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Third Substitute S.B. 48

Senator Dan R. Eastman proposes the following substitute bill:


             1     
EQUALIZATION OF SCHOOL CAPITAL

             2     
OUTLAY FUNDING

             3     
2008 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Dan R. Eastman

             6     
House Sponsor: Aaron Tilton

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill makes changes to the Public Education Capital Outlay Act.
             11      Highlighted Provisions:
             12          This bill:
             13          .    defines terms;
             14          .    requires certain divided school districts to impose a capital outlay levy of at least
             15      .0006 per dollar of taxable value;
             16          .    allocates the revenue generated under the capital outlay levy to school districts
             17      located within the qualifying divided school district;
             18          .    establishes a combined capital property tax rate a school district must impose to
             19      receive a full distribution from both the Capital Outlay Foundation Program and
             20      Capital Outlay Enrollment Growth Program;
             21          .    provides for a pro-rated distribution if a school district imposes a combined capital
             22      property tax rate less than the rate required for full funding;
             23          .    appropriates additional ongoing funding to the State Board of Education for the
             24      Capital Outlay Foundation Program and Capital Outlay Enrollment Growth
             25      Program;


             26          .    requires a reduction in the property tax certified tax rate for school districts
             27      receiving state capital outlay funding increases;
             28          .    requires each school district in a county of the first class to levy a capital outlay
             29      property tax at a specified rate in order to receive the state contribution toward the
             30      minimum basic program;
             31          .    allocates the revenue generated under the capital outlay levy to school districts
             32      located in a county of the first class;
             33          .    amends truth in taxation notice and hearing requirements for school districts
             34      imposing the mandatory portion of the capital outlay levy;
             35          .    amends the calculation of the certified tax rate with respect to the capital outlay
             36      levy; and
             37          .    makes technical corrections.
             38      Monies Appropriated in this Bill:
             39          This bill appropriates:
             40          .    as an ongoing appropriation subject to future budget constraints, $56,000,000 from
             41      the Uniform School Fund for fiscal year 2008-09 to the State Board of Education.
             42      Other Special Clauses:
             43          This bill provides effective dates and provides for retrospective operation.
             44          This bill coordinates with H.B. 1, Minimum School Program Base Budget
             45      Amendments, by providing superseding amendments.
             46      Utah Code Sections Affected:
             47      AMENDS:
             48          11-13-302, as last amended by Laws of Utah 2007, Chapter 108
             49          17-34-3, as last amended by Laws of Utah 2005, First Special Session, Chapter 9
             50          17C-1-408, as renumbered and amended by Laws of Utah 2006, Chapter 359
             51          53A-2-103, as last amended by Laws of Utah 2002, Chapter 301
             52          53A-2-114, as last amended by Laws of Utah 1996, Chapter 326
             53          53A-2-115, as last amended by Laws of Utah 1996, Chapter 326
             54          53A-2-117, as last amended by Laws of Utah 2007, Chapters 215 and 297
             55          53A-16-106, as last amended by Laws of Utah 1994, Chapter 12
             56          53A-16-107, as last amended by Laws of Utah 1999, Chapter 332


             57          53A-16-110, as last amended by Laws of Utah 2004, Chapter 371
             58          53A-17a-133, as last amended by Laws of Utah 2006, Chapter 26
             59          53A-17a-135, as last amended by Laws of Utah 2007, Chapter 2
             60          53A-19-102, as last amended by Laws of Utah 2007, Chapter 92
             61          53A-19-105, as last amended by Laws of Utah 2003, Chapter 122
             62          53A-21-102, as last amended by Laws of Utah 2003, Chapters 199 and 320
             63          59-2-908, as last amended by Laws of Utah 1995, Chapter 278
             64          59-2-913, as last amended by Laws of Utah 2007, Chapter 107
             65          59-2-914, as last amended by Laws of Utah 1995, Chapter 278
             66          59-2-918, as last amended by Laws of Utah 2006, Chapters 26 and 104
             67          59-2-924, as last amended by Laws of Utah 2007, Chapters 107 and 329
             68          59-2-1330, as last amended by Laws of Utah 2002, Chapters 196 and 240
             69      ENACTS:
             70          53A-2-118.3, Utah Code Annotated 1953
             71          53A-16-107.1, Utah Code Annotated 1953
             72          53A-21-101.5, Utah Code Annotated 1953
             73          53A-21-201, Utah Code Annotated 1953
             74          53A-21-202, Utah Code Annotated 1953
             75          53A-21-301, Utah Code Annotated 1953
             76          53A-21-302, Utah Code Annotated 1953
             77          59-2-924.2, Utah Code Annotated 1953
             78          59-2-924.3, Utah Code Annotated 1953
             79          59-2-924.4, Utah Code Annotated 1953
             80          59-2-924.5, Utah Code Annotated 1953
             81      RENUMBERS AND AMENDS:
             82          53A-21-401, (Renumbered from 53A-21-104, as last amended by Laws of Utah 2007,
             83      Chapter 344)
             84          53A-21-501, (Renumbered from 53A-21-105, as last amended by Laws of Utah 2007,
             85      Chapter 2)
             86      REPEALS:
             87          53A-21-103, as last amended by Laws of Utah 2003, Chapter 320


             88          53A-21-103.5, as last amended by Laws of Utah 2005, Chapters 171 and 184
             89     
             90      Be it enacted by the Legislature of the state of Utah:
             91          Section 1. Section 11-13-302 is amended to read:
             92           11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
             93      suppliers -- Method of calculating -- Collection -- Extent of tax lien.
             94          (1) (a) Each project entity created under this chapter that owns a project and that sells
             95      any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
             96      property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
             97      valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
             98      this section to each taxing jurisdiction within which the project or any part of it is located.
             99          (b) For purposes of this section, "annual fee" means the annual fee described in
             100      Subsection (1)(a) that is in lieu of ad valorem property tax.
             101          (c) The requirement to pay an annual fee shall commence:
             102          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
             103      impact alleviation payments under contracts or determination orders provided for in Sections
             104      11-13-305 and 11-13-306 , with the fiscal year of the candidate following the fiscal year of the
             105      candidate in which the date of commercial operation of the last generating unit, other than any
             106      generating unit providing additional project capacity, of the project occurs, or, in the case of
             107      any facilities providing additional project capacity, with the fiscal year of the candidate
             108      following the fiscal year of the candidate in which the date of commercial operation of the
             109      generating unit providing the additional project capacity occurs; and
             110          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
             111      Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
             112      project commences, or, in the case of facilities providing additional project capacity, with the
             113      fiscal year of the taxing jurisdiction in which construction of those facilities commences.
             114          (d) The requirement to pay an annual fee shall continue for the period of the useful life
             115      of the project or facilities.
             116          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
             117      because the ad valorem property tax imposed by a school district and authorized by the
             118      Legislature under Section 53A-17a-135 represents both:


             119          (i) a levy mandated by the state for the state minimum school program under Section
             120      53A-17a-135 ; and
             121          (ii) local levies for capital outlay, maintenance, transportation, and other purposes
             122      under Sections 11-2-7 , 53A-16-107 , 53A-16-110 , 53A-17a-126 , 53A-17a-127 , 53A-17a-133 ,
             123      53A-17a-134 , 53A-17a-143 , and 53A-17a-145 [, and 53A-21-103 ].
             124          (b) The annual fees due a school district shall be as follows:
             125          (i) the project entity shall pay to the school district an annual fee for the state minimum
             126      school program at the rate imposed by the school district and authorized by the Legislature
             127      under Subsection 53A-17a-135 (1); and
             128          (ii) for all other local property tax levies authorized to be imposed by a school district,
             129      the project entity shall pay to the school district either:
             130          (A) an annual fee; or
             131          (B) impact alleviation payments under contracts or determination orders provided for
             132      in Sections 11-13-305 and 11-13-306 .
             133          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
             134      by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
             135      multiplying the fee base or value determined in accordance with Subsection (4) for that year of
             136      the portion of the project located within the jurisdiction by the percentage of the project which
             137      is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
             138          (b) As used in this section, "tax rate," when applied in respect to a school district,
             139      includes any assessment to be made by the school district under Subsection (2) or Section
             140      63-51-6 .
             141          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
             142      an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
             143      the proceeds of which were used to provide public facilities and services for impact alleviation
             144      in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306 .
             145          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
             146          (i) take into account the fee base or value of the percentage of the project located
             147      within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
             148      capacity, service, or other benefit sold to the supplier or suppliers; and
             149          (ii) reflect any credit to be given in that year.


             150          (4) (a) Except as otherwise provided in this section, the annual fees required by this
             151      section shall be paid, collected, and distributed to the taxing jurisdiction as if:
             152          (i) the annual fees were ad valorem property taxes; and
             153          (ii) the project were assessed at the same rate and upon the same measure of value as
             154      taxable property in the state.
             155          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
             156      this section, the fee base of a project may be determined in accordance with an agreement
             157      among:
             158          (A) the project entity; and
             159          (B) any county that:
             160          (I) is due an annual fee from the project entity; and
             161          (II) agrees to have the fee base of the project determined in accordance with the
             162      agreement described in this Subsection (4).
             163          (ii) The agreement described in Subsection (4)(b)(i):
             164          (A) shall specify each year for which the fee base determined by the agreement shall be
             165      used for purposes of an annual fee; and
             166          (B) may not modify any provision of this chapter except the method by which the fee
             167      base of a project is determined for purposes of an annual fee.
             168          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
             169      described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
             170      Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
             171      jurisdiction.
             172          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
             173      year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
             174      portion of the project for which there is not an agreement:
             175          (I) for that year; and
             176          (II) using the same measure of value as is used for taxable property in the state.
             177          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
             178      Commission in accordance with rules made by the State Tax Commission.
             179          (c) Payments of the annual fees shall be made from:
             180          (i) the proceeds of bonds issued for the project; and


             181          (ii) revenues derived by the project entity from the project.
             182          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
             183      other benefits of the project whose tangible property is not exempted by Utah Constitution
             184      Article XIII, Section 3, from the payment of ad valorem property tax shall require each
             185      purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
             186      its share, determined in accordance with the terms of the contract, of these fees.
             187          (ii) It is the responsibility of the project entity to enforce the obligations of the
             188      purchasers.
             189          (5) (a) The responsibility of the project entity to make payment of the annual fees is
             190      limited to the extent that there is legally available to the project entity, from bond proceeds or
             191      revenues, monies to make these payments, and the obligation to make payments of the annual
             192      fees is not otherwise a general obligation or liability of the project entity.
             193          (b) No tax lien may attach upon any property or money of the project entity by virtue of
             194      any failure to pay all or any part of an annual fee.
             195          (c) The project entity or any purchaser may contest the validity of an annual fee to the
             196      same extent as if the payment was a payment of the ad valorem property tax itself.
             197          (d) The payments of an annual fee shall be reduced to the extent that any contest is
             198      successful.
             199          (6) (a) The annual fee described in Subsection (1):
             200          (i) shall be paid by a public agency that:
             201          (A) is not a project entity; and
             202          (B) owns an interest in a facility providing additional project capacity if the interest is
             203      otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
             204          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
             205      accordance with Subsection (6)(b).
             206          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
             207      rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
             208          (i) the fee base or value of the facility providing additional project capacity located
             209      within the jurisdiction;
             210          (ii) the percentage of the ownership interest of the public agency in the facility; and
             211          (iii) the portion, expressed as a percentage, of the public agency's ownership interest


             212      that is attributable to the capacity, service, or other benefit from the facility that is sold by the
             213      public agency to an energy supplier or suppliers whose tangible property is not exempted by
             214      Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
             215          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
             216      obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
             217      to its ownership interest as though it were a project entity.
             218          Section 2. Section 17-34-3 is amended to read:
             219           17-34-3. Taxes or service charges.
             220          (1) (a) If a county furnishes the municipal-type services and functions described in
             221      Section 17-34-1 to areas of the county outside the limits of incorporated cities or towns, the
             222      entire cost of the services or functions so furnished shall be defrayed from funds that the county
             223      has derived from:
             224          (i) taxes that the county may lawfully levy or impose outside the limits of incorporated
             225      towns or cities;
             226          (ii) service charges or fees the county may impose upon the persons benefited in any
             227      way by the services or functions; or
             228          (iii) a combination of these sources.
             229          (b) As the taxes or service charges or fees are levied and collected, they shall be placed
             230      in a special revenue fund of the county and shall be disbursed only for the rendering of the
             231      services or functions established in Section 17-34-1 within the unincorporated areas of the
             232      county or as provided in Subsection 10-2-121 (2).
             233          (2) For the purpose of levying taxes, service charges, or fees provided in this section,
             234      the county legislative body may establish a district or districts in the unincorporated areas of
             235      the county.
             236          (3) Nothing contained in this chapter may be construed to authorize counties to impose
             237      or levy taxes not otherwise allowed by law.
             238          [(4) (a) A county required under Subsection 17-34-1 (4) to provide advanced life
             239      support and paramedic services to the unincorporated area of the county and that previously
             240      paid for those services through a countywide levy may increase its levy under Subsection
             241      (1)(a)(i) to generate in the unincorporated area of the county the same amount of revenue as the
             242      county loses from that area due to the required decrease in the countywide certified tax rate


