This document includes Senate 2nd Reading Floor Amendments incorporated into the bill on Thu, Feb 25, 2016 at 4:34 PM by lpoole.
Representative Daniel McCay proposes the following substitute bill:


1     
PROPERTY TAX CHANGES

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Daniel McCay

5     
Senate Sponsor: Deidre M. Henderson

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to property tax.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     modifies the calculation of certain property tax rates;
14          ▸     repeals obsolete language; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides a special effective date.
20     Utah Code Sections Affected:
21     AMENDS:
22          20A-7-613, as last amended by Laws of Utah 2015, Chapter 258
23          53A-16-106, as last amended by Laws of Utah 2008, Chapters 61, 231, and 236
24          53A-16-113, as last amended by Laws of Utah 2013, Chapter 287
25          53A-17a-103, as last amended by Laws of Utah 2015, Chapter 287

26          53A-17a-133, as last amended by Laws of Utah 2015, Chapter 287
27          53A-17a-164, as last amended by Laws of Utah 2013, Chapters 178 and 313
28          53A-19-105, as last amended by Laws of Utah 2009, Chapter 204
29          59-2-102, as last amended by Laws of Utah 2015, Chapters 133, 198, and 287
30          59-2-913, as last amended by Laws of Utah 2014, Chapter 279
31          59-2-919, as and further amended by Revisor Instructions, Laws of Utah 2014, Chapter
32     256 and last amended by Laws of Utah 2014, Chapter 256
33          59-2-924, as last amended by Laws of Utah 2014, Chapter 270
34          59-2-924.3, as last amended by Laws of Utah 2011, Chapter 371
35          59-2-926, as last amended by Laws of Utah 2009, Chapter 388
36          63I-1-259, as last amended by Laws of Utah 2015, Chapters 224, 275, and 467
37     

38     Be it enacted by the Legislature of the state of Utah:
39          Section 1. Section 20A-7-613 is amended to read:
40          20A-7-613. Property tax referendum petition.
41          (1) As used in this section:
42          (a) "Certified tax rate" [is as] means the same as that term is defined in [Subsection]
43     Section 59-2-924[(3)(a)].
44          (b) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year
45     that begins on July 1 and ends on June 30.
46          (2) Except as provided in this section, the requirements of this part apply to a
47     referendum petition challenging a fiscal year taxing entity's legislative body's vote to impose a
48     tax rate that exceeds the certified tax rate.
49          (3) Notwithstanding Subsection 20A-7-604(5), the local clerk shall number each of the
50     referendum packets and return them to the sponsors within two working days.
51          (4) Notwithstanding Subsection 20A-7-606(1), the sponsors shall deliver each signed
52     and verified referendum packet to the county clerk of the county in which the packet was
53     circulated no later than 40 days after the day on which the local clerk complies with Subsection
54     (3).
55          (5) Notwithstanding Subsections 20A-7-606(2) and (3), the county clerk shall take the
56     actions required in Subsections 20A-7-606(2) and (3) within 10 working days after the day on

57     which the county clerk receives the signed and verified referendum packet as described in
58     Subsection (4).
59          (6) The local clerk shall take the actions required by Section 20A-7-607 within two
60     working days after the day on which the local clerk receives the referendum packets from the
61     county clerk.
62          (7) Notwithstanding Subsection 20A-7-608(2), the local attorney shall prepare the
63     ballot title within two working days after the day on which the referendum petition is declared
64     sufficient for submission to a vote of the people.
65          (8) Notwithstanding Subsection 20A-7-609(2)(c), a referendum that qualifies for the
66     ballot under this section shall appear on the ballot for the earlier of the next regular general
67     election or the next municipal general election unless a special election is called.
68          (9) Notwithstanding the requirements related to absentee ballots under this title:
69          (a) the election officer shall prepare absentee ballots for those voters who have
70     requested an absentee ballot as soon as possible after the ballot title is prepared as described in
71     Subsection (7); and
72          (b) the election officer shall mail absentee ballots on a referendum under this section
73     the later of:
74          (i) the time provided in Section 20A-3-305 or 20A-16-403; or
75          (ii) the time that absentee ballots are prepared for mailing under this section.
76          (10) Section 20A-7-402 does not apply to a referendum described in this section.
77          (11) (a) If a majority of voters does not vote against imposing the tax at a rate
78     calculated to generate the increased revenue budgeted, adopted, and approved by the fiscal year
79     taxing entity's legislative body:
80          (i) the certified tax rate for the fiscal year during which the referendum petition is filed
81     is its most recent certified tax rate; and
82          (ii) the proposed increased revenues for purposes of establishing the certified tax rate
83     for the fiscal year after the fiscal year described in Subsection (11)(a)(i) are the proposed
84     increased revenues budgeted, adopted, and approved by the fiscal year taxing entity's legislative
85     body before the filing of the referendum petition.
86          (b) If a majority of voters votes against imposing a tax at the rate established by the
87     vote of the fiscal year taxing entity's legislative body, the certified tax rate for the fiscal year

88     taxing entity is its most recent certified tax rate.
89          (c) If the tax rate is set in accordance with Subsection (11)(a)(ii), a fiscal year taxing
90     entity is not required to comply with the notice and public hearing requirements of Section
91     59-2-919 if the fiscal year taxing entity complies with those notice and public hearing
92     requirements before the referendum petition is filed.
93          (12) The ballot title shall, at a minimum, include in substantially this form the
94     following: "Shall the [name of the taxing entity] be authorized to levy a tax rate in the amount
95     sufficient to generate an increased property tax revenue of [amount] for fiscal year [year] as
96     budgeted, adopted, and approved by the [name of the taxing entity]".
97          (13) A fiscal year taxing entity shall pay the county the costs incurred by the county
98     that are directly related to meeting the requirements of this section and that the county would
99     not have incurred but for compliance with this section.
100          (14) (a) An election officer shall include on a ballot a referendum that has not yet
101     qualified for placement on the ballot, if:
102          (i) sponsors file an application for a referendum described in this section;
103          (ii) the ballot will be used for the election for which the sponsors are attempting to
104     qualify the referendum; and
105          (iii) the deadline for qualifying the referendum for placement on the ballot occurs after
106     the day on which the ballot will be printed.
107          (b) If an election officer includes on a ballot a referendum described in Subsection
108     (14)(a), the ballot title shall comply with Subsection (12).
109          (c) If an election officer includes on a ballot a referendum described in Subsection
110     (14)(a) that does not qualify for placement on the ballot, the election officer shall inform the
111     voters by any practicable method that the referendum has not qualified for the ballot and that
112     votes cast in relation to the referendum will not be counted.
113          Section 2. Section 53A-16-106 is amended to read:
114          53A-16-106. Annual certification of tax rate proposed by local school board --
115     Inclusion of school district budget -- Modified filing date.
116          (1) Prior to June 22 of each year, each local school board shall certify to the county
117     legislative body in which the district is located, on forms prescribed by the State Tax
118     Commission, the proposed tax rate approved by the local school board.

119          (2) A copy of the district's budget, including items under Section 53A-19-101, and a
120     certified copy of the local school board's resolution which approved the budget and set the tax
121     rate for the subsequent school year beginning July 1 shall accompany the tax rate.
122          (3) If the tax rate approved by the board is in excess of the ["]certified tax rate["], as
123     defined [under Subsection] in Section 59-2-924[(3)(a)], the date for filing the tax rate and
124     budget adopted by the board shall be that established under Section 59-2-919.
125          Section 3. Section 53A-16-113 is amended to read:
126          53A-16-113. Capital local levy -- First class county required levy -- Allowable
127     uses of collected revenue.
128          (1) (a) Subject to the other requirements of this section, a local school board may levy a
129     tax to fund the school district's capital projects.
130          (b) A tax rate imposed by a school district pursuant to this section may not exceed
131     .0030 per dollar of taxable value in any calendar year.
132          (2) A school district that imposes a capital local levy in the calendar year beginning on
133     January 1, 2012, is exempt from the public notice and hearing requirements of Section
134     59-2-919 if the school district budgets an amount of ad valorem property tax revenue equal to
135     or less than the sum of the following amounts:
136          (a) the amount of revenue generated during the calendar year beginning on January 1,
137     2011, from the sum of the following levies of a school district:
138          (i) a capital outlay levy imposed under Section 53A-16-107; and
139          (ii) the portion of the 10% of basic levy described in Section 53A-17a-145 that is
140     budgeted for debt service or capital outlay; and
141          (b) revenue from eligible new growth as defined in [Subsection] Section
142     59-2-924[(4)(c)].
143          (3) Beginning January 1, 2012, in order to qualify for receipt of the state contribution
144     toward the minimum school program described in Section 53A-17a-103, a local school board
145     in a county of the first class shall impose a capital local levy of at least .0006 per dollar of
146     taxable value.
147          (4) (a) The county treasurer of a county of the first class shall distribute revenues
148     generated by the .0006 portion of the capital local levy required in Subsection (2) to school
149     districts within the county in accordance with Section 53A-16-114.

