Download Zipped Enrolled WordPerfect HB0023.ZIP
[Introduced][Status][Bill Documents][Fiscal Note] [Bills Directory]

H.B. 23 Enrolled

             1     

CERTIFIED TAX RATE AMENDMENTS

             2     
2009 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Fred R Hunsaker

             5     
Senate Sponsor: Wayne L. Niederhauser

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill amends provisions in the Property Tax Act relating to the calculation of a
             10      taxing entity's certified tax rate.
             11      Highlighted Provisions:
             12          This bill:
             13          .    includes the revenue a taxing entity collects from redemptions as "ad valorem
             14      property tax revenues" for purposes of calculating the taxing entity's certified tax
             15      rate;
             16          .    requires a taxing entity's ad valorem property tax revenues budgeted for the prior
             17      year to be decreased by the average annual amount of revenue collected from
             18      redemptions during the prior five-year period for purposes of calculating a taxing
             19      entity's certified tax rate;
             20          .    exempts a taxing entity from the notice and hearing requirements of "Truth in
             21      Taxation" for a certain amount of budgeted revenue equal to the taxing entity's
             22      five-year average of redemptions from collections;
             23          .    defines terms; and
             24          .    makes technical changes.
             25      Monies Appropriated in this Bill:
             26          None
             27      Other Special Clauses:
             28          This bill takes effect on January 1, 2010.
             29      Utah Code Sections Affected:


             30      AMENDS:
             31          59-2-924, as last amended by Laws of Utah 2008, Chapters 61, 118, 231, 236, 330,
             32      360, and 382
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 59-2-924 is amended to read:
             36           59-2-924. Report of valuation of property to county auditor and commission --
             37      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of
             38      certified tax rate -- Rulemaking authority -- Adoption of tentative budget.
             39          (1) Before June 1 of each year, the county assessor of each county shall deliver to the
             40      county auditor and the commission the following statements:
             41          (a) a statement containing the aggregate valuation of all taxable real property assessed
             42      by a county assessor in accordance with Part 3, County Assessment, for each taxing entity;
             43      and
             44          (b) a statement containing the taxable value of all personal property assessed by a
             45      county assessor in accordance with Part 3, County Assessment, from the prior year end values.
             46          (2) The county auditor shall, on or before June 8, transmit to the governing body of
             47      each taxing entity:
             48          (a) the statements described in Subsections (1)(a) and (b);
             49          (b) an estimate of the revenue from personal property;
             50          (c) the certified tax rate; and
             51          (d) all forms necessary to submit a tax levy request.
             52          (3) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
             53      property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
             54      year.
             55          (b) For purposes of this Subsection (3):
             56          (i) "Ad valorem property tax revenues" do not include:
             57          [(A) collections from redemptions;]


             58          [(B)] (A) interest;
             59          [(C)] (B) penalties; and
             60          [(D)] (C) revenue received by a taxing entity from personal property that is:
             61          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             62          (II) semiconductor manufacturing equipment.
             63          (ii) "Aggregate taxable value of all property taxed" means:
             64          (A) the aggregate taxable value of all real property assessed by a county assessor in
             65      accordance with Part 3, County Assessment, for the current year;
             66          (B) the aggregate taxable year end value of all personal property assessed by a county
             67      assessor in accordance with Part 3, County Assessment, for the prior year; and
             68          (C) the aggregate taxable value of all real and personal property assessed by the
             69      commission in accordance with Part 2, Assessment of Property, for the current year.
             70          (c) (i) Except as otherwise provided in this section, the certified tax rate shall be
             71      calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
             72      taxing entity by the amount calculated under Subsection (3)(c)(ii).
             73          (ii) For purposes of Subsection (3)(c)(i), the legislative body of a taxing entity shall
             74      calculate an amount as follows:
             75          (A) calculate for the taxing entity the difference between:
             76          (I) the aggregate taxable value of all property taxed; and
             77          (II) any redevelopment adjustments for the current calendar year;
             78          (B) after making the calculation required by Subsection (3)(c)(ii)(A), calculate an
             79      amount determined by increasing or decreasing the amount calculated under Subsection
             80      (3)(c)(ii)(A) by the average of the percentage net change in the value of taxable property for
             81      the equalization period for the three calendar years immediately preceding the current calendar
             82      year;
             83          (C) after making the calculation required by Subsection (3)(c)(ii)(B), calculate the
             84      product of:
             85          (I) the amount calculated under Subsection (3)(c)(ii)(B); and


