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7 LONG TITLE
8 General Description:
9 This bill amends provisions related to the designation of an assessment area and the
10 levy of an assessment.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ amends provisions related to an action to contest an assessment;
15 ▸ allows a local entity to divide an assessment area into classifications;
16 ▸ prohibits an assessment area that is coextensive or substantially coterminous with
17 the boundaries of a local entity;
18 ▸ amends notice requirements for designation of an assessment area;
19 ▸ amends provisions related to a protest filed against the designation of an assessment
20 area;
21 ▸ amends provisions related to a public hearing on a proposed assessment area;
22 ▸ amends provisions related to a public meeting held to designate an assessment area;
23 ▸ enacts language requiring notice for a subsequent purchaser;
24 ▸ amends provisions related to an assessment levy;
25 ▸ amends provisions related to a board of equalization;
26 ▸ amends provisions related to an assessment for economic promotion activities;
27 ▸ prohibits a local entity from levying an assessment unless certain criteria are met;
28 ▸ requires a local entity to pay for any increase in an improvement size or capacity for
29 service to properties outside of an assessment area with funds other than those
30 levied by the assessment;
31 ▸ authorizes a local entity to proportionally assess benefitted properties for an
32 unassessed benefitted government property; and
33 ▸ makes technical corrections.
34 Money Appropriated in this Bill:
35 None
36 Other Special Clauses:
37 None
38 Utah Code Sections Affected:
39 AMENDS:
40 11-42-102, as last amended by Laws of Utah 2013, Chapter 246
41 11-42-103, as last amended by Laws of Utah 2013, Chapter 246
42 11-42-106, as enacted by Laws of Utah 2007, Chapter 329
43 11-42-201, as last amended by Laws of Utah 2010, Chapter 238
44 11-42-202, as last amended by Laws of Utah 2013, Chapters 246 and 265
45 11-42-203, as last amended by Laws of Utah 2013, Chapter 265
46 11-42-204, as last amended by Laws of Utah 2013, Chapter 265
47 11-42-206, as last amended by Laws of Utah 2013, Chapter 265
48 11-42-207, as last amended by Laws of Utah 2009, Chapter 246
49 11-42-401, as last amended by Laws of Utah 2013, Chapter 265
50 11-42-402, as last amended by Laws of Utah 2010, Chapters 90 and 238
51 11-42-403, as last amended by Laws of Utah 2009, Chapter 246
52 11-42-404, as last amended by Laws of Utah 2010, Chapter 238
53 11-42-406, as last amended by Laws of Utah 2010, Chapter 238
54 11-42-409, as enacted by Laws of Utah 2007, Chapter 329
55
56 Be it enacted by the Legislature of the state of Utah:
57 Section 1. Section 11-42-102 is amended to read:
58 11-42-102. Definitions.
59 (1) "Adequate protests" means timely filed, written protests under Section 11-42-203
60 that represent at least [
61 number of connections, or equivalent residential units of the property proposed to be assessed,
62 according to the same assessment method by which the assessment is proposed to be levied,
63 after eliminating:
64 (a) protests relating to:
65 (i) property that has been deleted from a proposed assessment area; or
66 (ii) an improvement that has been deleted from the proposed improvements to be
67 provided to property within the proposed assessment area; and
68 (b) protests that have been withdrawn under Subsection 11-42-203(3).
69 (2) "Assessment area" means an area, or, if more than one area is designated, the
70 aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
71 local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
72 costs of improvements, operation and maintenance, or economic promotion activities that
73 benefit property within the area.
74 (3) "Assessment bonds" means bonds that are:
75 (a) issued under Section 11-42-605; and
76 (b) payable in part or in whole from assessments levied in an assessment area,
77 improvement revenues, and a guaranty fund or reserve fund.
78 (4) "Assessment fund" means a special fund that a local entity establishes under
79 Section 11-42-412.
80 (5) "Assessment lien" means a lien on property within an assessment area that arises
81 from the levy of an assessment, as provided in Section 11-42-501.
82 (6) "Assessment method" means the method:
83 (a) by which an assessment is levied against benefitted property, whether by frontage,
84 area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential
85 unit, any combination of these methods, or any other method [
86
87 (b) that, when applied to a benefitted property, accounts for an assessment that meets
88 the requirements of Section 11-42-409.
89 (7) "Assessment ordinance" means an ordinance adopted by a local entity under
90 Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
91 (8) "Assessment resolution" means a resolution adopted by a local entity under Section
92 11-42-404 that levies an assessment on benefitted property within an assessment area.
93 (9) "Benefitted property" means property within an assessment area that directly or
94 indirectly benefits from improvements, operation and maintenance, or economic promotion
95 activities.
96 (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
97 anticipation of the issuance of assessment bonds.
98 (11) "Bonds" means assessment bonds and refunding assessment bonds.
99 (12) "Commercial area" means an area in which at least 75% of the property is devoted
100 to the interchange of goods or commodities.
101 (13) (a) "Commercial or industrial real property" means real property used directly or
102 indirectly or held for one of the following purposes or activities, regardless of whether the
103 purpose or activity is for profit:
104 (i) commercial;
105 (ii) mining;
106 (iii) industrial;
107 (iv) manufacturing;
108 (v) governmental;
109 (vi) trade;
110 (vii) professional;
111 (viii) a private or public club;
112 (ix) a lodge;
113 (x) a business; or
114 (xi) a similar purpose.
115 (b) "Commercial or industrial real property" includes real property that:
116 (i) is used as or held for dwelling purposes; and
117 (ii) contains more than four [
118 (14) "Connection fee" means a fee charged by a local entity to pay for the costs of
119 connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
120 electrical system, whether or not improvements are installed on the property.
121 (15) "Contract price" means:
122 (a) the cost of acquiring an improvement, if the improvement is acquired; or
123 (b) the amount payable to one or more contractors for the design, engineering,
124 inspection, and construction of an improvement.
125 (16) "Designation ordinance" means an ordinance adopted by a local entity under
126 Section 11-42-206 designating an assessment area.
127 (17) "Designation resolution" means a resolution adopted by a local entity under
128 Section 11-42-206 designating an assessment area.
129 (18) "Economic promotion activities" means activities that promote economic growth
130 in a commercial area of a local entity, including:
131 (a) sponsoring festivals and markets;
132 (b) promoting business investment or activities;
133 (c) helping to coordinate public and private actions; and
134 (d) developing and issuing publications designed to improve the economic well-being
135 of the commercial area.
136 (19) "Energy efficiency upgrade" means an improvement that is permanently affixed to
137 commercial or industrial real property that is designed to reduce energy consumption,
138 including:
139 (a) insulation in:
140 (i) a wall, roof, floor, or foundation; or
141 (ii) a heating and cooling distribution system;
142 (b) a window or door, including:
143 (i) a storm window or door;
144 (ii) a multiglazed window or door;
145 (iii) a heat-absorbing window or door;
146 (iv) a heat-reflective glazed and coated window or door;
147 (v) additional window or door glazing;
148 (vi) a window or door with reduced glass area; or
149 (vii) other window or door modifications;
150 (c) an automatic energy control system;
151 (d) in a building or a central plant, a heating, ventilation, or air conditioning and
152 distribution system;
153 (e) caulk or weatherstripping;
154 (f) a light fixture that does not increase the overall illumination of a building unless an
155 increase is necessary to conform with the applicable building code;
156 (g) an energy recovery system;
157 (h) a daylighting system;
158 (i) measures to reduce the consumption of water, through conservation or more
159 efficient use of water, including:
160 (i) installation of low-flow toilets and showerheads;
161 (ii) installation of timer or timing systems for a hot water heater; or
162 (iii) installation of rain catchment systems; or
163 (j) a modified, installed, or remodeled fixture that is approved as a utility cost-saving
164 measure by the governing body of a local entity.