150          (b) If a school district in a county of the first class imposes a capital local levy pursuant
151     to this section that exceeds .0006 per dollar of taxable value, the county treasurer shall
152     distribute revenues generated by the portion of the capital local levy that exceeds .0006 to the
153     school district imposing the levy.
154          (5) (a) Subject to Subsections (5)(b), (c), and (d), for fiscal year 2013-14, a local school
155     board may utilize the proceeds of a maximum of .0024 per dollar of taxable value of the local
156     school board's annual capital local levy for general fund purposes if the proceeds are not
157     committed or dedicated to pay debt service or bond payments.
158          (b) If a local school board uses the proceeds described in Subsection (5)(a) for general
159     fund purposes, the local school board shall notify the public of the local school board's use of
160     the capital local levy proceeds for general fund purposes:
161          (i) prior to the local school board's budget hearing in accordance with the notification
162     requirements described in Section 53A-19-102; and
163          (ii) at a budget hearing required in Section 53A-19-102.
164          (c) A local school board may not use the proceeds described in Subsection (5)(a) to
165     fund the following accounting function classifications as provided in the Financial Accounting
166     for Local and State School Systems guidelines developed by the National Center for Education
167     Statistics:
168          (i) 2300 Support Services - General District Administration; or
169          (ii) 2500 Support Services - Central Services.
170          (d) A local school board may not use the proceeds from a distribution described in
171     Subsection (4) for general fund purposes.
172          Section 4. Section 53A-17a-103 is amended to read:
173          53A-17a-103. Definitions.
174          As used in this chapter:
175          (1) "Basic state-supported school program" or "basic program" means public education
176     programs for kindergarten, elementary, and secondary school students that are operated and
177     maintained for the amount derived by multiplying the number of weighted pupil units for each
178     school district or charter school by the value established each year in statute, except as
179     otherwise provided in this chapter.
180          (2) (a) "Certified revenue levy" means a property tax levy that provides an amount of

181     ad valorem property tax revenue equal to the sum of:
182          (i) the amount of ad valorem property tax revenue to be generated statewide in the
183     previous year from imposing a minimum basic tax rate, as specified in Section 53A-17a-135;
184     and
185          (ii) the product of:
186          (A) eligible new growth, as defined in[: (I)] Section 59-2-924[;] and [(II)] rules of the
187     State Tax Commission; and
188          (B) the minimum basic tax rate certified by the State Tax Commission for the previous
189     year.
190          (b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
191     include property tax revenue received statewide from personal property that is:
192          (i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
193     Assessment; and
194          (ii) semiconductor manufacturing equipment.
195          (c) For purposes of calculating the certified revenue levy described in this Subsection
196     (2), the State Tax Commission shall use:
197          (i) the taxable value of real property assessed by a county assessor contained on the
198     assessment roll;
199          (ii) the taxable value of real and personal property assessed by the State Tax
200     Commission; and
201          (iii) the taxable year end value of personal property assessed by a county assessor
202     contained on the prior year's assessment roll.
203          (3) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
204          (4) (a) "State-supported minimum school program" or "Minimum School Program"
205     means public school programs for kindergarten, elementary, and secondary schools as
206     described in this Subsection (4).
207          (b) The minimum school program established in school districts and charter schools
208     shall include the equivalent of a school term of nine months as determined by the State Board
209     of Education.
210          (c) (i) The board shall establish the number of days or equivalent instructional hours
211     that school is held for an academic school year.

212          (ii) Education, enhanced by utilization of technologically enriched delivery systems,
213     when approved by local school boards or charter school governing boards, shall receive full
214     support by the State Board of Education as it pertains to fulfilling the attendance requirements,
215     excluding time spent viewing commercial advertising.
216          (d) (i) A local school board or charter school governing board may reallocate up to 32
217     instructional hours or [4] four school days established under Subsection (4)(c) for teacher
218     preparation time or teacher professional development.
219          (ii) A reallocation of instructional hours or school days under Subsection (4)(d)(i) is
220     subject to the approval of two-thirds of the members of a local school board or charter school
221     governing board voting in a regularly scheduled meeting:
222          (A) at which a quorum of the local school board or charter school governing board is
223     present; and
224          (B) held in compliance with Title 52, Chapter 4, Open and Public Meetings Act.
225          (iii) If a local school board or charter school governing board reallocates instructional
226     hours or school days as provided by this Subsection (4)(d), the school district or charter school
227     shall notify students' parents and guardians of the school calendar at least 90 days before the
228     beginning of the school year.
229          (iv) Instructional hours or school days reallocated for teacher preparation time or
230     teacher professional development pursuant to this Subsection (4)(d) is considered part of a
231     school term referred to in Subsection (4)(b).
232          (e) The Minimum School Program includes a program or allocation funded by a line
233     item appropriation or other appropriation designated as follows:
234          (i) Basic School Program;
235          (ii) Related to Basic Programs;
236          (iii) Voted and Board Levy Programs; or
237          (iv) Minimum School Program.
238          (5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
239     factors that is computed in accordance with this chapter for the purpose of determining the
240     costs of a program on a uniform basis for each district.
241          Section 5. Section 53A-17a-133 is amended to read:
242          53A-17a-133. State-supported voted local levy authorized -- Election

243     requirements -- State guarantee -- Reconsideration of the program.
244          (1) As used in this section, "voted and board local levy funding balance" means the
245     difference between:
246          (a) the amount appropriated for the voted and board local levy program in a fiscal year;
247     and
248          (b) the amount necessary to provide the state guarantee per weighted pupil unit as
249     determined under this section and Section 53A-17a-164 in the same fiscal year.
250          (2) An election to consider adoption or modification of a voted local levy is required if
251     initiative petitions signed by 10% of the number of electors who voted at the last preceding
252     general election are presented to the local school board or by action of the board.
253          (3) (a) (i) To impose a voted local levy, a majority of the electors of a district voting at
254     an election in the manner set forth in Subsections (9) and (10) must vote in favor of a special
255     tax.
256          (ii) The tax rate may not exceed .002 per dollar of taxable value.
257          (b) Except as provided in Subsection (3)(c), in order to receive state support the first
258     year, a district must receive voter approval no later than December 1 of the year prior to
259     implementation.
260          (c) Beginning on or after January 1, 2012, a school district may receive state support in
261     accordance with Subsection (4) without complying with the requirements of Subsection (3)(b)
262     if the local school board imposed a tax in accordance with this section during the taxable year
263     beginning on January 1, 2011 and ending on December 31, 2011.
264          (4) (a) In addition to the revenue a school district collects from the imposition of a levy
265     pursuant to this section, the state shall contribute an amount sufficient to guarantee $33.27 per
266     weighted pupil unit for each .0001 of the first .0016 per dollar of taxable value.
267          (b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
268     of taxable value under Subsection (4)(a) shall apply to the portion of the board local levy
269     authorized in Section 53A-17a-164, so that the guarantee shall apply up to a total of .002 per
270     dollar of taxable value if a school district levies a tax rate under both programs.
271          (c) (i) Beginning July 1, 2015, the $33.27 guarantee under Subsections (4)(a) and (b)
272     shall be indexed each year to the value of the weighted pupil unit for the grades 1 through 12
273     program by making the value of the guarantee equal to .011194 times the value of the prior

274     year's weighted pupil unit for the grades 1 through 12 program.
275          (ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
276     pupil unit for the grades 1 through 12 program for each succeeding year subject to the
277     Legislature appropriating funds for an increase in the guarantee.
278          (d) (i) The amount of state guarantee money to which a school district would otherwise
279     be entitled to receive under this Subsection (4) may not be reduced for the sole reason that the
280     district's levy is reduced as a consequence of changes in the certified tax rate under Section
281     59-2-924 pursuant to changes in property valuation.
282          (ii) Subsection (4)(d)(i) applies for a period of five years following any such change in
283     the certified tax rate.
284          (e) The guarantee provided under this section does not apply to the portion of a voted
285     local levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
286     year, unless an increase in the voted local levy rate was authorized in an election conducted on
287     or after July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
288          (f) (i) If a voted and board local levy funding balance exists for the prior fiscal year, the
289     State Board of Education shall:
290          (A) use the voted and board local levy funding balance to increase the value of the state
291     guarantee per weighted pupil unit described in Subsection (4)(c) in the current fiscal year; and
292          (B) distribute the state contribution to the voted and board local levy programs to
293     school districts based on the increased value of the state guarantee per weighted pupil unit
294     described in Subsection (4)(f)(i)(A).
295          (ii) The State Board of Education shall report action taken under this Subsection (4)(f)
296     to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and
297     Budget.
298          (5) (a) An election to modify an existing voted local levy is not a reconsideration of the
299     existing authority unless the proposition submitted to the electors expressly so states.
300          (b) A majority vote opposing a modification does not deprive the district of authority to
301     continue the levy.
302          (c) If adoption of a voted local levy is contingent upon an offset reducing other local
303     school board levies, the board must allow the electors, in an election, to consider modifying or
304     discontinuing the imposition of the levy prior to a subsequent increase in other levies that

305     would increase the total local school board levy.
306          (d) Nothing contained in this section terminates, without an election, the authority of a
307     school district to continue imposing an existing voted local levy previously authorized by the
308     voters as a voted leeway program.
309          (6) Notwithstanding Section 59-2-919, a school district may budget an increased
310     amount of ad valorem property tax revenue derived from a voted local levy imposed under this
311     section in addition to revenue from eligible new growth as defined in [Subsection] Section
312     59-2-924[(4)], without having to comply with the notice requirements of Section 59-2-919, if:
313          (a) the voted local levy is approved:
314          (i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
315          (ii) within the four-year period immediately preceding the year in which the school
316     district seeks to budget an increased amount of ad valorem property tax revenue derived from
317     the voted local levy; and
318          (b) for a voted local levy approved or modified in accordance with this section on or
319     after January 1, 2009, the school district complies with the requirements of Subsection (8).
320          (7) Notwithstanding Section 59-2-919, a school district may levy a tax rate under this
321     section that exceeds the certified tax rate without having to comply with the notice
322     requirements of Section 59-2-919 if:
323          (a) the levy exceeds the certified tax rate as the result of a school district budgeting an
324     increased amount of ad valorem property tax revenue derived from a voted local levy imposed
325     under this section;
326          (b) the voted local levy was approved:
327          (i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
328          (ii) within the four-year period immediately preceding the year in which the school
329     district seeks to budget an increased amount of ad valorem property tax revenue derived from
330     the voted local levy; and
331          (c) for a voted local levy approved or modified in accordance with this section on or
332     after January 1, 2009, the school district complies with requirements of Subsection (8).
333          (8) For purposes of Subsection (6)(b) or (7)(c), the proposition submitted to the
334     electors regarding the adoption or modification of a voted local levy shall contain the following
335     statement:

336          "A vote in favor of this tax means that (name of the school district) may increase
337     revenue from this property tax without advertising the increase for the next five years."
338          (9) (a) Before imposing a property tax levy pursuant to this section, a school district
339     shall submit an opinion question to the school district's registered voters voting on the
340     imposition of the tax rate so that each registered voter has the opportunity to express the
341     registered voter's opinion on whether the tax rate should be imposed.
342          (b) The election required by this Subsection (9) shall be held:
343          (i) at a regular general election conducted in accordance with the procedures and
344     requirements of Title 20A, Election Code, governing regular elections;
345          (ii) at a municipal general election conducted in accordance with the procedures and
346     requirements of Section 20A-1-202; or
347          (iii) at a local special election conducted in accordance with the procedures and
348     requirements of Section 20A-1-203.
349          (c) Notwithstanding the requirements of Subsections (9)(a) and (b), beginning on or
350     after January 1, 2012, a school district may levy a tax rate in accordance with this section
351     without complying with the requirements of Subsections (9)(a) and (b) if the school district
352     imposed a tax in accordance with this section at any time during the taxable year beginning on
353     January 1, 2011, and ending on December 31, 2011.
354          (10) If a school district determines that a majority of the school district's registered
355     voters voting on the imposition of the tax rate have voted in favor of the imposition of the tax
356     rate in accordance with Subsection (9), the school district may impose the tax rate.
357          Section 6. Section 53A-17a-164 is amended to read:
358          53A-17a-164. Board local levy -- State guarantee.
359          (1) Subject to the other requirements of this section, for a calendar year beginning on
360     or after January 1, 2012, a local school board may levy a tax to fund the school district's
361     general fund.
362          (2) (a) Except as provided in Subsection (2)(b), a tax rate imposed by a school district
363     pursuant to this section may not exceed .0018 per dollar of taxable value in any calendar year.
364          (b) A tax rate imposed by a school district pursuant to this section may not exceed
365     .0025 per dollar of taxable value in any calendar year if, during the calendar year beginning on
366     January 1, 2011, the school district's combined tax rate for the following levies was greater

367     than .0018 per dollar of taxable value:
368          (i) a recreation levy imposed under Section 11-2-7;
369          (ii) a transportation levy imposed under Section 53A-17a-127;
370          (iii) a board-authorized levy imposed under Section 53A-17a-134;
371          (iv) an impact aid levy imposed under Section 53A-17a-143;
372          (v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
373     budgeted for purposes other than capital outlay or debt service;
374          (vi) a reading levy imposed under Section 53A-17a-151; and
375          (vii) a tort liability levy imposed under Section 63G-7-704.
376          (3) (a) In addition to the revenue a school district collects from the imposition of a levy
377     pursuant to this section, the state shall contribute an amount sufficient to guarantee that each
378     .0001 of the first .0004 per dollar of taxable value generates an amount equal to the state
379     guarantee per weighted pupil unit described in Subsection 53A-17a-133(4).
380          (b) (i) The amount of state guarantee money to which a school district would otherwise
381     be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
382     levy is reduced as a consequence of changes in the certified tax rate under Section 59-2-924
383     pursuant to changes in property valuation.
384          (ii) Subsection (3)(b)(i) applies for a period of five years following any changes in the
385     certified tax rate.
386          [(4) A school district that imposes a board local levy in the calendar year beginning on
387     January 1, 2012, is exempt from the public notice and hearing requirements of Section
388     59-2-919 if the school district budgets an amount of ad valorem property tax revenue equal to
389     or less than the sum of the following amounts:]
390          [(a) the amount of revenue generated during the calendar year beginning on January 1,
391     2011, from the sum of the following levies of a school district:]
392          [(i) a recreation levy imposed under Section 11-2-7;]
393          [(ii) a transportation levy imposed under Section 53A-17a-127;]
394          [(iii) a board-authorized levy imposed under Section 53A-17a-134;]
395          [(iv) an impact aid levy imposed under Section 53A-17a-143;]
396          [(v) the portion of a 10% of basic levy imposed under Section 53A-17a-145 that is
397     budgeted for purposes other than capital outlay or debt service;]

398          [(vi) a reading levy imposed under Section 53A-17a-151; and]
399          [(vii) a tort liability levy imposed under Section 63G-7-704; and]
400          [(b) revenue from new growth as defined in Subsection 59-2-924(4)(c).]
401          Section 7. Section 53A-19-105 is amended to read:
402          53A-19-105. School district interfund transfers.
403          (1) A school district shall spend revenues only within the fund for which they were
404     originally authorized, levied, collected, or appropriated.
405          (2) Except as otherwise provided in this section, school district interfund transfers of
406     residual equity are prohibited.
407          (3) The State Board of Education may authorize school district interfund transfers of
408     residual equity when a district states its intent to create a new fund or expand, contract, or
409     liquidate an existing fund.
410          (4) The State Board of Education may also authorize school district interfund transfers
411     of residual equity for a financially distressed district if the board determines the following:
412          (a) the district has a significant deficit in its maintenance and operations fund caused
413     by circumstances not subject to the administrative decisions of the district;
414          (b) the deficit cannot be reasonably reduced under Section 53A-19-104; and
415          (c) without the transfer, the school district will not be capable of meeting statewide
416     educational standards adopted by the State Board of Education.
417          (5) The board shall develop standards for defining and aiding financially distressed
418     school districts under this section in accordance with Title 63G, Chapter 3, Utah
419     Administrative Rulemaking Act.
420          (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
421     and reported in the debt service fund.
422          (b) Debt service levies under Subsection 59-2-924[(3)(e)(iii)] (5)(c) that are not subject
423     to the public hearing provisions of Section 59-2-919 may not be used for any purpose other
424     than retiring general obligation debt.
425          (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
426     year shall be used in subsequent years for general obligation debt retirement.
427          (d) Any amounts left in the debt service fund after all general obligation debt has been
428     retired may be transferred to the capital projects fund upon completion of the budgetary hearing

429     process required under Section 53A-19-102.
430          Section 8. Section 59-2-102 is amended to read:
431          59-2-102. Definitions.
432          As used in this chapter and title:
433          (1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
434     engaging in dispensing activities directly affecting agriculture or horticulture with an
435     airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
436     rotorcraft's use for agricultural and pest control purposes.
437          (2) "Air charter service" means an air carrier operation which requires the customer to
438     hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
439     trip.
440          (3) "Air contract service" means an air carrier operation available only to customers
441     who engage the services of the carrier through a contractual agreement and excess capacity on
442     any trip and is not available to the public at large.
443          (4) "Aircraft" is as defined in Section 72-10-102.
444          (5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
445          (i) operates:
446          (A) on an interstate route; and
447          (B) on a scheduled basis; and
448          (ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
449     regularly scheduled route.
450          (b) "Airline" does not include an:
451          (i) air charter service; or
452          (ii) air contract service.
453          (6) "Assessment roll" means a permanent record of the assessment of property as
454     assessed by the county assessor and the commission and may be maintained manually or as a
455     computerized file as a consolidated record or as multiple records by type, classification, or
456     categories.
457          (7) (a) "Certified revenue levy" means a property tax levy that provides an amount of
458     ad valorem property tax revenue equal to the sum of:
459          (i) the amount of ad valorem property tax revenue to be generated statewide in the

460     previous year from imposing a school minimum basic tax rate, as specified in Section
461     53A-17a-135, or multicounty assessing and collecting levy, as specified in Section 59-2-1602;
462     and
463          (ii) the product of:
464          (A) eligible new growth, as defined in[: (I)] Section 59-2-924; and
465          [(II) rules of the commission; and]
466          (B) the school minimum basic tax rate or multicounty assessing and collecting levy
467     certified by the commission for the previous year.
468          (b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
469     include property tax revenue received by a taxing entity from personal property that is:
470          (i) assessed by a county assessor in accordance with Part 3, County Assessment; and
471          (ii) semiconductor manufacturing equipment.
472          (c) For purposes of calculating the certified revenue levy described in this Subsection
473     (7), the commission shall use:
474          (i) the taxable value of real property assessed by a county assessor contained on the
475     assessment roll;
476          (ii) the taxable value of real and personal property assessed by the commission; and
477          (iii) the taxable year end value of personal property assessed by a county assessor
478     contained on the prior year's assessment roll.
479          (8) "County-assessed commercial vehicle" means:
480          (a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
481     Section 41-1a-301 and is not operated interstate to transport the vehicle owner's goods or
482     property in furtherance of the owner's commercial enterprise;
483          (b) any passenger vehicle owned by a business and used by its employees for
484     transportation as a company car or vanpool vehicle; and
485          (c) vehicles that are:
486          (i) especially constructed for towing or wrecking, and that are not otherwise used to
487     transport goods, merchandise, or people for compensation;
488          (ii) used or licensed as taxicabs or limousines;
489          (iii) used as rental passenger cars, travel trailers, or motor homes;
490          (iv) used or licensed in this state for use as ambulances or hearses;

491          (v) especially designed and used for garbage and rubbish collection; or
492          (vi) used exclusively to transport students or their instructors to or from any private,
493     public, or religious school or school activities.
494          (9) (a) Except as provided in Subsection (9)(b), for purposes of Section 59-2-801,
495     "designated tax area" means a tax area created by the overlapping boundaries of only the
496     following taxing entities:
497          (i) a county; and
498          (ii) a school district.
499          (b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
500     by the overlapping boundaries of:
501          (i) the taxing entities described in Subsection (9)(a); and
502          (ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
503     and the boundaries of the city or town are identical; or
504          (B) a special service district if the boundaries of the school district under Subsection
505     (9)(a) are located entirely within the special service district.
506          (10) "Eligible judgment" means a final and unappealable judgment or order under
507     Section 59-2-1330:
508          (a) that became a final and unappealable judgment or order no more than 14 months
509     prior to the day on which the notice required by Section 59-2-919.1 is required to be mailed;
510     and
511          (b) for which a taxing entity's share of the final and unappealable judgment or order is
512     greater than or equal to the lesser of:
513          (i) $5,000; or
514          (ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
515     previous fiscal year.
516          (11) (a) "Escaped property" means any property, whether personal, land, or any
517     improvements to the property, subject to taxation and is:
518          (i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
519     to the wrong taxpayer by the assessing authority;
520          (ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
521     comply with the reporting requirements of this chapter; or

522          (iii) undervalued because of errors made by the assessing authority based upon
523     incomplete or erroneous information furnished by the taxpayer.
524          (b) Property that is undervalued because of the use of a different valuation
525     methodology or because of a different application of the same valuation methodology is not
526     "escaped property."
527          (12) "Fair market value" means the amount at which property would change hands
528     between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
529     and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
530     market value" shall be determined using the current zoning laws applicable to the property in
531     question, except in cases where there is a reasonable probability of a change in the zoning laws
532     affecting that property in the tax year in question and the change would have an appreciable
533     influence upon the value.
534          (13) "Farm machinery and equipment," for purposes of the exemption provided under
535     Section 59-2-1101, means tractors, milking equipment and storage and cooling facilities, feed
536     handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
537     tools, scales, combines, spreaders, sprayers, haying equipment, including balers and cubers,
538     and any other machinery or equipment used primarily for agricultural purposes; but does not
539     include vehicles required to be registered with the Motor Vehicle Division or vehicles or other
540     equipment used for business purposes other than farming.
541          (14) "Geothermal fluid" means water in any form at temperatures greater than 120
542     degrees centigrade naturally present in a geothermal system.
543          (15) "Geothermal resource" means:
544          (a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
545     and
546          (b) the energy, in whatever form, including pressure, present in, resulting from, created
547     by, or which may be extracted from that natural heat, directly or through a material medium.
548          (16) (a) "Goodwill" means:
549          (i) acquired goodwill that is reported as goodwill on the books and records:
550          (A) of a taxpayer; and
551          (B) that are maintained for financial reporting purposes; or
552          (ii) the ability of a business to:

553          (A) generate income:
554          (I) that exceeds a normal rate of return on assets; and
555          (II) resulting from a factor described in Subsection (16)(b); or
556          (B) obtain an economic or competitive advantage resulting from a factor described in
557     Subsection (16)(b).
558          (b) The following factors apply to Subsection (16)(a)(ii):
559          (i) superior management skills;
560          (ii) reputation;
561          (iii) customer relationships;
562          (iv) patronage; or
563          (v) a factor similar to Subsections (16)(b)(i) through (iv).
564          (c) "Goodwill" does not include:
565          (i) the intangible property described in Subsection (20)(a) or (b);
566          (ii) locational attributes of real property, including:
567          (A) zoning;
568          (B) location;
569          (C) view;
570          (D) a geographic feature;
571          (E) an easement;
572          (F) a covenant;
573          (G) proximity to raw materials;
574          (H) the condition of surrounding property; or
575          (I) proximity to markets;
576          (iii) value attributable to the identification of an improvement to real property,
577     including:
578          (A) reputation of the designer, builder, or architect of the improvement;
579          (B) a name given to, or associated with, the improvement; or
580          (C) the historic significance of an improvement; or
581          (iv) the enhancement or assemblage value specifically attributable to the interrelation
582     of the existing tangible property in place working together as a unit.
583          (17) "Governing body" means:

584          (a) for a county, city, or town, the legislative body of the county, city, or town;
585          (b) for a local district under Title 17B, Limited Purpose Local Government Entities -
586     Local Districts, the local district's board of trustees;
587          (c) for a school district, the local board of education; or
588          (d) for a special service district under Title 17D, Chapter 1, Special Service District
589     Act:
590          (i) the legislative body of the county or municipality that created the special service
591     district, to the extent that the county or municipal legislative body has not delegated authority
592     to an administrative control board established under Section 17D-1-301; or
593          (ii) the administrative control board, to the extent that the county or municipal
594     legislative body has delegated authority to an administrative control board established under
595     Section 17D-1-301.
596          (18) (a) For purposes of Section 59-2-103:
597          (i) "household" means the association of persons who live in the same dwelling,
598     sharing its furnishings, facilities, accommodations, and expenses; and
599          (ii) "household" includes married individuals, who are not legally separated, that have
600     established domiciles at separate locations within the state.
601          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
602     commission may make rules defining the term "domicile."
603          (19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
604     structure, fixture, fence, or other item that is permanently attached to land, regardless of
605     whether the title has been acquired to the land, if:
606          (i) (A) attachment to land is essential to the operation or use of the item; and
607          (B) the manner of attachment to land suggests that the item will remain attached to the
608     land in the same place over the useful life of the item; or
609          (ii) removal of the item would:
610          (A) cause substantial damage to the item; or
611          (B) require substantial alteration or repair of a structure to which the item is attached.
612          (b) "Improvement" includes:
613          (i) an accessory to an item described in Subsection (19)(a) if the accessory is:
614          (A) essential to the operation of the item described in Subsection (19)(a); and

615          (B) installed solely to serve the operation of the item described in Subsection (19)(a);
616     and
617          (ii) an item described in Subsection (19)(a) that:
618          (A) is temporarily detached from the land for repairs; and
619          (B) remains located on the land.
620          (c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
621          (i) an item considered to be personal property pursuant to rules made in accordance
622     with Section 59-2-107;
623          (ii) a moveable item that is attached to land:
624          (A) for stability only; or
625          (B) for an obvious temporary purpose;
626          (iii) (A) manufacturing equipment and machinery; or
627          (B) essential accessories to manufacturing equipment and machinery;
628          (iv) an item attached to the land in a manner that facilitates removal without substantial
629     damage to:
630          (A) the land; or
631          (B) the item; or
632          (v) a transportable factory-built housing unit as defined in Section 59-2-1502 if that
633     transportable factory-built housing unit is considered to be personal property under Section
634     59-2-1503.
635          (20) "Intangible property" means:
636          (a) property that is capable of private ownership separate from tangible property,
637     including:
638          (i) money;
639          (ii) credits;
640          (iii) bonds;
641          (iv) stocks;
642          (v) representative property;
643          (vi) franchises;
644          (vii) licenses;
645          (viii) trade names;

646          (ix) copyrights; and
647          (x) patents;
648          (b) a low-income housing tax credit;
649          (c) goodwill; or
650          (d) a renewable energy tax credit or incentive, including:
651          (i) a federal renewable energy production tax credit under Section 45, Internal Revenue
652     Code;
653          (ii) a federal energy credit for qualified renewable electricity production facilities under
654     Section 48, Internal Revenue Code;
655          (iii) a federal grant for a renewable energy property under American Recovery and
656     Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
657          (iv) a tax credit under Subsection 59-7-614(5).
658          (21) "Livestock" means:
659          (a) a domestic animal;
660          (b) a fish;
661          (c) a fur-bearing animal;
662          (d) a honeybee; or
663          (e) poultry.
664          (22) "Low-income housing tax credit" means:
665          (a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
666     or
667          (b) a low-income housing tax credit under:
668          (i) Section 59-7-607; or
669          (ii) Section 59-10-1010.
670          (23) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
671          (24) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
672     valuable mineral.
673          (25) "Mining" means the process of producing, extracting, leaching, evaporating, or
674     otherwise removing a mineral from a mine.
675          (26) (a) "Mobile flight equipment" means tangible personal property that is:
676          (i) owned or operated by an:

677          (A) air charter service;
678          (B) air contract service; or
679          (C) airline; and
680          (ii) (A) capable of flight;
681          (B) attached to an aircraft that is capable of flight; or
682          (C) contained in an aircraft that is capable of flight if the tangible personal property is
683     intended to be used:
684          (I) during multiple flights;
685          (II) during a takeoff, flight, or landing; and
686          (III) as a service provided by an air charter service, air contract service, or airline.
687          (b) (i) "Mobile flight equipment" does not include a spare part other than a spare
688     engine that is rotated:
689          (A) at regular intervals; and
690          (B) with an engine that is attached to the aircraft.
691          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
692     commission may make rules defining the term "regular intervals."
693          (27) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
694     sand, rock, gravel, and all carboniferous materials.
695          (28) "Part-year residential property" means property that is not residential property on
696     January 1 of a calendar year but becomes residential property after January 1 of the calendar
697     year.
698          (29) "Personal property" includes:
699          (a) every class of property as defined in Subsection (30) that is the subject of
700     ownership and not included within the meaning of the terms "real estate" and "improvements";
701          (b) gas and water mains and pipes laid in roads, streets, or alleys;
702          (c) bridges and ferries;
703          (d) livestock; and
704          (e) outdoor advertising structures as defined in Section 72-7-502.
705          (30) (a) "Property" means property that is subject to assessment and taxation according
706     to its value.
707          (b) "Property" does not include intangible property as defined in this section.

708          (31) "Public utility," for purposes of this chapter, means the operating property of a
709     railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
710     company, electrical corporation, telephone corporation, sewerage corporation, or heat
711     corporation where the company performs the service for, or delivers the commodity to, the
712     public generally or companies serving the public generally, or in the case of a gas corporation
713     or an electrical corporation, where the gas or electricity is sold or furnished to any member or
714     consumers within the state for domestic, commercial, or industrial use. Public utility also
715     means the operating property of any entity or person defined under Section 54-2-1 except water
716     corporations.
717          (32) (a) Subject to Subsection (32)(b), "qualifying exempt primary residential rental
718     personal property" means household furnishings, furniture, and equipment that:
719          (i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
720          (ii) are owned by the owner of the dwelling unit that is the primary residence of a
721     tenant; and
722          (iii) after applying the residential exemption described in Section 59-2-103, are exempt
723     from taxation under this chapter in accordance with Subsection 59-2-1115(2).
724          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
725     commission may by rule define the term "dwelling unit" for purposes of this Subsection (32)
726     and Subsection (35).
727          (33) "Real estate" or "real property" includes:
728          (a) the possession of, claim to, ownership of, or right to the possession of land;
729          (b) all mines, minerals, and quarries in and under the land, all timber belonging to
730     individuals or corporations growing or being on the lands of this state or the United States, and
731     all rights and privileges appertaining to these; and
732          (c) improvements.
733          (34) "Relationship with an owner of the property's land surface rights" means a
734     relationship described in Subsection 267(b), Internal Revenue Code:
735          (a) except that notwithstanding Subsection 267(b), Internal Revenue Code, the term
736     25% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code; and
737          (b) using the ownership rules of Subsection 267(c), Internal Revenue Code, for
738     determining the ownership of stock.

