H.B. 433

1

EXPANDED USES OF SCHOOL DISTRICT PROPERTY TAX
2 REVENUE
3 2012 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Kay L. McIff
6 Senate Sponsor: Ralph Okerlund
7
8 LONG TITLE
9 General Description:
10 This bill amends provisions related to certain uses of school district property tax
11 revenue.
12 Highlighted Provisions:
13 This bill:
14 . allows local school boards to use revenue collected from certain capital property tax
15 levies for certain General Fund purposes for fiscal years 2010-11 and 2011-12;
16 . requires a local school board to notify taxpayers of certain uses of property tax
17 revenue; and
18 . makes technical changes.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 53A-16-113, as enacted by Laws of Utah 2011, Chapter 371
26
27 Be it enacted by the Legislature of the state of Utah:

28 Section 1. Section 53A-16-113 is amended to read:
29 53A-16-113. Capital local levy -- First class county required levy.
30 (1) (a) Subject to the other requirements of this section, for a calendar year beginning
31 on or after January 1, 2012, a local school board may levy a tax to fund the school district's
32 capital projects.
33 (b) A tax rate imposed by a school district pursuant to this section may not exceed
34 .0030 per dollar of taxable value in any calendar year.
35 (2) A school district that imposes a capital local levy in the calendar year beginning on
36 January 1, 2012, is exempt from the public notice and hearing requirements of Section
37 59-2-919 if the school district budgets an amount of ad valorem property tax revenue equal to
38 or less than the sum of the following amounts:
39 (a) the amount of revenue generated during the calendar year beginning on January 1,
40 2011, from the sum of the following levies of a school district:
41 (i) a capital outlay levy imposed under Section 53A-16-107 ; and
42 (ii) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
43 budgeted for debt service or capital outlay; and
44 (b) revenue from new growth as defined in Subsection 59-2-924 (4)(c).
45 (3) Beginning January 1, 2012, in order to qualify for receipt of the state contribution
46 toward the Minimum School Program described in Section 53A-17a-103 , a local school board
47 in a county of the first class shall impose a capital local levy of a least .0006 per dollar of
48 taxable value.
49 (4) (a) The county treasurer of a county of the first class shall distribute revenues
50 generated by the .0006 portion of the capital local levy required in Subsection (2) to school
51 districts within the county in accordance with Section 53A-16-114 .
52 (b) If a school district in a county of the first class imposes a capital local levy pursuant
53 to this section that exceeds .0006 per dollar of taxable value, the county treasurer shall
54 distribute revenues generated by the portion of the capital local levy that exceeds .0006 to the
55 school district imposing the levy.
56 (5) (a) Subject to Subsections (5)(b), (c), and (d), for fiscal years 2012-13 and 2013-14,
57 a local school board may utilize the proceeds of a maximum of .0024 per dollar of taxable
58 value of the local school board's annual capital local levy for General Fund purposes if the

59 proceeds are not committed or dedicated to pay debt service or bond payments.
60 (b) If a local school board uses the proceeds described in Subsection (5)(a) for General
61 Fund purposes, the local school board shall notify the public of the local school board's use of
62 the capital local levy proceeds for General Fund purposes:
63 (i) prior to the board's budget hearing in accordance with the notification requirements
64 described in Section 53A-19-102 ; and
65 (ii) at a budget hearing required in Section 53A-19-102 .
66 (c) A local school board may not use the proceeds described in Subsection (5)(a) to
67 fund the following accounting function classifications as provided in the Financial Accounting
68 for Local and State School Systems guidelines developed by the National Center for Education
69 Statistics:
70 (i) 2300 Support Services - General District Administration; or
71 (ii) 2500 Support Services - Central Services.
72 (d) A local school board may not use the proceeds from a distribution described in
73 Subsection (4) for General Fund purposes.




Legislative Review Note
as of 2-22-12 4:39 PM

Office of Legislative Research and General Counsel