             243      under Subsection 59-2-924 (2)(k)(i).]
             244          [(b) An increase in tax rate under Subsection (4)(a) is exempt from the notice and
             245      hearing requirements of Sections 59-2-918 and 59-2-919 .]
             246          [(5)] (4) Notwithstanding any other provision of this chapter, a county providing fire,
             247      paramedic, and police protection services in a designated recreational area, as provided in
             248      Subsection 17-34-1 (5), may fund those services from the county general fund with revenues
             249      derived from both inside and outside the limits of cities and towns, and the funding of those
             250      services is not limited to unincorporated area revenues.
             251          Section 3. Section 17C-1-408 is amended to read:
             252           17C-1-408. Base taxable value to be adjusted to reflect other changes.
             253          (1) (a) (i) As used in this Subsection (1), "qualifying decrease" means:
             254          (A) a decrease of more than 20% from the previous tax year's levy; or
             255          (B) a cumulative decrease over a consecutive five-year period of more than 100% from
             256      the levy in effect at the beginning of the five-year period.
             257          (ii) The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the
             258      fifth year of the five-year period.
             259          (b) If there is a qualifying decrease in the minimum basic school levy under Section
             260      59-2-902 that would result in a reduction of the amount of tax increment to be paid to an
             261      agency:
             262          (i) the base taxable value of taxable property within the project area shall be reduced in
             263      the year of the qualifying decrease to the extent necessary, even if below zero, to provide the
             264      agency with approximately the same amount of tax increment that would have been paid to the
             265      agency each year had the qualifying decrease not occurred; and
             266          (ii) the amount of tax increment paid to the agency each year for the payment of bonds
             267      and indebtedness may not be less than what would have been paid to the agency if there had
             268      been no qualifying decrease.
             269          (2) (a) The amount of the base taxable value to be used in determining tax increment
             270      shall be:
             271          (i) increased or decreased by the amount of an increase or decrease that results from:
             272          (A) a statute enacted by the Legislature or by the people through an initiative;
             273          (B) a judicial decision;


             274          (C) an order from the State Tax Commission to a county to adjust or factor its
             275      assessment rate under Subsection 59-2-704 (2);
             276          (D) a change in exemption provided in Utah Constitution Article XIII, Section 2, or
             277      Section 59-2-103 ; or
             278          (E) an increase or decrease in the percentage of fair market value, as defined under
             279      Section 59-2-102 ; and
             280          (ii) reduced for any year to the extent necessary, even if below zero, to provide an
             281      agency with approximately the same amount of money the agency would have received without
             282      a reduction in the county's certified tax rate if:
             283          (A) in that year there is a decrease in the county's certified tax rate under Subsection
             284      [ 59-2-924 (2)(c) or (d)(i)] 59-2-924.2 (2) or (3)(a);
             285          (B) the amount of the decrease is more than 20% of the county's certified tax rate of the
             286      previous year; and
             287          (C) the decrease would result in a reduction of the amount of tax increment to be paid
             288      to the agency.
             289          (b) Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax
             290      increment paid to an agency each year for payment of bonds or other indebtedness may not be
             291      less than would have been paid to the agency each year if there had been no increase or
             292      decrease under Subsection (2)(a).
             293          Section 4. Section 53A-2-103 is amended to read:
             294           53A-2-103. Transfer of property to new school district -- Rights and obligations
             295      of new school board -- Outstanding indebtedness -- Special tax.
             296          (1) On July 1 following the approval of the creation of a new school district under
             297      Section 53A-2-102 , the local school boards of the former districts shall convey and deliver all
             298      school property to the local school board of the new district. Title vests in the new board. All
             299      rights, claims, and causes of action to or for the property, for the use or the income from the
             300      property, for conversion, disposition, or withholding of the property, or for any damage or
             301      injury to the property vest at once in the new board.
             302          (2) The new board may bring and maintain actions to recover, protect, and preserve the
             303      property and rights of the district schools and to enforce contracts.
             304          (3) The new board shall assume and be liable for all outstanding debts and obligations


             305      of each of the former school districts.
             306          (4) All of the bonded indebtedness, outstanding debts, and obligations of a former
             307      district, which cannot be reasonably paid from the assets of the former district, shall be paid by
             308      a special tax levied by the new board as needed. The tax shall be levied upon the property
             309      within the former district which was liable for the indebtedness at the time of consolidation. If
             310      bonds are approved in the new district under Section 53A-18-102 , the special tax shall be
             311      discontinued and the bonded indebtedness paid as any other bonded indebtedness of the new
             312      district.
             313          (5) Bonded indebtedness of a former district which has been refunded shall be paid in
             314      the same manner as that which the new district assumes under Section 53A-18-101 .
             315          (6) State funds received by the new district under Section [ 53A-21-103 ] 53A-21-202
             316      may be applied toward the payment of outstanding bonded indebtedness of a former district in
             317      the same proportion as the bonded indebtedness of the territory within the former district bears
             318      to the total bonded indebtedness of the districts combined.
             319          Section 5. Section 53A-2-114 is amended to read:
             320           53A-2-114. Additional levies -- School board options to abolish or continue after
             321      consolidation.
             322          (1) If a school district which has approved an additional levy under Section
             323      53A-16-110 , 53A-17a-133 , 53A-17a-134 , or 53A-17a-145 [, or 53A-21-103 ] is consolidated
             324      with a district which does not have such a levy, the board of education of the consolidated
             325      district may choose to abolish the levy, or apply it in whole or in part to the entire consolidated
             326      district.
             327          (2) If the board chooses to apply any part of the levy to the entire district, the levy may
             328      continue in force for no more than three years, unless approved by the electors of the
             329      consolidated district in the manner set forth in Section 53A-16-110 .
             330          Section 6. Section 53A-2-115 is amended to read:
             331           53A-2-115. Additional levies in transferred territory -- Transferee board option
             332      to abolish or continue.
             333          If two or more districts undergo restructuring that results in a district receiving territory
             334      that increases the population of the district by at least 25%, and if the transferred territory was,
             335      at the time of transfer, subject to an additional levy under Section 53A-16-110 , 53A-17a-133 ,


             336      53A-17a-134 , or 53A-17a-145 [, or 53A-21-103 ], the board of education of the transferee
             337      district may abolish the levy or apply the levy in whole or in part to the entire restructured
             338      district. Any such levy made applicable to the entire district may continue in force for no more
             339      than five years, unless approved by the electors of the restructured district in the manner set
             340      forth in Section 53A-16-110 .
             341          Section 7. Section 53A-2-117 is amended to read:
             342           53A-2-117. Definitions.
             343          As used in Sections 53A-2-117 through 53A-2-121 :
             344          (1) "Divided school district," "existing district," or "existing school district" means a
             345      school district from which a new district is created.
             346          (2) "New district" or "new school district" means a school district created under
             347      Section 53A-2-118 or 53A-2-118.1 .
             348          (3) "Remaining district" or "remaining school district" means an existing district after
             349      the creation of a new district.
             350          Section 8. Section 53A-2-118.3 is enacted to read:
             351          53A-2-118.3. Imposition of the capital outlay levy in qualifying divided school
             352      districts.
             353          (1) For purposes of this section, "qualifying divided school district" means a divided
             354      school district:
             355          (a) located within a county of the second through sixth class; and
             356          (b) with a new school district created under Section 53A-2-118.1 that begins to provide
             357      educational services after July 1, 2008.
             358          (2) A school district within a qualifying divided school district shall impose a capital
             359      outlay levy described in Section 53A-16-107 of at least .0006 per dollar of taxable value.
             360          (3) The county treasurer of a county with a qualifying divided school district shall
             361      distribute revenues generated by the .0006 portion of the capital outlay levy required in
             362      Subsection (2) to the school districts located within the boundaries of the qualifying divided
             363      school district as follows:
             364          (a) 25% of the revenues shall be distributed in proportion to a school district's
             365      percentage of the total enrollment growth in all of the school districts within the qualifying
             366      divided school district that have an increase in enrollment, calculated on the basis of the


             367      average annual enrollment growth over the prior three years in all of the school districts within
             368      the qualifying divided school district that have an increase in enrollment during the prior three
             369      years, as of the October 1 enrollment counts; and
             370          (b) 75% of the revenues shall be distributed in proportion to a school district's
             371      percentage of the total current year enrollment in all of the school districts within the qualifying
             372      divided school district, as of the October 1 enrollment counts.
             373          (4) If a new school district is created or school district boundaries are adjusted, the
             374      enrollment for each affected school district shall be calculated on the basis of enrollment in
             375      school district schools located within that school district's newly created or adjusted
             376      boundaries, as of October 1 enrollment counts.
             377          (5) On or before December 31 of each year, the State Board of Education shall provide
             378      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             379      to distribute revenues as required by this section.
             380          (6) On or before March 31 of each year, a county treasurer in a county with a
             381      qualifying divided school district shall distribute the revenue generated within the qualifying
             382      divided school district during the prior calendar year from the capital outlay levy described in
             383      this section.
             384          Section 9. Section 53A-16-106 is amended to read:
             385           53A-16-106. Annual certification of tax rate proposed by local school board --
             386      Inclusion of school district budget -- Modified filing date.
             387          (1) Prior to June 22 of each year, each local school board shall certify to the county
             388      legislative body in which the district is located, on forms prescribed by the State Tax
             389      Commission, the proposed tax rate approved by the local school board.
             390          (2) A copy of the district's budget, including items under Section 53A-19-101 , and a
             391      certified copy of the local school board's resolution which approved the budget and set the tax
             392      rate for the subsequent school year beginning July 1 shall accompany the tax rate.
             393          (3) If the tax rate approved by the board is in excess of the "certified tax rate" as
             394      defined under Subsection 59-2-924 [(2)] (3)(a), the date for filing the tax rate and budget
             395      adopted by the board shall be that established under Section 59-2-919 .
             396          Section 10. Section 53A-16-107 is amended to read:
             397           53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority to


             398      use proceeds of .0002 tax rate -- Restrictions and procedure.
             399          (1) [(a) A] Subject to Subsection (3), a local school board may annually impose a
             400      capital outlay levy [a tax not to exceed .0024 per dollar of taxable value for debt service and
             401      capital outlay.] not to exceed .0024 per dollar of taxable value to be used for:
             402          (a) capital outlay;
             403          (b) debt service; and
             404          (c) subject to Subsection (2), school facility maintenance.
             405          [(b) Each] (2) (a) A local school board may utilize the proceeds of a maximum of
             406      .0002 per dollar of taxable value of [its] the local school board's annual capital outlay levy for
             407      the maintenance of school [plants] facilities in [its] the school district.
             408          [(2)] (b) A local school board that uses the option provided under Subsection [(1)(b)
             409      must do the following] (2)(a) shall:
             410          [(a)] (i) maintain the same level of expenditure for maintenance in the current year as it
             411      did in the preceding year, plus the annual average percentage increase applied to the
             412      maintenance and operation budget for the current year; and
             413          [(b)] (ii) identify the expenditure of capital outlay funds for maintenance by a district
             414      project number to ensure that the funds [were] are expended in the manner intended.
             415          [(3)] (c) The State Board of Education shall establish by rule the expenditure
             416      classification for maintenance under this program using a standard classification system.
             417          (3) In order to qualify for receipt of the state contribution toward the basic program
             418      described in Section 53A-17a-135 , a local school board in a county of the first class shall
             419      impose a capital outlay levy of at least .0006 per dollar of taxable value.
             420          (4) (a) The county treasurer of a county of the first class shall distribute revenues
             421      generated by the .0006 portion of the capital outlay levy required in Subsection (3) to school
             422      districts within the county in accordance with Section 53A-16-107.1 .
             423          (b) If a school district in a county of the first class imposes a capital outlay levy
             424      pursuant to this section which exceeds .0006 per dollar of taxable value, the county treasurer of
             425      a county of the first class shall distribute revenues generated by the portion of the capital outlay
             426      levy which exceeds .0006 to the school district imposing the levy.
             427          Section 11. Section 53A-16-107.1 is enacted to read:
             428          53A-16-107.1. School capital outlay in counties of the first class -- Allocation.


