First Substitute S.B. 47

Senator Gene Davis proposes the following substitute bill:

1 COUNTY REGIONAL FACILITIES PROPERTY TAX
2 2009 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Gene Davis
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill modifies the Property Tax Act to enact the County Regional Facilities Tax
10 Act.
11 Highlighted Provisions:
12 This bill:
13 . provides for the determination of the regional facility value for purposes of
14 calculating an eligible municipality's distribution from the revenue collected from
15 the county regional facilities tax;
16 . provides for an application process to the county auditor;
17 . requires the county auditor to distribute revenue collected from the county regional
18 facilities tax to eligible municipalities; and
19 . defines terms.
20 Monies Appropriated in this Bill:
21 None
22 Other Special Clauses:
23 This bill takes effect on January 1, 2010.
24 Utah Code Sections Affected:
25 ENACTS:

26 59-2-1701, Utah Code Annotated 1953
27 59-2-1702, Utah Code Annotated 1953
28 59-2-1703, Utah Code Annotated 1953
29 59-2-1704, Utah Code Annotated 1953
30 59-2-1705, Utah Code Annotated 1953
31 59-2-1706, Utah Code Annotated 1953
32
33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 59-2-1701 is enacted to read:
35 Part 17. County Regional Facilities Tax
36 59-2-1701. Definitions.
37 As used in this chapter:
38 (1) "County regional facilities tax" means a property tax levied under Section
39 59-2-1702 .
40 (2) "Eligible county" means a county with an eligible municipality.
41 (3) "Eligible municipality" means a city or town:
42 (a) within which at least 33% of the acreage of real property within the boundaries of
43 the city or town is exempt from paying a property tax under Chapter 2, Property Tax Act;
44 (b) with a regional facility located within its boundaries; and
45 (c) that applies for and receives approval of the city or town's application to receive a
46 distribution in accordance with Section 59-2-1705 .
47 (4) "Facility" means:
48 (a) land, a structure, a building, an installation, an excavation, machinery, equipment,
49 or a device; or
50 (b) an addition to, reconstruction, replacement, or improvement of land or an existing
51 structure, building, installation, excavation, machinery, equipment, or device.
52 (5) "Real property" includes:
53 (a) the possession of, claim to, ownership of, or right to the possession of land;
54 (b) (i) all mines, minerals, and quarries in and under the land;
55 (ii) all timber growing or being on the land belonging to a person; and
56 (iii) all rights and privileges appertaining to Subsection (5)(b)(i) or (ii); and

57 (c) any improvement on the land.
58 (6) "Regional correctional facility" means a county jail as described in Section 17-22-4 .
59 (7) "Regional facility" means:
60 (a) a regional correctional facility;
61 (b) a regional public safety facility;
62 (c) a regional public solid waste transfer facility;
63 (d) a regional public education facility;
64 (e) a regional transportation facility;
65 (f) a regional water reclamation facility; or
66 (g) a regional youth confinement or detention facility.
67 (8) "Regional facility value" means the value of a regional facility determined in
68 accordance with Section 59-2-1704 .
69 (9) "Regional public education facility" means a public school district facility that:
70 (a) is used for:
71 (i) administrative services;
72 (ii) services to a student eligible for special education services pursuant to Section
73 602(a)(20) of part B of the Individuals with Disabilities Act, 20 U.S.C. Section 1401(a);
74 (iii) support services;
75 (iv) maintenance; or
76 (v) storage; and
77 (b) is used for a purpose described in Subsection (9)(a) for the benefit of a student
78 residing outside the boundaries of the eligible municipality in which the facility is located.
79 (10) (a) "Regional public safety facility" means a facility:
80 (i) constructed or leased to house police, fire, or other public safety entity; and
81 (ii) from which services are provided outside the boundaries of the eligible
82 municipality in which the facility is located.
83 (b) "Regional public safety facility" includes an administrative office.
84 (c) "Regional public safety facility" does not include a regional correctional facility or
85 other place of involuntary incarceration.
86 (11) "Regional public solid waste transfer facility" means a facility owned or operated
87 by a municipality that:

88 (a) is used to collect, process, and ship solid waste, as defined in Section 19-6-1702 ,
89 before the solid waste is disposed of in a final disposal site; and
90 (b) receives solid waste from outside the eligible municipality in which the facility is
91 located.
92 (12) "Regional transportation facility" means a facility that:
93 (a) is part of a regional transportation system that transports an individual or freight
94 outside of the eligible municipality in which the facility is located;
95 (b) is a:
96 (i) public or private rail-based transportation system; or
97 (ii) public bus system; and
98 (c) is the part of the transportation system described in Subsection (12)(a) that:
99 (i) provides storage, maintenance, or repair;
100 (ii) provides administrative services; or
101 (iii) is a rail yard.
102 (13) "Regional water reclamation facility" means a facility used in the reclamation of
103 water that, after the reclamation, is used outside the boundaries of the eligible municipality in
104 which the facility is located.
105 (14) "Regional youth confinement or detention facility" means a facility established in
106 accordance with Title 62A, Chapter 7, Part 2, Detention Facilities, for the confinement or
107 detention of juveniles from outside the boundaries of the eligible municipality in which the
108 facility is located.
109 Section 2. Section 59-2-1702 is enacted to read:
110 59-2-1702. County regional facilities tax -- Distribution of revenues to eligible
111 municipalities.
112 (1) An eligible county shall levy a county regional facilities tax rate per dollar of
113 taxable value that generates $1,000,000 in revenues countywide.
114 (2) The revenue collected from the county regional facilities tax shall be distributed to
115 an eligible municipality in accordance with Subsection (3).
116 (3) The eligible county shall distribute to an eligible municipality an amount equal to
117 the product of:
118 (a) the sum of the regional facility values of all regional facilities located within the

