Senator Lincoln Fillmore proposes the following substitute bill:


1     
LOCAL DISTRICT TAX REVISIONS

2     
2016 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Lincoln Fillmore

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to property taxes levied by a local district.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     modifies the circumstances under which a local district may levy or collect a
14     property tax that exceeds the certified rate; 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          17B-1-1001, as last amended by Laws of Utah 2013, Chapter 415
23          17B-2a-1009, as last amended by Laws of Utah 2013, Chapter 415
24     

25     Be it enacted by the Legislature of the state of Utah:

26          Section 1. Section 17B-1-1001 is amended to read:
27          17B-1-1001. Provisions applicable to property tax levy.
28          (1) Each local district that levies and collects property taxes shall levy and collect them
29     according to the provisions of Title 59, Chapter 2, Property Tax Act.
30          (2) As used in this section, "elected official" means a local district board of trustees
31     member who:
32          (a) is elected to the board of trustees by local district voters at an election held for that
33     purpose[, including a member elected under Subsection (4)];
34          [(b) holds, at the time of appointment to the board of trustees, an elected position with
35     a municipality, county, or another local district that is partially or completely included within
36     the boundaries of the local district;]
37          [(c)] (b) is appointed in accordance with Subsection 17B-1-303(5) or 17B-1-306(4)(f);
38     or
39          [(d)] (c) is considered to be elected in accordance with Subsection 17B-1-306(4)(g).
40          (3) (a) Except as provided in [Subsection] Subsections (3)(b) and (c), a local district
41     may not levy or collect property tax revenue that exceeds the certified tax rate during a taxable
42     year that begins on or after January 1, 2011.
43          (b) [Notwithstanding Subsection (3)(a), a] A local district may levy or collect property
44     tax revenue that exceeds the certified tax rate during a taxable year that begins on or after
45     January 1, 2011, and before January 1, 2017, if:
46          (i) and to the extent that the revenue from the property tax was pledged before January
47     1, 2011, to pay for bonds or other obligations of the local district;
48          (ii) the members of the board of trustees are all elected officials;
49          (iii) the majority of the board of trustees are elected officials; or
50          (iv) the proposed tax or increase in the property tax rate has been approved by:
51          (A) a majority of the registered voters within the local district at an election held for
52     that purpose on a date specified in Section 20A-1-204;
53          (B) the legislative body of the appointing authority; or
54          (C) the legislative body of:
55          (I) a majority of the municipalities partially or completely included within the
56     boundary of the specified local district; or

57          (II) the county in which the specified local district is located, if the county has some or
58     all of its unincorporated area included within the boundary of the specified local district.
59          (c) A local district may levy or collect property tax revenue that exceeds the certified
60     rate during a taxable year that begins on or after January 1, 2017, if:
61          (i) and to the extent that the revenue from the property tax was pledged before January
62     1, 2017, to pay for bonds or other obligations of the local district;
63          (ii) each member of the board of trustees is an elected official;
64          (iii) a majority of the registered voters within the local district approve the proposed
65     tax or increase in the property tax rate at an election held for that purpose on a date specified in
66     Section 20A-1-204; or
67          (iv) the proposed tax or increase in the property tax rate is first approved by at least
68     two-thirds of the legislative bodies of:
69          (A) the municipalities that are located partially or completely within the boundaries of
70     the local district; and
71          (B) the counties with an unincorporated area within the boundaries of the local district.
72          (4) (a) Notwithstanding provisions to the contrary in Title 17B, Chapter 2a, Provisions
73     Applicable to Different Types of Local Districts, and [for purposes of Subsection (3)(b),
74     members of the board of trustees of a local district shall be elected, if,] subject to Subsection
75     (4)(b), a local district may change the local district's board of trustees to an elected board if:
76          (i) two-thirds of all members of the board of trustees of the local district vote in favor
77     of changing to an elected board; and
78          (ii) the legislative body of each municipality [or] and each county that appoints a
79     member to the board of trustees adopts a resolution approving the change to an elected board.
80          (b) A change to an elected board of trustees under Subsection (4)(a) may not shorten
81     the term of any member of the board of trustees serving at the time of the change.
82          (5) Subsections (2), (3), and (4) do not apply to:
83          (a) Title 17B, Chapter 2a, Part 6, Metropolitan Water District Act;
84          (b) Title 17B, Chapter 2a, Part 10, Water Conservancy District Act; or
85          (c) a local district in which:
86          (i) the board of trustees consists solely of:
87          (A) land owners or the land owners' agents; or

88          (B) as described in Subsection 17B-1-302(1)(c), land owners or the land owners' agents
89     or officers; and
90          (ii) there are no residents within the local district at the time a property tax is levied.
91          Section 2. Section 17B-2a-1009 is amended to read:
92          17B-2a-1009. Limit on property tax authority -- Exceptions.
93          (1) As used in this section, "elected official" means a water conservancy district board
94     of trustee member who:
95          (a) is elected to the board of trustees by water conservancy district voters at an election
96     held for that purpose; or
97          [(b) holds, at the time of appointment to the board of trustees, an elected position with
98     a municipality, county, or local district that is partially or completely included within the
99     boundaries of the water conservancy district; or]
100          [(c)] (b) is appointed in accordance with Subsection 17B-1-303(5) or 17B-1-306(4)(f)
101     or (g).
102          (2) The board of trustees of a water conservancy district may not collect property tax
103     revenue [in a tax year beginning on or after January 1, 2015,] that would exceed the certified
104     tax rate under Section 59-2-924 [unless]:
105          (a) in a tax year beginning on or after January 1, 2015, unless:
106          [(a)] (i) the members of the board of trustees are all elected officials;
107          [(b)] (ii) the majority of the board of trustees are elected officials; or
108          [(c)] (iii) the proposed tax levy has previously been approved by:
109          [(i)] (A) a majority of the water conservancy district voters at an election held for that
110     purpose on a date specified in Section 20A-1-204; or
111          [(ii)] (B) for a district described in Subsection 17B-2a-1005(2)(b), the appointing
112     authority[.]; or
113          (b) in a tax year beginning on or after January 1, 2017, unless:
114          (i) the members of the board of trustees are all elected officials; or
115          (ii) the proposed tax levy was previously approved by a majority of the water
116     conservancy district voters at an election held for that purpose on a date specified in Section
117     20A-1-204.
118          Section 3. Effective date.

119          This bill takes effect on January 1, 2017.