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First Substitute S.B. 261

Senator Michael G. Waddoups proposes the following substitute bill:


             1     
POLITICAL SUBDIVISION ANNEXATION

             2     
AMENDMENTS

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Michael G. Waddoups

             6     
House Sponsor: Stephen H. Urquhart

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the Provisions Applicable to All Local Districts and the Property Tax
             11      Act relating to the annexation of local districts.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends the effective dates of certain local districts;
             15          .    provides the conditions of the effective date of an annexation;
             16          .    modifies the calculation of the certified tax rate for a local district due to
             17      annexation; and
             18          .    makes technical changes.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill coordinates with S.B. 29, Truth in Taxation Amendments, and H.B. 77,
             23      Personal Property Tax Amendments, by substantively modifying language.
             24      Utah Code Sections Affected:
             25      AMENDS:


             26          17B-1-414, as renumbered and amended by Laws of Utah 2007, Chapter 329
             27          17B-1-416, as renumbered and amended by Laws of Utah 2007, Chapter 329
             28          59-2-924, as last amended by Laws of Utah 2007, Chapters 107 and 329
             29     
             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 17B-1-414 is amended to read:
             32           17B-1-414. Resolution approving an annexation -- Notice of annexation -- When
             33      annexation complete.
             34          (1) (a) Subject to Subsection (1)(b), the local district board shall adopt a resolution
             35      approving the annexation of the area proposed to be annexed or rejecting the proposed
             36      annexation within 30 days after:
             37          (i) expiration of the protest period under Subsection 17B-1-412 (2), if sufficient protests
             38      to require an election are not filed;
             39          (ii) for a petition that meets the requirements of Subsection 17B-1-413 (1):
             40          (A) a public hearing under Section 17B-1-409 is held, if the board chooses or is
             41      required to hold a public hearing under Subsection 17B-1-413 (2)(a)(ii); or
             42          (B) expiration of the time for submitting a request for public hearing under Subsection
             43      17B-1-413 (2)(a)(ii)(B), if no request is submitted and the board chooses not to hold a public
             44      hearing.
             45          (b) If the local district has entered into an agreement with the United States that
             46      requires the consent of the United States for an annexation of territory to the district, a
             47      resolution approving annexation under this part may not be adopted until the written consent of
             48      the United States is obtained and filed with the board of trustees.
             49          (2) (a) The board shall file a notice with the lieutenant governor:
             50          (i) within 30 days after adoption of a resolution under Subsection (1), Subsection
             51      17B-1-412 (3)(c)(i), or Section 17B-1-415 ; and
             52          (ii) as soon as practicable after receiving the notice under Subsection 10-2-425 (2) of a
             53      municipal annexation that causes an automatic annexation to a local district under Section
             54      17B-1-416 .
             55          (b) The notice required under Subsection (2)(a) shall:
             56          (i) be accompanied by:


             57          (A) if applicable, a copy of the board resolution approving the annexation; and
             58          (B) an accurate map depicting the boundaries of the area to be annexed or a legal
             59      description of the area to be annexed, adequate for purposes of the county assessor and
             60      recorder;
             61          (ii) for an annexation pursuant to a resolution described in Subsection (2)(a)(i), include
             62      a certification by the local district board that all requirements for the annexation have been
             63      complied with; and
             64          (iii) for an automatic annexation to a local district under Section 17B-1-416 , state that
             65      an area outside the boundaries of the local district is being automatically annexed to the local
             66      district under Section 17B-1-416 because of a municipal annexation under Title 10, Chapter 2,
             67      Part 4, Annexation.
             68          (3) (a) As used in this Subsection (3), "fire district annexation" means an annexation
             69      under this part of an area located in a county of the first class to a local district:
             70          (i) created to provide fire protection, paramedic, and emergency services; and
             71          (ii) in the creation of which an election was not required because of Subsection
             72      17B-1-214 (3)(c).
             73          [(3) The] (b) An annexation [shall be] under this part is complete and becomes
             74      effective:
             75          [(a)] (i) for an annexation pursuant to a resolution described in Subsection (2)(a)(i)[,]:
             76          (A) (I) on July 1 for a fire district annexation, if the lieutenant governor issues the
             77      certificate of annexation under Section 67-1a-6.5 from January 1 through June 30; or
             78          (II) on January 1 for a fire district annexation, if the lieutenant governor issues the
             79      certificate of annexation under Section 67-1a-6.5 from July 1 through December 31; or
             80          (B) upon the lieutenant governor's issuance of the certificate of annexation under
             81      Section 67-1a-6.5 , for an annexation other than an annexation described in Subsection
             82      (3)(b)(i)(A); and
             83          [(b)] (ii) for an automatic annexation that is the subject of a notice under Subsection
             84      (2)(a)(ii)[,]:
             85          (A) (I) on July 1 for a fire district annexation, if the lieutenant governor issues the
             86      certificate of annexation under Subsection 10-1-117 (3)(b) from January 1 through June 30; or
             87          (II) on January 1 for a fire district annexation, if the lieutenant governor issues the