165 (20) "Environmental remediation activity" means a surface or subsurface enhancement,
166 effort, cost, initial or ongoing maintenance expense, facility, installation, system, earth
167 movement, or change to grade or elevation which improves the use, function, aesthetics, or
168 environmental condition of publically or privately owned property.
169 [
170 equal to a single-family residence in terms of the nature of its use or impact on an improvement
171 to be provided in the assessment area.
172 [
173 (a) for a county, city, or town, the legislative body of the county, city, or town;
174 (b) for a local district, the board of trustees of the local district;
175 (c) for a special service district:
176 (i) the legislative body of the county, city, or town that established the special service
177 district, if no administrative control board has been appointed under Section 17D-1-301; or
178 (ii) the administrative control board of the special service district, if an administrative
179 control board has been appointed under Section 17D-1-301; and
180 (d) for the military installation development authority created in Section 63H-1-201,
181 the authority board, as defined in Section 63H-1-102.
182 [
183 11-42-701.
184 [
185
186 [
187 (a) (i) means a publicly owned infrastructure, system, or other facility, a publicly or
188 privately owned energy efficiency upgrade, [
189 system, or publically or privately owned environmental remediation activity that:
190 (A) a local entity is authorized to provide;
191 (B) the governing body of a local entity determines is necessary or convenient to
192 enable the local entity to provide a service that the local entity is authorized to provide; or
193 (C) a local entity is requested to provide through an interlocal agreement in accordance
194 with Title 11, Chapter 13, Interlocal Cooperation Act; and
195 (ii) includes facilities in an assessment area, including a private driveway, an irrigation
196 ditch, and a water turnout, that:
197 (A) can be conveniently installed at the same time as an infrastructure, system, or other
198 facility described in Subsection [
199 (B) are requested by a property owner on whose property or for whose benefit the
200 infrastructure, system, or other facility is being installed; or
201 (b) for a local district created to assess groundwater rights in accordance with Section
202 17B-1-202, means a system or plan to regulate groundwater withdrawals within a specific
203 groundwater basin in accordance with Sections 17B-1-202 and 73-5-15.
204 [
205 (a) means charges, fees, impact fees, or other revenues that a local entity receives from
206 improvements; and
207 (b) does not include revenue from assessments.
208 [
209 assessment bonds and calling, retiring, or paying prior bonds, including:
210 (a) legal and accounting fees;
211 (b) charges of financial advisors, escrow agents, certified public accountant verification
212 entities, and trustees;
213 (c) underwriting discount costs, printing costs, the costs of giving notice;
214 (d) any premium necessary in the calling or retiring of prior bonds;
215 (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
216 refund the outstanding prior bonds;
217 (f) any other costs that the governing body determines are necessary [
218 proper to incur in connection with the issuance of refunding assessment bonds; and
219 (g) any interest on the prior bonds that is required to be paid in connection with the
220 issuance of the refunding assessment bonds.
221 [
222 payment of an assessment is payable.
223 [
224 11-42-601.
225 [
226 (a) for a county, the boundaries of the unincorporated area of the county; and
227 (b) for each other local entity, the boundaries of the local entity.
228 [
229 Local Government Entities - Local Districts.
230 [
231 district, an interlocal entity as defined in Section 11-13-103, a military installation development
232 authority created in Section 63H-1-201, or other political subdivision of the state.
233 [
234 bonds, interim warrants, and bond anticipation notes issued by a local entity.
235 [
236 (a) a property owner's last-known address using the name and address appearing on the
237 last completed real property assessment roll of the county in which the property is located; and
238 (b) if the property is improved property:
239 (i) the property's street number; or
240 (ii) the post office box, rural route number, or other mailing address of the property, if
241 a street number has not been assigned.
242 [
243 entity has received since the last installment payment date, less all amounts payable by the local
244 entity from those improvement revenues for operation and maintenance costs.
245 [
246 (a) means the costs that a local entity incurs in operating and maintaining
247 improvements in an assessment area, whether or not those improvements have been financed
248 under this chapter; and
249 (b) includes service charges, administrative costs, ongoing maintenance charges, and
250 tariffs or other charges for electrical, water, gas, or other utility usage.
251 [
252 be incurred by a local entity in connection with an assessment area for appraisals, legal fees,
253 filing fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and
254 paying agent fees, publishing and mailing costs, costs of levying an assessment, recording
255 costs, and all other incidental costs.
256 [
257 from which the prior bonds are payable.
258 [
259 from which the prior bonds are payable.
260 [
261 whole by refunding assessment bonds.
262 [
263 private consulting engineer engaged by a local entity to perform the necessary engineering
264 services for and to supervise the construction or installation of the improvements.
265 [
266 water rights and leasehold rights.
267 [
268 acquires by eminent domain property to make improvements in an assessment area.
269 [
270 acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
271 expansion of an improvement.
272 [
273 (a) the state or any agency, department, or division of the state; and
274 (b) a political subdivision of the state.
275 [
276 property within an assessment area to pay an assessment levied on the property after the
277 assessment has been reduced because of the issuance of refunding assessment bonds, as
278 provided in Section 11-42-608.
279 [
280 issues under Section 11-42-607 to refund, in part or in whole, assessment bonds.
281 [
282 interacting group of devices that:
283 (a) is permanently affixed to commercial or industrial real property; and
284 (b) produces energy from renewable resources, including:
285 (i) a photovoltaic system;
286 (ii) a solar thermal system;
287 (iii) a wind system;
288 (iv) a geothermal system, including:
289 (A) a generation system;
290 (B) a direct-use system; or
291 (C) a ground source heat pump system;
292 (v) a microhydro system; or
293 (vi) other renewable sources approved by the governing body of a local entity.
294 [
295 11-42-702.
296 [
297 (a) water, sewer, storm drainage, garbage collection, library, recreation,
298 communications, or electric service;
299 (b) economic promotion activities; or
300 (c) any other service that a local entity is required or authorized to provide.
301 [
302 17D-1-102.
303 (52) "Unassessed benefitted government property" means property that a local entity
304 may not assess in accordance with Section 11-42-408 but is benefitted by an improvement,
305 operation and maintenance, or economic promotion activities.
306 [
307 commercial, or other building has been built.
308 [
309 property whose owners have voluntarily consented to an assessment.
310 Section 2. Section 11-42-103 is amended to read:
311 11-42-103. Limit on effect of this chapter.
312 (1) Nothing in this chapter may be construed to authorize a local entity to provide an
313 improvement or service that the local entity is not otherwise authorized to provide.
314 (2) Notwithstanding Subsection (1), a local entity may provide a renewable energy
315 system [
316 entity finds or determines to be in the public interest.
317 Section 3. Section 11-42-106 is amended to read:
318 11-42-106. Action to contest assessment or proceeding -- Requirements --
319 Exclusive remedy -- Bonds and assessment incontestable.
320 (1) A person who contests an assessment or any proceeding to designate an assessment
321 area or levy an assessment may commence a civil action against the local entity to:
322 (a) set aside a proceeding to designate an assessment area; or
323 (b) enjoin the levy or collection of an assessment.
