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S.B. 61

             1     

REVISIONS TO PROPERTY TAX

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Deidre M. Henderson

             5     
House Sponsor: Daniel McCay

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill addresses procedures and requirements related to imposing property taxes.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    addresses the procedures and requirements for imposing a property tax levy that
             14      exceeds the certified tax rate;
             15          .    amends the timing for a public hearing held for the purpose of considering the
             16      imposition of a judgment levy;
             17          .    addresses the content of certain tax notices; and
             18          .    makes technical and conforming changes.
             19      Money Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          This bill provides an effective date.
             23          This bill provides revisor instructions.
             24      Utah Code Sections Affected:
             25      AMENDS:
             26           59-2-918.5 , as last amended by Laws of Utah 2009, Chapter 204
             27           59-2-919 , as last amended by Laws of Utah 2010, Chapter 90


             28           59-2-919.1 , as last amended by Laws of Utah 2010, Chapter 131
             29           63I-2-259 , as last amended by Laws of Utah 2012, Chapter 102
             30      Utah Code Sections Affected by Revisor Instructions:
             31           59-2-919 , as last amended by Laws of Utah 2010, Chapter 90
             32           59-2-919.1 , as last amended by Laws of Utah 2010, Chapter 131
             33     
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 59-2-918.5 is amended to read:
             36           59-2-918.5. Hearings on judgment levies -- Advertisement.
             37          (1) A taxing entity may not impose a judgment levy unless it first advertises its
             38      intention to do so and holds a public hearing in accordance with the requirements of this
             39      section.
             40          (2) (a) The advertisement required by this section may be combined with the
             41      advertisement described in Section 59-2-919 .
             42          (b) The advertisement shall be at least 1/8 of a page in size and shall meet the type,
             43      placement, and frequency requirements established under Section 59-2-919 .
             44          (c) (i) For taxing entities operating under a July 1 through June 30 fiscal year the public
             45      hearing shall be held at the same time as the hearing at which the annual budget is adopted.
             46          (ii) For taxing entities operating under a January 1 through December 31 fiscal year:
             47          (A) for [eligible judgments issued from June 1 through December 15] an eligible
             48      judgment issued on or after March 1 but on or before September 15, the public hearing shall be
             49      held at the same time as the hearing at which the annual budget is adopted; [and] or
             50          (B) for [eligible judgments issued from December 16 through May 31] an eligible
             51      judgment issued on or after September 16 but on or before the last day of February, the public
             52      hearing shall be held at the same time as the hearing at which property tax levies are set.
             53          (3) The advertisement shall specify the date, time, and location of the public hearing at
             54      which the levy will be considered and shall set forth the total amount of the eligible judgment
             55      and the tax impact on an average residential and business property located within the taxing
             56      entity.
             57          (4) If a final decision regarding the judgment levy is not made at the public hearing, the
             58      taxing entity shall announce at the public hearing the scheduled time and place for


             59      consideration and adoption of the judgment levy.
             60          (5) The date, time, and place of public hearings required by Subsections (2)(c)(i) and
             61      (2)(c)(ii)(B) shall be included on the notice mailed to property owners pursuant to Section
             62      59-2-919.1 .
             63          Section 2. Section 59-2-919 is amended to read:
             64           59-2-919. Notice and public hearing requirements for certain tax increases --
             65      Exceptions.
             66          (1) As used in this section:
             67          (a) "Ad valorem tax revenue" means ad valorem property tax revenue not including
             68      revenue from new growth as defined in Section 59-2-924 .
             69          (b) "Additional ad valorem tax revenue" means ad valorem property tax revenue
             70      generated by the portion of the tax rate that exceeds the taxing entity's certified tax rate.
             71          [(b)] (c) "Calendar year taxing entity" means a taxing entity that operates under a fiscal
             72      year that begins on January 1 and ends on December 31.
             73          (d) "County executive calendar year taxing entity" means a calendar year taxing entity
             74      that operates under the county executive-council form of government described in Section
             75      17-52-504 .
             76          (e) "Current calendar year" means the calendar year immediately preceding the
             77      calendar year for which a calendar year taxing entity seeks to levy a tax rate that exceeds the
             78      calendar year taxing entity's certified tax rate.
             79          [(c)] (f) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal
             80      year that begins on July 1 and ends on June 30.
             81          (2) A taxing entity may not levy a tax rate that exceeds the taxing entity's certified tax
             82      rate unless the taxing entity meets:
             83          [(a) to the extent required by this section, meets the:]
             84          [(i) notice requirements of this section; and]
             85          [(ii) public hearing requirements of this section; and]
             86          [(b) adopts a resolution in accordance with this section.]
             87          (a) the requirements of this section that apply to the taxing entity; and
             88          (b) all other requirements as may be required by law.
             89          (3) (a) [Except] Subject to Subsection (3)(b) and except as provided in Subsection (5),


