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H.B. 261

             1     

DIVIDING OF SCHOOL DISTRICTS AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Kenneth W. Sumsion

             5     
Senate Sponsor: Aaron Osmond

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies requirements for the imposition of property taxes in a new district
             10      and remaining school district after a school district split.
             11      Highlighted Provisions:
             12          This bill:
             13          .    requires a new district and remaining district to continue to impose for five years
             14      certain property tax levies that were imposed by the divided school district,
             15      irrespective of whether the property tax base of the new district is greater than or
             16      less than the property tax base of the remaining district; and
             17          .    makes technical amendments.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          53A-2-118.4, as enacted by Laws of Utah 2011, Chapter 369
             25     
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 53A-2-118.4 is amended to read:


             28           53A-2-118.4. Property tax levies in new district and remaining district --
             29      Distribution of property tax revenue.
             30          (1) As used in this section:
             31          (a) "Divided school district" or "existing district" means a school district from which a
             32      new district is created.
             33          (b) "New district" means a school district created under Section 53A-2-118.1 after May
             34      10, 2011.
             35          (c) "Property tax levy" means a property tax levy that a school district is authorized to
             36      impose, except:
             37          (i) the minimum basic rate imposed under Section 53A-17a-135 ;
             38          (ii) a debt service levy imposed under Section 11-14-310 ; or
             39          (iii) a judgment levy imposed under Section [ 53A-16-111 or] 59-2-1330 .
             40          [(d) "Property tax base per student" means the quotient of:]
             41          [(i) the assessed valuation of property within the boundaries of a new district or
             42      remaining district in the taxable year prior to the qualifying taxable year; divided by]
             43          [(ii) the number of students enrolled in schools located within the boundaries of a new
             44      district or remaining district on October 1 of the taxable year prior to the qualifying taxable
             45      year.]
             46          [(e)] (d) "Qualifying taxable year" means the calendar year in which a new district
             47      begins to provide educational services.
             48          [(f)] (e) "Remaining district" means an existing district after the creation of a new
             49      district.
             50          (2) [(a) If the property tax base per student of a new district is greater than the property
             51      tax base per student of a remaining district, the] A new district and remaining district shall, for
             52      a period of five consecutive years beginning in the qualifying taxable year, continue to impose
             53      property tax levies that were imposed by the divided school district in the taxable year prior to
             54      the qualifying taxable year.
             55          [(b) Notwithstanding Subsection (2)(a), a new district and remaining district may not
             56      continue to impose a voted capital levy under Section 53A-16-110 beyond the date authorized
             57      by the divided school district's voters.]
             58          (3) Except as provided in Subsection (6), a property tax levy that a new district and


             59      remaining district are required to impose under Subsection (2) shall be set at a rate that:
             60          (a) is uniform in the new district and remaining district; and
             61          (b) generates the same amount of revenue that was generated by the property tax levy
             62      within the divided school district in the taxable year prior to the qualifying taxable year.
             63          (4) (a) Except as provided in Subsection (4)(b), the county treasurer of the county in
             64      which a property tax levy is imposed under Subsection (2) shall distribute revenues generated
             65      by the property tax levy to the new district and remaining district in proportion to the
             66      percentage of the divided school district's enrollment on the October 1 prior to the new district
             67      commencing educational services that were enrolled in schools currently located in the new
             68      district or remaining district.
             69          (b) The county treasurer of a county of the first class shall distribute revenues
             70      generated by a capital [outlay] local levy of .0006 that a school district in a county of the first
             71      class is required to impose under Section [ 53A-16-107 ] 53A-16-113 in accordance with the
             72      distribution method specified in Section [ 53A-16-107.1 ] 53A-16-114 .
             73          (5) On or before March 31, a county treasurer shall distribute revenues generated by a
             74      property tax levy imposed under Subsection (2) in the prior calendar year to a new district and
             75      remaining district as provided in Subsection (4).
             76          (6) (a) Subject to the notice and public hearing requirements of Section 59-2-919 , a
             77      new district or remaining district may set a property tax rate higher than the rate required by
             78      Subsection (3), up to:
             79          (i) the maximum rate, if any, allowed by law; or
             80          (ii) the maximum rate authorized by voters for a voted [leeway] local levy under
             81      Section 53A-17a-133 [or a voted capital levy under Section 53A-16-110 ].
             82          (b) The revenues generated by the portion of a property tax rate in excess of the rate
             83      required by Subsection (3) shall be retained by the district that imposes the higher rate.




Legislative Review Note
    as of 7-20-11 3:29 PM


Office of Legislative Research and General Counsel


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