             88      certificate of annexation under Subsection 10-1-117 (3)(b) from July 1 through December 31;
             89      or
             90          (B) upon the lieutenant governor's issuance of the certificate of annexation under
             91      Subsection 10-1-117 (3)(b), for an annexation other than an annexation described in Subsection
             92      (3)(b)(ii)(A).
             93          Section 2. Section 17B-1-416 is amended to read:
             94           17B-1-416. Automatic annexation to a district providing fire protection,
             95      paramedic, and emergency services.
             96          (1) An area outside the boundaries of a local district that is annexed to a municipality
             97      or added to a municipality by a boundary adjustment under Title 10, Chapter 2, Part 4,
             98      Annexation, is automatically annexed to the local district if:
             99          (a) the local district provides fire protection, paramedic, and emergency services;
             100          (b) an election for the creation of the local district was not required because of
             101      Subsection 17B-1-214 (3)(c); and
             102          (c) before the municipal annexation or boundary adjustment, the entire municipality
             103      that is annexing the area or adding the area by boundary adjustment was included within the
             104      local district.
             105          (2) The effective date of an annexation under this section is governed by Subsection
             106      17B-1-414 (3)(b)(ii).
             107          Section 3. Section 59-2-924 is amended to read:
             108           59-2-924. Report of valuation of property to county auditor and commission --
             109      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
             110      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             111          (1) (a) Before June 1 of each year, the county assessor of each county shall deliver to
             112      the county auditor and the commission the following statements:
             113          (i) a statement containing the aggregate valuation of all taxable property in each taxing
             114      entity; and
             115          (ii) a statement containing the taxable value of any additional personal property
             116      estimated by the county assessor to be subject to taxation in the current year.
             117          (b) The county auditor shall, on or before June 8, transmit to the governing body of
             118      each taxing entity:


             119          (i) the statements described in Subsections (1)(a)(i) and (ii);
             120          (ii) an estimate of the revenue from personal property;
             121          (iii) the certified tax rate; and
             122          (iv) all forms necessary to submit a tax levy request.
             123          (2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad
             124      valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
             125      prior year.
             126          (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not
             127      include:
             128          (A) collections from redemptions;
             129          (B) interest;
             130          (C) penalties; and
             131          (D) revenue received by a taxing entity from personal property that is:
             132          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             133          (II) semiconductor manufacturing equipment.
             134          (iii) (A) Except as otherwise provided in this section, the certified tax rate shall be
             135      calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
             136      taxing entity by the amount calculated under Subsection (2)(a)(iii)(B).
             137          (B) For purposes of Subsection (2)(a)(iii)(A), the legislative body of a taxing entity
             138      shall calculate an amount as follows:
             139          (I) calculate for the taxing entity the difference between:
             140          (Aa) the aggregate taxable value of all property taxed; and
             141          (Bb) any redevelopment adjustments for the current calendar year;
             142          (II) after making the calculation required by Subsection (2)(a)(iii)(B)(I), calculate an
             143      amount determined by increasing or decreasing the amount calculated under Subsection
             144      (2)(a)(iii)(B)(I) by the average of the percentage net change in the value of taxable property for
             145      the equalization period for the three calendar years immediately preceding the current calendar
             146      year;
             147          (III) after making the calculation required by Subsection (2)(a)(iii)(B)(II), calculate the
             148      product of:
             149          (Aa) the amount calculated under Subsection (2)(a)(iii)(B)(II); and