             90      a calendar year taxing entity may levy a tax rate that exceeds the calendar year taxing entity's
             91      certified tax rate if the calendar year taxing entity:
             92          [(i) (A) provides notice by meeting]
             93          (i) 14 or more days before the date of the regular general election or municipal general
             94      election held in the current calendar year, states at a public meeting:
             95          (A) that the calendar year taxing entity intends to levy a tax rate that exceeds the
             96      calendar year taxing entity's certified tax rate;
             97          (B) the dollar amount of and purpose for additional ad valorem tax revenue that would
             98      be generated by the proposed increase in the certified tax rate; and
             99          (C) the approximate percentage increase in ad valorem tax revenue for the taxing entity
             100      based on the proposed increase described in Subsection (3)(a)(i)(B);
             101          (ii) provides notice for the public meeting described in Subsection (3)(a)(i) in
             102      accordance with Title 52, Chapter 4, Open and Public Meetings Act, including providing a
             103      separate item on the meeting agenda that notifies the public that the calendar year taxing entity
             104      intends to make the statement described in Subsection (3)(a)(i);
             105          (iii) meets the advertisement requirements of Subsections (6) and (7) before the
             106      calendar year taxing entity conducts the public hearing [at which the calendar year taxing
             107      entity's annual budget is adopted; and] required by Subsection (3)(a)(v);
             108          [(B) before the calendar year taxing entity levies a tax rate that exceeds the calendar
             109      year taxing entity's certified tax rate:]
             110          [(I) provides notice by meeting the advertisement requirements of Subsections (6) and
             111      (7); or]
             112          [(II)] (iv) provides [a] notice by mail:
             113          [(Aa) on or no earlier than 14 days before the date the treasurer furnishes the notice
             114      required by Section 59-2-1317 for the calendar year immediately preceding the calendar year
             115      for which the calendar year taxing entity seeks to levy a tax rate that exceeds the calendar year
             116      taxing entity's certified tax rate;]
             117          [(Bb) before the calendar year taxing entity conducts the public meeting at which the
             118      calendar year taxing entity's annual budget is adopted; and]
             119          [(Cc) as provided in Subsection (3)(b); and]
             120          (A) 14 or more days before the regular general election or municipal general election