             429          (1) The county treasurer of a county of the first class shall distribute revenues
             430      generated by the .0006 portion of the capital outlay levy required in Subsection 53A-16-107 (3)
             431      to school districts located within the county of the first class as follows:
             432          (a) 25% of the revenues shall be distributed in proportion to a school district's
             433      percentage of the total enrollment growth in all of the school districts within the county that
             434      have an increase in enrollment, calculated on the basis of the average annual enrollment growth
             435      over the prior three years in all of the school districts within the county that have an increase in
             436      enrollment during the prior three years, as of the October 1 enrollment counts; and
             437          (b) 75% of the revenues shall be distributed in proportion to a school district's
             438      percentage of the total current year enrollment in all of the school districts within the county, as
             439      of the October 1 enrollment counts.
             440          (2) If a new school district is created or school district boundaries are adjusted, the
             441      enrollment for each affected school district shall be calculated on the basis of enrollment in
             442      school district schools located within that school district's newly created or adjusted
             443      boundaries, as of October 1 enrollment counts.
             444          (3) On or before December 31 of each year, the State Board of Education shall provide
             445      a county treasurer with audited enrollment information from the fall enrollment audit necessary
             446      to distribute revenues as required by this section.
             447          (4) On or before March 31 of each year, a county treasurer in a county of the first class
             448      shall distribute the revenue generated within the county of the first class during the prior
             449      calendar year from the capital outlay levy described in Section 53A-16-107 .
             450          Section 12. Section 53A-16-110 is amended to read:
             451           53A-16-110. Special tax to buy school building sites, build and furnish
             452      schoolhouses, or improve school property.
             453          (1) (a) A local school board may, by following the process for special elections
             454      established in Sections 20A-1-203 and 20A-1-204 , call a special election to determine whether
             455      a special property tax should be levied for one or more years to buy building sites, build and
             456      furnish schoolhouses, or improve the school property under its control.
             457          (b) The tax may not exceed .2% of the taxable value of all taxable property in the
             458      district in any one year.
             459          (2) The board shall give reasonable notice of the election and follow the same


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


             491      in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
             492      taxable value if a school district levies a tax rate under both programs.
             493          (c) (i) Beginning July 1, 2005, the $17.54 guarantee under Subsections (3)(a) and (b)
             494      shall be indexed each year to the value of the weighted pupil unit by making the value of the
             495      guarantee equal to .008544 times the value of the prior year's weighted pupil unit.
             496          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             497      pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
             498      the prior year's weighted pupil unit.
             499          (d) (i) The amount of state guarantee money to which a school district would otherwise
             500      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             501      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             502      pursuant to changes in property valuation.
             503          (ii) Subsection (3)(d)(i) applies for a period of two years following any such change in
             504      the certified tax rate.
             505          (4) (a) An election to modify an existing voted leeway program is not a reconsideration
             506      of the existing program unless the proposition submitted to the electors expressly so states.
             507          (b) A majority vote opposing a modification does not deprive the district of authority to
             508      continue an existing program.
             509          (c) If adoption of a leeway program is contingent upon an offset reducing other local
             510      school board levies, the board must allow the electors, in an election, to consider modifying or
             511      discontinuing the program prior to a subsequent increase in other levies that would increase the
             512      total local school board levy.
             513          (d) Nothing contained in this section terminates, without an election, the authority of a
             514      school district to continue an existing voted leeway program previously authorized by the
             515      voters.
             516          (5) Notwithstanding Section 59-2-918 , a school district may budget an increased
             517      amount of ad valorem property tax revenue derived from a voted leeway imposed under this
             518      section in addition to revenue from new growth as defined in Subsection 59-2-924 [(2)] (4),
             519      without having to comply with the advertisement requirements of Section 59-2-918 , if the
             520      voted leeway is approved:
             521          (a) in accordance with Section 53A-16-110 on or after January 1, 2003; and


             522          (b) within the four-year period immediately preceding the year in which the school
             523      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             524      the voted leeway.
             525          (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             526      section that exceeds the certified tax rate without having to comply with the advertisement
             527      requirements of Section 59-2-919 if:
             528          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             529      increased amount of ad valorem property tax revenue derived from a voted leeway imposed
             530      under this section; and
             531          (b) if the voted leeway was approved:
             532          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             533          (ii) within the four-year period immediately preceding the year in which the school
             534      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             535      the voted leeway.
             536          Section 14. Section 53A-17a-135 is amended to read:
             537           53A-17a-135. Minimum basic tax rate -- Certified revenue levy.
             538          (1) (a) In order to qualify for receipt of the state contribution toward the basic program
             539      and as its contribution toward its costs of the basic program[,]:
             540          (i) each school district shall impose a minimum basic tax rate per dollar of taxable
             541      value that generates [$245,254,790] $260,731,750 in revenues statewide[.]; and
             542          (ii) a local school board in a county of the first class shall impose the capital outlay
             543      levy described in Subsection 53A-16-107 (3) for distribution pursuant to Section 53A-16-107.1 .
             544          (b) The preliminary estimate for the [2007-08] 2008-09 minimum basic tax rate is
             545      [.001474] .00125.
             546          (c) The State Tax Commission shall certify on or before June 22 the rate that generates
             547      [$245,254,790] $260,731,750 in revenues statewide.
             548          (d) If the minimum basic tax rate exceeds the certified revenue levy as defined in
             549      Section 53A-17a-103 , the state is subject to the notice requirements of Section 59-2-926 .
             550          (2) (a) The state shall contribute to each district toward the cost of the basic program in
             551      the district that portion which exceeds the proceeds of the levy authorized under Subsection
             552      (1).


             553          (b) In accord with the state strategic plan for public education and to fulfill its
             554      responsibility for the development and implementation of that plan, the Legislature instructs
             555      the State Board of Education, the governor, and the Office of Legislative Fiscal Analyst in each
             556      of the coming five years to develop budgets that will fully fund student enrollment growth.
             557          (3) (a) If the proceeds of the levy authorized under Subsection (1) equal or exceed the
             558      cost of the basic program in a school district, no state contribution shall be made to the basic
             559      program.
             560          (b) The proceeds of the levy authorized under Subsection (1) which exceed the cost of
             561      the basic program shall be paid into the Uniform School Fund as provided by law.
             562          Section 15. Section 53A-19-102 is amended to read:
             563           53A-19-102. Local school boards budget procedures.
             564          (1) Prior to June 22 of each year, each local school board shall adopt a budget and
             565      make appropriations for the next fiscal year. If the tax rate in the proposed budget exceeds the
             566      certified tax rate defined in [Subsection] Section 59-2-924 [(2)], the board shall comply with
             567      Sections 59-2-918 and 59-2-919 in adopting the budget, except as provided by Section
             568      53A-17a-133 .
             569          (2) Prior to the adoption of a budget containing a tax rate which does not exceed the
             570      certified tax rate, the board shall hold a public hearing, as defined in Section 10-9a-103 , on the
             571      proposed budget. In addition to complying with Title 52, Chapter 4, Open and Public Meetings
             572      Act, in regards to the hearing, the board shall do the following:
             573          (a) publish the required newspaper notice at least ten days prior to the hearing; and
             574          (b) file a copy of the proposed budget with the board's business administrator for public
             575      inspection at least ten days prior to the hearing.
             576          (3) The board shall file a copy of the adopted budget with the state auditor and the
             577      State Board of Education.
             578          Section 16. Section 53A-19-105 is amended to read:
             579           53A-19-105. School district interfund transfers.
             580          (1) A school district shall spend revenues only within the fund for which they were
             581      originally authorized, levied, collected, or appropriated.
             582          (2) Except as otherwise provided in this section, school district interfund transfers of
             583      residual equity are prohibited.


             584          (3) The State Board of Education may authorize school district interfund transfers of
             585      residual equity when a district states its intent to create a new fund or expand, contract, or
             586      liquidate an existing fund.
             587          (4) The State Board of Education may also authorize school district interfund transfers
             588      of residual equity for a financially distressed district if the board determines the following:
             589          (a) the district has a significant deficit in its maintenance and operations fund caused
             590      by circumstances not subject to the administrative decisions of the district;
             591          (b) the deficit cannot be reasonably reduced under Section 53A-19-104 ; and
             592          (c) without the transfer, the school district will not be capable of meeting statewide
             593      educational standards adopted by the State Board of Education.
             594          (5) The board shall develop standards for defining and aiding financially distressed
             595      school districts under this section in accordance with Title 63, Chapter 46a, Utah
             596      Administrative Rulemaking Act.
             597          (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
             598      and reported in the debt service fund.
             599          (b) Debt service levies under Subsection 59-2-924 [(2)(a)(v)(C)] (3)(e)(iii) that are not
             600      subject to the certified tax rate hearing requirements of Sections 59-2-918 and 59-2-919 may
             601      not be used for any purpose other than retiring general obligation debt.
             602          (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
             603      year shall be used in subsequent years for general obligation debt retirement.
             604          (d) Any amounts left in the debt service fund after all general obligation debt has been
             605      retired may be transferred to the capital projects fund upon completion of the budgetary hearing
             606      process required under Section 53A-19-102 .
             607          Section 17. Section 53A-21-101.5 is enacted to read:
             608     
Part 1. General Provisions

             609          53A-21-101.5. Definitions.
             610          As used in this chapter:
             611          (1) "ADM" or "pupil in average daily membership" is as defined in Section
             612      53A-17a-103 .
             613          (2) "Combined capital levy rate" means a rate that includes the sum of the following
             614      property tax levies:


             615          (a) the capital outlay levy authorized in Section 53A-16-107 ;
             616          (b) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
             617      budgeted for debt service or capital outlay;
             618          (c) the debt service levy authorized in Section 11-14-310 ; and
             619          (d) the voted capital outlay leeway authorized in Section 53A-16-110 .
             620          (3) "Derived net taxable value" means the total current property tax collections from
             621      April 1 through the following March 31 for a school district, divided by the school district's
             622      total tax rate for the same year.
             623          (4) "Property tax yield per ADM" means:
             624          (a) the product of:
             625          (i) a school district's derived net taxable value; and
             626          (ii) .0030; divided by
             627          (b) the school district's ADM for the school year beginning after the April 1 referenced
             628      in Subsection (3).
             629          Section 18. Section 53A-21-102 is amended to read:
             630           53A-21-102. Capital outlay programs -- Use of funds.
             631          [(1) The Capital Outlay Foundation Program and the Enrollment Growth Program are
             632      established to provide revenues to school districts for the purposes of capital outlay bonding,
             633      construction, and renovation.]
             634          [(2) The Capital Outlay Loan Program is established to provide:]
             635          [(a) short-term help to school districts to meet district needs for school building
             636      construction and renovation; and]
             637          [(b) assistance to charter schools to meet school building construction and renovation
             638      needs.]
             639          [(3) School districts shall] A school district may only use the monies provided [to
             640      them] under [the programs established by this section solely] this chapter for school district
             641      capital outlay and debt service purposes.
             642          Section 19. Section 53A-21-201 is enacted to read:
             643     
Part 2. Capital Outlay Foundation Program

             644          53A-21-201. Capital Outlay Foundation Program -- Creation -- Definitions.
             645          (1) There is created the Capital Outlay Foundation Program to guarantee a certain


             646      amount of capital outlay funding to a school district that makes a sufficient local tax effort and
             647      generates local property tax revenues below a foundation guarantee funding level.
             648          (2) As used in this part:
             649          (a) "Foundation guarantee level per ADM" means a minimum revenue amount per
             650      ADM generated by a combined capital levy rate of .0030 per dollar of taxable value, including
             651      the following:
             652          (i) the revenue generated locally from a school district's combined capital levy rate; and
             653          (ii) the revenue allocated to a school district by the State Board of Education in
             654      accordance with Section 53A-21-202 .
             655          (b) "Qualifying school district" means a school district with a property tax yield per
             656      ADM less than the foundation guarantee level per ADM.
             657          Section 20. Section 53A-21-202 is enacted to read:
             658          53A-21-202. Capital Outlay Foundation Program -- Distribution formulas --
             659      Allocations.
             660          (1) For fiscal years beginning on or after July 1, 2008, the State Board of Education
             661      shall determine the foundation guarantee level per ADM that fully allocates the funds
             662      appropriated to the State Board of Education for distribution under this section.
             663          (2) If a qualifying school district imposes a current year combined capital levy rate of
             664      at least .0030 per dollar of taxable value, the State Board of Education shall allocate to the
             665      qualifying school district an amount equal to the product of the following:
             666          (a) the qualifying school district's prior year ADM; and
             667          (b) an amount equal to the difference between the following:
             668          (i) the foundation guarantee level per ADM for that fiscal year, as determined in
             669      accordance with Subsection (1); and
             670          (ii) the qualifying school district's prior year property tax yield per ADM.
             671          (3) Except as provided in Subsection (4), if a qualifying school district imposes a
             672      current year combined capital levy rate less than .0030 per dollar of taxable value, the State
             673      Board of Education shall allocate to the qualifying school district an amount equal to the
             674      product of the following:
             675          (a) the qualifying school district's prior year ADM;
             676          (b) an amount equal to the difference between the following:


