This document includes House Committee Amendments incorporated into the bill on Thu, Feb 23, 2017 at 2:59 PM by ryoung.
1     
PROPERTY TAX ASSESSMENT CHANGES

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Daniel McCay

5     
Senate Sponsor: Deidre M. Henderson

6     

7     LONG TITLE
8     Committee Note:
9          The Revenue and Taxation Interim Committee recommended this bill.
10     General Description:
11          This bill amends property tax provisions related to the assessment of property.
12     Highlighted Provisions:
13          This bill:
14          ▸     requires the centrally assessed benchmark value to be adjusted for taxable value
15     attributable to a change in assessment that occurs due to a decision made by the
16     State Tax Commission;
17          ▸     defines terms, including a bona fide range improvement program;
18          ▸     provides that land may not be assessed under the Farmland Assessment Act if the
19     land is:
20               •     land devoted to the production of solar energy; or
21               •     a ski area; Ĥ→ [
and]
21a      ▸     provides that the changes in this bill that make land ineligible for assessment under
21b     the Farmland Assessment Act do not exempt the land from the rollback tax; and ←Ĥ
22          ▸     makes technical and conforming changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          This bill provides retrospective operation.
27     Utah Code Sections Affected:

28     AMENDS:
29          59-2-502, as last amended by Laws of Utah 2005, Chapter 254
30          59-2-503, as last amended by Laws of Utah 2013, Chapter 322
31          59-2-504, as last amended by Laws of Utah 2003, Chapter 208
31a      Ĥ→ 59-2-506, as last amended by Laws of Utah 2014, Chapter 279 ←Ĥ
32          59-2-924, as last amended by Laws of Utah 2016, Chapters 350 and 367
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 59-2-502 is amended to read:
36          59-2-502. Definitions.
37          As used in this part:
38          (1) "Actively devoted to agricultural use" means that the land in agricultural use
39     produces in excess of 50% of the average agricultural production per acre:
40          (a) as determined under Section 59-2-503; and
41          (b) for:
42          (i) the given type of land; and
43          (ii) the given county or area.
44          (2) (a) "Bona fide range improvement program" means a rangeland improvement
45     project that is generally recognized by the grazing or livestock industry to:
46          (i) increase the quality of forage for livestock; and
47          (ii) result in increased livestock production.
48          (b) "Bona fide range improvement program" includes:
49          (i) reseeding;
50          (ii) spraying;
51          (iii) burning;
52          (iv) controlling for weeds or herbs; or
53          (v) using one of the following mechanical methods:
54          (A) chaining;
55          (B) furrowing;
56          (C) terracing;
57          (D) trenching;
58          (E) railing;

59          (F) ripping; or
60          (G) pitting.
61          [(2)] (3) "Conservation easement rollback tax" means the tax imposed under Section
62     59-2-506.5.
63          [(3)] (4) "Identical legal ownership" means legal ownership held by:
64          (a) identical legal parties; or
65          (b) identical legal entities.
66          [(4)] (5) "Land in agricultural use" means:
67          (a) land devoted to the raising of useful plants and animals with a reasonable
68     expectation of profit, including:
69          (i) forages and sod crops;
70          (ii) grains and feed crops;
71          (iii) livestock as defined in Section 59-2-102;
72          (iv) trees and fruits; or
73          (v) vegetables, nursery, floral, and ornamental stock; or
74          (b) land devoted to and meeting the requirements and qualifications for payments or
75     other compensation under a crop-land retirement program with an agency of the state or federal
76     government.
77          [(5)] (6) "Other eligible acreage" means land that is:
78          (a) five or more contiguous acres;
79          (b) eligible for assessment under this part; and
80          (c) (i) located in the same county as land described in Subsection 59-2-503(1)(a); or
81          (ii) contiguous across county lines with land described in Subsection 59-2-503(1)(a) as
82     provided in Section 59-2-512.
83          [(6)] (7) "Platted" means land in which:
84          (a) parcels of ground are laid out and mapped by their boundaries, course, and extent;
85     and
86          (b) the plat has been approved as provided in Section 10-9a-604 or 17-27a-604.
87          [(7)] (8) "Rollback tax" means the tax imposed under Section 59-2-506.
88          [(8)] (9) "Withdrawn from this part" means that land that has been assessed under this
89     part is no longer assessed under this part or eligible for assessment under this part for any