             121      held in the current calendar year; and
             122          (B) as provided in Subsection (3)(c); and
             123          [(ii)] (v) conducts a public hearing that is held:
             124          (A) in accordance with Subsections (8) and (9)[:]; and
             125          [(A) on or before the calendar year taxing entity conducts the public meeting at which
             126      the calendar year taxing entity's annual budget is adopted; and]
             127          [(B) if the calendar year taxing entity provides the notice described in Subsection
             128      (3)(a)(i)(B)(I), before the calendar year taxing entity levies a tax rate that exceeds the calendar
             129      year taxing entity's certified tax rate.]
             130          [(b) For a calendar year taxing entity that provides the notice described in Subsection
             131      (3)(a)(i)(B)(II), the notice:]
             132          (B) in conjunction with the public hearing required by Section 17-36-13 or 17B-1-610 .
             133          (b) (i) For a county executive calendar year taxing entity, the statement described in
             134      Subsection (3)(a)(i) shall be made by the:
             135          (A) county council;
             136          (B) county executive; or
             137          (C) both the county council and county executive.
             138          (ii) If the county council makes the statement described in Subsection (3)(a)(i) or the
             139      county council states a dollar amount of additional ad valorem tax revenue that is greater than
             140      the amount of additional ad valorem tax revenue previously stated by the county executive in
             141      accordance with Subsection (3)(a)(i), the county executive calendar year taxing entity shall:
             142          (A) make the statement described in Subsection (3)(a)(i) 14 or more days before the
             143      county executive calendar year taxing entity conducts the public hearing under Subsection
             144      (3)(a)(v); and
             145          (B) provide the notice required by Subsection (3)(a)(iv) 14 or more days before the
             146      county executive calendar year taxing entity conducts the public hearing required by
             147      Subsection (3)(a)(v).
             148          (c) The notice described in Subsection (3)(a)(iv):
             149          (i) shall be mailed to each owner of property:
             150          (A) within the calendar year taxing entity; and
             151          (B) listed on the assessment roll;


             152          (ii) shall be printed on a separate form that:
             153          (A) is developed by the commission; [and]
             154          [(B) that, as determined by the commission, may be combined with:]
             155          [(I) a notice described in Subsection (3)(a)(i)(B)(II) provided by one or more other
             156      calendar year taxing entities; or]
             157          [(II) the notice required by Section 59-2-1317 ;]
             158          (B) states at the top of the form, in bold upper-case type no smaller than 18 point
             159      "NOTICE OF PROPOSED TAX INCREASE"; and
             160          (C) may be mailed with the notice required by Section 59-2-1317 ;
             161          (iii) shall contain for each property described in Subsection (3)[(b)](c)(i):
             162          (A) the value of the property for the current calendar year [immediately preceding the
             163      calendar year for which the calendar year taxing entity seeks to levy a tax rate that exceeds the
             164      calendar year taxing entity's certified tax rate];
             165          (B) the tax on the property for the current calendar year [immediately preceding the
             166      calendar year for which the calendar year taxing entity seeks to levy a tax rate that exceeds the
             167      calendar year taxing entity's certified tax rate]; and
             168          [(C) the estimated tax on the property:]
             169          [(I) for the calendar year for which the calendar year taxing entity seeks to levy a tax
             170      rate that exceeds the calendar year taxing entity's certified tax rate; and]
             171          [(II) calculated on the basis of data for the calendar year immediately preceding the
             172      calendar year for which the calendar year taxing entity seeks to levy a tax rate that exceeds the
             173      calendar year taxing entity's certified tax rate;]
             174          (C) subject to Subsection (3)(d), for the calendar year for which the calendar year
             175      taxing entity seeks to levy a tax rate that exceeds the calendar year taxing entity's certified tax
             176      rate, the estimated tax on the property;
             177          (iv) shall contain the following statement:
             178          "[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar
             179      year]. This notice contains estimates of the tax on your property and the proposed tax increase
             180      on your property as a result of this tax increase. These estimates are calculated on the basis of
             181      [insert previous applicable calendar year] data. The actual tax on your property and proposed
             182      tax increase on your property may vary from this estimate.";