324 (2) (a) Each action under Subsection (1) shall be commenced in the district court with
325 jurisdiction in the county in which the assessment area is located.
326 (b) An action under Subsection (1) may not be commenced against and a summons
327 relating to the action may not be served on the local entity more than [
328 effective date of the:
329 (i) designation resolution or designation ordinance, if the challenge is to the
330 designation of an assessment area;
331 (ii) assessment resolution or ordinance [
332 challenge is to an assessment; or
333 (iii) amended resolution or ordinance, if the challenge is to an amendment.
334 (3) (a) An action under [
335 person who:
336 (i) claims an error or irregularity in an assessment or in any proceeding to designate an
337 assessment area or levy an assessment[
338 (ii) challenges a bondholder's right to repayment.
339 (b) A court may not hear any complaint under Subsection (1) that a person was
340 authorized to make but did not make in a protest under Section 11-42-203 or at a hearing under
341 Section 11-42-204.
342 (c) (i) If a person has not brought a claim for which the person was previously
343 authorized to bring but is otherwise barred from making under Subsection (2)(b), the claim
344 may not be brought later because of an amendment to the resolution or ordinance unless the
345 claim arises from the amendment itself.
346 (ii) In an action brought pursuant to Subsection (1), a person may not contest a
347 previous decision, proceeding, or determination for which the service deadline described in
348 Subsection (2)(b) has expired by challenging a subsequent decision, proceeding, or
349 determination.
350 (4) An assessment or a proceeding to designate an assessment area or to levy an
351 assessment may not be declared invalid or set aside in part or in whole because of an error or
352 irregularity that does not go to the equity or justice of the proceeding or the assessment [
353
354 (5) After the expiration of the [
355 (a) assessment bonds and refunding assessment bonds issued or to be issued with
356 respect to an assessment area and assessments levied on property in the assessment area
357 become at that time incontestable against all persons who have not commenced an action and
358 served a summons as provided in this section; and
359 (b) a suit to enjoin the issuance or payment of assessment bonds or refunding
360 assessment bonds, the levy, collection, or enforcement of an assessment, or to attack or
361 question in any way the legality of assessment bonds, refunding assessment bonds, or an
362 assessment may not be commenced, and a court may not inquire into those matters.
363 (6) (a) This section may not be interpreted to insulate a local entity from a claim of
364 misuse of assessment funds after the expiration of the 60-day period described in Subsection
365 (2)(b).
366 (b) (i) Except as provided in Subsection (6)(b)(ii), an action in the nature of mandamus
367 is the sole form of relief available to a party challenging the misuse of assessment funds.
368 (ii) The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal
369 charges against or the prosecution of a party for the misuse of assessment funds.
370 Section 4. Section 11-42-201 is amended to read:
371 11-42-201. Resolution or ordinance designating an assessment area --
372 Classifications within an assessment area -- Preconditions to adoption of a resolution or
373 ordinance.
374 (1) (a) Subject to the requirements of this part, a governing body of a local entity
375 intending to levy an assessment on property to pay some or all of the cost of providing
376 improvements benefitting the property, performing operation and maintenance benefitting the
377 property, or conducting economic promotion activities benefitting the property shall adopt a
378 resolution or ordinance designating an assessment area.
379 (b) A designation resolution or designation ordinance described in Subsection (1)(a)
380 may divide the assessment area into [
381 body to:
382 (i) levy a different level of assessment; or
383 (ii) use a different assessment method in each [
384 fairly the benefits that property within the different [
385 receive because of the proposed improvement, operation and maintenance, or economic
386 promotion activities.
387 (c) The boundaries of a proposed assessment area:
388 (i) may include property that is not intended to be assessed[
389 (ii) may not be coextensive or substantially coterminous with the boundaries of the
390 local entity.
391 (2) Before adopting a designation resolution or designation ordinance described in
392 Subsection (1)(a), the governing body of the local entity shall:
393 (a) give notice as provided in Section 11-42-202;
394 (b) receive and consider all protests filed under Section 11-42-203; and
395 (c) hold a public hearing as provided in Section 11-42-204.
396 Section 5. Section 11-42-202 is amended to read:
397 11-42-202. Requirements applicable to a notice of a proposed assessment area
398 designation.
399 (1) Each notice required under Subsection 11-42-201(2)(a) shall:
400 (a) state that the local entity proposes to:
401 (i) designate one or more areas within the local entity's jurisdictional boundaries as an
402 assessment area;
403 (ii) provide an improvement to property within the proposed assessment area; and
404 (iii) finance some or all of the cost of improvements by an assessment on benefitted
405 property within the assessment area;
406 (b) describe the proposed assessment area by any reasonable method that allows an
407 owner of property in the proposed assessment area to determine that the owner's property is
408 within the proposed assessment area;
409 (c) describe, in a general and reasonably accurate way, the improvements to be
410 provided to the assessment area, including:
411 (i) the [
412 (ii) the [
413 extensions of streets or by any other means that the governing body chooses that reasonably
414 describes the general location of the improvements;
415 (d) state the estimated cost of the improvements as determined by a project engineer;
416 (e) for the version of notice mailed in accordance with Subsection (4)(b), state the
417 estimated total assessment specific to the benefitted property for which the notice is mailed;
418 [
419 within the assessment area to pay some or all of the cost of the improvements according to the
420 estimated [
421 (g) if applicable, state that an unassessed benefitted government property will receive
422 improvements for which the cost will be allocated proportionately to the remaining benefitted
423 properties within the proposed assessment area and that a description of each unassessed
424 benefitted government property is available for public review at the location or website
425 described in Subsection (6);
426 [
427 assessment, including, if the local entity is a municipality or county, whether the assessment
428 will be collected:
429 (i) by directly billing a property owner; or
430 (ii) by inclusion on a property tax notice issued in accordance with Section 59-2-1317;
431 [
432 (i) the date described in Section 11-42-203 and the location at which protests against
433 designation of the proposed assessment area or of the proposed improvements are required to
434 be filed; [
435 (ii) the method by which the governing body will determine the number of protests
436 required to defeat the designation of the proposed assessment area or acquisition or
437 construction of the proposed improvements; and
438 (iii) in large, boldface, and conspicuous type that a property owner must protest the
439 designation of the assessment area in writing if the owner objects to the area designation or
440 being assessed for the proposed improvements, operation and maintenance costs, or economic
441 promotion activities;
442 [
443 11-42-204;
444 [
445 11-42-702, include a description of:
446 (i) how the reserve fund will be funded and replenished; and
447 (ii) how remaining money in the reserve fund is to be disbursed upon full payment of
448 the bonds;
449 [
450 a property owner consent form that:
451 (i) estimates the total assessment to be levied against the particular parcel of property;
452 (ii) describes any additional benefits that the governing body expects the assessed
453 property to receive from the improvements; and
454 (iii) designates the date and time by which the fully executed consent form is required
455 to be submitted to the governing body;
456 [
457 maintenance costs or for economic promotion activities, include:
458 (i) a description of the operation and maintenance costs or economic promotion
459 activities to be paid by assessments and the initial estimated annual assessment to be levied;
460 (ii) a description of how the estimated assessment will be determined;
461 (iii) a description of how and when the governing body will adjust the assessment to
462 reflect the costs of:
463 (A) in accordance with Section 11-42-406, current economic promotion activities; or
464 (B) current operation and maintenance costs;
465 (iv) a description of the method of assessment if different from the method of
466 assessment to be used for financing any improvement; and
467 (v) a statement of the maximum number of years over which the assessment will be
468 levied for:
469 (A) operation and maintenance costs; or
470 (B) economic promotion activities; [
471 [
472 [
473 [
474 (o) if applicable, state the portion and value of the improvement that will be increased
475 in size or capacity to serve property outside of the assessment area and how the increases will
476 be financed; and
477 (p) state whether the improvements will be financed with a bond and, if so, the
478 currently estimated interest rate and term of financing, subject to Subsection (2), for which the
479 benefitted properties within the assessment area may be obligated.