90     reason including that:
91          (a) an owner voluntarily requests that the land be withdrawn from this part;
92          (b) the land is no longer actively devoted to agricultural use;
93          (c) (i) the land has a change in ownership; and
94          (ii) (A) the new owner fails to apply for assessment under this part as required by
95     Section 59-2-509; or
96          (B) (I) an owner applies for assessment under this part as required by Section
97     59-2-509; and
98          (II) the land does not meet the requirements of this part to be assessed under this part;
99          (d) (i) the legal description of the land changes; and
100          (ii) (A) an owner fails to apply for assessment under this part as required by Section
101     59-2-509; or
102          (B) (I) an owner applies for assessment under this part as required by Section
103     59-2-509; and
104          (II) the land does not meet the requirements of this part to be assessed under this part;
105          (e) if required by the county assessor, the owner of the land:
106          (i) fails to file a new application as provided in Subsection 59-2-508(4); or
107          (ii) fails to file a signed statement as provided in Subsection 59-2-508(4); or
108          (f) except as provided in Section 59-2-503, the land fails to meet a requirement of
109     Section 59-2-503.
110          Section 2. Section 59-2-503 is amended to read:
111          59-2-503. Qualifications for agricultural use assessment.
112          (1) For general property tax purposes, land may be assessed on the basis of the value
113     that the land has for agricultural use if the land:
114          (a) is not less than five contiguous acres in area, except that land may be assessed on
115     the basis of the value that the land has for agricultural use:
116          (i) if:
117          (A) the land is devoted to agricultural use in conjunction with other eligible acreage;
118     and
119          (B) the land and the other eligible acreage described in Subsection (1)(a)(i)(A) have
120     identical legal ownership; or

121          (ii) as provided under Subsection (4); and
122          (b) except as provided in Subsection (5) or (6):
123          (i) is actively devoted to agricultural use; and
124          (ii) has been actively devoted to agricultural use for at least two successive years
125     immediately preceding the tax year for which the land is being assessed under this part.
126          (2) In determining whether land is actively devoted to agricultural use, production per
127     acre for a given county or area and a given type of land shall be determined by using the first
128     applicable of the following:
129          (a) production levels reported in the current publication of the Utah Agricultural
130     Statistics;
131          (b) current crop budgets developed and published by Utah State University; and
132          (c) other acceptable standards of agricultural production designated by the commission
133     by rule adopted in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
134     Act.
135          (3) Land may be assessed on the basis of the land's agricultural value if the land:
136          (a) is subject to the privilege tax imposed by Section 59-4-101;
137          (b) is owned by the state or any of the state's political subdivisions; and
138          (c) meets the requirements of Subsection (1).
139          (4) Notwithstanding Subsection (1)(a), the commission or a county board of
140     equalization may grant a waiver of the acreage limitation for land upon:
141          (a) appeal by the owner; and
142          (b) submission of proof that:
143          (i) 80% or more of the owner's, purchaser's, or lessee's income is derived from
144     agricultural products produced on the property in question; or
145          (ii) (A) the failure to meet the acreage requirement arose solely as a result of an
146     acquisition by a governmental entity by[:(I)] eminent domain[;] or [(II)] the threat or
147     imminence of an eminent domain proceeding;
148          (B) the land is actively devoted to agricultural use; and
149          (C) no change occurs in the ownership of the land.
150          (5) (a) The commission or a county board of equalization may grant a waiver of the
151     requirement that the land is actively devoted to agricultural use for the tax year for which the

