an
             1342      increase in the certified tax rate that year if:
             1343          (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             1344      a decrease in the certified tax rate under Subsection (2) or (3)(a); and
             1345          (ii) the certified tax rate of a city, school district, local district, or special service district


             1346      increases independent of the adjustment to the taxable value of the base year.
             1347          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
             1348      the amount of money allocated and, when collected, paid each year to a community
             1349      development and renewal agency established under Title 17C, Limited Purpose Local
             1350      Government Entities - Community Development and Renewal Agencies, for the payment of
             1351      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             1352      amount would have been without a decrease in the certified tax rate under Subsection (2) or
             1353      (3)(a).
             1354          Section 30. Section 59-2-924.3 is enacted to read:
             1355          59-2-924.3. Adjustment of the calculation of the certified tax rate for a school
             1356      district imposing a capital outlay levy in a county of the first class.
             1357          (1) As used in this section:
             1358          (a) "Capital outlay increment" means the amount of revenue equal to the difference
             1359      between:
             1360          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value within
             1361      a school district during a fiscal year; and
             1362          (ii) the amount of revenue the school district received during the same fiscal year from
             1363      the distribution described in Subsection 53A-16-107.1 (1).
             1364          (b) "Contributing school district" means a school district in a county of the first class
             1365      that in a fiscal year receives less revenue from the distribution described in Subsection
             1366      53A-16-107.1 (1) than it would have received during the same fiscal year from a levy imposed
             1367      within the school district of .0006 per dollar of taxable value.
             1368          (c) "Receiving school district" means a school district in a county of the first class that
             1369      in a fiscal year receives more revenue from the distribution described in Subsection
             1370      53A-16-107.1 (1) than it would have received during the same fiscal year from a levy imposed
             1371      within the school district of .0006 per dollar of taxable value.
             1372          (2) For fiscal year 2009-10, a receiving school district shall decrease its capital outlay
             1373      certified tax rate under Subsection 59-2-924 (3)(g)(ii) by an amount required to offset the


             1374      receiving school district's estimated capital outlay increment for the current fiscal year.
             1375          (3) Beginning with fiscal year 2010-11, a receiving school district shall decrease its
             1376      capital outlay certified tax rate under Subsection 59-2-924 (3)(g)(ii) by the amount required to
             1377      offset the receiving school district's capital outlay increment for the prior fiscal year.
             1378          (4) For fiscal year 2009-10, a contributing school district is exempt from the public
             1379      notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school district's
             1380      capital outlay levy certified tax rate calculated pursuant to Subsection 59-2-924 (3)(g)(ii) if:
             1381          (a) the contributing school district budgets an increased amount of ad valorem property
             1382      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital outlay
             1383      levy described in Section 53A-16-107 ; and
             1384          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1385      (4)(a) is less than or equal to that contributing school district's estimated capital outlay
             1386      increment for the current fiscal year.
             1387          (5) Beginning with fiscal year 2010-11, a contributing school district is exempt from the
             1388      public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
             1389      district's capital outlay levy certified tax rate calculated pursuant to Subsection
             1390      59-2-924 (3)(g)(ii) if:
             1391          (a) the contributing school district budgets an increased amount of ad valorem property
             1392      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital outlay
             1393      levy described in Section 53A-16-107 ; and
             1394          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1395      (5)(a) is less than or equal to that contributing school district's capital outlay increment for the
             1396      prior year.
             1397          (6) Beginning with fiscal year 2011-12, a contributing school district is exempt from the
             1398      public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
             1399      district's capital outlay levy certified tax rate calculated pursuant to Subsection
             1400      59-2-924 (3)(g)(ii) if:
             1401          (a) the contributing school district budgets an increased amount of ad valorem property


