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S.B. 272

             1     

PROPERTY TAX RATE AMENDMENTS

             2     
2012 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Benjamin M. McAdams

             5     
House Sponsor: ____________

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill changes the calculation of a property tax certified tax rate when delinquent
             10      property taxes are paid.
             11      Highlighted Provisions:
             12          This bill:
             13          .    changes the calculation of a property tax certified tax rate when delinquent property
             14      taxes are paid; and
             15          .    makes technical and conforming changes.
             16      Money Appropriated in this Bill:
             17          None
             18      Other Special Clauses:
             19          This bill has retrospective operation to January 1, 2012.
             20      Utah Code Sections Affected:
             21      AMENDS:
             22          59-2-924, as last amended by Laws of Utah 2011, Chapter 371
             23     
             24      Be it enacted by the Legislature of the state of Utah:
             25          Section 1. Section 59-2-924 is amended to read:
             26           59-2-924. Report of valuation of property to county auditor and commission --
             27      Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certified


             28      tax rate -- Rulemaking authority -- Adoption of tentative budget.
             29          (1) Before June 1 of each year, the county assessor of each county shall deliver to the
             30      county auditor and the commission the following statements:
             31          (a) a statement containing the aggregate valuation of all taxable real property assessed
             32      by a county assessor in accordance with Part 3, County Assessment, for each taxing entity; and
             33          (b) a statement containing the taxable value of all personal property assessed by a
             34      county assessor in accordance with Part 3, County Assessment, from the prior year end values.
             35          (2) The county auditor shall, on or before June 8, transmit to the governing body of
             36      each taxing entity:
             37          (a) the statements described in Subsections (1)(a) and (b);
             38          (b) an estimate of the revenue from personal property;
             39          (c) the certified tax rate; and
             40          (d) all forms necessary to submit a tax levy request.
             41          (3) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
             42      property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
             43      year.
             44          (b) For purposes of this Subsection (3):
             45          (i) "Ad valorem property tax revenues" do not include:
             46          (A) interest;
             47          (B) penalties; and
             48          (C) revenue received by a taxing entity from personal property that is:
             49          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             50          (II) semiconductor manufacturing equipment.
             51          (ii) "Aggregate taxable value of all property taxed" means:
             52          (A) the aggregate taxable value of all real property assessed by a county assessor in
             53      accordance with Part 3, County Assessment, for the current year;
             54          (B) the aggregate taxable year end value of all personal property assessed by a county
             55      assessor in accordance with Part 3, County Assessment, for the prior year; and
             56          (C) the aggregate taxable value of all real and personal property assessed by the
             57      commission in accordance with Part 2, Assessment of Property, for the current year.
             58          (c) (i) Except as otherwise provided in this section, the certified tax rate shall be


             59      calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the
             60      taxing entity by the amount calculated under Subsection (3)(c)(ii).
             61          (ii) For purposes of Subsection (3)(c)(i), the legislative body of a taxing entity shall
             62      calculate an amount as follows:
             63          (A) calculate for the taxing entity the difference between:
             64          (I) the aggregate taxable value of all property taxed; and
             65          (II) any redevelopment adjustments for the current calendar year;
             66          (B) after making the calculation required by Subsection (3)(c)(ii)(A), calculate an
             67      amount determined by increasing or decreasing the amount calculated under Subsection
             68      (3)(c)(ii)(A) by the average of the percentage net change in the value of taxable property for the
             69      equalization period for the three calendar years immediately preceding the current calendar
             70      year;
             71          (C) after making the calculation required by Subsection (3)(c)(ii)(B), calculate the
             72      product of:
             73          (I) the amount calculated under Subsection (3)(c)(ii)(B); and
             74          (II) the percentage of property taxes collected for the five calendar years immediately
             75      preceding the current calendar year; and
             76          (D) after making the calculation required by Subsection (3)(c)(ii)(C), calculate an
             77      amount determined by subtracting from the amount calculated under Subsection (3)(c)(ii)(C)
             78      any new growth as defined in this section:
             79          (I) within the taxing entity; and
             80          (II) for the following calendar year:
             81          (Aa) for new growth from real property assessed by a county assessor in accordance
             82      with Part 3, County Assessment and all property assessed by the commission in accordance
             83      with Section 59-2-201 , the current calendar year; and
             84          (Bb) for new growth from personal property assessed by a county assessor in
             85      accordance with Part 3, County Assessment, the prior calendar year.
             86          (iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all
             87      property taxed:
             88          (A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in
             89      Subsection (3)(b)(ii);