152     land is being assessed under this part upon:
153          (i) appeal by the owner; and
154          (ii) submission of proof that:
155          (A) the land was assessed on the basis of agricultural use for at least two years
156     immediately preceding that tax year; and
157          (B) the failure to meet the agricultural production requirements for that tax year was
158     due to no fault or act of the owner, purchaser, or lessee.
159          (b) As used in Subsection (5)(a), "fault" does not include:
160          (i) intentional planting of crops or trees which, because of the maturation period, do
161     not give the owner, purchaser, or lessee a reasonable opportunity to satisfy the production
162     levels required for land actively devoted to agricultural use; or
163          (ii) implementation of a bona fide range improvement program[,] or crop rotation
164     program[, or other similar accepted cultural practices which do] that does not give the owner,
165     purchaser, or lessee a reasonable opportunity to satisfy the production levels required for land
166     actively devoted to agricultural use.
167          (6) Land that otherwise qualifies for assessment under this part qualifies for assessment
168     under this part in the first year the land resumes being actively devoted to agricultural use if:
169          (a) the land becomes ineligible for assessment under this part only as a result of a split
170     estate mineral rights owner exercising the right to extract a mineral; and
171          (b) the land qualified for assessment under this part in the year immediately preceding
172     the year the land became ineligible for assessment under this part only as a result of a split
173     estate mineral rights owner exercising the right to extract a mineral.
174          (7) Land that otherwise qualifies under Subsection (1) to be assessed on the basis of the
175     value that the land has for agricultural use does not lose that qualification by becoming subject
176     to a forest stewardship plan developed under Section 65A-8a-106 under which the land is
177     subject to a temporary period of limited use or nonuse.
178          Section 3. Section 59-2-504 is amended to read:
179          59-2-504. Exclusions from designation as agricultural use -- Exception.
180          (1) As used in this section:
181          (a) "Energy" means electrical, mechanical, or thermal energy.
182          (b) "Land devoted to the production of solar energy" means land on which solar

183     equipment is placed to produce energy for the purpose of selling the energy to a purchaser.
184          (c) "Platted with surface improvements in place" means that:
185          (i) land is platted; and
186          (ii) all surface improvements necessary for the land to be sold as a lot or a unit are in
187     place regardless of whether it is the owner of the land that puts the surface improvements in
188     place, as determined by the legislative body of:
189          (A) the county, if the land is located in an unincorporated area of the county;
190          (B) the city, if the land is located in a city; or
191          (C) the town, if the land is located in a town.
192          (d) "Ski area" means any area designated by a ski area operator that an individual pays
193     a fee to access for:
194          (i) snowboarding;
195          (ii) skiing;
196          (iii) nordic skiing or snowboarding;
197          (iv) freestyle skiing;
198          (v) ski jumping;
199          (vi) tubing;
200          (vii) sledding;
201          (viii) snowshoeing; or
202          (ix) any other activity.
203          (e) "Ski area operator" means those persons, and their agents, officers, employees, or
204     representatives that operate a ski area.
205          (f) "Solar equipment" means equipment used to:
206          (i) collect solar radiation;
207          (ii) convert solar radiation into energy; or
208          (iii) store solar radiation or energy.
209          (g) "Surface improvement" means:
210          (i) a curb;
211          (ii) a gutter; or
212          (iii) pavement.
213          [(1)] (2) Except as provided in Subsection [(2)] (3), land may not be assessed under