739          (35) (a) Subject to Subsection (35)(b), "residential property," for the purposes of the
740     reductions and adjustments under this chapter, means any property used for residential
741     purposes as a primary residence.
742          (b) Subject to Subsection (35)(c), "residential property":
743          (i) except as provided in Subsection (35)(b)(ii), includes household furnishings,
744     furniture, and equipment if the household furnishings, furniture, and equipment are:
745          (A) used exclusively within a dwelling unit that is the primary residence of a tenant;
746     and
747          (B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
748     and
749          (ii) does not include property used for transient residential use.
750          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
751     commission may by rule define the term "dwelling unit" for purposes of Subsection (32) and
752     this Subsection (35).
753          (36) "Split estate mineral rights owner" means a person who:
754          (a) has a legal right to extract a mineral from property;
755          (b) does not hold more than a 25% interest in:
756          (i) the land surface rights of the property where the wellhead is located; or
757          (ii) an entity with an ownership interest in the land surface rights of the property where
758     the wellhead is located;
759          (c) is not an entity in which the owner of the land surface rights of the property where
760     the wellhead is located holds more than a 25% interest; and
761          (d) does not have a relationship with an owner of the land surface rights of the property
762     where the wellhead is located.
763          (37) (a) "State-assessed commercial vehicle" means:
764          (i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
765     to transport passengers, freight, merchandise, or other property for hire; or
766          (ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
767     transports the vehicle owner's goods or property in furtherance of the owner's commercial
768     enterprise.
769          (b) "State-assessed commercial vehicle" does not include vehicles used for hire which

770     are specified in Subsection (8)(c) as county-assessed commercial vehicles.
771          (38) "Taxable value" means fair market value less any applicable reduction allowed for
772     residential property under Section 59-2-103.
773          (39) "Tax area" means a geographic area created by the overlapping boundaries of one
774     or more taxing entities.
775          (40) "Taxing entity" means any county, city, town, school district, special taxing
776     district, local district under Title 17B, Limited Purpose Local Government Entities - Local
777     Districts, or other political subdivision of the state with the authority to levy a tax on property.
778          (41) "Tax roll" means a permanent record of the taxes charged on property, as extended
779     on the assessment roll and may be maintained on the same record or records as the assessment
780     roll or may be maintained on a separate record properly indexed to the assessment roll. It
781     includes tax books, tax lists, and other similar materials.
782          Section 9. Section 59-2-913 is amended to read:
783          59-2-913. Definitions -- Statement of amount and purpose of levy -- Contents of
784     statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
785     establishing tax levies -- Format of statement.
786          (1) As used in this section, "budgeted property tax revenues" does not include property
787     tax revenue received by a taxing entity from personal property that is:
788          (a) assessed by a county assessor in accordance with Part 3, County Assessment; and
789          (b) semiconductor manufacturing equipment.
790          (2) (a) The legislative body of each taxing entity shall file a statement as provided in
791     this section with the county auditor of the county in which the taxing entity is located.
792          (b) The auditor shall annually transmit the statement to the commission:
793          (i) before June 22; or
794          (ii) with the approval of the commission, on a subsequent date prior to the date
795     required by Section 59-2-1317 for the county treasurer to provide the notice under Section
796     59-2-1317.
797          (c) The statement shall contain the amount and purpose of each levy fixed by the
798     legislative body of the taxing entity.
799          (3) For purposes of establishing the levy set for each of a taxing entity's applicable
800     funds, the legislative body of the taxing entity shall calculate an amount determined by dividing

801     the budgeted property tax revenues, specified in a budget which has been adopted and
802     approved prior to setting the levy, by the amount calculated under Subsections
803     59-2-924[(3)(c)(ii)(A) through (C)] (4)(b)(i) through (iii).
804          (4) The format of the statement under this section shall:
805          (a) be determined by the commission; and
806          (b) cite any applicable statutory provisions that:
807          (i) require a specific levy; or
808          (ii) limit the property tax levy for any taxing entity.
809          (5) The commission may require certification that the information submitted on a
810     statement under this section is true and correct.
811          Section 10. Section 59-2-919 is amended to read:
812          59-2-919. Notice and public hearing requirements for certain tax increases --
813     Exceptions.
814          (1) As used in this section:
815          (a) "Ad valorem tax revenue" means ad valorem property tax revenue not including
816     revenue from:
817          (i) eligible new growth as defined in Section 59-2-924; or
818          (ii) personal property that is:
819          (A) assessed by a county assessor in accordance with Part 3, County Assessment; and
820          (B) semiconductor manufacturing equipment.
821          (b) "Additional ad valorem tax revenue" means ad valorem property tax revenue
822     generated by the portion of the tax rate that exceeds the taxing entity's certified tax rate.
823          (c) "Calendar year taxing entity" means a taxing entity that operates under a fiscal year
824     that begins on January 1 and ends on December 31.
825          (d) "County executive calendar year taxing entity" means a calendar year taxing entity
826     that operates under the county executive-council form of government described in Section
827     17-52-504.
828          (e) "Current calendar year" means the calendar year immediately preceding the
829     calendar year for which a calendar year taxing entity seeks to levy a tax rate that exceeds the
830     calendar year taxing entity's certified tax rate.
831          (f) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that

832     begins on July 1 and ends on June 30.
833          (2) A taxing entity may not levy a tax rate that exceeds the taxing entity's certified tax
834     rate unless the taxing entity meets:
835          (a) the requirements of this section that apply to the taxing entity; and
836          (b) all other requirements as may be required by law.
837          (3) (a) Subject to Subsection (3)(b) and except as provided in Subsection (5), a calendar
838     year taxing entity may levy a tax rate that exceeds the calendar year taxing entity's certified tax
839     rate if the calendar year taxing entity:
840          (i) 14 or more days before the date of the regular general election or municipal general
841     election held in the current calendar year, states at a public meeting:
842          (A) that the calendar year taxing entity intends to levy a tax rate that exceeds the
843     calendar year taxing entity's certified tax rate;
844          (B) the dollar amount of and purpose for additional ad valorem tax revenue that would
845     be generated by the proposed increase in the certified tax rate; and
846          (C) the approximate percentage increase in ad valorem tax revenue for the taxing entity
847     based on the proposed increase described in Subsection (3)(a)(i)(B);
848          (ii) provides notice for the public meeting described in Subsection (3)(a)(i) in
849     accordance with Title 52, Chapter 4, Open and Public Meetings Act, including providing a
850     separate item on the meeting agenda that notifies the public that the calendar year taxing entity
851     intends to make the statement described in Subsection (3)(a)(i);
852          (iii) meets the advertisement requirements of Subsections (6) and (7) before the
853     calendar year taxing entity conducts the public hearing required by Subsection (3)(a)(v);
854          (iv) provides notice by mail:
855          (A) seven or more days before the regular general election or municipal general
856     election held in the current calendar year; and
857          (B) as provided in Subsection (3)(c); and
858          (v) conducts a public hearing that is held:
859          (A) in accordance with Subsections (8) and (9); and
860          (B) in conjunction with the public hearing required by Section 17-36-13 or 17B-1-610.
861          (b) (i) For a county executive calendar year taxing entity, the statement described in
862     Subsection (3)(a)(i) shall be made by the:

863          (A) county council;
864          (B) county executive; or
865          (C) both the county council and county executive.
866          (ii) If the county council makes the statement described in Subsection (3)(a)(i) or the
867     county council states a dollar amount of additional ad valorem tax revenue that is greater than
868     the amount of additional ad valorem tax revenue previously stated by the county executive in
869     accordance with Subsection (3)(a)(i), the county executive calendar year taxing entity shall:
870          (A) make the statement described in Subsection (3)(a)(i) 14 or more days before the
871     county executive calendar year taxing entity conducts the public hearing under Subsection
872     (3)(a)(v); and
873          (B) provide the notice required by Subsection (3)(a)(iv) 14 or more days before the
874     county executive calendar year taxing entity conducts the public hearing required by
875     Subsection (3)(a)(v).
876          (c) The notice described in Subsection (3)(a)(iv):
877          (i) shall be mailed to each owner of property:
878          (A) within the calendar year taxing entity; and
879          (B) listed on the assessment roll;
880          (ii) shall be printed on a separate form that:
881          (A) is developed by the commission;
882          (B) states at the top of the form, in bold upper-case type no smaller than 18 point
883     "NOTICE OF PROPOSED TAX INCREASE"; and
884          (C) may be mailed with the notice required by Section 59-2-1317;
885          (iii) shall contain for each property described in Subsection (3)(c)(i):
886          (A) the value of the property for the current calendar year;
887          (B) the tax on the property for the current calendar year; and
888          (C) subject to Subsection (3)(d), for the calendar year for which the calendar year
889     taxing entity seeks to levy a tax rate that exceeds the calendar year taxing entity's certified tax
890     rate, the estimated tax on the property;
891          (iv) shall contain the following statement:
892          "[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar
893     year]. This notice contains estimates of the tax on your property and the proposed tax increase

894     on your property as a result of this tax increase. These estimates are calculated on the basis of
895     [insert previous applicable calendar year] data. The actual tax on your property and proposed
896     tax increase on your property may vary from this estimate.";
897          (v) shall state the date, time, and place of the public hearing described in Subsection
898     (3)(a)(v); and
899          (vi) may contain other property tax information approved by the commission.
900          (d) For purposes of Subsection (3)(c)(iii)(C), a calendar year taxing entity shall
901     calculate the estimated tax on property on the basis of:
902          (i) data for the current calendar year; and
903          (ii) the amount of additional ad valorem tax revenue stated in accordance with this
904     section.
905          (4) Except as provided in Subsection (5), a fiscal year taxing entity may levy a tax rate
906     that exceeds the fiscal year taxing entity's certified tax rate if the fiscal year taxing entity:
907          (a) provides notice by meeting the advertisement requirements of Subsections (6) and
908     (7) before the fiscal year taxing entity conducts the public meeting at which the fiscal year
909     taxing entity's annual budget is adopted; and
910          (b) conducts a public hearing in accordance with Subsections (8) and (9) before the
911     fiscal year taxing entity's annual budget is adopted.
912          (5) (a) A taxing entity is not required to meet the notice or public hearing requirements
913     of Subsection (3) or (4) if the taxing entity is expressly exempted by law from complying with
914     the requirements of this section.
915          (b) A taxing entity is not required to meet the notice requirements of Subsection (3) or
916     (4) if:
917          (i) Section 53A-17a-133 allows the taxing entity to levy a tax rate that exceeds that
918     certified tax rate without having to comply with the notice provisions of this section; or
919          (ii) the taxing entity:
920          (A) budgeted less than $20,000 in ad valorem tax revenues for the previous fiscal year;
921     and
922          (B) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
923     revenues.
924          (6) (a) Subject to Subsections (6)(d) and (7)(b), the advertisement described in this