             86          (II) the percentage of property taxes collected for the five calendar years immediately
             87      preceding the current calendar year; and
             88          (D) after making the calculation required by Subsection (3)(c)(ii)(C), calculate an
             89      amount determined by subtracting from the amount calculated under Subsection (3)(c)(ii)(C)
             90      any new growth as defined in this section:
             91          (I) within the taxing entity; and
             92          (II) for the following calendar year:
             93          (Aa) for new growth from real property assessed by a county assessor in accordance
             94      with Part 3, County Assessment and all property assessed by the commission in accordance
             95      with Section 59-2-201 , the current calendar year; and
             96          (Bb) for new growth from personal property assessed by a county assessor in
             97      accordance with Part 3, County Assessment, the prior calendar year.
             98          (iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all
             99      property taxed:
             100          (A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in
             101      Subsection (3)(b)(ii);
             102          (B) does not include the total taxable value of personal property contained on the tax
             103      rolls of the taxing entity that is:
             104          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             105          (II) semiconductor manufacturing equipment; and
             106          (C) for personal property assessed by a county assessor in accordance with Part 3,
             107      County Assessment, the taxable value of personal property is the year end value of the
             108      personal property contained on the prior year's tax rolls of the entity.
             109          (iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
             110      January 1, 2007, the value of taxable property does not include the value of personal property
             111      that is:
             112          (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
             113      County Assessment; and


             114          (B) semiconductor manufacturing equipment.
             115          (v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or
             116      after January 1, 2007, the percentage of property taxes collected does not include property
             117      taxes collected from personal property that is:
             118          (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
             119      County Assessment; and
             120          (B) semiconductor manufacturing equipment.
             121          (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
             122      January 1, 2009, the value of taxable property does not include the value of personal property
             123      that is within the taxing entity assessed by a county assessor in accordance with Part 3, County
             124      Assessment.
             125          (vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             126      the commission may prescribe rules for calculating redevelopment adjustments for a calendar
             127      year.
             128          (viii) (A) For purposes of Subsection (3)(c)(i), for a calendar year beginning on or
             129      after January 1, 2010, a taxing entity's ad valorem property tax revenues budgeted for the prior
             130      year shall be decreased by an amount of revenue equal to the five-year average of the most
             131      recent prior five years of redemptions as reported on the county treasurer's final annual
             132      settlement required under Subsection 59-2-1365 (2).
             133          (B) For the calendar year beginning on January 1, 2010 and ending on December 31,
             134      2010, a taxing entity is exempt from the public notice and hearing requirements of Sections
             135      59-2-918 and 59-2-919 if the taxing entity budgets an increased amount of ad valorem
             136      property tax revenue equal to or less than the taxing entity's five-year average of the most
             137      recent prior five years of redemptions as reported on the county treasurer's final annual
             138      settlement required under Subsection 59-2-1365 (2).
             139          (d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             140      the commission shall make rules determining the calculation of ad valorem property tax
             141      revenues budgeted by a taxing entity.