480 (2) The estimated interest rate and term of financing in Subsection (1)(p) may not be
481 interpreted as a limitation to the actual interest rate incurred or the actual term of financing as
482 subject to the market rate at the time of the issuance of the bond.
483 [
484 information that the governing body considers to be appropriate, including:
485 (a) the amount or proportion of the cost of the improvement to be paid by the local
486 entity or from sources other than an assessment;
487 (b) the estimated total amount of each type of assessment for the various improvements
488 to be financed according to the method of assessment that the governing body chooses; and
489 (c) provisions for any improvements described in Subsection
490 11-42-102[
491 [
492 (a) (i) (A) be published in a newspaper of general circulation within the local entity's
493 jurisdictional boundaries, once a week for four consecutive weeks, with the last publication at
494 least five but not more than 20 days before the day of the hearing required in Section
495 11-42-204; or
496 (B) if there is no newspaper of general circulation within the local entity's jurisdictional
497 boundaries, be posted in at least three public places within the local entity's jurisdictional
498 boundaries at least 20 but not more than 35 days before the day of the hearing required in
499 Section 11-42-204; and
500 (ii) be published on the Utah Public Notice Website described in Section 63F-1-701 for
501 four weeks before the deadline for filing protests specified in the notice under Subsection
502 (1)[
503 (b) be mailed, postage prepaid, within 10 days after the first publication or posting of
504 the notice under Subsection [
505 proposed assessment area at the property owner's mailing address.
506 (5) (a) The local entity may record the version of the notice that is published or posted
507 in accordance with Subsection (4)(a) with the office of the county recorder, by legal description
508 and tax identification number as identified in county records, against the property proposed to
509 be assessed.
510 (b) The notice recorded under Subsection (5)(a) expires and is no longer valid one year
511 after the day on which the local entity records the notice if the local entity has failed to adopt
512 the designation ordinance or resolution under Section 11-42-201 designating the assessment
513 area for which the notice was recorded.
514 (6) A local entity shall make available on the local entity's website, or, if no website is
515 available, at the local entity's place of business, the address and type of use of each unassessed
516 benefitted government property described in Subsection (1)(g).
517 (7) If a governing body fails to provide actual or constructive notice under this section,
518 the local entity may not assess a levy against a benefitted property omitted from the notice
519 unless:
520 (a) the property owner gives written consent;
521 (b) the property owner received notice under Subsection 11-42-401(2)(a)(iii) and did
522 not object to the levy of the assessment before the final hearing of the board of equalization; or
523 (c) the benefitted property is conveyed to a subsequent purchaser and, before the date
524 of conveyance, the requirements of Subsections 11-42-206(3)(a)(i) and (ii), or, if applicable,
525 Subsection 11-42-207(1)(d)(i) are met.
526 Section 6. Section 11-42-203 is amended to read:
527 11-42-203. Protests.
528 (1) An owner of property that is proposed to be assessed [
529 want the property to be included in an assessment area may, within 60 days after the day of the
530 hearing described in Subsection 11-42-204(1), file a written protest:
531 (a) against:
532 [
533 [
534 [
535 (iv) if applicable, the inclusion of an unassessed benefitted government property, the
536 benefit for which the other assessed properties will collectively pay; or
537 [
538 (i) whether the assessment meets the requirements of Section 11-42-409; or
539 (ii) any other aspect of the proposed designation of an assessment area.
540 (2) Each protest under [
541 (a) describe or otherwise identify the property owned by the person filing the protest[
542 and
543 (b) include the signature of the owner of the property.
544 (3) An owner may withdraw a protest at any time before the expiration of the 60-day
545 period described in Subsection (1) by filing a written withdrawal with the governing body.
546 (4) If the governing body intends to assess property within the proposed assessment
547 area by type of improvement or [
548 and the governing body has clearly noticed its intent, the governing body shall[
549 (a) in determining whether adequate protests have been filed, aggregate the protests by
550 the type of improvement or by [
551 (b) apply to and calculate for each type of improvement or classification the threshold
552 requirements of adequate protests.
553 (5) The failure of an owner of property within the proposed assessment area to file a
554 timely written protest constitutes a waiver of any objection to:
555 (a) the designation of the assessment area;
556 (b) any improvement to be provided to property within the assessment area; [
557 (c) the inclusion of the owner's property within the assessment area[
558 (d) the fact, but not amount, of benefit to the owner's property; and
559 (e) the inclusion of an unassessed benefitted government property in the assessment
560 area.
561 (6) The local entity shall post the total and percentage of the written protests it has
562 received on the local entity's website, or, if no website is available, at the local entity's place of
563 business at least five days before the public meeting described in Section 11-42-206.
564 Section 7. Section 11-42-204 is amended to read:
565 11-42-204. Hearing.
566 (1) On the date and at the time and place specified in the notice under Section
567 11-42-202, the governing body shall hold a public hearing.
568 (2) (a) The governing body:
569 (i) subject to Subsection (2)(a)(ii), may continue the public hearing from time to time
570 to a fixed future date and time[
571 (ii) may not hold a public hearing that is a continuance less than five days before the
572 deadline for filing protests described in Section 11-42-203.
573 (b) The continuance of a public hearing does not restart or extend the protest period
574 described in Subsection 11-42-203(1).
575 (3) At the public hearing, the governing body shall[
576 (a) objections to the designation of the proposed assessment area or the improvements
577 proposed to be provided in the assessment area; [
578 (b) objections to whether the assessment will meet the requirements of Section
579 11-42-409;
580 (c) objections to the inclusion within the assessment area of an unassessed benefitted
581 government property, the benefit for which the other assessed properties will collectively pay;
582 and
583 [
584 [
585 [
586 [
587 Section 8. Section 11-42-206 is amended to read:
588 11-42-206. Public meeting -- Adoption of a resolution or ordinance regarding a
589 proposed assessment area -- Designation prohibited if adequate protests filed --
590 Recording of resolution or ordinance and notice of proposed assessment.
591 (1) (a) After holding a public hearing under Section 11-42-204 and [
592
593
594 protest period expires in accordance with Subsection 11-42-203(1), the governing body shall:
595 (i) count the written protests filed or withdrawn in accordance with Section 11-42-203
596 and calculate whether adequate protests have been filed; and
597 (ii) hold a public meeting to announce the protest tally and whether adequate protests
598 have been filed.