214     this part if the land is:
215          (a) part of a platted subdivision or planned unit development, with restrictions
216     prohibiting its use for agricultural purposes with surface improvements in place, whether
217     within or without a city; [or]
218          (b) platted with surface improvements in place that are not an integral part of
219     agricultural use[.];
220          (c) land devoted to the production of solar energy; or
221          (d) a ski area.
222          [(2)] (3) (a) If land has been platted with surface improvements in place, the land has
223     been withdrawn from this part, and the owner is not able to transfer title to the platted property,
224     or continue development of the platted property due to economic circumstances, or some other
225     reasonable cause, the owner may petition the county assessor for reinstatement under this part
226     for assessment purposes as land in agricultural use without vacating the subdivision plat.
227          (b) The county assessor may grant the petition for reinstatement described in
228     Subsection [(2)] (3)(a) if the land is actively devoted to agricultural use.
229          [(3) For purposes of this section:]
230          [(a) "platted with surface improvements in place" means that:]
231          [(i) land is platted; and]
232          [(ii) all surface improvements necessary for the land to be sold as a lot or a unit are in
233     place:]
234          [(A) regardless of whether or not it is the owner of the land who puts the surface
235     improvements in place; and]
236          [(B) as determined by the:]
237          [(I) county legislative body if the land is located in an unincorporated area of the
238     county;]
239          [(II) city legislative body if the land is located in a city; or]
240          [(III) town legislative body if the land is located in a town; and]
241          [(b) "surface improvement" means:]
242          [(i) a curb;]
243          [(ii) a gutter; or]
244          [(iii) pavement.]
244a     Ĥ→ Section 4. Section 59-2-506 is amended to read:
244b     
59-2-506. Rollback tax - Penalty - Computation of tax - Procedure - Lien - Interest - Notice -
244c     Collection - Distribution - Appeal to county board of equalization. ☆
244d     ☆     (1) Except as provided in this section, Section 59-2-506.5, or Section 59-2-511, if land is
244e     withdrawn from this part, the land is subject to a rollback tax imposed in accordance with this section.
244f          (2) (a) An owner shall notify the county assessor that land is withdrawn from this part within
244g     120 days after the day on which the land is withdrawn from this part.
244h          (b) An owner that fails to notify the county assessor under Subsection (2)(a) that land is
244i     withdrawn from this part is subject to a penalty equal to the greater of:
244j          (i) $10; or
244k          (ii) 2% of the rollback tax due for the last year of the rollback period.
244l          (3) (a) The county assessor shall determine the amount of the rollback tax by computing the
244m     difference for the rollback period described in Subsection (3)(b) between:
244n          (i) the tax paid while the land was assessed under this part; and
244o          (ii) the tax that would have been paid had the property not been assessed under this part.
244p          (b) For purposes of this section, the rollback period is a time period that:
244q          (i) begins on the later of:
244r          (A) the date the land is first assessed under this part; or
244s          (B) five years preceding the day on which the county assessor mails the notice required by
244t     Subsection (5); and
244u          (ii) ends the day on which the county assessor mails the notice required by Subsection (5).
244v          (4) (a) The county treasurer shall:
244w          (i) collect the rollback tax; and
244x          (ii) after the rollback tax is paid, certify to the county recorder that the rollback tax lien on the
244y     property has been satisfied by:
244z          (A) preparing a document that certifies that the rollback tax lien on the property has been
244aa     satisfied; and
244ab          (B) providing the document described in Subsection (4)(a)(ii)(A) to the county recorder for
244ac     recordation.
244ad          (b) The rollback tax collected under this section shall:
244ae          (i) be paid into the county treasury; and
244af          (ii) be paid by the county treasurer to the various taxing entities pro rata in accordance with
244ag     the property tax levies for the current year.
244ah          (5) (a) The county assessor shall mail to an owner of the land that is subject to a rollback tax a
244ai     notice that:
244aj          (i) the land is withdrawn from this part;
244ak          (ii) the land is subject to a rollback tax under this section; and
244al          (iii) the rollback tax is delinquent if the owner of the land does not pay the tax within 30 days
244am     after the day on which the county assessor mails the notice.
244an          (b) (i) The rollback tax is due and payable on the day the county assessor mails the
244ao     notice required by Subsection (5)(a). ☆
244ap     ☆     (ii) Subject to Subsection (7), the rollback tax is delinquent if an owner of the land that is
244aq     withdrawn from this part does not pay the rollback tax within 30 days after the day on which the
244ar     county assessor mails the notice required by Subsection (5)(a).
244as          (6) (a) Subject to Subsection (6)(b), the following are a lien on the land assessed under this
244at     part:
244au          (i) the rollback tax; and
244av          (ii) interest imposed in accordance with Subsection (7).
244aw          (b) The lien described in Subsection (6)(a) shall:
244ax          (i) arise upon the imposition of the rollback tax under this section;
244ay          (ii) end on the day on which the rollback tax and interest imposed in accordance with
244az     Subsection (7) are paid in full; and
244ba          (iii) relate back to the first day of the rollback period described in Subsection (3)(b).
244bb          (7) (a) A delinquent rollback tax under this section shall accrue interest:
244bc          (i) from the date of delinquency until paid; and
244bd          (ii) at the interest rate established under Section 59-2-1331 and in effect on January 1 of the
244be     year in which the delinquency occurs.
244bf          (b) A rollback tax that is delinquent on September 1 of any year shall be included on the notice
244bg     required by Section 59-2-1317, along with interest calculated on that delinquent amount through
244bh     November 30 of the year in which the county treasurer provides the notice under Section 59-2-1317.
244bi          (8) (a) [
Land] Except as provided in Subsection (8)(c), land that becomes ineligible for
244bj     assessment under this part only as a result of an amendment to this part is not subject to the rollback
244bk     tax if the owner of the land notifies the county assessor that the land is withdrawn from this part in
244bl     accordance with Subsection (2).
244bm          (b) Land described in Subsection (8)(a) that is withdrawn from this part as a result of an event
244bn     other than an amendment to this part, whether voluntary or involuntary, is subject to the rollback tax.
244bo           (c) Land that becomes ineligible for assessment under this part as a result of the changes in
244bp     2017 General Session H.B. 45 is subject to the rollback tax.
244bq          (9) Except as provided in Section 59-2-511, land that becomes exempt from taxation under
244br     Utah Constitution Article XIII, Section 3, is not subject to the rollback tax if the land meets the
244bs     requirements of Section 59-2-503 to be assessed under this part.
244bt          (10) Land that becomes ineligible for assessment under this part only as a result of a split estate
244bu     mineral rights owner exercising the right to extract a mineral is not subject to the rollback tax:
244bv          (a) (i) for the portion of the land required by a split estate mineral rights owner to extract a
244bw     mineral if, after the split estate mineral rights owner exercises the right to extract a mineral, the
244bx     portion of the property that remains in agricultural production still meets the acreage requirements of
244by     Section 59-2-503 for assessment under this part; or
244bz          (ii) for the entire acreage that would otherwise qualify for assessment under this part if,
244ca     after the split estate mineral rights owner exercises the right to extract a mineral, the entire acreage
244cb     that ☆
244cc     ☆would otherwise qualify for assessment under this part no longer meets the acreage requirements of
244cd     Section 59-2-503 for assessment under this part only due to the extraction of the mineral by the split
244ce     estate mineral rights owner; and
244cf          (b) for the period of time that the property described in Subsection (10)(a) is ineligible for
244cg     assessment under this part due to the extraction of a mineral by the split estate mineral rights owner.
244ch          (11) (a) Subject to Subsection (11)(b), an owner of land may appeal to the county board of
244ci     equalization:
244cj          (i) a decision by a county assessor to withdraw land from assessment under this part; or
244ck          (ii) the imposition of a rollback tax under this section.
244cl          (b) An owner shall file an appeal under Subsection (11)(a) no later than 45 days after the day
244cm     on which the county assessor mails the notice required by Subsection (5).
←Ĥ