119 boundaries of the eligible municipality as determined in accordance with Section 59-2-1704 ;
120 and
121 (b) the approved tax rate imposed by the eligible municipality for the same year.
122 (4) If there is insufficient revenues collected from the county regional facilities tax
123 described in Subsection (1), the county auditor shall reduce the amount due to each eligible
124 municipality under Subsection (3) by the same percentage until the total distributions due all
125 eligible municipalities under Subsection (3) is equal to or less than $1,000,000.
126 (5) Prior to making the distributions to eligible municipalities described in this section,
127 an eligible county may collect an administrative fee for the costs of administering this part.
128 Section 3. Section 59-2-1703 is enacted to read:
129 59-2-1703. Determining eligibility of a municipality to receive a distribution.
130 (1) Before the February 1 of the calendar year in which a municipality seeks for a
131 distribution of property taxes under this chapter, the municipality shall request its county
132 assessor to provide a calculation of the percentage of the acreage of real property located within
133 the municipality's boundaries that is exempt from paying property tax.
134 (2) On or before the February 22 immediately following the request described in
135 Subsection (1), the county assessor shall provide the municipality the information requested in
136 Subsection (1).
137 (3) The municipality is eligible to receive a distribution under Section 59-2-1702 if:
138 (a) the county assessor determines that 33% or more of the acreage of the real property
139 located within the municipality's boundaries is exempt from paying a property tax; and
140 (b) the municipality has a regional facility located within its boundaries.
141 Section 4. Section 59-2-1704 is enacted to read:
142 59-2-1704. Determination of the value of a regional facility for purposes of
143 receiving a distribution from the revenue collected.
144 (1) Before April 1 of each year an eligible municipality shall request its county assessor
145 to provide the county with the information described in Subsection (2).
146 (2) On or before the April 22 immediately following the request described in
147 Subsection (1), the county assessor shall provide the eligible municipality:
148 (a) a list of each parcel of real property:
149 (i) located within the eligible municipality's boundaries; and

150 (ii) occupied by a regional facility;
151 (b) the acreage of each parcel described in Subsection (2)(a);
152 (c) the total acreage of all parcels of real property located within the eligible
153 municipality's boundaries that are subject to a property tax; and
154 (d) the prior year total assessed value of all parcels of real property located within the
155 eligible municipality that are subject to a property tax.
156 (3) Using the information described in Subsection (2), the county assessor shall
157 determine the regional facility value for each regional facility within its boundaries.
158 (4) Regional facility value within an eligible municipality is an amount equal to the
159 product of:
160 (a) the average taxable value per acre for all taxable real property within the
161 municipality; and
162 (b) the total acreage of all real property occupied by a regional facility.
163 Section 5. Section 59-2-1705 is enacted to read:
164 59-2-1705. Review and approval of an application for a distribution by the county
165 auditor -- Determination of the amount of a distribution.
166 (1) By no later than May 1 of the calendar year in which an eligible municipality seeks
167 a distribution of property taxes, the eligible municipality shall file an application with the
168 county auditor.
169 (2) In the application required by Subsection (1), the eligible municipality shall:
170 (a) include the information supplied by its county assessor described in Sections
171 59-2-1703 and 59-2-1704 ;
172 (b) designate for which regional facilities the eligible municipality is seeking a
173 distribution of property taxes;
174 (c) state the eligible municipality's total regional facility value determined in
175 accordance with Section 59-2-1704 ; and
176 (d) provide any other information that the county auditor requests.
177 (3) The county auditor shall examine the application and information provided by the
178 eligible municipality and approve the application after verifying the following:
179 (a) that the information provided by the county assessor described in Subsection (2)
180 demonstrates that 33% or more of the acreage of real property located within the municipality

181 is exempt from paying a property tax;
182 (b) based on the information provided by the county assessor, that the municipality's
183 determination of the average taxable value per acre for all taxable real property within the
184 municipality is accurate;
185 (c) based on the information provided by the county assessor, that the municipality's
186 determination of the total amount of acreage of real property within its boundaries occupied by
187 a regional facility is accurate; and
188 (d) that the municipality's determination of the regional facility value for each regional
189 facility is correct.
190 Section 6. Section 59-2-1706 is enacted to read:
191 59-2-1706. Not applicable to certified rate.
192 Revenue received under this chapter may not be considered to establish a certified tax
193 rate under Chapter 2, Part 9, Levies.
194 Section 7. Effective date.
195 This bill takes effect on January 1, 2010.