             150          (Bb) the percentage of property taxes collected for the five calendar years immediately
             151      preceding the current calendar year; and
             152          (IV) after making the calculation required by Subsection (2)(a)(iii)(B)(III), calculate an
             153      amount determined by subtracting from the amount calculated under Subsection
             154      (2)(a)(iii)(B)(III) any new growth as defined in this section:
             155          (Aa) within the taxing entity; and
             156          (Bb) for the current calendar year.
             157          (C) For purposes of Subsection (2)(a)(iii)(B)(I), the aggregate taxable value of all
             158      property taxed:
             159          (I) except as provided in Subsection (2)(a)(iii)(C)(II), includes the total taxable value of
             160      the real and personal property contained on the tax rolls of the taxing entity; and
             161          (II) does not include the total taxable value of personal property contained on the tax
             162      rolls of the taxing entity that is:
             163          (Aa) assessed by a county assessor in accordance with Part 3, County Assessment; and
             164          (Bb) semiconductor manufacturing equipment.
             165          (D) For purposes of Subsection (2)(a)(iii)(B)(II), for calendar years beginning on or
             166      after January 1, 2007, the value of taxable property does not include the value of personal
             167      property that is:
             168          (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
             169      County Assessment; and
             170          (II) semiconductor manufacturing equipment.
             171          (E) For purposes of Subsection (2)(a)(iii)(B)(III)(Bb), for calendar years beginning on
             172      or after January 1, 2007, the percentage of property taxes collected does not include property
             173      taxes collected from personal property that is:
             174          (I) within the taxing entity assessed by a county assessor in accordance with Part 3,
             175      County Assessment; and
             176          (II) semiconductor manufacturing equipment.
             177          (F) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             178      the commission may prescribe rules for calculating redevelopment adjustments for a calendar
             179      year.
             180          (iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking


             181      Act, the commission shall make rules determining the calculation of ad valorem property tax
             182      revenues budgeted by a taxing entity.
             183          (B) For purposes of Subsection (2)(a)(iv)(A), ad valorem property tax revenues
             184      budgeted by a taxing entity shall be calculated in the same manner as budgeted property tax
             185      revenues are calculated for purposes of Section 59-2-913 .
             186          (v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v)
             187      shall be calculated as follows:
             188          (A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified
             189      tax rate is zero;
             190          (B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             191          (I) in a county of the first, second, or third class, the levy imposed for municipal-type
             192      services under Sections 17-34-1 and 17-36-9 ; and
             193          (II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             194      purposes and such other levies imposed solely for the municipal-type services identified in
             195      Section 17-34-1 and Subsection 17-36-3 (22); and
             196          (C) for debt service voted on by the public, the certified tax rate shall be the actual levy
             197      imposed by that section, except that the certified tax rates for the following levies shall be
             198      calculated in accordance with Section 59-2-913 and this section:
             199          (I) school leeways provided for under Sections 11-2-7 , 53A-16-110 , 53A-17a-125 ,
             200      53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , 53A-17a-145 , and 53A-21-103 ; and
             201          (II) levies to pay for the costs of state legislative mandates or judicial or administrative
             202      orders under Section 59-2-906.3 .
             203          (vi) (A) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
             204      established at that rate which is sufficient to generate only the revenue required to satisfy one
             205      or more eligible judgments, as defined in Section 59-2-102 .
             206          (B) The ad valorem property tax revenue generated by the judgment levy shall not be
             207      considered in establishing the taxing entity's aggregate certified tax rate.
             208          (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use
             209      the taxable value of property on the assessment roll.
             210          (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the
             211      assessment roll does not include:


             212          (A) new growth as defined in Subsection (2)(b)(iii); or
             213          (B) the total taxable value of personal property contained on the tax rolls of the taxing
             214      entity that is:
             215          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             216          (II) semiconductor manufacturing equipment.
             217          (iii) "New growth" means:
             218          (A) the difference between the increase in taxable value of the taxing entity from the
             219      previous calendar year to the current year; minus
             220          (B) the amount of an increase in taxable value described in Subsection (2)(b)(v).
             221          (iv) For purposes of Subsection (2)(b)(iii), the taxable value of the taxing entity does
             222      not include the taxable value of personal property that is:
             223          (A) contained on the tax rolls of the taxing entity if that property is assessed by a
             224      county assessor in accordance with Part 3, County Assessment; and
             225          (B) semiconductor manufacturing equipment.
             226          (v) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
             227          (A) the amount of increase to locally assessed real property taxable values resulting
             228      from factoring, reappraisal, or any other adjustments; or
             229          (B) the amount of an increase in the taxable value of property assessed by the
             230      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             231      taxable value prescribed by:
             232          (I) the Legislature;
             233          (II) a court;
             234          (III) the commission in an administrative rule; or
             235          (IV) the commission in an administrative order.
             236          (c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             237      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             238      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             239      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             240      rate to offset the increased revenues.
             241          (d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             242      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:


             243          (A) decreased on a one-time basis by the amount of the estimated sales and use tax
             244      revenue to be distributed to the county under Subsection 59-12-1102 (3); and
             245          (B) increased by the amount necessary to offset the county's reduction in revenue from
             246      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             247      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             248      (2)(d)(i)(A).
             249          (ii) The commission shall determine estimates of sales and use tax distributions for
             250      purposes of Subsection (2)(d)(i).
             251          (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             252      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             253      decreased on a one-time basis by the amount necessary to offset the first 12 months of
             254      estimated revenue from the additional resort communities sales and use tax imposed under
             255      Section 59-12-402 .
             256          (f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
             257      Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
             258      unincorporated area of the county shall be decreased by the amount necessary to reduce
             259      revenues in that fiscal year by an amount equal to the difference between the amount the county
             260      budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
             261      countywide and the amount the county spent during fiscal year 2000 for those services,
             262      excluding amounts spent from a municipal services fund for those services.
             263          (B) For fiscal year 2001, the certified tax rate of each county to which Subsection
             264      (2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
             265      year by the amount that the county spent during fiscal year 2000 for advanced life support and
             266      paramedic services countywide, excluding amounts spent from a municipal services fund for
             267      those services.
             268          (ii) (A) A city or town located within a county of the first class to which Subsection
             269      (2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
             270      the city or town the same amount of revenues as the county would collect from that city or
             271      town if the decrease under Subsection (2)(f)(i) did not occur.
             272          (B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal year
             273      or spread over multiple fiscal years, is not subject to the notice and hearing requirements of


             274      Sections 59-2-918 and 59-2-919 .
             275          (g) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
             276      provide detective investigative services to the unincorporated area of the county shall be
             277      decreased:
             278          (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
             279      by at least $4,400,000; and
             280          (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
             281      by an amount equal to the difference between $9,258,412 and the amount of the reduction in
             282      revenues under Subsection (2)(g)(i)(A).
             283          (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             284      county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
             285      within the city or town the same amount of revenue as the county would have collected during
             286      county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).
             287          (II) Beginning with municipal fiscal year 2003, a city or town located within a county
             288      to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
             289      city or town the same amount of revenue as the county would have collected during county
             290      fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).
             291          (B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
             292      town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
             293      or spread over multiple fiscal years, is subject to the notice and hearing requirements of
             294      Sections 59-2-918 and 59-2-919 .
             295          (II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does not
             296      exceed the same amount of revenue as the county would have collected except for Subsection
             297      (2)(g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
             298          (Aa) publishes a notice that meets the size, type, placement, and frequency
             299      requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
             300      by the county to one imposed by the city or town, and explains how the revenues from the tax
             301      increase will be used; and
             302          (Bb) holds a public hearing on the tax shift that may be held in conjunction with the
             303      city or town's regular budget hearing.
             304          (h) (i) This Subsection (2)(h) applies to each county that:


             305          (A) establishes a countywide special service district under Title 17A, Chapter 2, Part
             306      13, Utah Special Service District Act, to provide jail service, as provided in Subsection
             307      17A-2-1304 (1)(a)(x); and
             308          (B) levies a property tax on behalf of the special service district under Section
             309      17A-2-1322 .
             310          (ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
             311      shall be decreased by the amount necessary to reduce county revenues by the same amount of
             312      revenues that will be generated by the property tax imposed on behalf of the special service
             313      district.
             314          (B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
             315      the levy on behalf of the special service district under Section 17A-2-1322 .
             316          (i) (i) As used in this Subsection (2)(i):
             317          (A) "Annexing county" means a county whose unincorporated area is included within a
             318      fire district by annexation.
             319          (B) "Annexing municipality" means a municipality whose area is included within a fire
             320      district by annexation.
             321          (C) "Equalized fire protection tax rate" means the tax rate that results from:
             322          (I) calculating, for each participating county and each participating municipality, the
             323      property tax revenue necessary to cover all of the costs associated with providing fire
             324      protection, paramedic, and emergency services:
             325          (Aa) for a participating county, in the unincorporated area of the county; and
             326          (Bb) for a participating municipality, in the municipality; and
             327          (II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
             328      participating counties and all participating municipalities and then dividing that sum by the
             329      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
             330          (Aa) for participating counties, in the unincorporated area of all participating counties;
             331      and
             332          (Bb) for participating municipalities, in all the participating municipalities.
             333          (D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
             334      Area Act, in the creation of which an election was not required under Subsection
             335      17B-1-214 (3)(c).


             336          [(E) "Fire protection tax rate" means:]
             337          [(I) for an annexing county, the property tax rate that, when applied to taxable property
             338      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             339      costs associated with providing fire protection, paramedic, and emergency services in the
             340      unincorporated area of the county; and]
             341          [(II) for an annexing municipality, the property tax rate that generates enough property
             342      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             343      paramedic, and emergency services in the municipality.]
             344          [(F)] (E) "Participating county" means a county whose unincorporated area is included
             345      within a fire district at the time of the creation of the fire district.
             346          [(G)] (F) "Participating municipality" means a municipality whose area is included
             347      within a fire district at the time of the creation of the fire district.
             348          (ii) In the first year following creation of a fire district, the certified tax rate of each
             349      participating county and each participating municipality shall be decreased by the amount of
             350      the equalized fire protection tax rate.
             351          (iii) In the first budget year following annexation to a fire district, the certified tax rate
             352      of each annexing county and each annexing municipality shall be decreased by [the fire
             353      protection tax rate.] an amount equal to the amount of revenue budgeted by the annexing
             354      county or annexing municipality:
             355          (A) for fire protection, paramedic, and emergency services; and
             356          (B) in:
             357          (I) for a taxing entity operating under a January 1 through December 31 fiscal year, the
             358      prior calendar year; or
             359          (II) for a taxing entity operating under a July 1 through June 30 fiscal year, the prior
             360      fiscal year.
             361          (iv) Each tax levied under this section by a fire district shall be considered to be levied
             362      by:
             363          (A) each participating county and each annexing county for purposes of the county's
             364      tax limitation under Section 59-2-908 ; and
             365          (B) each participating municipality and each annexing municipality for purposes of the
             366      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a