             183          (v) shall state the date, time, and place of the public hearing [that will be held to
             184      discuss the calendar year taxing entity's annual budget] described in Subsection (3)(a)(v); and
             185          (vi) may contain other property tax information approved by the commission.
             186          (d) For purposes of Subsection (3)(c)(iii)(C), a calendar year taxing entity shall
             187      calculate the estimated tax on property on the basis of:
             188          (i) data for the current calendar year; and
             189          (ii) the amount of additional ad valorem tax revenue stated in accordance with this
             190      section.
             191          (4) Except as provided in Subsection (5), a fiscal year taxing entity may levy a tax rate
             192      that exceeds the fiscal year taxing entity's certified tax rate if the fiscal year taxing entity:
             193          (a) provides notice by meeting the advertisement requirements of Subsections (6) and
             194      (7) before the fiscal year taxing entity conducts the public meeting at which the fiscal year
             195      taxing entity's annual budget is adopted; and
             196          (b) conducts a public hearing in accordance with Subsections (8) and (9) before the
             197      fiscal year taxing entity's annual budget is adopted.
             198          (5) (a) A taxing entity is not required to meet the notice or public hearing requirements
             199      of Subsection (3) or (4) if the taxing entity is expressly exempted by law from complying with
             200      the requirements of this section.
             201          [(b) (i) Except as provided in Subsection (5)(b)(ii), a taxing entity is not required to
             202      meet the notice or public hearing requirements of Subsection (3) or (4) if:]
             203          [(A) the taxing entity is a party to an interlocal agreement under Title 11, Chapter 13,
             204      Interlocal Cooperation Act, that creates an interlocal entity to provide fire protection,
             205      emergency, and emergency medical services;]
             206          [(B) the tax rate increase is approved by the taxing entity's voters at an election held for
             207      that purpose on or before December 31, 2010;]
             208          [(C) the purpose of the tax rate increase is to pay for fire protection, emergency, and
             209      emergency medical services provided by the interlocal entity; and]
             210          [(D) at least 30 days before the taxing entity's annual budget hearing, the taxing entity:]
             211          [(I) adopts a resolution certifying that:]
             212          [(Aa) the taxing entity will dedicate all revenue from the tax rate increase exclusively
             213      to pay for fire protection, emergency, and emergency medical services provided by the


             214      interlocal entity; and]
             215          [(Bb) the amount of other revenues, independent of the revenue generated from the tax
             216      rate increase, that the taxing entity spends for fire protection, emergency, and emergency
             217      medical services each year after the tax rate increase will not decrease below the amount spent
             218      by the taxing entity during the year immediately before the tax rate increase without a
             219      corresponding decrease in the taxing entity's property tax revenues used in calculating the
             220      taxing entity's certified tax rate; and]
             221          [(II) sends a copy of the resolution to the commission.]
             222          [(ii) The exception under Subsection (5)(b)(i) from the notice and public hearing
             223      requirements of Subsection (3) or (4) does not apply to an increase in a taxing entity's tax rate
             224      that occurs after December 31, 2010, even if the tax rate increase is approved by the taxing
             225      entity's voters before that date.]
             226          [(c)] (b) A taxing entity is not required to meet the notice requirements of Subsection
             227      (3) or (4) if:
             228          (i) Section 53A-17a-133 allows the taxing entity to levy a tax rate that exceeds that
             229      certified tax rate without having to comply with the notice provisions of this section; or
             230          (ii) the taxing entity:
             231          (A) budgeted less than $20,000 in ad valorem tax revenues for the previous fiscal year;
             232      and
             233          (B) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
             234      revenues.
             235          (6) (a) Subject to Subsections (6)(d) and (7)(b), the advertisement described in this
             236      section shall be published:
             237          (i) subject to Section 45-1-101 , in a newspaper or combination of newspapers of
             238      general circulation in the taxing entity;
             239          (ii) electronically in accordance with Section 45-1-101 ; and
             240          (iii) on the Utah Public Notice Website created in Section 63F-1-701 .
             241          (b) The advertisement described in Subsection (6)(a)(i) shall:
             242          (i) be no less than 1/4 page in size;
             243          (ii) use type no smaller than 18 point; and
             244          (iii) be surrounded by a 1/4-inch border.