             90          (B) does not include the total taxable value of personal property contained on the tax
             91      rolls of the taxing entity that is:
             92          (I) assessed by a county assessor in accordance with Part 3, County Assessment; and
             93          (II) semiconductor manufacturing equipment; and
             94          (C) for personal property assessed by a county assessor in accordance with Part 3,
             95      County Assessment, the taxable value of personal property is the year end value of the personal
             96      property contained on the prior year's tax rolls of the entity.
             97          (iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
             98      January 1, 2007, the value of taxable property does not include the value of personal property
             99      that is:
             100          (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
             101      County Assessment; and
             102          (B) semiconductor manufacturing equipment.
             103          (v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or after
             104      January 1, 2007, the percentage of property taxes collected does not include property taxes
             105      collected from personal property that is:
             106          (A) within the taxing entity assessed by a county assessor in accordance with Part 3,
             107      County Assessment; and
             108          (B) semiconductor manufacturing equipment.
             109          (vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
             110      January 1, 2009, the value of taxable property does not include the value of personal property
             111      that is within the taxing entity assessed by a county assessor in accordance with Part 3, County
             112      Assessment.
             113          (vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             114      the commission may prescribe rules for calculating redevelopment adjustments for a calendar
             115      year.
             116          (viii) (A) (I) For purposes of Subsection (3)(c)(i), for a calendar year beginning on or
             117      after January 1, 2010, a taxing entity's ad valorem property tax revenues budgeted for the prior
             118      year shall be decreased by an amount of revenue equal to the [five-year] 10-year average of the
             119      most recent prior [five] 10 years of redemptions as reported on the county treasurer's final
             120      annual settlement required under Subsection 59-2-1365 (2).


             121          (II) A decrease under Subsection (3)(c)(viii)(A)(I) does not apply to the multicounty
             122      assessing and collecting levy authorized in Subsection 59-2-1602 (2)(a), the certified revenue
             123      levy, or the minimum basic tax rate established in Section 53A-17a-135 .
             124          (B) For the calendar year beginning on January 1, [2010] 2012 and ending on
             125      December 31, [2010] 2012, a taxing entity is exempt from the notice and public hearing
             126      provisions of Section 59-2-919 if the taxing entity budgets an increased amount of ad valorem
             127      property tax revenue equal to or less than the taxing entity's [five-year] 10-year average of the
             128      most recent prior [five] 10 years of redemptions as reported on the county treasurer's final
             129      annual settlement required under Subsection 59-2-1365 (2).
             130          (d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             131      the commission shall make rules determining the calculation of ad valorem property tax
             132      revenues budgeted by a taxing entity.
             133          (ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted by
             134      a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
             135      calculated for purposes of Section 59-2-913 .
             136          (e) The certified tax rates for the taxing entities described in this Subsection (3)(e) shall
             137      be calculated as follows:
             138          (i) except as provided in Subsection (3)(e)(ii), for new taxing entities the certified tax
             139      rate is zero;
             140          (ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
             141          (A) in a county of the first, second, or third class, the levy imposed for municipal-type
             142      services under Sections 17-34-1 and 17-36-9 ; and
             143          (B) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
             144      purposes and such other levies imposed solely for the municipal-type services identified in
             145      Section 17-34-1 and Subsection 17-36-3 (22); and
             146          (iii) for debt service voted on by the public, the certified tax rate shall be the actual
             147      levy imposed by that section, except that the certified tax rates for the following levies shall be
             148      calculated in accordance with Section 59-2-913 and this section:
             149          (A) school levies provided for under Sections 53A-16-113 , 53A-17a-133 , and
             150      53A-17a-164 ; and
             151          (B) levies to pay for the costs of state legislative mandates or judicial or administrative