             367      city.
             368          (v) The calculation of a fire district's certified tax rate for the year of annexation shall
             369      be adjusted to include an amount of revenue equal to the amount of revenue budgeted by the
             370      annexing entity for fire protection, paramedic, and emergency services in the annexing entity's
             371      prior fiscal year if:
             372          (A) the fire district operates on a January 1 through December 31 fiscal year;
             373          (B) the fire district approves an annexation of an entity operating on a July 1 through
             374      June 30 fiscal year; and
             375          (C) the annexation described in Subsection (2)(i)(v)(II) takes effect on July 1.
             376          (j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             377      entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
             378      certified tax rate that may result from excluding the following from the certified tax rate under
             379      Subsection (2)(a) enacted by the Legislature during the 2007 General Session:
             380          (i) personal property tax revenue:
             381          (A) received by a taxing entity;
             382          (B) assessed by a county assessor in accordance with Part 3, County Assessment; and
             383          (C) for personal property that is semiconductor manufacturing equipment; or
             384          (ii) the taxable value of personal property:
             385          (A) contained on the tax rolls of a taxing entity;
             386          (B) assessed by a county assessor in accordance with Part 3, County Assessment; and
             387          (C) that is semiconductor manufacturing equipment.
             388          (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             389          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             390      auditor of:
             391          (i) its intent to exceed the certified tax rate; and
             392          (ii) the amount by which it proposes to exceed the certified tax rate.
             393          (c) The county auditor shall notify all property owners of any intent to exceed the
             394      certified tax rate in accordance with Subsection 59-2-919 (2).
             395          (4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             396      reduced for any year to the extent necessary to provide a community development and renewal
             397      agency established under Title 17C, Limited Purpose Local Government Entities - Community


             398      Development and Renewal Agencies, with approximately the same amount of money the
             399      agency would have received without a reduction in the county's certified tax rate if:
             400          (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             401      (2)(d)(i);
             402          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             403      previous year; and
             404          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             405      Section 17C-1-403 or 17C-1-404 .
             406          (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             407      year to the extent necessary to provide a community development and renewal agency with
             408      approximately the same amount of money as the agency would have received without an
             409      increase in the certified tax rate that year if:
             410          (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             411      a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and
             412          (ii) The certified tax rate of a city, school district, local district, or special service
             413      district increases independent of the adjustment to the taxable value of the base year.
             414          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
             415      (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
             416      development and renewal agency established under Title 17C, Limited Purpose Local
             417      Government Entities - Community Development and Renewal Agencies, for the payment of
             418      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             419      amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
             420      (2)(d)(i).
             421          Section 4. Coordinating S.B. 261 with S.B. 29 and H.B. 77 -- Modifying
             422      substantive language.
             423          If this S.B. 261, S.B. 29, Truth in Taxation Amendments, and H.B. 77, Personal
             424      Property Tax Amendments, all pass, it is the intent of the Legislature that the Office of
             425      Legislative Research and General Counsel, in preparing the Utah Code database for
             426      publication:
             427          (1) delete Subsection 59-2-924.2 (6)(a)(v) and renumber remaining subsections
             428      accordingly;


             429          (2) modify Subsection 59-2-924.2 (6)(c) in H.B. 77 and S.B. 29 to read:
             430          "(c) In the first budget year following annexation to a fire district, the certified tax rate
             431      of each annexing county and each annexing municipality shall be decreased by an amount
             432      equal to the amount of revenue budgeted by the annexing county or annexing municipality:
             433          (i) for fire protection, paramedic, and emergency services; and
             434          (ii) in:
             435          (A) for a taxing entity operating under a January 1 through December 31 fiscal year,
             436      the prior calendar year; or
             437          (B) for a taxing entity operating under a July 1 through June 30 fiscal year, the prior
             438      fiscal year."; and
             439          (3) modify Subsection 59-2-924.2 (6)(e) in H.B. 77 and S.B. 29 to read:
             440          "(e) The calculation of a fire district's certified tax rate for the year of annexation shall
             441      be adjusted to include an amount of revenue equal to one half of the amount of revenue
             442      budgeted by the annexing entity for fire protection, paramedic, and emergency services in the
             443      annexing entity's prior fiscal year if:
             444          (i) the fire district operates on a January 1 through December 31 fiscal year;
             445          (ii) the fire district approves an annexation of an entity operating on a July 1 through
             446      June 30 fiscal year; and
             447          (iii) the annexation described in Subsection (6)(e)(ii) takes effect on July 1."


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