             677          (i) the foundation guarantee level per ADM for that fiscal year, as determined in
             678      accordance with Subsection (1); and
             679          (ii) the qualifying school district's prior year property tax yield per ADM; and
             680          (c) a percentage equal to the qualifying school district's current year combined capital
             681      levy rate divided by .0030.
             682          (4) Notwithstanding Subsection (3), if a qualifying school district imposes a combined
             683      capital levy rate less than .0030 per dollar of taxable value, the State Board of Education shall
             684      allocate funds to the qualifying school district in accordance with the allocation methodology
             685      under Subsection (2) if:
             686          (a) the qualifying school district imposed a combined capital levy rate of at least .0030
             687      in either of the prior two years; and
             688          (b) the qualifying school district imposes a combined capital levy rate less than .0030
             689      solely due to a decrease in the qualifying school district's certified tax rate, calculated pursuant
             690      to Section 59-2-924 , due to increases in the value of taxable property located within the
             691      qualifying school district.
             692          (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             693      State Board of Education shall make rules to administer this section.
             694          Section 21. Section 53A-21-301 is enacted to read:
             695     
Part 3. Capital Outlay Enrollment Growth Program

             696          53A-21-301. Capital Outlay Enrollment Growth Program - Definitions.
             697          (1) There is created the Capital Outlay Enrollment Growth Program to provide capital
             698      outlay funding to school districts experiencing net enrollment increases.
             699          (2) As used in this part:
             700          (a) "Average net enrollment increase" means the quotient of:
             701          (i) (A) enrollment in the current year, based on October 1 enrollment counts; minus
             702          (B) enrollment in the year three years prior, based on October 1 enrollment counts;
             703      divided by
             704          (ii) three.
             705          (b) "Eligible district" or "eligible school district" means a school district that:
             706          (i) has an average net enrollment increase; and
             707          (ii) a prior year property tax yield per ADM that is less than two times the prior year


             708      statewide average property tax yield per ADM.
             709          (c) "Funding level per growth student" means the funding level per average net
             710      enrollment increase student which fully allocates appropriated funds.
             711          (d) "Statewide average property tax yield per ADM" means the quotient of:
             712          (i) the sum of all school districts' derived net taxable value multiplied by .0030;
             713      divided by
             714          (ii) the sum of total school district ADM statewide for the same year.
             715          Section 22. Section 53A-21-302 is enacted to read:
             716          53A-21-302. Capital Outlay Enrollment Growth Program -- Distribution
             717      formulas -- Allocations.
             718          (1) The State Board of Education shall annually:
             719          (a) determine the funding level per growth student which fully allocates appropriated
             720      funds; and
             721          (b) allocate appropriated funds to eligible school districts in accordance with this
             722      section.
             723          (2) If an eligible school district imposes a current year combined capital levy rate of at
             724      least .0030 per dollar of taxable value, the State Board of Education shall allocate to the
             725      eligible school district an amount equal to the product of the following:
             726          (a) the eligible school district's average net enrollment increase; multiplied by
             727          (b) the funding level per growth student.
             728          (3) Except as provided in Subsection (4), if an eligible school district imposes a current
             729      year combined capital levy rate less than .0030 per dollar of taxable value, the State Board of
             730      Education shall allocate to the eligible school district an amount equal to the product of the
             731      following:
             732          (a) the eligible school district's average net enrollment increase; multiplied by
             733          (b) the funding level per growth student; multiplied by
             734          (c) a percentage equal to the eligible school district's current year combined capital
             735      levy rate divided by .0030.
             736          (4) Notwithstanding Subsection (3), if an eligible school district imposes a combined
             737      capital levy rate less than .0030 per dollar of taxable value, the State Board of Education shall
             738      allocate funds to the eligible school district in accordance with the allocation methodology


             739      under Subsection (2) if:
             740          (a) the eligible school district imposed a combined capital levy rate of at least .0030 in
             741      either of the two prior years; and
             742          (b) the eligible school district imposes a combined capital levy rate less than .0030
             743      solely due to a decrease in the eligible school district's certified tax rate, calculated pursuant to
             744      Section 59-2-924 , due to increases in the value of taxable property located within the eligible
             745      school district.
             746          (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             747      State Board of Education shall make rules to administer this section.
             748          Section 23. Section 53A-21-401 , which is renumbered from Section 53A-21-104 is
             749      renumbered and amended to read:
             750     
Part 4. Capital Outlay Loan Program

             751           [53A-21-104].     53A-21-401. School Building Revolving Account -- Access to
             752      the account.
             753          (1) There is created:
             754          (a) the "Capital Outlay Loan Program" to provide:
             755          (i) short-term help to school districts to meet district needs for school building
             756      construction and renovation; and
             757          (ii) assistance to charter schools to meet school building construction and renovation
             758      needs; and
             759          (b) a nonlapsing "School Building Revolving Account" administered within the
             760      Uniform School Fund by the state superintendent of public instruction in accordance with rules
             761      adopted by the State Board of Education.
             762          (2) [Monies received by a school district] The State Board of Education may not
             763      allocate funds from the School Building Revolving Account [may not] that exceed [the] a
             764      school district's bonding limit minus its outstanding bonds.
             765          (3) In order to receive monies from the account, a school district [must do the
             766      following] shall:
             767          (a) levy a [tax of] combined capital levy rate of at least .0024 [for capital outlay and
             768      debt service];
             769          (b) contract with the state superintendent of public instruction to repay the monies,


             770      with interest at a rate established by the state superintendent, within five years of [their] receipt,
             771      using future state [building monies or] capital outlay allocations, local revenues, or both;
             772          (c) levy sufficient ad valorem taxes under Section 11-14-310 to guarantee annual loan
             773      repayments, unless the state superintendent of public instruction alters the payment schedule to
             774      improve a hardship situation; and
             775          (d) meet any other condition established by the State Board of Education pertinent to
             776      the loan.
             777          (4) (a) The state superintendent shall establish a committee, including representatives
             778      from state and local education entities, to:
             779          (i) review requests by school districts for loans under this section; and
             780          (ii) make recommendations regarding approval or disapproval of the loan applications
             781      to the state superintendent.
             782          (b) If the committee recommends approval of a loan application under Subsection
             783      (4)(a)(ii), the committee's recommendation shall include:
             784          (i) the recommended amount of the loan;
             785          (ii) the payback schedule; and
             786          (iii) the interest rate to be charged.
             787          (5) (a) There is established within the School Building Revolving Account the Charter
             788      School Building Subaccount administered by the State Board of Education, in consultation
             789      with the State Charter School Board, in accordance with rules adopted by the State Board of
             790      Education.
             791          (b) The Charter School Building Subaccount shall consist of:
             792          (i) money appropriated to the subaccount by the Legislature;
             793          (ii) money received from the repayment of loans made from the subaccount; and
             794          (iii) interest earned on monies in the subaccount.
             795          (c) The state superintendent of public instruction shall make loans to charter schools
             796      from the Charter School Building Subaccount to pay for the costs of:
             797          (i) planning expenses;
             798          (ii) constructing or renovating charter school buildings;
             799          (iii) equipment and supplies; or
             800          (iv) other start-up or expansion expenses.


             801          (d) Loans to new charter schools or charter schools with urgent facility needs may be
             802      given priority.
             803          (6) (a) The State Board of Education shall establish a committee, which shall include
             804      individuals who have expertise or experience in finance, real estate, and charter school
             805      administration, one of whom shall be nominated by the governor to:
             806          (i) review requests by charter schools for loans under this section; and
             807          (ii) make recommendations regarding approval or disapproval of the loan applications
             808      to the State Charter School Board and the State Board of Education.
             809          (b) If the committee recommends approval of a loan application under Subsection
             810      (6)(a)(ii), the committee's recommendation shall include:
             811          (i) the recommended amount of the loan;
             812          (ii) the payback schedule; and
             813          (iii) the interest rate to be charged.
             814          (c) The committee members may not:
             815          (i) be a relative, as defined in Section 53A-1a-518 , of a loan applicant; or
             816          (ii) have a pecuniary interest, directly or indirectly, with a loan applicant or any person
             817      or entity that contracts with a loan applicant.
             818          (7) The State Board of Education, in consultation with the State Charter School Board,
             819      shall approve all loans to a charter [schools] school under this section.
             820          (8) [Loans] The term of a loan to a charter [schools] school under this section may not
             821      exceed [a term of] five years.
             822          (9) The State Board of Education may not approve loans to charter schools under this
             823      section that exceed a total of $2,000,000 in any year.
             824          Section 24. Section 53A-21-501 , which is renumbered from Section 53A-21-105 is
             825      renumbered and amended to read:
             826     
Part 5. Fiscal Matters

             827           [53A-21-105].     53A-21-501. State contribution to capital outlay programs.
             828          (1) As an ongoing appropriation subject to future budget constraints, there is
             829      appropriated from the Uniform School Fund for fiscal year [2007-08, $27,288,900] 2008-09,
             830      $56,000,000 to the State Board of Education for the capital outlay programs created in [Section
             831      53A-21-102 ] this chapter.


             832          (2) Of the monies appropriated in Subsection (1), the State Board of Education shall
             833      distribute:
             834          (a) [$24,358,000] $33,000,000 in accordance with the Capital Outlay Foundation
             835      Program [described in Section 53A-21-103 ] pursuant to Section 53A-21-202 ; and
             836          (b) [$2,930,900] $23,000,000 in accordance with the Capital Outlay Enrollment
             837      Growth Program [described in Section 53A-21-103.5 ] pursuant to Section 53A-21-302 .
             838          Section 25. Section 59-2-908 is amended to read:
             839           59-2-908. Single aggregate limitation -- Maximum levy.
             840          (1) Except as provided in Subsection (2), each county shall have a single aggregate
             841      limitation on the property tax levied for all purposes by the county. Except as provided in
             842      Section 59-2-911 , this limitation may not exceed the maximum set forth in this section. The
             843      maximum is:
             844          (a) .0032 per dollar of taxable value in all counties with a total taxable value of more
             845      than $100,000,000; and
             846          (b) .0036 per dollar of taxable value in all counties with a total taxable value of less
             847      than $100,000,000.
             848          (2) (a) Beginning January 1, 1995, a county may impose a tax rate in excess of the
             849      limitation provided in Subsection (1) if the rate established under Subsection (1)(a) or (b)
             850      generates revenues for the county in an amount that is less than the revenues that would be
             851      generated by the county under the certified tax rate established in [Subsection] Section
             852      59-2-924 [(2)].
             853          (b) A county meeting the requirements of Subsection (2)(a) may impose a tax rate that
             854      does not exceed the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
             855          Section 26. Section 59-2-913 is amended to read:
             856           59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
             857      statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
             858      establishing tax levies -- Format of statement.
             859          (1) As used in this section, "budgeted property tax revenues" does not include property
             860      tax revenue received by a taxing entity from personal property that is:
             861          (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
             862          (b) semiconductor manufacturing equipment.


