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H.B. 463

             1     

DIVIDED SCHOOL DISTRICT PROPERTY TAX

             2     
AMENDMENTS

             3     
2010 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Eric K. Hutchings

             6     
Senate Sponsor: D. Chris Buttars

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions related to property tax authority for certain divided school
             11      districts.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    allows certain divided school districts to impose a voted leeway levy of up to .004
             16      per dollar of taxable value for up to six years; and
             17          .    makes technical changes.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          This bill provides retrospective operation for a taxable year beginning on January 1,
             22      2010.
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          53A-17a-133, as last amended by Laws of Utah 2009, Chapters 204 and 391
             26      ENACTS:
             27          53A-2-118.4, Utah Code Annotated 1953


             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 53A-2-118.4 is enacted to read:
             31          53A-2-118.4. Conditions related to the imposition of a voted leeway levy for a
             32      divided school district.
             33          (1) For purposes of this section:
             34          (a) "Qualifying divided school district" means a divided school district with a new
             35      school district created under Section 53A-2-118.1 that begins to provide educational services
             36      after July 1, 2008.
             37          (b) "Qualifying taxable year" means the calendar year in which a new school district
             38      within the qualifying divided school district begins to provide educational services.
             39          (c) "Remaining district" is as defined in Section 53A-2-117 .
             40          (2) Notwithstanding Subsection 53A-17a-133 (2)(a)(ii), and subject to the other
             41      requirements of Section 53A-17a-133 , a remaining district of a qualifying divided school
             42      district may impose a voted leeway tax rate pursuant to Section 53A-17a-133 of up to .004 per
             43      dollar of taxable value:
             44          (a) beginning with the qualifying taxable year; and
             45          (b) for up to six years.
             46          Section 2. Section 53A-17a-133 is amended to read:
             47           53A-17a-133. State-supported voted leeway program authorized -- Election
             48      requirements -- State guarantee -- Reconsideration of the program.
             49          (1) An election to consider adoption or modification of a voted leeway program is
             50      required if initiative petitions signed by 10% of the number of electors who voted at the last
             51      preceding general election are presented to the local school board or by action of the board.
             52          (2) (a) (i) To establish a voted leeway program, a majority of the electors of a district
             53      voting at an election in the manner set forth in Section 53A-16-110 must vote in favor of a
             54      special tax.
             55          (ii) [The] Except as provided in Section 53A-2-118.4 , a tax rate may not exceed .002
             56      per dollar of taxable value.
             57          (b) The district may maintain a school program which exceeds the cost of the program
             58      referred to in Section 53A-17a-145 with this voted leeway.


             59          (c) In order to receive state support the first year, a district must receive voter approval
             60      no later than December 1 of the year prior to implementation.
             61          (3) (a) Under the voted leeway program, the state shall contribute an amount sufficient
             62      to guarantee $25.25 per weighted pupil unit for each .0001 of the first .0016 per dollar of
             63      taxable value.
             64          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
             65      of taxable value under Subsection (3)(a) shall apply to the board-approved leeway authorized
             66      in Section 53A-17a-134 , so that the guarantee shall apply up to a total of .002 per dollar of
             67      taxable value if a school district levies a tax rate under both programs.
             68          (c) (i) Beginning July 1, 2009, the $25.25 guarantee under Subsections (3)(a) and (b)
             69      shall be indexed each year to the value of the weighted pupil unit by making the value of the
             70      guarantee equal to .009798 times the value of the prior year's weighted pupil unit.
             71          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
             72      pupil unit for each succeeding year until the guarantee is equal to .010544 times the value of
             73      the prior year's weighted pupil unit.
             74          (d) (i) The amount of state guarantee money to which a school district would otherwise
             75      be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
             76      levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
             77      pursuant to changes in property valuation.
             78          (ii) Subsection (3)(d)(i) applies for a period of five years following any such change in
             79      the certified tax rate.
             80          (4) (a) An election to modify an existing voted leeway program is not a reconsideration
             81      of the existing program unless the proposition submitted to the electors expressly so states.
             82          (b) A majority vote opposing a modification does not deprive the district of authority to
             83      continue an existing program.
             84          (c) If adoption of a leeway program is contingent upon an offset reducing other local
             85      school board levies, the board must allow the electors, in an election, to consider modifying or
             86      discontinuing the program prior to a subsequent increase in other levies that would increase the
             87      total local school board levy.
             88          (d) Nothing contained in this section terminates, without an election, the authority of a
             89      school district to continue an existing voted leeway program previously authorized by the


             90      voters.
             91          (5) Notwithstanding Section 59-2-919 , a school district may budget an increased
             92      amount of ad valorem property tax revenue derived from a voted leeway imposed under this
             93      section in addition to revenue from new growth as defined in Subsection 59-2-924 (4), without
             94      having to comply with the notice requirements of Section 59-2-919 , if:
             95          (a) the voted leeway is approved:
             96          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             97          (ii) within the four-year period immediately preceding the year in which the school
             98      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             99      the voted leeway; and
             100          (b) for a voted leeway approved or modified in accordance with this section on or after
             101      January 1, 2009, the school district complies with the requirements of Subsection (7).
             102          (6) Notwithstanding Section 59-2-919 , a school district may levy a tax rate under this
             103      section that exceeds the certified tax rate without having to comply with the notice
             104      requirements of Section 59-2-919 if:
             105          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
             106      increased amount of ad valorem property tax revenue derived from a voted leeway imposed
             107      under this section;
             108          (b) if the voted leeway was approved:
             109          (i) in accordance with Section 53A-16-110 on or after January 1, 2003; and
             110          (ii) within the four-year period immediately preceding the year in which the school
             111      district seeks to budget an increased amount of ad valorem property tax revenue derived from
             112      the voted leeway; and
             113          (c) for a voted leeway approved or modified in accordance with this section on or after
             114      January 1, 2009, the school district complies with requirements of Subsection (7).
             115          (7) For purposes of Subsection (5)(b) or (6)(c), the proposition submitted to the
             116      electors regarding the adoption or modification of a voted leeway program shall contain the
             117      following statement:
             118          "A vote in favor of this tax means that (name of the school district) may increase
             119      revenue from this property tax without advertising the increase for the next five years."
             120          Section 3. Retrospective operation.


             121          This bill has retrospective operation for a taxable year beginning on January 1, 2010.




Legislative Review Note
    as of 3-8-10 9:12 AM


Office of Legislative Research and General Counsel


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