599 (b) If adequate protests are not filed, the governing body at the public meeting may
600 adopt a resolution or ordinance:
601 (i) abandoning the proposal to designate an assessment area; or
602 (ii) designating an assessment area as described in the notice under Section 11-42-202
603 or with the changes made as authorized under Subsection [
604 [
605 [
606
607 [
608 (c) If adequate protests are filed, the governing body at the public meeting:
609 (i) may not adopt a resolution or ordinance designating the assessment area; and
610 (ii) may adopt a resolution or ordinance to abandon the proposal to designate the
611 assessment area.
612 (d) (i) In the absence of adequate protests upon the expiration of the protest period and
613 subject to Subsection (1)(d)(ii), the governing body may make changes to:
614 (A) an improvement proposed to be provided to the proposed assessment area; or
615 (B) the area or areas proposed to be included within the proposed assessment area.
616 (ii) A governing body may not make a change in accordance with Subsection (1)(d)(i)
617 if the change would result in:
618 (A) a change in the nature of an improvement or reduction in the estimated amount of
619 benefit to a benefitted property, whether in size, quality, or otherwise, than that described in the
620 notice under Subsection 11-42-202(1)(c);
621 (B) an estimated total assessment to any benefitted property within the proposed
622 assessment area that exceeds the estimate stated in the notice under Subsection 11-42-202(1)(e)
623 or 11-42-202(1)(l); or
624 (C) a financing term that extends beyond the estimated term of financing described in
625 Subsection 11-42-202(1)(p).
626 (2) If the notice under Section 11-42-202 indicates that the proposed assessment area is
627 a voluntary assessment area, the governing body shall:
628 (a) delete from the proposed assessment area all property whose owners have not
629 submitted an executed consent form consenting to inclusion of the owner's property in the
630 proposed assessment area; [
631 (b) delete all improvements that solely benefit the property whose owners did not
632 consent; and
633 [
634 (i) the extent of the improvements required to benefit property owners who consented;
635 [
636 voluntary assessment area; [
637 [
638 will receive from improvements proposed to be financed by assessments on the property[
639 [
640
641 (iv) the extent to which the improvements may be scaled to benefit only the assessed
642 properties.
643 [
644 designating an assessment area, the governing body shall, within 15 days after adopting the
645 designation resolution or ordinance:
646 (i) record the original or certified copy of the designation resolution or ordinance in the
647 office of the recorder of the county in which property within the assessment area is located; and
648 (ii) file with the recorder of the county in which property within the assessment area is
649 located a notice of proposed assessment that:
650 (A) states that the local entity has designated an assessment area; and
651 (B) lists, by legal description and tax identification number as identified on county
652 records, the property proposed to be assessed.
653 [
654
655 (b) If a governing body fails to comply with the requirements of Subsection (3)(a):
656 (i) the failure does not invalidate the designation of an assessment area; and
657 (ii) the local entity may not assess a levy against a subsequent purchaser of a benefitted
658 property that lacked recorded notice unless:
659 (A) the subsequent purchaser gives written consent;
660 (B) the subsequent purchaser has actual notice of the assessment levy; or
661 (C) the subsequent purchaser purchased the property after a corrected notice was filed
662 under Subsection (3)(c).
663 (c) The governing body may file a corrected notice under Subsection (3)(a)(i) or (ii) if
664 it failed to comply with the date or other requirements for recording notice of the designation
665 resolution or ordinance.
666 (d) If a governing body has filed a corrected notice under Subsection (3)(c), the local
667 entity may not retroactively collect or adjust the amount of the levy to recapture lost funds for a
668 levy that the local entity was prohibited from collecting, if applicable, under Subsection (3)(b).
669 (e) A local entity shall pay for a shortfall in assessment funds created under Subsection
670 (3)(b) or (d) from the local entity's general fund and not by increasing or adjusting the
671 assessment of any other property within the assessment area.
672 [
673 (1)[
674 Section 9. Section 11-42-207 is amended to read:
675 11-42-207. Adding property to an assessment area.
676 (1) A local entity may add to a designated assessment area property to be benefitted
677 and assessed if the governing body:
678 (a) finds that the inclusion of the property will not adversely affect the owners of
679 property already in the assessment area;
680 (b) obtains from each owner of property to be added and benefitted a written consent
681 that contains:
682 (i) the owner's consent to:
683 (A) the owner's property being added to the assessment area; and
684 (B) the making of the proposed improvements with respect to the owner's property;
685 (ii) the legal description and tax identification number of the property to be added; and
686 (iii) the owner's waiver of any right to protest the creation of the assessment area;
687 (c) amends the designation resolution or ordinance to include the added property; and
688 (d) within 15 days after amending the designation resolution or ordinance:
689 (i) records in the office of the recorder of the county in which the added property is
690 located the original or certified copy of the amended designation resolution or ordinance
691 containing the legal description and tax identification number as identified on county records of
692 each additional parcel of property added to the assessment area and proposed to be assessed;
693 and
694 (ii) gives written notice to the property owner of the inclusion of the owner's property
695 in the assessment area.
696 [
697
698
699 (2) (a) If a governing body fails to comply with the requirements of Subsection
700 (1)(d)(i):
701 (i) the failure does not invalidate the amended designation resolution or ordinance; and
702 (ii) the local entity may not assess a levy against a subsequent purchaser of a benefitted
703 property that lacked recorded notice unless:
704 (A) the subsequent purchaser gives written consent;
705 (B) the subsequent purchaser has actual notice of the assessment levy; or
706 (C) the subsequent purchaser purchased the property after a corrected notice was filed
707 under Subsection (2)(c).
708 (b) The governing body may file a corrected notice under Subsection (1)(d)(i) if it
709 failed to comply with the date or other requirements for recording notice of the amended
710 designation resolution or ordinance.
711 (c) If a governing body has filed a corrected notice under Subsection (2)(b), the local
712 entity may not retroactively collect or adjust the amount of the levy to recapture lost funds for a
713 levy that the local entity was prohibited from collecting, if applicable, under Subsection (2)(a).
714 (d) A local entity shall pay for a shortfall in assessment funds created under Subsection
715 (2)(a) or (c) from the local entity's general fund and not by increasing or adjusting the
716 assessment of any other property within the assessment area.
717 (3) Except as provided in this section, a local entity may not add to an assessment area
718 property not included in a notice under Section 11-42-202, or provide for making
719 improvements that are not stated in the notice, unless the local entity gives notice as provided
720 in Section 11-42-202 and holds a hearing as required under Section 11-42-204 as to the added
721 property or additional improvements.
722 Section 10. Section 11-42-401 is amended to read:
723 11-42-401. Levying an assessment -- Prerequisites -- Assessment list.
724 (1) (a) If a local entity has designated an assessment area in accordance with Part 2,
725 Designating an Assessment Area, the local entity may levy an assessment against property
726 within that assessment area as provided in this part.
727 (b) If a local entity that is a municipality or county designates an assessment area in
728 accordance with this chapter, the municipality or county may levy an assessment and collect
729 the assessment in accordance with Subsection 11-42-202(1)[
730 (c) An assessment billed by a municipality or county in the same manner as a property
731 tax and included on a property tax notice in accordance with Subsection
732 11-42-202(1)[
733 and is subject to other penalty provisions in accordance with this chapter.