             1402      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital outlay
             1403      levy described in Section 53A-16-107 ; and
             1404          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1405      (6)(a) is less than or equal to the difference between:
             1406          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1407      imposed within the contributing school district during the current taxable year; and
             1408          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1409      imposed within the contributing school district during the prior taxable year.
             1410          (7) Regardless of the amount a school district receives from the revenue collected from
             1411      the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3), the revenue
             1412      generated within the school district from the .0006 portion of the capital outlay levy required in
             1413      Subsection 53A-16-107 (3) shall be considered to be budgeted ad valorem property tax revenues
             1414      of the school district that levies the .0006 portion of the capital outlay levy for purposes of
             1415      calculating the school district's certified tax rate in accordance with Subsection
             1416      59-2-924 (3)(g)(ii).
             1417          Section 31. Section 59-2-924.4 is enacted to read:
             1418          59-2-924.4. Adjustment of the calculation of the certified tax rate for certain
             1419      divided school districts.
             1420          (1) As used in this section:
             1421          (a) "Capital outlay increment" means the amount of revenue equal to the difference
             1422      between:
             1423          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value within
             1424      a qualifying divided school district during a fiscal year; and
             1425          (ii) the amount of revenue the qualifying divided school district received during the
             1426      same fiscal year from the distribution described in Section 53A-2-118.3 .
             1427          (b) "Contributing divided school district" means a school district located within a
             1428      qualifying divided school district that in a fiscal year receives less revenue from the distribution
             1429      described in Section 53A-2-118.3 than it would have received during the same fiscal year from a


             1430      levy imposed within the school district of .0006 per dollar of taxable value.
             1431          (c) "Divided school district" means a school district from which a new school district is
             1432      created.
             1433          (d) "New school district" means a school district:
             1434          (i) created under Section 53A-2-118.1 ;
             1435          (ii) that begins to provide educational services after July 1, 2008; and
             1436          (iii) located in a qualifying divided school district.
             1437          (e) "Qualifying divided school district" means a divided school district:
             1438          (i) located within a county of the second through sixth class; and
             1439          (ii) with a new school district created under Section 53A-2-118.1 that begins to provide
             1440      educational services after July 1, 2008.
             1441          (f) "Qualifying fiscal year" means the first fiscal year that a new school district begins to
             1442      provide educational services.
             1443          (g) "Receiving divided school district" means a school district located within a
             1444      qualifying divided school district that in a fiscal year receives more revenue from the distribution
             1445      described in Section 53A-2-118.3 than it would have received during the same fiscal year from a
             1446      levy imposed within the school district of .0006 per dollar of taxable value.
             1447          (2) A receiving divided school district shall decrease its certified tax rate calculated in
             1448      accordance with Section 59-2-924 by the amount required to offset the receiving divided school
             1449      district's capital outlay increment for the prior fiscal year.
             1450          (3) Beginning with the fiscal year after the qualifying fiscal year, a contributing divided
             1451      school district is exempt from the public notice and hearing requirements of Sections 59-2-918
             1452      and 59-2-919 for the contributing divided school district's certified tax rate calculated pursuant
             1453      to Section 59-2-924 if:
             1454          (a) the contributing divided school district budgets an increased amount of ad valorem
             1455      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1456      capital outlay levy required in Section 53A-2-118.3 ; and
             1457          (b) the increased amount of ad valorem property tax revenue described in Subsection


             1458      (3)(a) is less than or equal to that contributing divided school district's capital outlay increment
             1459      for the prior year.
             1460          (4) Beginning with the fiscal year after the qualifying fiscal year, a contributing divided
             1461      school district is exempt from the public notice and hearing requirements of Sections 59-2-918
             1462      and 59-2-919 for the contributing divided school district's certified tax rate calculated pursuant
             1463      to Section 59-2-924 if:
             1464          (a) the contributing divided school district budgets an increased amount of ad valorem
             1465      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1466      capital outlay levy described in Section 53A-2-118.3 ; and
             1467          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1468      (4)(a) is less than or equal to the difference between:
             1469          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1470      imposed within the contributing divided school district during the current taxable year; and
             1471          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1472      imposed within the contributing divided school district during the prior taxable year.
             1473          (5) Regardless of the amount a school district receives from the revenue collected from
             1474      the .0006 portion of the capital outlay levy described in Section 53A-2-118.3 , the revenue
             1475      generated within the school district from the .0006 portion of the capital outlay levy described
             1476      in Section 53A-2-118.3 shall be considered to be budgeted ad valorem property tax revenues of
             1477      the school district that levies the .0006 portion of the capital outlay levy for purposes of
             1478      calculating the school district's certified tax rate in accordance with Section 59-2-924 .
             1479          Section 32. Section 59-2-1330 is amended to read:
             1480           59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
             1481      entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
             1482      Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
             1483      commission -- Time periods for making payments to taxpayer.
             1484          (1) Unless otherwise specifically provided by statute, property taxes shall be paid
             1485      directly to the county assessor or the county treasurer:


             1486          (a) on the date that the property taxes are due; and
             1487          (b) as provided in this chapter.
             1488          (2) A taxpayer shall receive payment as provided in this section if a reduction in the
             1489      amount of any tax levied against any property for which the taxpayer paid a tax or any portion
             1490      of a tax under this chapter for a calendar year is required by a final and unappealable judgment
             1491      or order described in Subsection (3) issued by:
             1492          (a) a county board of equalization;
             1493          (b) the commission; or
             1494          (c) a court of competent jurisdiction.
             1495          (3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
             1496      property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
             1497      shall pay the taxpayer if:
             1498          (i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
             1499      authorized officer of the:
             1500          (A) county; or
             1501          (B) state;
             1502          (ii) the taxpayer obtains a final and unappealable judgment or order:
             1503          (A) from:
             1504          (I) a county board of equalization;
             1505          (II) the commission; or
             1506          (III) a court of competent jurisdiction;
             1507          (B) against:
             1508          (I) the taxing entity or an authorized officer of the taxing entity; or
             1509          (II) the state or an authorized officer of the state; and
             1510          (C) ordering a reduction in the amount of any tax levied against any property for which
             1511      a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
             1512          (b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
             1513      in accordance with Subsections (4) through (7).


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


             1542      judgment or order described in Subsection (3);
             1543          (b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
             1544      between:
             1545          (i) any penalties the taxpayer paid to the taxing entity in accordance with Section
             1546      59-2-1331 ; and
             1547          (ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in
             1548      accordance with Section 59-2-1331 after the reduction in the amount of tax levied against the
             1549      property in accordance with the final and unappealable judgment or order described in
             1550      Subsection (3); and
             1551          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
             1552      Section 59-2-1331 on the amounts described in Subsections (5)(a) and (5)(b); and
             1553          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
             1554          (i) Subsection (5)(a);
             1555          (ii) Subsection (5)(b); and
             1556          (iii) Subsection (5)(c).
             1557          (6) Except as provided in Subsection (7):
             1558          (a) interest shall be refunded to a taxpayer on the amount described in Subsection (4)(c)
             1559      or (5)(c) in an amount equal to the amount of interest the taxpayer paid in accordance with
             1560      Section 59-2-1331 ; and
             1561          (b) interest shall be paid to a taxpayer on the amount described in Subsection (4)(d) or
             1562      (5)(d):
             1563          (i) beginning on the later of:
             1564          (A) the day on which the taxpayer paid the tax in accordance with Subsection (2); or
             1565          (B) January 1 of the calendar year immediately following the calendar year for which
             1566      the tax was due;
             1567          (ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
             1568      amount required by Subsection (4) or (5); and
             1569          (iii) at the interest rate earned by the state treasurer on public funds transferred to the


             1570      state treasurer in accordance with Section 51-7-5.
             1571          (7) Notwithstanding Subsection (6):
             1572          (a) the state may not pay or refund interest to a taxpayer under Subsection (6) on any
             1573      tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax levied
             1574      by the state for that calendar year as stated on the notice required by Section 59-2-1317 ; and
             1575          (b) a taxing entity may not pay or refund interest to a taxpayer under Subsection (6) on
             1576      any tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax
             1577      levied by the taxing entity for that calendar year as stated on the notice required by Section
             1578      59-2-1317.
             1579          (8) (a) Each taxing entity may levy a tax to pay its share of the final and unappealable
             1580      judgment or order described in Subsection (3) if:
             1581          (i) the final and unappealable judgment or order is issued no later than 15 days prior to
             1582      the date the levy is set under Subsection 59-2-924 [(2)] (3)(a);
             1583          (ii) the amount of the judgment levy is included on the notice under Section 59-2-919 ;
             1584      and
             1585          (iii) the final and unappealable judgment or order is an eligible judgment, as defined in
             1586      Section 59-2-102 .
             1587          (b) The levy under Subsection (8)(a) is in addition to, and exempt from, the maximum
             1588      levy established for the taxing entity.
             1589          (9) (a) A taxpayer that objects to the assessment of property assessed by the
             1590      commission shall pay, on or before the date of delinquency established under Subsection
             1591      59-2-1331 (1) or Section 59-2-1332 , the full amount of taxes stated on the notice required by
             1592      Section 59-2-1317 if:
             1593          (i) the taxpayer has applied to the commission for a hearing in accordance with Section
             1594      59-2-1007 on the objection to the assessment; and
             1595          (ii) the commission has not issued a written decision on the objection to the assessment
             1596      in accordance with Section 59-2-1007 .
             1597          (b) A taxpayer that pays the full amount of taxes due under Subsection (9)(a) is not