925     section shall be published:
926          (i) subject to Section 45-1-101, in a newspaper or combination of newspapers of
927     general circulation in the taxing entity;
928          (ii) electronically in accordance with Section 45-1-101; and
929          (iii) on the Utah Public Notice Website created in Section 63F-1-701.
930          (b) The advertisement described in Subsection (6)(a)(i) shall:
931          (i) be no less than 1/4 page in size;
932          (ii) use type no smaller than 18 point; and
933          (iii) be surrounded by a 1/4-inch border.
934          (c) The advertisement described in Subsection (6)(a)(i) may not be placed in that
935     portion of the newspaper where legal notices and classified advertisements appear.
936          (d) It is the intent of the Legislature that:
937          (i) whenever possible, the advertisement described in Subsection (6)(a)(i) appear in a
938     newspaper that is published at least one day per week; and
939          (ii) the newspaper or combination of newspapers selected:
940          (A) be of general interest and readership in the taxing entity; and
941          (B) not be of limited subject matter.
942          (e) (i) The advertisement described in Subsection (6)(a)(i) shall:
943          (A) except as provided in Subsection (6)(f), be run once each week for the two weeks
944     before a taxing entity conducts a public hearing described under Subsection (3)(a)(v) or (4)(b);
945     and
946          (B) state that the taxing entity will meet on a certain day, time, and place fixed in the
947     advertisement, which shall be seven or more days after the day the first advertisement is
948     published, for the purpose of hearing comments regarding any proposed increase and to explain
949     the reasons for the proposed increase.
950          (ii) The advertisement described in Subsection (6)(a)(ii) shall:
951          (A) be published two weeks before a taxing entity conducts a public hearing described
952     in Subsection (3)(a)(v) or (4)(b); and
953          (B) state that the taxing entity will meet on a certain day, time, and place fixed in the
954     advertisement, which shall be seven or more days after the day the first advertisement is
955     published, for the purpose of hearing comments regarding any proposed increase and to explain

956     the reasons for the proposed increase.
957          (f) If a fiscal year taxing entity's public hearing information is published by the county
958     auditor in accordance with Section 59-2-919.2, the fiscal year taxing entity is not subject to the
959     requirement to run the advertisement twice, as required by Subsection (6)(e)(i), but shall run
960     the advertisement once during the week before the fiscal year taxing entity conducts a public
961     hearing at which the taxing entity's annual budget is discussed.
962          (g) For purposes of Subsection (3)(a)(iii) or (4)(a), the form and content of an
963     advertisement shall be substantially as follows:
964     
"NOTICE OF PROPOSED TAX INCREASE

965     
(NAME OF TAXING ENTITY)

966          The (name of the taxing entity) is proposing to increase its property tax revenue.
967          •     The (name of the taxing entity) tax on a (insert the average value of a residence
968     in the taxing entity rounded to the nearest thousand dollars) residence would
969     increase from $______ to $________, which is $_______ per year.
970          •     The (name of the taxing entity) tax on a (insert the value of a business having
971     the same value as the average value of a residence in the taxing entity) business
972     would increase from $________ to $_______, which is $______ per year.
973          •     If the proposed budget is approved, (name of the taxing entity) would increase
974     its property tax budgeted revenue by ___% above last year's property tax
975     budgeted revenue excluding eligible new growth.
976          All concerned citizens are invited to a public hearing on the tax increase.
977     
PUBLIC HEARING

978          Date/Time:     (date) (time)
979          Location:     (name of meeting place and address of meeting place)
980          To obtain more information regarding the tax increase, citizens may contact the (name
981     of the taxing entity) at (phone number of taxing entity)."
982          (7) The commission:
983          (a) shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative
984     Rulemaking Act, governing the joint use of one advertisement described in Subsection (6) by
985     two or more taxing entities; and
986          (b) subject to Section 45-1-101, may authorize:

987          (i) the use of a weekly newspaper:
988          (A) in a county having both daily and weekly newspapers if the weekly newspaper
989     would provide equal or greater notice to the taxpayer; and
990          (B) if the county petitions the commission for the use of the weekly newspaper; or
991          (ii) the use by a taxing entity of a commission approved direct notice to each taxpayer
992     if:
993          (A) the cost of the advertisement would cause undue hardship;
994          (B) the direct notice is different and separate from that provided for in Section
995     59-2-919.1; and
996          (C) the taxing entity petitions the commission for the use of a commission approved
997     direct notice.
998          (8) (a) (i) (A) A fiscal year taxing entity shall, on or before March 1, notify the county
999     legislative body in which the fiscal year taxing entity is located of the date, time, and place of
1000     the first public hearing at which the fiscal year taxing entity's annual budget will be discussed.
1001          (B) A county that receives notice from a fiscal year taxing entity under Subsection
1002     (8)(a)(i)(A) shall include on the notice required by Section 59-2-919.1 the date, time, and place
1003     of the public hearing described in Subsection (8)(a)(i)(A).
1004          (ii) A calendar year taxing entity shall, on or before October 1 of the current calendar
1005     year, notify the county legislative body in which the calendar year taxing entity is located of the
1006     date, time, and place of the first public hearing at which the calendar year taxing entity's annual
1007     budget will be discussed.
1008          (b) (i) A public hearing described in Subsection (3)(a)(v) or (4)(b) shall be open to the
1009     public.
1010          (ii) The governing body of a taxing entity conducting a public hearing described in
1011     Subsection (3)(a)(v) or (4)(b) shall provide an interested party desiring to be heard an
1012     opportunity to present oral testimony within reasonable time limits.
1013          (c) (i) Except as provided in Subsection (8)(c)(ii), a taxing entity may not schedule a
1014     public hearing described in Subsection (3)(a)(v) or (4)(b) at the same time as the public hearing
1015     of another overlapping taxing entity in the same county.
1016          (ii) The taxing entities in which the power to set tax levies is vested in the same
1017     governing board or authority may consolidate the public hearings described in Subsection

1018     (3)(a)(v) or (4)(b) into one public hearing.
1019          (d) A county legislative body shall resolve any conflict in public hearing dates and
1020     times after consultation with each affected taxing entity.
1021          (e) A taxing entity shall hold a public hearing described in Subsection (3)(a)(v) or
1022     (4)(b) beginning at or after 6 p.m.
1023          (9) (a) If a taxing entity does not make a final decision on budgeting additional ad
1024     valorem tax revenue at a public hearing described in Subsection (3)(a)(v) or (4)(b), the taxing
1025     entity shall announce at that public hearing the scheduled time and place of the next public
1026     meeting at which the taxing entity will consider budgeting the additional ad valorem tax
1027     revenue.
1028          (b) A calendar year taxing entity may not adopt a final budget that budgets an amount
1029     of additional ad valorem tax revenue that exceeds the largest amount of additional ad valorem
1030     tax revenue stated at a public meeting under Subsection (3)(a)(i).
1031          (c) A public hearing on levying a tax rate that exceeds a fiscal year taxing entity's
1032     certified tax rate may coincide with a public hearing on the fiscal year taxing entity's proposed
1033     annual budget.
1034          Section 11. Section 59-2-924 is amended to read:
1035          59-2-924. Definitions -- Report of valuation of property to county auditor and
1036     commission -- Transmittal by auditor to governing bodies -- Certified tax rate --
1037     Calculation of certified tax rate -- Rulemaking authority -- Adoption of tentative budget.
1038          (1) As used in this section:
1039          (a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with
1040     this chapter.
1041          (ii) "Ad valorem property tax revenue" does not include:
1042          (A) interest;
1043          (B) penalties;
1044          (C) collections from redemptions; or
1045          (D) revenue received by a taxing entity from personal property that is semiconductor
1046     manufacturing equipment assessed by a county assessor in accordance with Part 3, County
1047     Assessment.
1048          (b) (i) "Aggregate taxable value of all property taxed" means:

1049          (A) the aggregate taxable value of all real property a county assessor assesses in
1050     accordance with Part 3, County Assessment, for the current year;
1051          (B) the aggregate taxable value of all real and personal property the commission
1052     assesses in accordance with Part 2, Assessment of Property, for the current year; and
1053          (C) the aggregate year end taxable value of all personal property a county assessor
1054     assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls
1055     of the taxing entity.
1056          (ii) "Aggregate taxable value of all property taxed" does not include the aggregate year
1057     end taxable value of personal property that is:
1058          (A) semiconductor manufacturing equipment assessed by a county assessor in
1059     accordance with Part 3, County Assessment; and
1060          (B) contained on the prior year's tax rolls of the taxing entity.
1061          (c) "Centrally assessed benchmark value" means an amount equal to the highest year
1062     end taxable value of real and personal property the commission assesses in accordance with
1063     Part 2, Assessment of Property for a previous calendar year that begins on or after January 1,
1064     2015, adjusted for taxable value attributable to:
1065          (i) an annexation to a taxing entity; or
1066          (ii) an incorrect allocation of taxable value of real or personal property the commission
1067     assesses in accordance with Part 2, Assessment of Property.
1068          (d) (i) "Centrally assessed new growth" means the greater of:
1069          (A) zero; or
1070          (B) the amount calculated by subtracting the centrally assessed benchmark value
1071     adjusted for prior year end incremental value from the taxable value of real and personal
1072     property the commission assesses in accordance with Part 2, Assessment of Property, for the
1073     current year, adjusted for current year incremental value.
1074          (ii) "Centrally assessed new growth" does not include a change in value as a result of a
1075     change in the method of apportioning the value prescribed by the Legislature, a court, or the
1076     commission in an administrative rule or administrative order.
1077          (e) "Certified tax rate" means a tax rate that will provide the same ad valorem property
1078     tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
1079          (f) "Eligible new growth" means the greater of:

1080          (i) zero; or
1081          (ii) the sum of:
1082          (A) locally assessed new growth;
1083          (B) centrally assessed new growth; and
1084          (C) project area new growth.
1085          (g) "Incremental value" means the same as that term is defined in Section 17C-1-102
1086     except that incremental value applies to property located within a project area, regardless of the
1087     type of project area.
1088          (h) (i) "Locally assessed new growth" means the greater of:
1089          (A) zero; or
1090          (B) the amount calculated by subtracting the year end taxable value of real property the
1091     county assessor assesses in accordance with Part 3, County Assessment, for the previous year,
1092     adjusted for prior year end incremental value from the taxable value of real property the county
1093     assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted
1094     for current year incremental value.
1095          (ii) "Locally assessed new growth" does not include a change in:
1096          (A) value as a result of factoring in accordance with Section 59-2-704, reappraisal, or
1097     another adjustment; or
1098          (B) assessed value based on whether a property is allowed a residential exemption for a
1099     primary residence under Section 59-2-103.
1100          (i) "Project area" means the same as that term is defined in Section 17C-1-102.
1101          (j) "Project area new growth" means an amount equal to the incremental value that is
1102     no longer provided to an agency as tax increment.
1103          [(1)] (2) Before June 1 of each year, the county assessor of each county shall deliver to
1104     the county auditor and the commission the following statements:
1105          (a) a statement containing the aggregate valuation of all taxable real property [assessed
1106     by] a county assessor assesses in accordance with Part 3, County Assessment, for each taxing
1107     entity; and
1108          (b) a statement containing the taxable value of all personal property [assessed by] a
1109     county assessor assesses in accordance with Part 3, County Assessment, from the prior year
1110     end values.