734 (2) Before a governing body may adopt a resolution or ordinance levying an
735 assessment against property within an assessment area:
736 (a) the governing body shall:
737 (i) subject to Subsection (3), prepare an assessment list designating:
738 (A) each parcel of property proposed to be assessed; and
739 (B) the amount of the assessment to be levied against the property;
740 (ii) appoint a board of equalization as provided in Section 11-42-403; and
741 (iii) give notice as provided in Section 11-42-402; and
742 (b) the board of equalization, appointed under Section 11-42-403, shall:
743 (i) hold hearings[
744 (ii) determine if the assessment for each benefitted property meets the requirements of
745 Section 11-42-409;
746 (iii) make necessary corrections so that assessed properties are not assessed for benefits
747 conferred exclusively outside of the assessment area;
748 (iv) make necessary corrections so that the benefitted properties are not charged for an
749 increase in size or capacity of an improvement where the increased size or capacity is to serve
750 property outside of the assessment area;
751 (v) make any corrections it considers appropriate to an assessment[
752 (vi) report its findings to the governing body as provided in Section 11-42-403.
753 (3) (a) The governing body of a local entity shall prepare the assessment list described
754 in Subsection (2)(a)(i) at any time after:
755 (i) the governing body has determined the estimated or actual operation and
756 maintenance costs, if the assessment is to pay operation and maintenance costs;
757 (ii) the governing body has determined the estimated or actual economic promotion
758 costs described in Section 11-42-206, if the assessment is to pay for economic promotion
759 activities; or
760 (iii) for any other assessment, the governing body has determined:
761 (A) the estimated or actual acquisition and construction costs of all proposed
762 improvements within the assessment area, including overhead costs actually incurred and
763 authorized reasonable contingencies;
764 (B) the estimated or actual property price for all property to be acquired to provide the
765 proposed improvements; and
766 (C) the estimated reasonable cost of any work to be [
767 entity.
768 (b) In addition to the requirements of Subsection (3)(a), the governing body of a local
769 entity shall prepare the assessment list described in Subsection (2)(a)(i) before:
770 (i) the light service has commenced, if the assessment is to pay for light service; or
771 (ii) the park maintenance has commenced, if the assessment is to pay for park
772 maintenance.
773 (4) A local entity may levy an assessment for some or all of the cost of improvements
774 within an assessment area, including payment of:
775 (a) operation and maintenance costs of improvements constructed within the
776 assessment area only to the extent the improvements provide benefits to the properties within
777 the assessment area and in accordance with Section 11-42-409;
778 (b) (i) if an outside entity furnishes utility services or maintains utility improvements,
779 the actual cost that the local entity pays for utility services or for maintenance of
780 improvements; or
781 (ii) if the local entity itself furnishes utility service or maintains improvements, for the
782 [
783 or reasonable costs for reimbursement of actual costs incurred by the local entity, for supplying
784 the utility service or maintenance;
785 (c) the [
786 materials, or equipment in connection with improvements; and
787 (d) (i) the actual costs that are reasonable [
788 (ii) the reasonable [
789
790
791 (5) A local entity may not levy an assessment for an amount donated or contributed for
792 an improvement or part of an improvement or for anything other than the costs actually and
793 reasonably incurred by the local entity in order to provide an improvement or conduct
794 operation and maintenance or economic promotion activities.
795 (6) The validity of an otherwise valid assessment is not affected because the actual and
796 reasonable cost of improvements exceeds the estimated cost.
797 (7) (a) Subject to Subsection (7)(b), an assessment levied to pay for operation and
798 maintenance costs may not be levied over a period of time exceeding five years beginning on
799 the day on which the local entity adopts the assessment ordinance or assessment resolution for
800 the operation and maintenance costs assessment.
801 (b) A local entity may levy an additional assessment described in Subsection (7)(a) in
802 the assessment area designated for the assessment described in Subsection (7)(a) if, after the
803 five-year period expires, the local entity:
804 (i) gives notice in accordance with Section 11-42-402 of the new five-year term of the
805 assessment; and
806 (ii) complies with the applicable levy provisions of this part.
807 Section 11. Section 11-42-402 is amended to read:
808 11-42-402. Notice of assessment and board of equalization hearing.
809 Each notice required under Subsection 11-42-401(2)(a)(iii) shall:
810 (1) state:
811 (a) that an assessment list is completed and available for examination at the offices of
812 the local entity;
813 (b) the total estimated or actual cost of the improvements;
814 (c) the amount of the total estimated or actual cost of the proposed improvements to be
815 paid by the local entity;
816 (d) the amount of the assessment to be levied against benefitted property within the
817 assessment area;
818 (e) the assessment method used to calculate the proposed assessment;
819 (f) the unit cost used to calculate the assessments shown on the assessment list, based
820 on the assessment method used to calculate the proposed assessment; and
821 (g) the dates, times, and place of the board of equalization hearings under Subsection
822 11-42-401(2)(b)(i);
823 (2) (a) beginning at least 20 but not more than 35 days before the day on which the first
824 hearing of the board of equalization is held:
825 (i) be published at least once in a newspaper of general circulation within the local
826 entity's jurisdictional boundaries; or
827 (ii) if there is no newspaper of general circulation within the local entity's jurisdictional
828 boundaries, be posted in at least three public places within the local entity's jurisdictional
829 boundaries; and
830 (b) be published on the Utah Public Notice Website created in Section 63F-1-701 for
831 35 days immediately before the day on which the first hearing of the board of equalization is
832 held; and
833 (3) be mailed, postage prepaid, within 10 days after the first publication or posting of
834 the notice under Subsection (2) to each owner of property to be assessed within the proposed
835 assessment area at the property owner's mailing address.
836 Section 12. Section 11-42-403 is amended to read:
837 11-42-403. Board of equalization -- Hearings -- Corrections to proposed
838 assessment list -- Report to governing body -- Appeal -- Board findings final -- Waiver of
839 objections.
840 (1) After preparing an assessment list under Subsection 11-42-401(2)(a)(i), the
841 governing body shall appoint a board of equalization.
842 (2) Each board of equalization under this section shall, at the option of the governing
843 body, consist of:
844 (a) three or more members of the governing body;
845 (b) (i) two members of the governing body; and
846 (ii) (A) a representative of the treasurer's office of the local entity; or
847 (B) a representative of the office of the local entity's engineer or the project engineer;
848 or
849 (c) (i) (A) one member of the governing body; or
850 (B) a representative of the governing body, whether or not a member of the governing
851 body, appointed by the governing body;
852 (ii) a representative of the treasurer's office of the local entity; and
853 (iii) a representative of the office of the local entity's engineer or the project engineer.
854 (3) (a) The board of equalization shall hold hearings on at least three consecutive days
855 for at least one hour per day between 9 a.m. and 9 p.m., as specified in the notice under Section
856 11-42-402.
857 (b) The board of equalization may continue a hearing from time to time to a specific
858 place and a specific hour and day until the board's work is completed.
859 (c) At each hearing, the board of equalization shall hear arguments from any person
860 who claims to be aggrieved, including arguments relating to:
861 (i) the [
862 property in the assessment area; or
863 (ii) the amount of the proposed assessment against the tract, block, lot, or parcel.
864 (4) (a) After the hearings under Subsection (3) are completed, the board of equalization
865 shall:
866 (i) consider all facts and arguments presented at the hearings; and
867 (ii) make any corrections to the proposed assessment list [
868
869 11-42-409.