             245          (c) The advertisement described in Subsection (6)(a)(i) may not be placed in that
             246      portion of the newspaper where legal notices and classified advertisements appear.
             247          (d) It is the intent of the Legislature that:
             248          (i) whenever possible, the advertisement described in Subsection (6)(a)(i) appear in a
             249      newspaper that is published at least one day per week; and
             250          (ii) the newspaper or combination of newspapers selected:
             251          (A) be of general interest and readership in the taxing entity; and
             252          (B) not be of limited subject matter.
             253          (e) (i) The advertisement[: (A)] described in Subsection (6)(a)(i) shall:
             254          [(I)] (A) except as provided in Subsection (6)[(e)(ii)](f), be run once each week for the
             255      two weeks[: (Aa)] before a taxing entity conducts a public hearing [at which the taxing entity's
             256      annual budget is discussed] described under Subsection (3)(a)(v) or (4)(b); and
             257          [(Bb) if a calendar year taxing entity provides the notice described in Subsection
             258      (3)(a)(i)(B)(I), before the calendar year taxing entity levies a tax rate that exceeds the calendar
             259      year taxing entity's certified tax rate; and]
             260          [(II)] (B) state that the taxing entity will meet on a certain day, time, and place fixed in
             261      the advertisement, which shall be [not less than] seven or more days after the day the first
             262      advertisement is published, for the purpose of hearing comments regarding any proposed
             263      increase and to explain the reasons for the proposed increase[; or].
             264          [(B)] (ii) The advertisement described in Subsection (6)(a)(ii) shall:
             265          [(I)] (A) be published two weeks[: (Aa)] before a taxing entity conducts a public
             266      hearing [at which the taxing entity's annual budget is discussed] described in Subsection
             267      (3)(a)(v) or (4)(b); and
             268          [(Bb) if a calendar year taxing entity provides the notice described in Subsection
             269      (3)(a)(i)(B)(I), before the calendar year taxing entity levies a tax rate that exceeds the calendar
             270      year taxing entity's certified tax rate; and]
             271          [(II)] (B) state that the taxing entity will meet on a certain day, time, and place fixed in
             272      the advertisement, which shall be [not less than] seven or more days after the day the first
             273      advertisement is published, for the purpose of hearing comments regarding any proposed
             274      increase and to explain the reasons for the proposed increase.
             275          [(ii)] (f) If a fiscal year taxing entity's public hearing information is published by the


             276      county auditor in accordance with Section 59-2-919.2 , the fiscal year taxing entity is not
             277      subject to the requirement to run the advertisement twice, as required by Subsection
             278      (6)(e)(i)[(A)], but shall run the advertisement once during the week[: (A)] before the fiscal year
             279      taxing entity conducts a public hearing at which the taxing entity's annual budget is discussed[;
             280      and].
             281          [(B) if a calendar year taxing entity provides the notice described in Subsection
             282      (3)(a)(i)(B)(I), before the calendar year taxing entity levies a tax rate that exceeds the calendar
             283      year taxing entity's certified tax rate.]
             284          [(f) (i)] (g) For purposes of Subsection (3)(a)[(i)(A)](iii) or (4)(a), the form and content
             285      of an advertisement shall be substantially as follows:
             286     
"NOTICE OF PROPOSED TAX INCREASE

             287     
(NAME OF TAXING ENTITY)

             288          The (name of the taxing entity) is proposing to increase its property tax revenue.
             289          *    The (name of the taxing entity) tax on a (insert the average value of a residence
             290      in the taxing entity rounded to the nearest thousand dollars) residence would
             291      increase from $______ to $________, which is $_______ per year.
             292          *    The (name of the taxing entity) tax on a (insert the value of a business having
             293      the same value as the average value of a residence in the taxing entity) business
             294      would increase from $________ to $_______, which is $______ per year.
             295          *    If the proposed budget is approved, (name of the taxing entity) would increase
             296      its property tax budgeted revenue by ___% above last year's property tax
             297      budgeted revenue excluding new growth.
             298          All concerned citizens are invited to a public hearing on the tax increase.
             299     
PUBLIC HEARING

             300          Date/Time:    (date) (time)
             301          Location:    (name of meeting place and address of meeting place)
             302          To obtain more information regarding the tax increase, citizens may contact the (name
             303      of the taxing entity) at (phone number of taxing entity)."
             304          [(ii) For purposes of Subsection (3)(a)(i)(B)(I), the form and content of an
             305      advertisement shall be substantially as follows:]
             306     
["NOTICE OF PROPOSED TAX INCREASE]