             863          (2) (a) The legislative body of each taxing entity shall file a statement as provided in
             864      this section with the county auditor of the county in which the taxing entity is located.
             865          (b) The auditor shall annually transmit the statement to the commission:
             866          (i) before June 22; or
             867          (ii) with the approval of the commission, on a subsequent date prior to the date
             868      established under Section 59-2-1317 for mailing tax notices.
             869          (c) The statement shall contain the amount and purpose of each levy fixed by the
             870      legislative body of the taxing entity.
             871          (3) For purposes of establishing the levy set for each of a taxing entity's applicable
             872      funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
             873      the budgeted property tax revenues, specified in a budget which has been adopted and
             874      approved prior to setting the levy, by the amount calculated under Subsections
             875      59-2-924 [(2)(a)(iii)(B)(I) through (III)] (3)(c)(ii)(A) through (C).
             876          (4) The format of the statement under this section shall:
             877          (a) be determined by the commission; and
             878          (b) cite any applicable statutory provisions that:
             879          (i) require a specific levy; or
             880          (ii) limit the property tax levy for any taxing entity.
             881          (5) The commission may require certification that the information submitted on a
             882      statement under this section is true and correct.
             883          Section 27. Section 59-2-914 is amended to read:
             884           59-2-914. Excess levies -- Commission to recalculate levy -- Notice to implement
             885      adjusted levies to county auditor.
             886          (1) If the commission determines that a levy established for a taxing entity set under
             887      Section 59-2-913 is in excess of the maximum levy permitted by law, the commission shall:
             888          (a) lower the levy so that it is set at the maximum level permitted by law;
             889          (b) notify the taxing entity which set the excessive rate that the rate has been lowered;
             890      and
             891          (c) notify the county auditor of the county or counties in which the taxing entity is
             892      located to implement the rate established by the commission.
             893          (2) A levy set for a taxing entity by the commission under this section shall be the


             894      official levy for that taxing entity unless:
             895          (a) the taxing entity lowers the levy established by the commission; or
             896          (b) the levy is subsequently modified by a court order.
             897          (3) (a) Subject to the provisions of Subsections (1) and (2), beginning January 1, 1995,
             898      a taxing entity may impose a tax rate in excess of the maximum levy permitted by law if the
             899      rate established by the taxing entity for the current year generates revenues for the taxing entity
             900      in an amount that is less than the revenues that would be generated by the taxing entity under
             901      the certified tax rate established in [Subsection] Section 59-2-924 [(2)].
             902          (b) A taxing entity meeting the requirements of Subsection (3)(a) may impose a tax
             903      rate that does not exceed the certified rate established in [Subsection] Section 59-2-924 [(2)].
             904          Section 28. Section 59-2-918 is amended to read:
             905           59-2-918. Advertisement of proposed tax increase -- Notice -- Contents.
             906          (1) (a) Except as provided in Subsection (1)(b), a taxing entity may not budget an
             907      increased amount of ad valorem tax revenue exclusive of revenue from new growth as defined
             908      in Subsection 59-2-924 [(2)] (4) unless it advertises its intention to do so at the same time that it
             909      advertises its intention to fix its budget for the forthcoming fiscal year.
             910          (b) (i) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             911      advertisement or hearing requirements of this section if:
             912          (A) the taxing entity:
             913          (I) collected less than $15,000 in ad valorem tax revenues for the previous fiscal year;
             914      or
             915          (II) is expressly exempted by law from complying with the requirements of this
             916      section; or
             917          (B) the increased amount of ad valorem tax revenue results from a tax rate increase that
             918      is exempted under Subsection 59-2-919 (1)(a)(ii)(B) from the advertisement and hearing
             919      requirements of Section 59-2-919 .
             920          (ii) Notwithstanding Subsection (1)(a), a taxing entity is not required to meet the
             921      advertisement requirements of this section if Section 53A-17a-133 allows the taxing entity to
             922      budget an increased amount of ad valorem property tax revenue without having to comply with
             923      the advertisement requirements of this section.
             924          (2) (a) For taxing entities operating under a July 1 through June 30 fiscal year, the


             925      advertisement required by this section may be combined with the advertisement required by
             926      Section 59-2-919 .
             927          (b) For taxing entities operating under a January 1 through December 31 fiscal year,
             928      the advertisement required by this section shall meet the size, type, placement, and frequency
             929      requirements established under Section 59-2-919 .
             930          (3) The form of the advertisement required by this section shall meet the size, type,
             931      placement, and frequency requirements established under Section 59-2-919 and shall be
             932      substantially as follows:
             933     
"NOTICE OF PROPOSED TAX INCREASE

             934     
(NAME OF TAXING ENTITY)

             935          The (name of the taxing entity) is proposing to increase its property tax revenue.
             936          *    If the proposed budget is approved, this would be an increase of _____% above
             937      the (name of the taxing entity) property tax budgeted revenue for the prior year.
             938          *    The (name of the taxing entity) tax on a (insert the average value of a residence
             939      in the taxing entity rounded to the nearest thousand dollars) residence would
             940      increase from $______ to $________, which is $_______ per year.
             941          *    The (name of the taxing entity) tax on a (insert the value of a business having
             942      the same value as the average value of a residence in the taxing entity) business
             943      would increase from $________ to $_______, which is $______ per year.
             944          All concerned citizens are invited to a public hearing on the tax increase.
             945     
PUBLIC HEARING

             946          Date/Time:    (date) (time)
             947          Location:    (name of meeting place and address of meeting place)
             948          To obtain more information regarding the tax increase, citizens may contact the (name
             949      of the taxing entity) at (phone number of taxing entity)."
             950          (4) If a final decision regarding the budgeting of an increased amount of ad valorem tax
             951      revenue is not made at the public hearing described in Subsection (3), the taxing entity shall
             952      announce at the public hearing the scheduled time and place for consideration and adoption of
             953      the proposed budget increase.
             954          (5) (a) Each taxing entity operating under the January 1 through December 31 fiscal
             955      year shall by March 1 notify the county of the date, time, and place of the public hearing at


             956      which the budget for the following fiscal year will be considered.
             957          (b) The county shall include the information described in Subsection (5)(a) with the tax
             958      notice.
             959          (6) A taxing entity shall hold a public hearing under this section beginning at or after 6
             960      p.m.
             961          Section 29. Section 59-2-924 is amended to read:
             962           59-2-924. Report of valuation of property to county auditor and commission --
             963      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified
             964      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             965          (1) [(a)] Before June 1 of each year, the county assessor of each county shall deliver to
             966      the county auditor and the commission the following statements:
             967          [(i)] (a) a statement containing the aggregate valuation of all taxable property in each
             968      taxing entity; and
             969          [(ii)] (b) a statement containing the taxable value of any additional personal property
             970      estimated by the county assessor to be subject to taxation in the current year.
             971          [(b)] (2) The county auditor shall, on or before June 8, transmit to the governing body
             972      of each taxing entity:
             973          [(i)] (a) the statements described in Subsections (1)(a)[(i)] and [(ii)] (b);
             974          [(ii)] (b) an estimate of the revenue from personal property;
             975          [(iii)] (c) the certified tax rate; and
             976          [(iv)] (d) all forms necessary to submit a tax levy request.
             977          [(2)] (3) (a) [(i)] The "certified tax rate" means a tax rate that will provide the same ad
             978      valorem property tax revenues for a taxing entity as were budgeted by that taxing entity for the
             979      prior year.
             980          [(ii)] (b) For purposes of this Subsection [(2)](3), "ad valorem property tax revenues"
             981      do not include:
             982          [(A)] (i) collections from redemptions;
             983          [(B)] (ii) interest;
             984          [(C)] (iii) penalties; and
             985          [(D)] (iv) revenue received by a taxing entity from personal property that is:
             986          [(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;


             987      and
             988          [(II)] (B) semiconductor manufacturing equipment.
             989          [(iii) (A)] (c) (i) Except as otherwise provided in this section, the certified tax rate shall
             990      be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
             991      the taxing entity by the amount calculated under Subsection [(2)(a)(iii)(B)] (3)(c)(ii).
             992          [(B)] (ii) For purposes of Subsection [(2)(a)(iii)(A)] (3)(c)(i), the legislative body of a
             993      taxing entity shall calculate an amount as follows:
             994          [(I)] (A) calculate for the taxing entity the difference between:
             995          [(Aa)] (I) the aggregate taxable value of all property taxed; and
             996          [(Bb)] (II) any redevelopment adjustments for the current calendar year;
             997          [(II)] (B) after making the calculation required by Subsection [(2)(a)(iii)(B)(I)]
             998      (3)(c)(ii)(A), calculate an amount determined by increasing or decreasing the amount
             999      calculated under Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A) by the average of the percentage net
             1000      change in the value of taxable property for the equalization period for the three calendar years
             1001      immediately preceding the current calendar year;
             1002          [(III)] (C) after making the calculation required by Subsection [(2)(a)(iii)(B)(II)]
             1003      (3)(c)(ii)(B), calculate the product of:
             1004          [(Aa)] (I) the amount calculated under Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B); and
             1005          [(Bb)] (II) the percentage of property taxes collected for the five calendar years
             1006      immediately preceding the current calendar year; and
             1007          [(IV)] (D) after making the calculation required by Subsection [(2)(a)(iii)(B)(III)]
             1008      (3)(c)(ii)(C), calculate an amount determined by subtracting from the amount calculated under
             1009      Subsection [(2)(a)(iii)(B)(III)] (3)(c)(ii)(C) any new growth as defined in this section:
             1010          [(Aa)] (I) within the taxing entity; and
             1011          [(Bb)] (II) for the current calendar year.
             1012          [(C)] (iii) For purposes of Subsection [(2)(a)(iii)(B)(I)] (3)(c)(ii)(A), the aggregate
             1013      taxable value of all property taxed:
             1014          [(I)] (A) except as provided in Subsection [(2)(a)(iii)(C)(II)] (3)(c)(iii)(B), includes the
             1015      total taxable value of the real and personal property contained on the tax rolls of the taxing
             1016      entity; and
             1017          [(II)] (B) does not include the total taxable value of personal property contained on the


             1018      tax rolls of the taxing entity that is:
             1019          [(Aa)] (I) assessed by a county assessor in accordance with Part 3, County Assessment;
             1020      and
             1021          [(Bb)] (II) semiconductor manufacturing equipment.
             1022          [(D)] (iv) For purposes of Subsection [(2)(a)(iii)(B)(II)] (3)(c)(ii)(B), for calendar years
             1023      beginning on or after January 1, 2007, the value of taxable property does not include the value
             1024      of personal property that is:
             1025          [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
             1026      3, County Assessment; and
             1027          [(II)] (B) semiconductor manufacturing equipment.
             1028          [(E)] (v) For purposes of Subsection [(2)(a)(iii)(B)(III)(Bb)] (3)(c)(ii)(C)(II), for
             1029      calendar years beginning on or after January 1, 2007, the percentage of property taxes collected
             1030      does not include property taxes collected from personal property that is:
             1031          [(I)] (A) within the taxing entity assessed by a county assessor in accordance with Part
             1032      3, County Assessment; and
             1033          [(II)] (B) semiconductor manufacturing equipment.
             1034          [(F)] (vi) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking
             1035      Act, the commission may prescribe rules for calculating redevelopment adjustments for a
             1036      calendar year.
             1037          [(iv) (A)] (d) (i) In accordance with Title 63, Chapter 46a, Utah Administrative
             1038      Rulemaking Act, the commission shall make rules determining the calculation of ad valorem
             1039      property tax revenues budgeted by a taxing entity.
             1040          [(B)] (ii) For purposes of Subsection [(2)(a)(iv)(A)] (3)(d)(i), ad valorem property tax
             1041      revenues budgeted by a taxing entity shall be calculated in the same manner as budgeted
             1042      property tax revenues are calculated for purposes of Section 59-2-913 .
             1043          [(v)] (e) The certified tax rates for the taxing entities described in this Subsection
             1044      [(2)(a)(v)] (3)(e) shall be calculated as follows:
             1045          [(A)] (i) except as provided in Subsection [(2)(a)(v)(B)] (3)(e)(ii), for new taxing
             1046      entities the certified tax rate is zero;
             1047          [(B)] (ii) for each municipality incorporated on or after July 1, 1996, the certified tax
             1048      rate is:


             1049          [(I)] (A) in a county of the first, second, or third class, the levy imposed for
             1050      municipal-type services under Sections 17-34-1 and 17-36-9 ; and
             1051          [(II)] (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general
             1052      county purposes and such other levies imposed solely for the municipal-type services identified
             1053      in Section 17-34-1 and Subsection 17-36-3 (22); and
             1054          [(C)] (iii) for debt service voted on by the public, the certified tax rate shall be the
             1055      actual levy imposed by that section, except that the certified tax rates for the following levies
             1056      shall be calculated in accordance with Section 59-2-913 and this section:
             1057          [(I)] (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 ,
             1058      [ 53A-17a-125 ,] 53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , and 53A-17a-145 [,
             1059      and 53A-21-103 ]; and
             1060          [(II)] (B) levies to pay for the costs of state legislative mandates or judicial or
             1061      administrative orders under Section 59-2-906.3 .
             1062          [(vi) (A)] (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall
             1063      be established at that rate which is sufficient to generate only the revenue required to satisfy
             1064      one or more eligible judgments, as defined in Section 59-2-102 .
             1065          [(B)] (ii) The ad valorem property tax revenue generated by the judgment levy shall not
             1066      be considered in establishing the taxing entity's aggregate certified tax rate.
             1067          (g) The ad valorem property tax revenue generated by the capital outlay levy described
             1068      in Section 53A-16-107 within a taxing entity in a county of the first class:
             1069          (i) may not be considered in establishing the school district's aggregate certified tax
             1070      rate; and
             1071          (ii) shall be included by the commission in establishing a certified tax rate for that
             1072      capital outlay levy determined in accordance with the calculation described in Subsection
             1073      59-2-913 (3).
             1074          [(b) (i)] (4) (a) For the purpose of calculating the certified tax rate, the county auditor
             1075      shall use the taxable value of property on the assessment roll.
             1076          [(ii)] (b) For purposes of Subsection [(2)(b)(i)] (4)(a)(i), the taxable value of real
             1077      property on the assessment roll does not include:
             1078          [(A)] (i) new growth as defined in Subsection [(2)(b)(iii); or] (4)(c); or
             1079          [(B)] (ii) the total taxable value of personal property contained on the tax rolls of the


             1080      taxing entity that is:
             1081          [(I)] (A) assessed by a county assessor in accordance with Part 3, County Assessment;
             1082      and
             1083          [(II)] (B) semiconductor manufacturing equipment.
             1084          [(iii)] (c) "New growth" means:
             1085          [(A)] (i) the difference between the increase in taxable value of the taxing entity from
             1086      the previous calendar year to the current year; minus
             1087          [(B)] (ii) the amount of an increase in taxable value described in Subsection [(2)(b)(v)]
             1088      (4)(e).
             1089          [(iv)] (d) For purposes of Subsection [(2)(b)(iii)] (4)(c)(ii), the taxable value of the
             1090      taxing entity does not include the taxable value of personal property that is:
             1091          [(A)] (i) contained on the tax rolls of the taxing entity if that property is assessed by a
             1092      county assessor in accordance with Part 3, County Assessment; and
             1093          [(B)] (ii) semiconductor manufacturing equipment.
             1094          [(v)] (e) Subsection [(2)(b)(iii)(B)] (4)(c)(ii) applies to the following increases in
             1095      taxable value:
             1096          [(A)] (i) the amount of increase to locally assessed real property taxable values
             1097      resulting from factoring, reappraisal, or any other adjustments; or
             1098          [(B)] (ii) the amount of an increase in the taxable value of property assessed by the
             1099      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             1100      taxable value prescribed by:
             1101          [(I)] (A) the Legislature;
             1102          [(II)] (B) a court;
             1103          [(III)] (C) the commission in an administrative rule; or
             1104          [(IV)] (D) the commission in an administrative order.
             1105          [(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             1106      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1107      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             1108      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             1109      rate to offset the increased revenues.]
             1110          [(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under


             1111      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:]
             1112          [(A) decreased on a one-time basis by the amount of the estimated sales and use tax
             1113      revenue to be distributed to the county under Subsection 59-12-1102 (3); and]
             1114          [(B) increased by the amount necessary to offset the county's reduction in revenue
             1115      from uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1116      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             1117      (2)(d)(i)(A).]
             1118          [(ii) The commission shall determine estimates of sales and use tax distributions for
             1119      purposes of Subsection (2)(d)(i).]
             1120          [(e) Beginning January 1, 1998, if a municipality has imposed an additional resort
             1121      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             1122      decreased on a one-time basis by the amount necessary to offset the first 12 months of
             1123      estimated revenue from the additional resort communities sales and use tax imposed under
             1124      Section 59-12-402 .]
             1125          [(f) (i) (A) For fiscal year 2000, the certified tax rate of each county required under
             1126      Subsection 17-34-1 (4)(a) to provide advanced life support and paramedic services to the
             1127      unincorporated area of the county shall be decreased by the amount necessary to reduce
             1128      revenues in that fiscal year by an amount equal to the difference between the amount the county
             1129      budgeted in its 2000 fiscal year budget for advanced life support and paramedic services
             1130      countywide and the amount the county spent during fiscal year 2000 for those services,
             1131      excluding amounts spent from a municipal services fund for those services.]
             1132          [(B) For fiscal year 2001, the certified tax rate of each county to which Subsection
             1133      (2)(f)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal
             1134      year by the amount that the county spent during fiscal year 2000 for advanced life support and
             1135      paramedic services countywide, excluding amounts spent from a municipal services fund for
             1136      those services.]
             1137          [(ii) (A) A city or town located within a county of the first class to which Subsection
             1138      (2)(f)(i) applies may increase its certified tax rate by the amount necessary to generate within
             1139      the city or town the same amount of revenues as the county would collect from that city or
             1140      town if the decrease under Subsection (2)(f)(i) did not occur.]
             1141          [(B) An increase under Subsection (2)(f)(ii)(A), whether occurring in a single fiscal


             1142      year or spread over multiple fiscal years, is not subject to the notice and hearing requirements
             1143      of Sections 59-2-918 and 59-2-919 .]
             1144          [(g) (i) The certified tax rate of each county required under Subsection 17-34-1 (4)(b) to
             1145      provide detective investigative services to the unincorporated area of the county shall be
             1146      decreased:]
             1147          [(A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year
             1148      by at least $4,400,000; and]
             1149          [(B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year
             1150      by an amount equal to the difference between $9,258,412 and the amount of the reduction in
             1151      revenues under Subsection (2)(g)(i)(A).]
             1152          [(ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a
             1153      county to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate
             1154      within the city or town the same amount of revenue as the county would have collected during
             1155      county fiscal year 2001 from within the city or town except for Subsection (2)(g)(i)(A).]
             1156          [(II) Beginning with municipal fiscal year 2003, a city or town located within a county
             1157      to which Subsection (2)(g)(i) applies may increase its certified tax rate to generate within the
             1158      city or town the same amount of revenue as the county would have collected during county
             1159      fiscal year 2002 from within the city or town except for Subsection (2)(g)(i)(B).]
             1160          [(B) (I) Except as provided in Subsection (2)(g)(ii)(B)(II), an increase in the city or
             1161      town's certified tax rate under Subsection (2)(g)(ii)(A), whether occurring in a single fiscal year
             1162      or spread over multiple fiscal years, is subject to the notice and hearing requirements of
             1163      Sections 59-2-918 and 59-2-919 .]
             1164          [(II) For an increase under this Subsection (2)(g)(ii) that generates revenue that does
             1165      not exceed the same amount of revenue as the county would have collected except for
             1166      Subsection (2)(g)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the
             1167      city or town:]
             1168          [(Aa) publishes a notice that meets the size, type, placement, and frequency
             1169      requirements of Section 59-2-919 , reflects that the increase is a shift of a tax from one imposed
             1170      by the county to one imposed by the city or town, and explains how the revenues from the tax
             1171      increase will be used; and]
             1172          [(Bb) holds a public hearing on the tax shift that may be held in conjunction with the


             1173      city or town's regular budget hearing.]
             1174          [(h) (i) This Subsection (2)(h) applies to each county that:]
             1175          [(A) establishes a countywide special service district under Title 17A, Chapter 2, Part
             1176      13, Utah Special Service District Act, to provide jail service, as provided in Subsection
             1177      17A-2-1304 (1)(a)(x); and]
             1178          [(B) levies a property tax on behalf of the special service district under Section
             1179      17A-2-1322 .]
             1180          [(ii) (A) The certified tax rate of each county to which this Subsection (2)(h) applies
             1181      shall be decreased by the amount necessary to reduce county revenues by the same amount of
             1182      revenues that will be generated by the property tax imposed on behalf of the special service
             1183      district.]
             1184          [(B) Each decrease under Subsection (2)(h)(ii)(A) shall occur contemporaneously with
             1185      the levy on behalf of the special service district under Section 17A-2-1322 .]
             1186          [(i) (i) As used in this Subsection (2)(i):]
             1187          [(A) "Annexing county" means a county whose unincorporated area is included within
             1188      a fire district by annexation.]
             1189          [(B) "Annexing municipality" means a municipality whose area is included within a
             1190      fire district by annexation.]
             1191          [(C) "Equalized fire protection tax rate" means the tax rate that results from:]
             1192          [(I) calculating, for each participating county and each participating municipality, the
             1193      property tax revenue necessary to cover all of the costs associated with providing fire
             1194      protection, paramedic, and emergency services:]
             1195          [(Aa) for a participating county, in the unincorporated area of the county; and]
             1196          [(Bb) for a participating municipality, in the municipality; and]
             1197          [(II) adding all the amounts calculated under Subsection (2)(i)(i)(C)(I) for all
             1198      participating counties and all participating municipalities and then dividing that sum by the
             1199      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :]
             1200          [(Aa) for participating counties, in the unincorporated area of all participating counties;
             1201      and]
             1202          [(Bb) for participating municipalities, in all the participating municipalities.]
             1203          [(D) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service


             1204      Area Act, in the creation of which an election was not required under Subsection
             1205      17B-1-214 (3)(c).]
             1206          [(E) "Fire protection tax rate" means:]
             1207          [(I) for an annexing county, the property tax rate that, when applied to taxable property
             1208      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             1209      costs associated with providing fire protection, paramedic, and emergency services in the
             1210      unincorporated area of the county; and]
             1211          [(II) for an annexing municipality, the property tax rate that generates enough property
             1212      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             1213      paramedic, and emergency services in the municipality.]
             1214          [(F) "Participating county" means a county whose unincorporated area is included
             1215      within a fire district at the time of the creation of the fire district.]
             1216          [(G) "Participating municipality" means a municipality whose area is included within a
             1217      fire district at the time of the creation of the fire district.]
             1218          [(ii) In the first year following creation of a fire district, the certified tax rate of each
             1219      participating county and each participating municipality shall be decreased by the amount of
             1220      the equalized fire protection tax rate.]
             1221          [(iii) In the first year following annexation to a fire district, the certified tax rate of each
             1222      annexing county and each annexing municipality shall be decreased by the fire protection tax
             1223      rate.]
             1224          [(iv) Each tax levied under this section by a fire district shall be considered to be levied
             1225      by:]
             1226          [(A) each participating county and each annexing county for purposes of the county's
             1227      tax limitation under Section 59-2-908 ; and]
             1228          [(B) each participating municipality and each annexing municipality for purposes of
             1229      the municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
             1230      city.]
             1231          [(j) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             1232      entity's certified tax rate shall be adjusted by the amount necessary to offset any change in the
             1233      certified tax rate that may result from excluding the following from the certified tax rate under
             1234      Subsection (2)(a) enacted by the Legislature during the 2007 General Session:]


             1235          [(i) personal property tax revenue:]
             1236          [(A) received by a taxing entity;]
             1237          [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
             1238          [(C) for personal property that is semiconductor manufacturing equipment; or]
             1239          [(ii) the taxable value of personal property:]
             1240          [(A) contained on the tax rolls of a taxing entity;]
             1241          [(B) assessed by a county assessor in accordance with Part 3, County Assessment; and]
             1242          [(C) that is semiconductor manufacturing equipment.]
             1243          [(3)] (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative
             1244      budget.
             1245          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             1246      auditor of:
             1247          (i) its intent to exceed the certified tax rate; and
             1248          (ii) the amount by which it proposes to exceed the certified tax rate.
             1249          (c) The county auditor shall notify all property owners of any intent to exceed the
             1250      certified tax rate in accordance with Subsection 59-2-919 [(2)] (3).
             1251          [(4) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             1252      reduced for any year to the extent necessary to provide a community development and renewal
             1253      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             1254      Development and Renewal Agencies, with approximately the same amount of money the
             1255      agency would have received without a reduction in the county's certified tax rate if:]
             1256          [(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
             1257      (2)(d)(i);]
             1258          [(ii) the amount of the decrease is more than 20% of the county's certified tax rate of
             1259      the previous year; and]
             1260          [(iii) the decrease results in a reduction of the amount to be paid to the agency under
             1261      Section 17C-1-403 or 17C-1-404 .]
             1262          [(b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             1263      year to the extent necessary to provide a community development and renewal agency with
             1264      approximately the same amount of money as the agency would have received without an
             1265      increase in the certified tax rate that year if:]