870 (b) A correction under Subsection (4)(a)(ii) may:
871 (i) eliminate one or more pieces of property from the assessment list; or
872 (ii) increase or decrease the amount of the assessment proposed to be levied against a
873 parcel of property.
874 (c) (i) If the board of equalization makes a correction under Subsection (4)(a)(ii) that
875 results in an increase of a proposed assessment, the board shall, before approving a corrected
876 assessment list:
877 (A) give notice as provided in Subsection (4)(c)(ii);
878 (B) hold a hearing at which the owner whose assessment is proposed to be increased
879 may appear and object, in person or in writing, to the proposed increase; and
880 (C) after holding a hearing, make any further corrections that the board considers [
881
882 requirements of Section 11-42-409.
883 (ii) Each notice required under Subsection (4)(c)(i)(A) shall:
884 (A) state:
885 (I) that the property owner's assessment is proposed to be increased;
886 (II) the amount of the proposed increased assessment;
887 (III) that a hearing will be held at which the owner may appear and object to the
888 increase; and
889 (IV) the date, time, and place of the hearing; and
890 (B) be mailed, at least 15 days before the date of the hearing, to each owner of property
891 as to which the assessment is proposed to be increased at the property owner's mailing address.
892 (5) (a) After the board of equalization has held all hearings required by this section and
893 has made all corrections the board considers [
894 Section 11-42-409, the board shall report to the governing body its findings that:
895 (i) each [
896
897
898 (ii) except as provided in Subsection 11-42-409[
899 assessment list will bear more than its [
900 actual costs that are reasonable of the improvements benefitting the property in accordance
901 with Subsection 11-42-409.
902 (b) The board of equalization shall, within 10 days after submitting its report to the
903 governing body, mail a copy of the board's final report to each property owner who objected at
904 the board hearings to the assessment proposed to be levied against the property owner's
905 property at the property owner's mailing address.
906 (6) (a) If a board of equalization includes members other than the governing body of
907 the local entity, a property owner may appeal a decision of the board to the governing body by
908 filing with the governing body a written notice of appeal within 15 days after the board's final
909 report is mailed to property owners under Subsection (5)(b).
910 (b) Except as provided in Subsection (6)(a), no appeal may be taken from the findings
911 of a board of equalization.
912 (7) The findings of a board of equalization are final:
913 (a) when approved by the governing body, if no appeal is allowed under Subsection
914 (6); or
915 (b) after the time for appeal under Subsection (6) is passed, if an appeal is allowed
916 under that subsection.
917 (8) (a) If a governing body has levied an assessment to pay operation and maintenance
918 costs within an assessment area, the governing body may periodically appoint a new board of
919 equalization to review assessments for operation and maintenance costs.
920 (b) Each board of equalization appointed under Subsection (8)(a) shall comply with the
921 requirements of Subsections (3) through (6).
922 [
923
924
925
926
927 (9) (a) An owner who fails to make an objection setting forth all claims, in accordance
928 with Subsection (9)(b), to the board of equalization waives all objections, except as provided in
929 Subsection (10), to the levy.
930 (b) An owner may set forth a claim and object to a levy by:
931 (i) appearing before the board of equalization in person or through a designated agent;
932 or
933 (ii) submitting the objection in writing if the objection is received by the board of
934 equalization before:
935 (A) the first hearing as described in Subsection (3)(a); or
936 (B) if applicable to the owner, a subsequent hearing described in Subsection
937 (4)(c)(i)(B).
938 (10) The provisions of Subsection (9)(a) do not prohibit an owner's objection that the
939 governing body failed to obtain jurisdiction to order that the improvements which the
940 assessment is intended to pay be provided to the assessment area.
941 (11) (a) This section may not be interpreted to insulate a local entity from a claim of
942 misuse of assessment funds.
943 (b) (i) Except as provided in Subsection (11)(b)(ii), an action in the nature of
944 mandamus is the sole form of relief available to a party challenging the misuse of assessment
945 funds.
946 (ii) The limitation in Subsection (11)(b)(i) does not prohibit the filing of criminal
947 charges against or the prosecution of a party for the misuse of assessment funds.
948 Section 13. Section 11-42-404 is amended to read:
949 11-42-404. Adoption of a resolution or ordinance levying an assessment -- Notice
950 of the adoption -- Effective date of resolution or ordinance -- Notice of assessment
951 interest.
952 (1) (a) After receiving a final report from a board of equalization under Subsection
953 11-42-403(5) or, if applicable, after the time for filing an appeal under Subsection
954 11-42-403(6) has passed, the governing body may adopt a resolution or ordinance levying an
955 assessment against benefitted property within the assessment area designated in accordance
956 with Part 2, Designating an Assessment Area.
957 (b) [
958 more than one assessment under this chapter for an assessment area designated in accordance
959 with Part 2, Designating an Assessment Area.
960 [
961 designated in accordance with Part 2, Designating an Assessment Area, if:
962 [
963 for each assessment in accordance with Section 11-42-201; and
964 [
965 [
966 [
967 or
968 (C) the costs of environmental remediation activities.
969 [
970 (i) need not describe each tract, block, lot, part of block or lot, or parcel of property to
971 be assessed;
972 (ii) need not include the legal description or tax identification number of the parcels of
973 property assessed in the assessment area; and
974 (iii) is adequate for purposes of identifying the property to be assessed within the
975 assessment area if the assessment resolution or ordinance incorporates by reference the
976 corrected assessment list that describes the property assessed by legal description and tax
977 identification number.
978 (2) (a) A local entity that adopts an assessment resolution or ordinance shall give notice
979 of the adoption by:
980 (i) (A) publishing a copy of the resolution or ordinance, or a summary of the resolution
981 or ordinance, once in a newspaper of general circulation within the local entity's jurisdictional
982 boundaries; or
983 (B) if there is no newspaper of general circulation with the local entity's jurisdictional
984 boundaries as described in Subsection (2)(a)(i), posting a copy of the resolution or ordinance in
985 at least three public places within the local entity's jurisdictional boundaries for at least 21
986 days; and
987 (ii) publishing, in accordance with Section 45-1-101, a copy of the resolution or
988 ordinance for at least 21 days.
989 (b) No other publication or posting of the resolution or ordinance is required.
990 (3) Notwithstanding any other statutory provision regarding the effective date of a
991 resolution or ordinance, each assessment resolution or ordinance takes effect:
992 (a) on the date of publication or posting of the notice under Subsection (2); or
993 (b) at a later date provided in the resolution or ordinance.
994 (4) (a) The governing body of each local entity that has adopted an assessment
995 resolution or ordinance under Subsection (1) shall, within five days after the day on which the
996 25-day prepayment period under Subsection 11-42-411(6) has passed, file a notice of
997 assessment interest with the recorder of the county in which the assessed property is located.
998 (b) Each notice of assessment interest under Subsection (4)(a) shall:
999 (i) state that the local entity has an assessment interest in the assessed property;
1000 (ii) if the assessment is to pay operation and maintenance costs or for economic
1001 promotion activities, state the maximum number of years over which an assessment will be
1002 payable; and
1003 (iii) describe the property assessed by legal description and tax identification number.
1004 (c) A local entity's failure to file a notice of assessment interest under this Subsection
1005 (4) has no affect on the validity of an assessment levied under an assessment resolution or
1006 ordinance adopted under Subsection (1).