             307     
[(NAME OF TAXING ENTITY)]

             308          [The (name of the taxing entity) is proposing to increase its property tax revenue.]
             309          [*    The (name of the taxing entity) tax on a (insert the average value of a residence
             310      in the taxing entity rounded to the nearest thousand dollars) residence would
             311      increase from $______ to $________, which is $_______ per year.]
             312          [*    The (name of the taxing entity) tax on a (insert the value of a business having
             313      the same value as the average value of a residence in the taxing entity) business
             314      would increase from $________ to $_______, which is $______ per year.]
             315          [*    If the proposed budget is approved, (name of the taxing entity) would increase
             316      its property tax budgeted revenue by ___% above last year's property tax
             317      budgeted revenue excluding new growth.]
             318          [(Name of taxing entity) property tax revenue from new growth and other sources will
             319      increase from $_______________ to $______________.]
             320          [All concerned citizens are invited to a public hearing on the tax increase.]
             321     
[PUBLIC HEARING]

             322          [Date/Time:    (date) (time)]
             323          [Location:    (name of meeting place and address of meeting place)]
             324          [To obtain more information regarding the tax increase, citizens may contact the (name
             325      of the taxing entity) at (phone number of taxing entity)."]
             326          (7) The commission:
             327          (a) shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative
             328      Rulemaking Act, governing the joint use of one advertisement described in Subsection (6) by
             329      two or more taxing entities; and
             330          (b) subject to Section 45-1-101 , may authorize:
             331          (i) the use of a weekly newspaper:
             332          (A) in a county having both daily and weekly newspapers if the weekly newspaper
             333      would provide equal or greater notice to the taxpayer; and
             334          (B) if the county petitions the commission for the use of the weekly newspaper; or
             335          (ii) the use by a taxing entity [except for a calendar year taxing entity that provides the
             336      notice described in Subsection (3)(a)(i)(B)(II)] of a commission approved direct notice to each
             337      taxpayer if:


             338          (A) the cost of the advertisement would cause undue hardship;
             339          (B) the direct notice is different and separate from that provided for in Section
             340      59-2-919.1 ; and
             341          (C) the taxing entity petitions the commission for the use of a commission approved
             342      direct notice.
             343          (8) (a) (i) (A) A fiscal year taxing entity shall, on or before March 1, notify the county
             344      legislative body in which the fiscal year taxing entity is located of the date, time, and place of
             345      the first public hearing at which the fiscal year taxing entity's annual budget will be discussed.
             346          [(ii)] (B) A county that receives notice from a fiscal year taxing entity under Subsection
             347      (8)(a)(i)(A) shall include on the notice required by Section 59-2-919.1 the date, time, and place
             348      of the public hearing described in Subsection (8)(a)(i)(A).
             349          (ii) A calendar year taxing entity shall, on or before October 1 of the current calendar
             350      year, notify the county legislative body in which the calendar year taxing entity is located of the
             351      date, time, and place of the first public hearing at which the calendar year taxing entity's annual
             352      budget will be discussed.
             353          (b) (i) A public hearing described in [this section] Subsection (3)(a)(v) or (4)(b) shall
             354      be open to the public.
             355          (ii) The governing body of a taxing entity conducting a public hearing described in
             356      [this section] Subsection (3)(a)(v) or (4)(b) shall provide an interested party desiring to be
             357      heard an opportunity to present oral testimony within reasonable time limits.
             358          (c) (i) Except as provided in Subsection (8)(c)(ii), a taxing entity may not schedule a
             359      public hearing described in [this section] Subsection (3)(a)(v) or (4)(b) at the same time as the
             360      public hearing of another overlapping taxing entity in the same county.
             361          (ii) The taxing entities in which the power to set tax levies is vested in the same
             362      governing board or authority may consolidate the public hearings described in [this section]
             363      Subsection (3)(a)(v) or (4)(b) into one public hearing.
             364          (d) A county legislative body shall resolve any conflict in public hearing dates and
             365      times after consultation with each affected taxing entity.
             366          (e) A taxing entity shall hold a public hearing described in [this section] Subsection
             367      (3)(a)(v) or (4)(b) beginning at or after 6 p.m.
             368          (9) (a) If a taxing entity does not make a final decision on budgeting [an increased