             152      orders under Section 59-2-1604 .
             153          (f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be
             154      established at that rate which is sufficient to generate only the revenue required to satisfy one
             155      or more eligible judgments, as defined in Section 59-2-102 .
             156          (ii) The ad valorem property tax revenue generated by the judgment levy shall not be
             157      considered in establishing the taxing entity's aggregate certified tax rate.
             158          (g) The ad valorem property tax revenue generated by the capital local levy described
             159      in Section 53A-16-113 within a taxing entity in a county of the first class:
             160          (i) may not be considered in establishing the school district's aggregate certified tax
             161      rate; and
             162          (ii) shall be included by the commission in establishing a certified tax rate for that
             163      capital outlay levy determined in accordance with the calculation described in Subsection
             164      59-2-913 (3).
             165          (4) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
             166          (i) the taxable value of real property assessed by a county assessor contained on the
             167      assessment roll;
             168          (ii) the taxable value of real and personal property assessed by the commission; and
             169          (iii) the taxable year end value of personal property assessed by a county assessor
             170      contained on the prior year's assessment roll.
             171          (b) For purposes of Subsection (4)(a)(i), the taxable value of real property on the
             172      assessment roll does not include new growth as defined in Subsection (4)(c).
             173          (c) "New growth" means:
             174          (i) the difference between the increase in taxable value of the following property of the
             175      taxing entity from the previous calendar year to the current year:
             176          (A) real property assessed by a county assessor in accordance with Part 3, County
             177      Assessment; and
             178          (B) property assessed by the commission under Section 59-2-201 ; plus
             179          (ii) the difference between the increase in taxable year end value of personal property
             180      of the taxing entity from the year prior to the previous calendar year to the previous calendar
             181      year; minus
             182          (iii) the amount of an increase in taxable value described in Subsection (4)(e).


             183          (d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
             184      taxing entity does not include the taxable value of personal property that is:
             185          (i) contained on the tax rolls of the taxing entity if that property is assessed by a county
             186      assessor in accordance with Part 3, County Assessment; and
             187          (ii) semiconductor manufacturing equipment.
             188          (e) Subsection (4)(c)(iii) applies to the following increases in taxable value:
             189          (i) the amount of increase to locally assessed real property taxable values resulting
             190      from factoring, reappraisal, or any other adjustments; or
             191          (ii) the amount of an increase in the taxable value of property assessed by the
             192      commission under Section 59-2-201 resulting from a change in the method of apportioning the
             193      taxable value prescribed by:
             194          (A) the Legislature;
             195          (B) a court;
             196          (C) the commission in an administrative rule; or
             197          (D) the commission in an administrative order.
             198          (f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
             199      property on the prior year's assessment roll does not include:
             200          (i) new growth as defined in Subsection (4)(c); or
             201          (ii) the total taxable year end value of personal property contained on the prior year's
             202      tax rolls of the taxing entity that is:
             203          (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
             204          (B) semiconductor manufacturing equipment.
             205          (5) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
             206          (b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
             207      auditor of:
             208          (i) its intent to exceed the certified tax rate; and
             209          (ii) the amount by which it proposes to exceed the certified tax rate.
             210          (c) The county auditor shall notify property owners of any intent to levy a tax rate that
             211      exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1 .
             212          Section 2. Retrospective operation.
             213          This bill has retrospective operation to January 1, 2012.






Legislative Review Note
    as of 2-24-12 3:44 PM


Office of Legislative Research and General Counsel


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