1007 Section 14. Section 11-42-406 is amended to read:
1008 11-42-406. Assessment for economic promotion activities -- Duration --
1009 Reporting.
1010 (1) (a) If the governing body of a local entity designates an assessment area in
1011 accordance with Part 2, Designating an Assessment Area, for economic promotion activities,
1012 the governing body:
1013 (i) subject to Subsection (1)(a)(ii), may levy an assessment to pay for economic
1014 promotion activities by adopting an assessment resolution or ordinance in accordance with
1015 Section 11-42-404; and
1016 [
1017
1018 [
1019
1020 [
1021
1022 (ii) except as provided in Subsection (1)(b), may not levy the assessment for a period
1023 longer than five years.
1024 (b) A governing body may [
1025 for economic promotion activities after the five-year period described in Subsection
1026 (1)(a)(ii)[
1027 (i) designates a new assessment area in accordance with Part 2, Designating an
1028 Assessment Area; [
1029 (ii) adopts a new assessment resolution or ordinance in accordance with Section
1030 11-42-404[
1031 (iii) limits each additional assessment to a five-year period; and
1032 (iv) complies with Subsections (1)(b)(i) through (iii) for each additional assessment.
1033 (2) If a local entity designates an assessment area for economic promotion activities,
1034 the local entity:
1035 (a) shall spend on economic promotion activities at least 70% of the money generated
1036 from an assessment levied in the assessment area and from improvement revenues;
1037 (b) may not spend more than 30% of the money generated from the assessment levied
1038 in the assessment area and from improvement revenues on administrative costs, including
1039 salaries, benefits, rent, travel, and costs incidental to publications; and
1040 (c) in accordance with Subsection (3), shall publish a detailed report including the
1041 following:
1042 (i) an account of money deposited into the assessment fund described in Section
1043 11-42-412;
1044 (ii) an account of expenditures from the fund described in Section 11-42-412; and
1045 (iii) a detailed account of whether each expenditure described in Subsection (2)(c)(ii)
1046 was made for economic promotion activities described in Subsection (2)(a) or for
1047 administrative costs described in Subsection (2)(b).
1048 (3) A local entity shall publish a report required in Subsection (2)(c):
1049 (a) on:
1050 (i) if available, the local entity's public web site; and
1051 (ii) if the local entity is not a county or municipality, on the public web site of any
1052 county or municipality in which the local entity has jurisdiction;
1053 (b) (i) within one year after the day on which the local entity adopts a new assessment
1054 resolution or ordinance for economic promotion activities; and
1055 (ii) each subsequent year that the economic promotion activities levy is assessed by
1056 updating the information described in Subsection (2)(c); and
1057 (c) for six months on a web site described in Subsection (3)(a) after the day on which
1058 the report is initially published under Subsection (3)(b) or updated under Subsection (3)(b)(ii).
1059 Section 15. Section 11-42-409 is amended to read:
1060 11-42-409. Assessment requirements and prohibitions -- Economic promotion
1061 activities assessment requirements and prohibitions -- Allocation for unassessed
1062 benefitted government property.
1063 (1) (a) Each local entity that levies an assessment under this chapter [
1064
1065
1066 [
1067 [
1068
1069 (i) except for an appropriate allocation for an unassessed benefitted government
1070 property, may not assess a property for more than the amount that the property benefits by the
1071 improvement, operation and maintenance, or economic promotion activities;
1072 (ii) may levy an assessment only for the actual costs that are reasonable; and
1073 (iii) shall levy an assessment on a benefitted property in an amount that reflects an
1074 equitable portion, subject to Subsection (1)(b), of the benefit the property will receive from an
1075 improvement, operation and maintenance, or economic promotion activities for which the
1076 assessment is levied.
1077 (b) The local entity, in accounting for a property's benefit or portion of a benefit
1078 received from an improvement, operation and maintenance, or economic promotion activities,
1079 shall consider:
1080 (i) any benefit that can be directly identified with the property; and
1081 (ii) the property's roughly equivalent portion of the benefit that is collectively shared by
1082 all the assessed properties in the entire assessment area or classification.
1083 [
1084 the benefit to the property from the improvement[
1085 the fair market value of the property.
1086 (2) The assessment method a governing body uses to calculate an assessment may be
1087 according to frontage, area, taxable value, fair market value, lot, parcel, number of connections,
1088 equivalent residential unit, or any combination of these methods, or any other method as the
1089 governing body considers [
1090 and (b).
1091 [
1092 (3) A local entity that levies an assessment under this chapter for an improvement:
1093 (a) shall:
1094 (i) (A) levy the assessment on each block, lot, tract, or parcel of property that benefits
1095 from the improvement; and
1096 (B) to whatever depth, including full depth, on the parcel of property that the governing
1097 body determines but that still complies with Subsections (1)(a) and (b);
1098 (ii) make an allowance for each corner lot receiving the same improvement on both
1099 sides so that the property is not assessed at the full rate on both sides; and
1100 (iii) pay for any increase in size or capacity that serves property outside of the
1101 assessment area with funds other than those levied by an assessment;
1102 (b) may:
1103 [
1104 [
1105 the same method, if acquisition or construction costs differ from [
1106 to classification;
1107 [
1108
1109
1110 [
1111 (iii) allocate a corner lot allowance under Subsection [
1112 benefitted property within the assessment area by increasing the assessment levied against the
1113 other assessed property[
1114 [
1115
1116 [
1117
1118 (v) assess property to replace improvements that are approaching or have exceeded
1119 their useful life or to increase the level of service of an existing improvement; and
1120 (c) may not:
1121 (i) consider the costs of the additional size or capacity of an improvement that will be
1122 increased in size or capacity to serve property outside of the assessment area when calculating
1123 an assessment or determining an assessment method; or
1124 (ii) except for in a voluntary assessment area or as provided in Subsection (3)(b)(v),
1125 assess a property for an improvement that would duplicate or provide a reasonably similar
1126 service that is already provided to the property.
1127 (4) A local entity that levies an assessment under this chapter for economic promotion
1128 activities:
1129 (a) may:
1130 (i) levy an assessment only on commercial or industrial real property; and
1131 (ii) create classifications based on property use, or other distinguishing factors, to
1132 determine the estimated benefit to the assessed property;
1133 (b) may rely on, in addition to the assessment methods described in Subsection (2),
1134 estimated benefits from an increase in:
1135 (i) office lease rates;
1136 (ii) retail sales rates;
1137 (iii) customer base;
1138 (iv) public perception;
1139 (v) hotel room rates and occupancy levels;
1140 (vi) property values;
1141 (vii) the commercial environment from enhanced services;
1142 (viii) another articulable method of estimating benefits; or
1143 (ix) a combination of the methods described in Subsections (4)(b)(i) through (viii);
1144 (c) subject to Subsection (4)(d), shall use an assessment method that, when applied to a
1145 benefitted property, meets the requirements of Subsection (1)(a); and
1146 (d) may not use taxable value, fair market value, or any other assessment method based
1147 on the value of the property as the sole assessment method.
1148 [
1149 provision of this chapter if the owners of all property to be assessed voluntarily enter into a
1150 written agreement with the local entity consenting to the assessment.
1151 (6) A local entity may allocate the cost of a benefit received by an unassessed
1152 benefitted government property to all other benefitted property within the assessment area by
1153 increasing the assessment levied against the other assessed property in the same proportion as
1154 the improvement, operation and maintenance, or economic promotion activities are assessed.