             369      amount of] additional ad valorem tax revenue at a public hearing described in [this section]
             370      Subsection (3)(a)(v) or (4)(b), the taxing entity shall announce at that public hearing the
             371      scheduled time and place of the next public meeting at which the taxing entity will consider
             372      budgeting the [increased amount of] additional ad valorem tax revenue.
             373          [(b) (i) If a calendar year taxing entity that conducts a public hearing in accordance
             374      with Subsection (3)(b)(ii) does not adopt a resolution levying a tax rate on the day of the public
             375      hearing, the taxing entity shall announce at that public hearing the scheduled time and place of
             376      the next public meeting at which the taxing entity will consider adopting a resolution levying
             377      the tax rate.]
             378          [(ii) If a taxing entity except for a taxing entity described in Subsection (5)(a) or (b)
             379      will consider adopting a resolution levying a tax rate at a day and time that is more than two
             380      weeks after the public hearing described in Subsection 59-2-919.1 (2)(c)(v), the taxing entity
             381      shall meet the notice requirements of Subsection (3)(a)(i)(B)(I).]
             382          [(10) (a) A taxing entity may adopt a resolution levying a tax rate that exceeds the
             383      taxing entity's certified tax rate if the taxing entity, to the extent required by this section, meets
             384      the:]
             385          [(i) notice requirements of this section; and]
             386          [(ii) public hearing requirements of this section.]
             387          [(b) A public hearing on levying a tax rate that exceeds a taxing entity's certified tax
             388      rate may coincide with a public hearing on the taxing entity's proposed annual budget.]
             389          [(11) The amendments to this section in Laws of Utah 2009, Chapter 204, apply to:]
             390          [(a) for a fiscal year taxing entity, the fiscal year that begins on July 1, 2009; or]
             391          [(b) for a calendar year taxing entity, the fiscal year that begins on January 1, 2010.]
             392          (b) A calendar year taxing entity may not adopt a final budget that budgets an amount
             393      of additional ad valorem tax revenue that exceeds the largest amount of additional ad valorem
             394      tax revenue stated at a public meeting under Subsection (3)(a)(i).
             395          (c) A public hearing on levying a tax rate that exceeds a fiscal year taxing entity's
             396      certified tax rate may coincide with a public hearing on the fiscal year taxing entity's proposed
             397      annual budget.
             398          (10) Notwithstanding any other provision of this section, the amendments to this
             399      section in this bill apply to:


             400          (a) actions a fiscal year taxing entity is required to take with respect to the fiscal year
             401      taxing entity's budgetary process for the fiscal year that begins on July 1, 2014; or
             402          (b) actions a calendar year taxing entity is required to take with respect to the calendar
             403      year taxing entity's budgetary process for the fiscal year that begins on January 1, 2015.
             404          Section 3. Section 59-2-919.1 is amended to read:
             405           59-2-919.1. Notice of property valuation and tax changes.
             406          (1) In addition to the notice requirements of Section 59-2-919 , the county auditor, on or
             407      before July 22 of each year, shall notify, by mail, each owner of real estate as defined in
             408      Section 59-2-102 who is listed on the assessment roll.
             409          (2) The notice described in Subsection (1) shall:
             410          (a) be sent to all owners of real property by mail [not less than] 10 or more days before
             411      the day on which:
             412          (i) the county board of equalization meets; and
             413          (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax
             414      rate;
             415          (b) be printed on a form that is:
             416          (i) approved by the commission; and
             417          (ii) uniform in content in all counties in the state; and
             418          (c) contain for each property:
             419          (i) the assessor's determination of the value of the property;
             420          (ii) the date the county board of equalization will meet to hear complaints on the
             421      valuation;
             422          (iii) itemized tax information for all applicable taxing entities[: (A) stating: (I) (Aa)],
             423      including:
             424          (A) the dollar amount of the taxpayer's tax liability for the property in the prior year;
             425      and [(Bb)]
             426          (B) the dollar amount of the taxpayer's tax liability under the current rate; [and]
             427          [(II) for a taxing entity that proposes a tax increase that is subject to the notice and
             428      hearing requirements of Section 59-2-919 :]
             429          [(Aa) the dollar amount of the taxpayer's liability if the proposed increase is approved;]
             430          [(Bb) the difference between the dollar amount of the taxpayer's liability if the