             1266          [(i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             1267      a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i); and]
             1268          [(ii) The certified tax rate of a city, school district, local district, or special service
             1269      district increases independent of the adjustment to the taxable value of the base year.]
             1270          [(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or
             1271      (2)(d)(i), the amount of money allocated and, when collected, paid each year to a community
             1272      development and renewal agency established under Title 17C, Limited Purpose Local
             1273      Government Entities - Community Development and Renewal Agencies, for the payment of
             1274      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             1275      amount would have been without a decrease in the certified tax rate under Subsection (2)(c) or
             1276      (2)(d)(i).]
             1277          Section 30. Section 59-2-924.2 is enacted to read:
             1278          59-2-924.2. Adjustments to the calculation of a taxing entity's certified tax rate.
             1279          (1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
             1280      in accordance with Section 59-2-924 .
             1281          (2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
             1282      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1283      59-2-405.2 , or 59-2-405.3 as a result of any county imposing a sales and use tax under Chapter
             1284      12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
             1285      rate to offset the increased revenues.
             1286          (3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
             1287      Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
             1288          (i) decreased on a one-time basis by the amount of the estimated sales and use tax
             1289      revenue to be distributed to the county under Subsection 59-12-1102 (3); and
             1290          (ii) increased by the amount necessary to offset the county's reduction in revenue from
             1291      uniform fees on tangible personal property under Section 59-2-404 , 59-2-405 , 59-2-405.1 ,
             1292      59-2-405.2 , or 59-2-405.3 as a result of the decrease in the certified tax rate under Subsection
             1293      (3)(a)(i).
             1294          (b) The commission shall determine estimates of sales and use tax distributions for
             1295      purposes of Subsection (3)(a).
             1296          (4) Beginning January 1, 1998, if a municipality has imposed an additional resort


             1297      communities sales tax under Section 59-12-402 , the municipality's certified tax rate shall be
             1298      decreased on a one-time basis by the amount necessary to offset the first 12 months of
             1299      estimated revenue from the additional resort communities sales and use tax imposed under
             1300      Section 59-12-402 .
             1301          (5) (a) This Subsection (5) applies to each county that:
             1302          (i) establishes a countywide special service district under Title 17A, Chapter 2, Part 13,
             1303      Utah Special Service District Act, to provide jail service, as provided in Subsection
             1304      17A-2-1304 (1)(a)(x); and
             1305          (ii) levies a property tax on behalf of the special service district under Section
             1306      17A-2-1322 .
             1307          (b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
             1308      decreased by the amount necessary to reduce county revenues by the same amount of revenues
             1309      that will be generated by the property tax imposed on behalf of the special service district.
             1310          (ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
             1311      levy on behalf of the special service district under Section 17A-2-1322 .
             1312          (6) (a) As used in this Subsection (6):
             1313          (i) "Annexing county" means a county whose unincorporated area is included within a
             1314      fire district by annexation.
             1315          (ii) "Annexing municipality" means a municipality whose area is included within a fire
             1316      district by annexation.
             1317          (iii) "Equalized fire protection tax rate" means the tax rate that results from:
             1318          (A) calculating, for each participating county and each participating municipality, the
             1319      property tax revenue necessary to cover all of the costs associated with providing fire
             1320      protection, paramedic, and emergency services:
             1321          (I) for a participating county, in the unincorporated area of the county; and
             1322          (II) for a participating municipality, in the municipality; and
             1323          (B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
             1324      participating counties and all participating municipalities and then dividing that sum by the
             1325      aggregate taxable value of the property, as adjusted in accordance with Section 59-2-913 :
             1326          (I) for participating counties, in the unincorporated area of all participating counties;
             1327      and


             1328          (II) for participating municipalities, in all the participating municipalities.
             1329          (iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
             1330      Area Act, in the creation of which an election was not required under Subsection
             1331      17B-1-214 (3)(c).
             1332          (v) "Fire protection tax rate" means:
             1333          (A) for an annexing county, the property tax rate that, when applied to taxable property
             1334      in the unincorporated area of the county, generates enough property tax revenue to cover all the
             1335      costs associated with providing fire protection, paramedic, and emergency services in the
             1336      unincorporated area of the county; and
             1337          (B) for an annexing municipality, the property tax rate that generates enough property
             1338      tax revenue in the municipality to cover all the costs associated with providing fire protection,
             1339      paramedic, and emergency services in the municipality.
             1340          (vi) "Participating county" means a county whose unincorporated area is included
             1341      within a fire district at the time of the creation of the fire district.
             1342          (vii) "Participating municipality" means a municipality whose area is included within a
             1343      fire district at the time of the creation of the fire district.
             1344          (b) In the first year following creation of a fire district, the certified tax rate of each
             1345      participating county and each participating municipality shall be decreased by the amount of
             1346      the equalized fire protection tax rate.
             1347          (c) In the first year following annexation to a fire district, the certified tax rate of each
             1348      annexing county and each annexing municipality shall be decreased by the fire protection tax
             1349      rate.
             1350          (d) Each tax levied under this section by a fire district shall be considered to be levied
             1351      by:
             1352          (i) each participating county and each annexing county for purposes of the county's tax
             1353      limitation under Section 59-2-908 ; and
             1354          (ii) each participating municipality and each annexing municipality for purposes of the
             1355      municipality's tax limitation under Section 10-5-112 , for a town, or Section 10-6-133 , for a
             1356      city.
             1357          (7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
             1358      entity's certified tax rate, calculated in accordance with Section 59-2-924 , shall be adjusted by


             1359      the amount necessary to offset any change in the certified tax rate that may result from
             1360      excluding the following from the certified tax rate under Subsection 59-2-924 (3) enacted by the
             1361      Legislature during the 2007 General Session:
             1362          (a) personal property tax revenue:
             1363          (i) received by a taxing entity;
             1364          (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1365          (iii) for personal property that is semiconductor manufacturing equipment; or
             1366          (b) the taxable value of personal property:
             1367          (i) contained on the tax rolls of a taxing entity;
             1368          (ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
             1369          (iii) that is semiconductor manufacturing equipment.
             1370          (8) (a) The taxable value for the base year under Subsection 17C-1-102 (6) shall be
             1371      reduced for any year to the extent necessary to provide a community development and renewal
             1372      agency established under Title 17C, Limited Purpose Local Government Entities - Community
             1373      Development and Renewal Agencies, with approximately the same amount of money the
             1374      agency would have received without a reduction in the county's certified tax rate, calculated in
             1375      accordance with Section 59-2-924 , if:
             1376          (i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
             1377          (ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
             1378      previous year; and
             1379          (iii) the decrease results in a reduction of the amount to be paid to the agency under
             1380      Section 17C-1-403 or 17C-1-404 .
             1381          (b) The base taxable value under Subsection 17C-1-102 (6) shall be increased in any
             1382      year to the extent necessary to provide a community development and renewal agency with
             1383      approximately the same amount of money as the agency would have received without an
             1384      increase in the certified tax rate that year if:
             1385          (i) in that year the base taxable value under Subsection 17C-1-102 (6) is reduced due to
             1386      a decrease in the certified tax rate under Subsection (2) or (3)(a); and
             1387          (ii) the certified tax rate of a city, school district, local district, or special service
             1388      district increases independent of the adjustment to the taxable value of the base year.
             1389          (c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),


             1390      the amount of money allocated and, when collected, paid each year to a community
             1391      development and renewal agency established under Title 17C, Limited Purpose Local
             1392      Government Entities - Community Development and Renewal Agencies, for the payment of
             1393      bonds or other contract indebtedness, but not for administrative costs, may not be less than that
             1394      amount would have been without a decrease in the certified tax rate under Subsection (2) or
             1395      (3)(a).
             1396          Section 31. Section 59-2-924.3 is enacted to read:
             1397          59-2-924.3. Adjustment of the calculation of the certified tax rate for a school
             1398      district imposing a capital outlay levy in a county of the first class.
             1399          (1) As used in this section:
             1400          (a) "Capital outlay increment" means the amount of revenue equal to the difference
             1401      between:
             1402          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1403      within a school district during a fiscal year; and
             1404          (ii) the amount of revenue the school district received during the same fiscal year from
             1405      the distribution described in Subsection 53A-16-107.1 (1).
             1406          (b) "Contributing school district" means a school district in a county of the first class
             1407      that in a fiscal year receives less revenue from the distribution described in Subsection
             1408      53A-16-107.1 (1) than it would have received during the same fiscal year from a levy imposed
             1409      within the school district of .0006 per dollar of taxable value.
             1410          (c) "Receiving school district" means a school district in a county of the first class that
             1411      in a fiscal year receives more revenue from the distribution described in Subsection
             1412      53A-16-107.1 (1) than it would have received during the same fiscal year from a levy imposed
             1413      within the school district of .0006 per dollar of taxable value.
             1414          (2) A receiving school district shall decrease its capital outlay certified tax rate under
             1415      Subsection 59-2-924 (3)(g)(ii) by the amount required to offset the receiving school district's
             1416      capital outlay increment for the prior fiscal year.
             1417          (3) Beginning with fiscal year 2009-10, a contributing school district is exempt from
             1418      the public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
             1419      district's capital outlay levy certified tax rate calculated pursuant to Subsection
             1420      59-2-924 (3)(g)(ii) if:


             1421          (a) the contributing school district budgets an increased amount of ad valorem property
             1422      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
             1423      outlay levy described in Section 53A-16-107 ; and
             1424          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1425      (3)(a) is less than or equal to that contributing school district's capital outlay increment for the
             1426      prior year.
             1427          (4) Beginning with fiscal year 2010-11, a contributing school district is exempt from
             1428      the public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for the school
             1429      district's capital outlay levy certified tax rate calculated pursuant to Subsection
             1430      59-2-924 (3)(g)(ii) if:
             1431          (a) the contributing school district budgets an increased amount of ad valorem property
             1432      tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the capital
             1433      outlay levy described in Section 53A-16-107 ; and
             1434          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1435      (4)(a) is less than or equal to the difference between:
             1436          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1437      imposed within the contributing school district during the current taxable year; and
             1438          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1439      imposed within the contributing school district during the prior taxable year.
             1440          (5) Regardless of the amount a school district receives from the revenue collected from
             1441      the .0006 portion of the capital outlay levy described in Subsection 53A-16-107 (3), the revenue
             1442      generated within the school district from the .0006 portion of the capital outlay levy described
             1443      in Subsection 53A-16-107 (3) shall be considered to be budgeted ad valorem property tax
             1444      revenues of the school district that levies the .0006 portion of the capital outlay levy for
             1445      purposes of calculating the school district's certified tax rate in accordance with Subsection
             1446      59-2-924 (3)(g)(ii).
             1447          Section 32. Section 59-2-924.4 is enacted to read:
             1448          59-2-924.4. Adjustment to certified tax rate of school districts receiving funds
             1449      from capital outlay programs.
             1450          (1) For purposes of this section:
             1451          (a) "New ongoing funding increment" means an amount equal to the difference


             1452      between the following:
             1453          (i) the ongoing appropriation for a program for fiscal year 2007-08 as provided in
             1454      Section 53A-21-105 ; and
             1455          (ii) the ongoing appropriation for the program for fiscal year 2008-09 as provided in
             1456      Section 53A-21-501 .
             1457          (b) "Receiving school district" means a school district that in fiscal year 2008-09
             1458      receives a distribution from the funds appropriated in Section 53A-21-501 .
             1459          (2) For the taxable year beginning January 1, 2008, a receiving school district shall
             1460      decrease its certified tax rate calculated in accordance with Section 59-2-924 by an amount
             1461      equal to the amount of revenue the receiving school district receives from the new ongoing
             1462      funding increment of:
             1463          (a) the Capital Outlay Foundation Program in accordance with Section 53A-21-202 ;
             1464      and
             1465          (b) the Capital Outlay Enrollment Growth Program in accordance with Section
             1466      53A-21-302 .
             1467          Section 33. Section 59-2-924.5 is enacted to read:
             1468          59-2-924.5. Adjustment of the calculation of the certified tax rate for certain
             1469      divided school districts.
             1470          (1) As used in this section:
             1471          (a) "Capital outlay increment" means the amount of revenue equal to the difference
             1472      between:
             1473          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1474      within a qualifying divided school district during a fiscal year; and
             1475          (ii) the amount of revenue the qualifying divided school district received during the
             1476      same fiscal year from the distribution described in Subsection 53A-2-118.3 .
             1477          (b) "Contributing divided school district" means a school district located within a
             1478      qualifying divided school district that in a fiscal year receives less revenue from the distribution
             1479      described in Subsection 53A-16-107.1 (1) than it would have received during the same fiscal
             1480      year from a levy imposed within the school district of .0006 per dollar of taxable value.
             1481          (c) "Divided school district" means a school district from which a new school district is
             1482      created.