             1598      required to pay penalties or interest on an assessment described in Subsection (9)(a) unless:
             1599          (i) a final and unappealable judgment or order establishing that the property described in
             1600      Subsection (9)(a) has a value greater than the value stated on the notice required by Section
             1601      59-2-1317 is issued by:
             1602          (A) the commission; or
             1603          (B) a court of competent jurisdiction; and
             1604          (ii) the taxpayer fails to pay the additional tax liability resulting from the final and
             1605      unappealable judgment or order described in Subsection (9)(b)(i) within a 45-day period after
             1606      the county bills the taxpayer for the additional tax liability.
             1607          (10) (a) Except as provided in Subsection (10)(b), a payment that is required by this
             1608      section shall be paid to a taxpayer:
             1609          (i) within 60 days after the day on which the final and unappealable judgment or order is
             1610      issued in accordance with Subsection (3); or
             1611          (ii) if a judgment levy is imposed in accordance with Subsection (8):
             1612          (A) if the payment to the taxpayer required by this section is $5,000 or more, no later
             1613      than December 31 of the year in which the judgment levy is imposed; and
             1614          (B) if the payment to the taxpayer required by this section is less than $5,000, within 60
             1615      days after the date the final and unappealable judgment or order is issued in accordance with
             1616      Subsection (3).
             1617          (b) Notwithstanding Subsection (10)(a), a taxpayer may enter into an agreement:
             1618          (i) that establishes a time period other than a time period described in Subsection
             1619      (10)(a) for making a payment to the taxpayer that is required by this section; and
             1620          (ii) with:
             1621          (A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
             1622          (B) an authorized officer of the state for a tax imposed by the state.
             1623          Section 33. Repealer.
             1624          This bill repeals:
             1625          Section 53A-21-103, Qualifications for participation in the foundation program --


             1626      Distribution of monies -- Distribution formulas.
             1627          Section 53A-21-103.5, Qualifications for participation in the Enrollment Growth
             1628      Program -- State Board of Education rules -- Distribution formula.
             1629          Section 34. Appropriation.
             1630          In addition to the amounts appropriated in Section 53A-21-501 , there is appropriated
             1631      from the Uniform School Fund for fiscal year 2008-09 only:
             1632          (1) $7,500,000 to the State Board of Education for the Capital Outlay Foundation
             1633      Program for allocation pursuant to Section 53A-21-202 ; and
             1634          (2) $7,500,000 to the State Board of Education for the Capital Outlay Enrollment
             1635      Growth Program for allocation pursuant to Section 53A-21-302 .
             1636          Section 35. Effective date.
             1637          This bill takes effect on July 1, 2008.
             1638          Section 36. Coordinating S.B. 48 with H.B. 1 -- Superseding amendments.
             1639          If this S.B. 48 and H.B. 1, Minimum School Program Base Budget Amendments, both
             1640      pass, it is the intent of the Legislature that the amendments to Section 53A-21-501 , renumbered
             1641      from Section 53A-21-105 , in this bill supersede the amendments to Section 53A-21-105 in H.B.
             1642      1 when the Office of Legislative Research and General Counsel prepares the Utah Code
             1643      database for publication.


[Bill Documents][Bills Directory]