             431      proposed increase is approved and the dollar amount of the taxpayer's liability under the current
             432      rate, placed in close proximity to the information under Subsection (2)(c)(v); and]
             433          [(Cc) the percentage increase that the dollar amount of the taxpayer's liability under the
             434      proposed tax rate represents as compared to the dollar amount of the taxpayer's liability under
             435      the current tax rate; and]
             436          (iv) the tax impact on the property;
             437          (v) the time and place of the required public hearing for each entity;
             438          (vi) property tax information pertaining to:
             439          (A) taxpayer relief;
             440          (B) options for payment of taxes; and
             441          (C) collection procedures;
             442          (vii) information specifically authorized to be included on the notice under [Title 59,
             443      Chapter 2, Property Tax Act] this chapter;
             444          (viii) the last property review date of the property as described in Subsection
             445      59-2-303.1 (1)(c); and
             446          (ix) other property tax information approved by the commission.
             447          (3) If a taxing entity that is subject to the notice and hearing requirements of
             448      Subsection 59-2-919 (4) proposes a tax increase, the notice described in Subsection (1) shall
             449      state, in addition to the information required by Subsection (2):
             450          (a) the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
             451          (b) the difference between the dollar amount of the taxpayer's tax liability if the
             452      proposed increase is approved and the dollar amount of the taxpayer's tax liability under the
             453      current rate, placed in close proximity to the information described in Subsection (2)(c)(v); and
             454          (c) the percentage increase that the dollar amount of the taxpayer's tax liability under
             455      the proposed tax rate represents as compared to the dollar amount of the taxpayer's tax liability
             456      under the current tax rate.
             457          (4) Notwithstanding any other provision of this section, the amendments to this section
             458      in this bill apply to:
             459          (a) actions a fiscal year taxing entity, as defined in Section 59-2-919 , is required to take
             460      with respect to the fiscal year taxing entity's budgetary process for the fiscal year that begins on
             461      July 1, 2014; or


             462          (b) actions a calendar year taxing entity, as defined in Section 59-2-919 , is required to
             463      take with respect to the calendar year taxing entity's budgetary process for the fiscal year that
             464      begins on January 1, 2015.
             465          Section 4. Section 63I-2-259 is amended to read:
             466           63I-2-259. Repeal dates -- Title 59.
             467          [Title 59, Chapter 19, Illegal Drug Stamp Tax Act, is repealed July 1, 2012.]
             468          (1) Subsection 59-2-919 (10) is repealed December 31, 2015.
             469          (2) Subsection 59-2-919.1 (4) is repealed December 31, 2015.
             470          Section 5. Effective date.
             471          (1) Except as provided in Subsection (2), this bill takes effect on May 14, 2014.
             472          (2) The actions affecting Section 59-2-918.5 take effect on January 1, 2015.
             473          Section 6. Revisor instructions.
             474          It is the intent of the Legislature that the Office of Legislative Research and General
             475      Counsel, in preparing the Utah Code database for publication, shall replace the references in
             476      Subsections 59-2-919 (10) and 59-2-919.1 (4) from "this bill" to the bill's designated chapter and
             477      section number in the Laws of Utah.




Legislative Review Note
    as of 2-7-14 2:44 PM


Office of Legislative Research and General Counsel


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