1111          [(2)] (3) The county auditor shall, on or before June 8, transmit to the governing body
1112     of each taxing entity:
1113          (a) the statements described in Subsections [(1)] (2)(a) and (b);
1114          (b) an estimate of the revenue from personal property;
1115          (c) the certified tax rate; and
1116          (d) all forms necessary to submit a tax levy request.
1117          [(3) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
1118     property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
1119     year.]
1120          [(b) For purposes of this Subsection (3):]
1121          [(i) "Ad valorem property tax revenues" do not include:]
1122          [(A) interest;]
1123          [(B) penalties; and]
1124          [(C) revenue received by a taxing entity from personal property that is:]
1125          [(I) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1126          [(II) semiconductor manufacturing equipment.]
1127          [(ii) "Aggregate taxable value of all property taxed" means:]
1128          [(A) the aggregate taxable value of all real property assessed by a county assessor in
1129     accordance with Part 3, County Assessment, for the current year;]
1130          [(B) the aggregate taxable year end value of all personal property assessed by a county
1131     assessor in accordance with Part 3, County Assessment, for the prior year; and]
1132          [(C) the aggregate taxable value of all real and personal property assessed by the
1133     commission in accordance with Part 2, Assessment of Property, for the current year.]
1134          [(c) (i)] (4) (a) Except as otherwise provided in this section, the certified tax rate shall
1135     be calculated by dividing the ad valorem property tax [revenues] revenue that a taxing entity
1136     budgeted for the prior year [by the taxing entity] by the amount calculated under Subsection
1137     [(3)(c)(ii)] (4)(b).
1138          [(ii)] (b) For purposes of Subsection [(3)(c)(i)] (4)(a), the legislative body of a taxing
1139     entity shall calculate an amount as follows:
1140          [(A)] (i) calculate for the taxing entity the difference between:
1141          [(I)] (A) the aggregate taxable value of all property taxed; and

1142          [(II)] (B) any [redevelopment] adjustments for [the] current [calendar] year incremental
1143     value;
1144          [(B)] (ii) after making the calculation required by Subsection [(3)(c)(ii)(A)] (4)(b)(i),
1145     calculate an amount determined by increasing or decreasing the amount calculated under
1146     Subsection [(3)(c)(ii)(A)] (4)(b)(i) by the average of the percentage net change in the value of
1147     taxable property for the equalization period for the three calendar years immediately preceding
1148     the current calendar year;
1149          [(C)] (iii) after making the calculation required by Subsection [(3)(c)(ii)(B)] (4)(b)(ii),
1150     calculate the product of:
1151          [(I)] (A) the amount calculated under Subsection [(3)(c)(ii)(B)] (4)(b)(ii); and
1152          [(II)] (B) the percentage of property taxes collected for the five calendar years
1153     immediately preceding the current calendar year; and
1154          [(D)] (iv) after making the calculation required by Subsection [(3)(c)(ii)(C)] (4)(b)(iii),
1155     calculate an amount determined by subtracting eligible new growth from the amount calculated
1156     under [Subsection (3)(c)(ii)(C) any new growth as defined in this section:] Subsection
1157     (4)(b)(iii).
1158          [(I) within the taxing entity; and]
1159          [(II) for the following calendar year:]
1160          [(Aa) for new growth from real property assessed by a county assessor in accordance
1161     with Part 3, County Assessment and all property assessed by the commission in accordance
1162     with Section 59-2-201, the current calendar year; and]
1163          [(Bb) for new growth from personal property assessed by a county assessor in
1164     accordance with Part 3, County Assessment, the prior calendar year.]
1165          [(iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all
1166     property taxed:]
1167          [(A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in
1168     Subsection (3)(b)(ii);]
1169          [(B) does not include the total taxable value of personal property contained on the tax
1170     rolls of the taxing entity that is:]
1171          [(I) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1172          [(II) semiconductor manufacturing equipment; and]

1173          [(C) for personal property assessed by a county assessor in accordance with Part 3,
1174     County Assessment, the taxable value of personal property is the year end value of the personal
1175     property contained on the prior year's tax rolls of the entity.]
1176          [(iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
1177     January 1, 2007, the value of taxable property does not include the value of personal property
1178     that is:]
1179          [(A) within the taxing entity assessed by a county assessor in accordance with Part 3,
1180     County Assessment; and]
1181          [(B) semiconductor manufacturing equipment.]
1182          [(v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or
1183     after January 1, 2007, the percentage of property taxes collected does not include property taxes
1184     collected from personal property that is:]
1185          [(A) within the taxing entity assessed by a county assessor in accordance with Part 3,
1186     County Assessment; and]
1187          [(B) semiconductor manufacturing equipment.]
1188          [(vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
1189     January 1, 2009, the value of taxable property does not include the value of personal property
1190     that is within the taxing entity assessed by a county assessor in accordance with Part 3, County
1191     Assessment.]
1192          [(vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1193     the commission may prescribe rules for calculating redevelopment adjustments for a calendar
1194     year.]
1195          [(viii) (A) Except as provided in Subsections (3)(c)(ix) and (x), for purposes of
1196     Subsection (3)(c)(i), a taxing entity's ad valorem property tax revenues budgeted for the prior
1197     year shall be decreased by an amount of revenue equal to the five-year average of the most
1198     recent prior five years of redemptions adjusted by the five-year average redemption calculated
1199     for the prior year as reported on the county treasurer's final annual settlement required under
1200     Subsection 59-2-1365(2).]
1201          [(B) A decrease under Subsection (3)(c)(viii)(A) does not apply to the multicounty
1202     assessing and collecting levy authorized in Subsection 59-2-1602(2)(a), the certified revenue
1203     levy, or the minimum basic tax rate established in Section 53A-17a-135.]

1204          [(ix) As used in Subsection (3)(c)(x):]
1205          [(A) "One-fourth of qualifying redemptions excess amount" means a qualifying
1206     redemptions excess amount divided by four.]
1207          [(B) "Qualifying redemptions" means that, for a calendar year, a taxing entity's total
1208     amount of redemptions is greater than three times the five-year average of the most recent prior
1209     five years of redemptions calculated for the prior year under Subsection (3)(c)(viii)(A).]
1210          [(C) "Qualifying redemptions base amount" means an amount equal to three times the
1211     five-year average of the most recent prior five years of redemptions for a taxing entity, as
1212     reported on the county treasurer's final annual settlement required under Subsection
1213     59-2-1365(2).]
1214          [(D) "Qualifying redemptions excess amount" means the amount by which a taxing
1215     entity's qualifying redemptions for a calendar year exceed the qualifying redemptions base
1216     amount for that calendar year.]
1217          [(x) (A) If, for a calendar year, a taxing entity has qualifying redemptions, the
1218     redemption amount for purposes of calculating the five-year redemption average required by
1219     Subsection (3)(c)(viii)(A) is as provided in Subsections (3)(c)(x)(B) and (C).]
1220          [(B) For the initial calendar year a taxing entity has qualifying redemptions, the taxing
1221     entity's redemption amount for that calendar year is the qualifying redemptions base amount.]
1222          [(C) For each of the four calendar years after the calendar year described in Subsection
1223     (3)(c)(x)(B), one-fourth of the qualifying redemptions excess amount shall be added to the
1224     redemption amount.]
1225          [(d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1226     the commission shall make rules determining the calculation of ad valorem property tax
1227     revenues budgeted by a taxing entity.]
1228          [(ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted
1229     by a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
1230     calculated for purposes of Section 59-2-913.]
1231          [(e) The certified tax rates for the taxing entities]
1232          (5) A certified tax rate for a taxing entity described in this Subsection [(3)(e)] (5) shall
1233     be calculated as follows:
1234          [(i)] (a) except as provided in Subsection [(3)(e)(ii)] (5)(b), for a new taxing [entities]

1235     entity, the certified tax rate is zero;
1236          [(ii)] (b) for [each] a municipality incorporated on or after July 1, 1996, the certified
1237     tax rate is:
1238          [(A)] (i) in a county of the first, second, or third class, the levy imposed for
1239     municipal-type services under Sections 17-34-1 and 17-36-9; and
1240          [(B)] (ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general
1241     county purposes and such other levies imposed solely for the municipal-type services identified
1242     in Section 17-34-1 and Subsection 17-36-3(22); and
1243          [(iii)] (c) for debt service voted on by the public, the certified tax rate [shall be] is the
1244     actual levy imposed by that section, except that [the] a certified tax [rates] rate for the
1245     following levies shall be calculated in accordance with Section 59-2-913 and this section:
1246          [(A) school levies] (i) a school levy provided for under [Sections] Section
1247     53A-16-113, 53A-17a-133, [and] or 53A-17a-164; and
1248          [(B) levies] (ii) a levy to pay for the costs of state legislative mandates or judicial or
1249     administrative orders under Section 59-2-1602.
1250          [(f) (i)] (6) (a) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 [shall
1251     be established at that rate which] may be imposed at a rate that is sufficient to generate only the
1252     revenue required to satisfy one or more eligible judgments[, as defined in Section 59-2-102].
1253          [(ii)] (b) The ad valorem property tax revenue generated by [the] a judgment levy
1254     [shall] described in Subsection (6)(a) may not be considered in establishing [the] a taxing
1255     entity's aggregate certified tax rate.
1256          [(g)] (7) The ad valorem property tax revenue generated by the capital local levy
1257     described in Section 53A-16-113 within a taxing entity in a county of the first class:
1258          [(i)] (a) may not be considered in establishing the school district's aggregate certified
1259     tax rate; and
1260          [(ii)] (b) shall be included by the commission in establishing a certified tax rate for that
1261     capital [outlay] local levy determined in accordance with the calculation described in
1262     Subsection 59-2-913(3).
1263          [(4)] (8) (a) For the purpose of calculating the certified tax rate, the county auditor shall
1264     use:
1265          (i) the taxable value of real property [assessed by a county assessor contained on the

