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8 LONG TITLE
9 General Description:
10 This bill amends provisions related to property tax authority for certain divided school
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:
20 Other Special Clauses:
21 This bill provides retrospective operation for a taxable year beginning on January 1,
23 Utah Code Sections Affected:
25 53A-17a-133, as last amended by Laws of Utah 2009, Chapters 204 and 391
27 53A-2-118.4, Utah Code Annotated 1953
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) [
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
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