             142          (ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted
             143      by a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
             144      calculated for purposes of Section 59-2-913 .
             145          (e) The certified tax rates for the taxing entities described in this Subsection (3)(e)
             146      shall be calculated as follows:
             147          (i) except as provided in Subsection (3)(e)(ii), for new taxing entities the certified tax
             148      rate is zero;
             149          (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             150          (A) in a county of the first, second, or third class, the levy imposed for municipal-type
             151      services under Sections 17-34-1 and 17-36-9 ; and
             152          (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             153      purposes and such other levies imposed solely for the municipal-type services identified in
             154      Section 17-34-1 and Subsection 17-36-3 (22); and
             155          (iii) for debt service voted on by the public, the certified tax rate shall be the actual
             156      levy imposed by that section, except that the certified tax rates for the following levies shall be
             157      calculated in accordance with Section 59-2-913 and this section:
             158          (A) school leeways provided for under Sections 11-2-7 , 53A-16-110 , [53A-17a-125 ,]
             159      53A-17a-127 , 53A-17a-133 , 53A-17a-134 , 53A-17a-143 , and 53A-17a-145 [, and
             160      53A-21-103 ]; and
             161          (B) levies to pay for the costs of state legislative mandates or judicial or administrative
             162      orders under Section 59-2-1604 .
             163          (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
             164      established at that rate which is sufficient to generate only the revenue required to satisfy one
             165      or more eligible judgments, as defined in Section 59-2-102 .
             166          (ii) The ad valorem property tax revenue generated by the judgment levy shall not be
             167      considered in establishing the taxing entity's aggregate certified tax rate.
             168          (g) The ad valorem property tax revenue generated by the capital outlay levy described
             169      in Section 53A-16-107 within a taxing entity in a county of the first class:


             170          (i) may not be considered in establishing the school district's aggregate certified tax
             171      rate; and
             172          (ii) shall be included by the commission in establishing a certified tax rate for that
             173      capital outlay levy determined in accordance with the calculation described in Subsection
             174      59-2-913 (3).
             175          (4) (a) For the purpose of calculating the certified tax rate, the county auditor shall
             176      use:
             177          (i) the taxable value of real property assessed by a county assessor contained on the
             178      assessment roll;
             179          (ii) the taxable value of real and personal property assessed by the commission; and
             180          (iii) the taxable year end value of personal property assessed by a county assessor
             181      contained on the prior year's assessment roll.
             182          (b) For purposes of Subsection (4)(a)(i), the taxable value of real property on the
             183      assessment roll does not include new growth as defined in Subsection (4)(c).
             184          (c) "New growth" means:
             185          (i) the difference between the increase in taxable value of the following property of the
             186      taxing entity from the previous calendar year to the current year:
             187          (A) real property assessed by a county assessor in accordance with Part 3, County
             188      Assessment; and
             189          (B) property assessed by the commission under Section 59-2-201 ; plus
             190          (ii) the difference between the increase in taxable year end value of personal property
             191      of the taxing entity from the year prior to the previous calendar year to the previous calendar
             192      year; minus
             193          (iii) the amount of an increase in taxable value described in Subsection (4)(e).
             194          (d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
             195      taxing entity does not include the taxable value of personal property that is:
             196          (i) contained on the tax rolls of the taxing entity if that property is assessed by a
             197      county assessor in accordance with Part 3, County Assessment; and


             198          (ii) semiconductor manufacturing equipment.
             199          (e) Subsection (4)(c)(iii) applies to the following increases in taxable value:
             200          (i) the amount of increase to locally assessed real property taxable values resulting
             201      from factoring, reappraisal, or any other adjustments; or
             202          (ii) the amount of an increase in the taxable value of property assessed by the
             203      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             204      taxable value prescribed by:
             205          (A) the Legislature;
             206          (B) a court;
             207          (C) the commission in an administrative rule; or
             208          (D) the commission in an administrative order.
             209          (f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
             210      property on the prior year's assessment roll does not include:
             211          (i) new growth as defined in Subsection (4)(c); or
             212          (ii) the total taxable year end value of personal property contained on the prior year's
             213      tax rolls of the taxing entity that is:
             214          (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
             215          (B) semiconductor manufacturing equipment.
             216          (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             217          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             218      auditor of:
             219          (i) its intent to exceed the certified tax rate; and
             220          (ii) the amount by which it proposes to exceed the certified tax rate.
             221          (c) The county auditor shall notify all property owners of any intent to exceed the
             222      certified tax rate in accordance with Subsection 59-2-919 (3).
             223          Section 2. Effective date.
             224          This bill takes effect on January 1, 2010.


[Bill Documents][Bills Directory]