             1483          (d) "New school district" means a school district:
             1484          (i) created under 53A-2-118 or 53A-2-118.1 ;
             1485          (ii) that begins to provide educational services after July 1, 2008; and
             1486          (iii) located in a qualifying divided school district.
             1487          (e) "Qualifying divided school district" means a divided school district:
             1488          (i) located within a county of the second through sixth class; and
             1489          (ii) with a new school district created under Section 53A-2-118.1 that begins to provide
             1490      educational services after July 1, 2008.
             1491          (f) "Qualifying fiscal year" means the first fiscal year that a new school district begins
             1492      to provide educational services.
             1493          (g) "Receiving divided school district" means a school district located within a
             1494      qualifying divided school district that in a fiscal year receives more revenue from the
             1495      distribution described in Subsection 53A-2-118.3 than it would have received during the same
             1496      fiscal year from a levy imposed within the school district of .0006 per dollar of taxable value.
             1497          (2) A receiving divided school district shall decrease its certified tax rate calculated in
             1498      accordance with Subsection 59-2-924 by the amount required to offset the receiving divided
             1499      school district's capital outlay increment for the prior fiscal year.
             1500          (3) Beginning with the qualifying fiscal year, a contributing divided school district is
             1501      exempt from the public notice and hearing requirements of Sections 59-2-918 and 59-2-919 for
             1502      the contributing divided school district's certified tax rate calculated pursuant to Section
             1503      59-2-924 if:
             1504          (a) the contributing divided school district budgets an increased amount of ad valorem
             1505      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1506      capital outlay levy required in Section 53A-2-118.3 ; and
             1507          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1508      (3)(a) is less than or equal to that contributing divided school district's capital outlay increment
             1509      for the prior year.
             1510          (4) Beginning with the fiscal year after the qualifying fiscal year, a contributing divided
             1511      school district is exempt from the public notice and hearing requirements of Sections 59-2-918
             1512      and 59-2-919 for the contributing divided school district's certified tax rate calculated pursuant
             1513      to Section 59-2-924 if:


             1514          (a) the contributing divided school district budgets an increased amount of ad valorem
             1515      property tax revenue exclusive of new growth as defined in Subsection 59-2-924 (4) for the
             1516      capital outlay levy described in Section 53A-2-118.3 ; and
             1517          (b) the increased amount of ad valorem property tax revenue described in Subsection
             1518      (4)(a) is less than or equal to the difference between:
             1519          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1520      imposed within the contributing divided school district during the current taxable year; and
             1521          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
             1522      imposed within the contributing divided school district during the prior taxable year.
             1523          (5) Regardless of the amount a school district receives from the revenue collected from
             1524      the .0006 portion of the capital outlay levy described in Subsection 53A-2-118.3 , the revenue
             1525      generated within the school district from the .0006 portion of the capital outlay levy described
             1526      in Subsection 53A-2-118.3 shall be considered to be budgeted ad valorem property tax
             1527      revenues of the school district that levies the .0006 portion of the capital outlay levy for
             1528      purposes of calculating the school district's certified tax rate in accordance with Section
             1529      59-2-924 .
             1530          Section 34. Section 59-2-1330 is amended to read:
             1531           59-2-1330. Payment of property taxes -- Payments to taxpayer by state or taxing
             1532      entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
             1533      Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
             1534      commission -- Time periods for making payments to taxpayer.
             1535          (1) Unless otherwise specifically provided by statute, property taxes shall be paid
             1536      directly to the county assessor or the county treasurer:
             1537          (a) on the date that the property taxes are due; and
             1538          (b) as provided in this chapter.
             1539          (2) A taxpayer shall receive payment as provided in this section if a reduction in the
             1540      amount of any tax levied against any property for which the taxpayer paid a tax or any portion
             1541      of a tax under this chapter for a calendar year is required by a final and unappealable judgment
             1542      or order described in Subsection (3) issued by:
             1543          (a) a county board of equalization;
             1544          (b) the commission; or


             1545          (c) a court of competent jurisdiction.
             1546          (3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
             1547      property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
             1548      shall pay the taxpayer if:
             1549          (i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
             1550      authorized officer of the:
             1551          (A) county; or
             1552          (B) state;
             1553          (ii) the taxpayer obtains a final and unappealable judgment or order:
             1554          (A) from:
             1555          (I) a county board of equalization;
             1556          (II) the commission; or
             1557          (III) a court of competent jurisdiction;
             1558          (B) against:
             1559          (I) the taxing entity or an authorized officer of the taxing entity; or
             1560          (II) the state or an authorized officer of the state; and
             1561          (C) ordering a reduction in the amount of any tax levied against any property for which
             1562      a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
             1563          (b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
             1564      in accordance with Subsections (4) through (7).
             1565          (4) For purposes of Subsections (2) and (3), the amount the state shall pay to a taxpayer
             1566      is equal to the sum of:
             1567          (a) if the difference described in this Subsection (4)(a) is greater than $0, the difference
             1568      between:
             1569          (i) the tax the taxpayer paid to the state in accordance with Subsection (2); and
             1570          (ii) the amount of the taxpayer's tax liability to the state after the reduction in the
             1571      amount of tax levied against the property in accordance with the final and unappealable
             1572      judgment or order described in Subsection (3);
             1573          (b) if the difference described in this Subsection (4)(b) is greater than $0, the difference
             1574      between:
             1575          (i) any penalties the taxpayer paid to the state in accordance with Section 59-2-1331 ;


             1576      and
             1577          (ii) the amount of penalties the taxpayer is liable to pay to the state in accordance with
             1578      Section 59-2-1331 after the reduction in the amount of tax levied against the property in
             1579      accordance with the final and unappealable judgment or order described in Subsection (3);
             1580          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
             1581      Section 59-2-1331 on the amounts described in Subsections (4)(a) and (4)(b); and
             1582          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
             1583          (i) Subsection (4)(a);
             1584          (ii) Subsection (4)(b); and
             1585          (iii) Subsection (4)(c).
             1586          (5) For purposes of Subsections (2) and (3), the amount a taxing entity shall pay to a
             1587      taxpayer is equal to the sum of:
             1588          (a) if the difference described in this Subsection (5)(a) is greater than $0, the difference
             1589      between:
             1590          (i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (2); and
             1591          (ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in
             1592      the amount of tax levied against the property in accordance with the final and unappealable
             1593      judgment or order described in Subsection (3);
             1594          (b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
             1595      between:
             1596          (i) any penalties the taxpayer paid to the taxing entity in accordance with Section
             1597      59-2-1331 ; and
             1598          (ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in
             1599      accordance with Section 59-2-1331 after the reduction in the amount of tax levied against the
             1600      property in accordance with the final and unappealable judgment or order described in
             1601      Subsection (3); and
             1602          (c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
             1603      Section 59-2-1331 on the amounts described in Subsections (5)(a) and (5)(b); and
             1604          (d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
             1605          (i) Subsection (5)(a);
             1606          (ii) Subsection (5)(b); and


             1607          (iii) Subsection (5)(c).
             1608          (6) Except as provided in Subsection (7):
             1609          (a) interest shall be refunded to a taxpayer on the amount described in Subsection
             1610      (4)(c) or (5)(c) in an amount equal to the amount of interest the taxpayer paid in accordance
             1611      with Section 59-2-1331 ; and
             1612          (b) interest shall be paid to a taxpayer on the amount described in Subsection (4)(d) or
             1613      (5)(d):
             1614          (i) beginning on the later of:
             1615          (A) the day on which the taxpayer paid the tax in accordance with Subsection (2); or
             1616          (B) January 1 of the calendar year immediately following the calendar year for which
             1617      the tax was due;
             1618          (ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
             1619      amount required by Subsection (4) or (5); and
             1620          (iii) at the interest rate earned by the state treasurer on public funds transferred to the
             1621      state treasurer in accordance with Section 51-7-5.
             1622          (7) Notwithstanding Subsection (6):
             1623          (a) the state may not pay or refund interest to a taxpayer under Subsection (6) on any
             1624      tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax levied
             1625      by the state for that calendar year as stated on the notice required by Section 59-2-1317 ; and
             1626          (b) a taxing entity may not pay or refund interest to a taxpayer under Subsection (6) on
             1627      any tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax
             1628      levied by the taxing entity for that calendar year as stated on the notice required by Section
             1629      59-2-1317.
             1630          (8) (a) Each taxing entity may levy a tax to pay its share of the final and unappealable
             1631      judgment or order described in Subsection (3) if:
             1632          (i) the final and unappealable judgment or order is issued no later than 15 days prior to
             1633      the date the levy is set under Subsection 59-2-924 [(2)] (3)(a);
             1634          (ii) the amount of the judgment levy is included on the notice under Section 59-2-919 ;
             1635      and
             1636          (iii) the final and unappealable judgment or order is an eligible judgment, as defined in
             1637      Section 59-2-102 .


             1638          (b) The levy under Subsection (8)(a) is in addition to, and exempt from, the maximum
             1639      levy established for the taxing entity.
             1640          (9) (a) A taxpayer that objects to the assessment of property assessed by the
             1641      commission shall pay, on or before the date of delinquency established under Subsection
             1642      59-2-1331 (1) or Section 59-2-1332 , the full amount of taxes stated on the notice required by
             1643      Section 59-2-1317 if:
             1644          (i) the taxpayer has applied to the commission for a hearing in accordance with Section
             1645      59-2-1007 on the objection to the assessment; and
             1646          (ii) the commission has not issued a written decision on the objection to the assessment
             1647      in accordance with Section 59-2-1007 .
             1648          (b) A taxpayer that pays the full amount of taxes due under Subsection (9)(a) is not
             1649      required to pay penalties or interest on an assessment described in Subsection (9)(a) unless:
             1650          (i) a final and unappealable judgment or order establishing that the property described
             1651      in Subsection (9)(a) has a value greater than the value stated on the notice required by Section
             1652      59-2-1317 is issued by:
             1653          (A) the commission; or
             1654          (B) a court of competent jurisdiction; and
             1655          (ii) the taxpayer fails to pay the additional tax liability resulting from the final and
             1656      unappealable judgment or order described in Subsection (9)(b)(i) within a 45-day period after
             1657      the county bills the taxpayer for the additional tax liability.
             1658          (10) (a) Except as provided in Subsection (10)(b), a payment that is required by this
             1659      section shall be paid to a taxpayer:
             1660          (i) within 60 days after the day on which the final and unappealable judgment or order
             1661      is issued in accordance with Subsection (3); or
             1662          (ii) if a judgment levy is imposed in accordance with Subsection (8):
             1663          (A) if the payment to the taxpayer required by this section is $5,000 or more, no later
             1664      than December 31 of the year in which the judgment levy is imposed; and
             1665          (B) if the payment to the taxpayer required by this section is less than $5,000, within
             1666      60 days after the date the final and unappealable judgment or order is issued in accordance with
             1667      Subsection (3).
             1668          (b) Notwithstanding Subsection (10)(a), a taxpayer may enter into an agreement:


             1669          (i) that establishes a time period other than a time period described in Subsection
             1670      (10)(a) for making a payment to the taxpayer that is required by this section; and
             1671          (ii) with:
             1672          (A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
             1673          (B) an authorized officer of the state for a tax imposed by the state.
             1674          Section 35. Repealer.
             1675          This bill repeals:
             1676          Section 53A-21-103, Qualifications for participation in the foundation program --
             1677      Distribution of monies -- Distribution formulas.
             1678          Section 53A-21-103.5, Qualifications for participation in the Enrollment Growth
             1679      Program -- State Board of Education rules -- Distribution formula.
             1680          Section 36. Effective date -- Retrospective operation.
             1681          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2008.
             1682          (2) Sections 59-2-924 , 59-2-924.2 , 59-2-924.3 , and 59-2-924.4 take effect on May 5,
             1683      2008 and have retrospective operation to January 1, 2008.
             1684          Section 37. Coordinating H.B. 1 with S.B. 48 -- Superseding amendments.
             1685          If this S.B. 48 and H.B. 1, Minimum School Program Base Budget Amendments, both
             1686      pass, it is the intent of the Legislature that the amendments to Section 53A-21-501 , renumbered
             1687      from Section 53A-21-105 , in this bill supersede the amendments to Section 53A-21-105 in
             1688      H.B. 1 when the Office of Legislative Research and General Counsel prepares the Utah Code
             1689      database for publication.


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