1266     assessment roll;]:
1267          (A) the county assessor assesses in accordance with Part 3, County Assessment; and
1268          (B) contained on the assessment roll;
1269          (ii) the year end taxable value of personal property:
1270          (A) a county assessor assesses in accordance with Part 3, County Assessment; and
1271          (B) contained on the prior year's assessment roll; and
1272          [(ii)] (iii) the taxable value of real and personal property [assessed by] the
1273     commission[; and] assesses in accordance with Part 2, Assessment of Property.
1274          [(iii) the taxable year end value of personal property assessed by a county assessor
1275     contained on the prior year's assessment roll.]
1276          (b) For purposes of Subsection [(4)(a)(i), the] (8)(a), taxable value [of real property on
1277     the assessment roll] does not include eligible new growth [as defined in Subsection (4)(c)].
1278          [(c) "New growth" means:]
1279          [(i) the difference between the increase in taxable value of the following property of
1280     the taxing entity from the previous calendar year to the current year:]
1281          [(A) real property assessed by a county assessor in accordance with Part 3, County
1282     Assessment; and]
1283          [(B) property assessed by the commission under Section 59-2-201; plus]
1284          [(ii) the difference between the increase in taxable year end value of personal property
1285     of the taxing entity from the year prior to the previous calendar year to the previous calendar
1286     year; minus]
1287          [(iii) the amount of an increase in taxable value described in Subsection (4)(e).]
1288          [(d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
1289     taxing entity does not include the taxable value of personal property that is:]
1290          [(i) contained on the tax rolls of the taxing entity if that property is assessed by a
1291     county assessor in accordance with Part 3, County Assessment; and]
1292          [(ii) semiconductor manufacturing equipment.]
1293          [(e) Subsection (4)(c)(iii) applies to the following increases in taxable value:]
1294          [(i) the amount of increase to locally assessed real property taxable values resulting
1295     from factoring, reappraisal, or any other adjustments; or]
1296          [(ii) the amount of an increase in the taxable value of property assessed by the

1297     commission under Section 59-2-201 resulting from a change in the method of apportioning the
1298     taxable value prescribed by:]
1299          [(A) the Legislature;]
1300          [(B) a court;]
1301          [(C) the commission in an administrative rule; or]
1302          [(D) the commission in an administrative order.]
1303          [(f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
1304     property on the prior year's assessment roll does not include:]
1305          [(i) new growth as defined in Subsection (4)(c); or]
1306          [(ii) the total taxable year end value of personal property contained on the prior year's
1307     tax rolls of the taxing entity that is:]
1308          [(A) assessed by a county assessor in accordance with Part 3, County Assessment; and]
1309          [(B) semiconductor manufacturing equipment.]
1310          [(5)] (9) (a) On or before June 22, [each] a taxing entity shall annually adopt a tentative
1311     budget.
1312          (b) If [the] a taxing entity intends to exceed the certified tax rate, [it] the taxing entity
1313     shall notify the county auditor of:
1314          (i) [its] the taxing entity's intent to exceed the certified tax rate; and
1315          (ii) the amount by which [it] the taxing entity proposes to exceed the certified tax rate.
1316          (c) The county auditor shall notify property owners of any intent to levy a tax rate that
1317     exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
1317a     Ŝ→ (10) (a) Subject to Subsection (10)(d), the commission shall provide notice, through
1317b     electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim
1317c     Committee if:
1317d      (i) the amount calculated under Subsection (10)(b) is 10% or more of the year end
1317e     taxable value of the real and personal property the commission assesses in accordance with
1317f     Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental
1317g     value; and
1317h      (ii) the amount calculated under Subsection (10)(c) is 50% or more of the total year end
1317i     taxable value of the real and personal property of a taxpayer the commission assesses in
1317j     accordance with Part 2, Assessment of Property, for the previous year.
1317k      (b) For purposes of Subsection (10)(a)(i), the commission shall calculate an amount by
1317l     subtracting the taxable value of real and personal property the commission assesses in
1317m     accordance with Part 2, Assessment of Property, for the current year, adjusted for current
1317n      year incremental value, from the year end taxable value of the real and personal property the
1317o     commission assesses in accordance with Part 2, Assessment of Property, for the previous year,
1317p     adjusted for prior year end incremental value.
1317q      (c) For purposes of Subsection (10)(a)(ii), the commission shall calculate an amount by
1317r     subtracting the total taxable value of real and personal property of a taxpayer the commission
1317s     assesses in accordance with Part 2, Assessment of Property, for the current year, from the total
1317t     year end taxable value of the real and personal property of a taxpayer the commission assesses
1317u     in accordance with Part 2, Assessment of Property, for the previous year.
1317v      (d) The notification under Subsection (10)(a) shall include a list of taxpayers that meet
1317w     the requirement under Subsection (10)(a)(ii). ←Ŝ
1318          Section 12. Section 59-2-924.3 is amended to read:
1319          59-2-924.3. Adjustment of the calculation of the certified tax rate for a school
1320     district imposing a capital local levy in a county of the first class.
1321          (1) As used in this section:
1322          (a) "Capital local levy increment" means the amount of revenue equal to the difference
1323     between:
1324          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1325     within a school district during a fiscal year; and
1326          (ii) the amount of revenue the school district received during the same fiscal year from
1327     the distribution described in Section 53A-16-114.

1328          (b) "Contributing school district" means a school district in a county of the first class
1329     that in a fiscal year receives less revenue from the distribution described in Section
1330     53A-16-114 than it would have received during the same fiscal year from a levy imposed
1331     within the school district of .0006 per dollar of taxable value.
1332          (c) "Receiving school district" means a school district in a county of the first class that
1333     in a fiscal year receives more revenue from the distribution described in Section 53A-16-114
1334     than it would have received during the same fiscal year from a levy imposed within the school
1335     district of .0006 per dollar of taxable value.
1336          (2) A receiving school district shall decrease its capital local levy certified tax rate
1337     under Subsection 59-2-924[(3)(g)(ii)] (7)(b) by the amount required to offset the receiving
1338     school district's estimated capital local levy increment for the prior fiscal year.
1339          (3) A contributing school district is exempt from the notice and public hearing
1340     provisions of Section 59-2-919 for the school district's capital local levy certified tax rate
1341     calculated pursuant to Subsection 59-2-924[(3)(g)(ii)] (7)(b) if:
1342          (a) the contributing school district budgets an increased amount of ad valorem property
1343     tax revenue exclusive of eligible new growth as defined in [Subsection] Section 59-2-924[(4)]
1344     for the capital local levy described in Section 53A-16-113; and
1345          (b) the increased amount of ad valorem property tax revenue described in Subsection
1346     (3)(a) is less than or equal to the difference between:
1347          (i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1348     imposed within the contributing school district during the current taxable year; and
1349          (ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
1350     imposed within the contributing school district during the prior taxable year.
1351          (4) Regardless of the amount a school district receives from the revenue collected from
1352     the .0006 portion of the capital local levy required in Section 53A-16-113, the revenue
1353     generated within the school district from the .0006 portion of the capital local levy required in
1354     Section 53A-16-113 shall be considered to be budgeted ad valorem property tax revenues of
1355     the school district that levies the .0006 portion of the capital local levy for purposes of
1356     calculating the school district's certified tax rate in accordance with Subsection
1357     59-2-924[(3)(g)(ii)] (7)(b).
1358          Section 13. Section 59-2-926 is amended to read:

1359          59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
1360          If the state authorizes a levy pursuant to Section 53A-17a-135 that exceeds the certified
1361     revenue levy as defined in Section 53A-17a-103 or authorizes a levy pursuant to Section
1362     59-2-1602 that exceeds the certified revenue levy as defined in Section 59-2-102, the state shall
1363     publish a notice no later than 10 days after the last day of the annual legislative general session
1364     that meets the following requirements:
1365          (1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state
1366     authorized a levy that generates revenue in excess of the previous year's ad valorem tax
1367     revenue, plus eligible new growth as defined in Section 59-2-924, but exclusive of revenue
1368     from collections from redemptions, interest, and penalties:
1369          (i) in a newspaper of general circulation in the state; and
1370          (ii) as required in Section 45-1-101.
1371          (b) Except an advertisement published on a website, the advertisement described in
1372     Subsection (1)(a):
1373          (i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
1374     point, and surrounded by a 1/4-inch border:
1375          (ii) may not be placed in that portion of the newspaper where legal notices and
1376     classified advertisements appear; and
1377          (iii) shall be run once.
1378          (2) The form and content of the notice shall be substantially as follows:
1379     
"NOTICE OF TAX INCREASE

1380          The state has budgeted an increase in its property tax revenue from $__________ to
1381     $__________ or ____%. The increase in property tax revenues will come from the following
1382     sources (include all of the following provisions):
1383          (a) $__________ of the increase will come from (provide an explanation of the cause
1384     of adjustment or increased revenues, such as reappraisals or factoring orders);
1385          (b) $__________ of the increase will come from natural increases in the value of the
1386     tax base due to (explain cause of eligible new growth, such as new building activity,
1387     annexation, etc.);
1388          (c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
1389     the basic state-supported school program, levy for the Property Tax Valuation Agency Fund, or

1390     both) paid $____________ in property taxes would pay the following:
1391          (i) $__________ if the state of Utah did not budget an increase in property tax revenue
1392     exclusive of eligible new growth; and
1393          (ii) $__________ under the increased property tax revenues exclusive of eligible new
1394     growth budgeted by the state of Utah."
1395          Section 14. Section 63I-1-259 is amended to read:
1396          63I-1-259. Repeal dates, Title 59.
1397          (1) Subsection 59-2-924[(3)(g)] (7) is repealed on December 31, 2016.
1398          (2) Subsection 59-2-924.2(9) is repealed on December 31, 2017.
1399          (3) Section 59-2-924.3 is repealed on December 31, 2016.
1400          (4) Section 59-7-618 is repealed July 1, 2020.
1401          (5) Section 59-9-102.5 is repealed December 31, 2020.
1402          (6) Section 59-10-1033 is repealed July 1, 2020.
1403          (7) Subsection 59-12-2219(10) is repealed on June 30, 2020.
1404          Section 15. Effective date.
1405          This bill takes effect on January 1, 2017.