245          Section 4. Section 59-2-924 is amended to read:
246          59-2-924. Definitions -- Report of valuation of property to county auditor and
247     commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
248     rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
249     commission.
250          (1) As used in this section:
251          (a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with
252     this chapter.
253          (ii) "Ad valorem property tax revenue" does not include:
254          (A) interest;
255          (B) penalties;
256          (C) collections from redemptions; or
257          (D) revenue received by a taxing entity from personal property that is semiconductor
258     manufacturing equipment assessed by a county assessor in accordance with Part 3, County
259     Assessment.
260          (b) (i) "Aggregate taxable value of all property taxed" means:
261          (A) the aggregate taxable value of all real property a county assessor assesses in
262     accordance with Part 3, County Assessment, for the current year;
263          (B) the aggregate taxable value of all real and personal property the commission
264     assesses in accordance with Part 2, Assessment of Property, for the current year; and
265          (C) the aggregate year end taxable value of all personal property a county assessor
266     assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls
267     of the taxing entity.
268          (ii) "Aggregate taxable value of all property taxed" does not include the aggregate year
269     end taxable value of personal property that is:
270          (A) semiconductor manufacturing equipment assessed by a county assessor in
271     accordance with Part 3, County Assessment; and
272          (B) contained on the prior year's tax rolls of the taxing entity.
273          (c) "Centrally assessed benchmark value" means an amount equal to the highest year
274     end taxable value of real and personal property the commission assesses in accordance with
275     Part 2, Assessment of Property, for a previous calendar year that begins on or after January 1,

276     2015, adjusted for taxable value attributable to:
277          (i) an annexation to a taxing entity; [or]
278          (ii) an incorrect allocation of taxable value of real or personal property the commission
279     assesses in accordance with Part 2, Assessment of Property[.]; or
280          (iii) a decision made by the commission under Section 59-2-1007.
281          (d) (i) "Centrally assessed new growth" means the greater of:
282          (A) zero; or
283          (B) the amount calculated by subtracting the centrally assessed benchmark value
284     adjusted for prior year end incremental value from the taxable value of real and personal
285     property the commission assesses in accordance with Part 2, Assessment of Property, for the
286     current year, adjusted for current year incremental value.
287          (ii) "Centrally assessed new growth" does not include a change in value as a result of a
288     change in the method of apportioning the value prescribed by the Legislature, a court, or the
289     commission in an administrative rule or administrative order.
290          (e) "Certified tax rate" means a tax rate that will provide the same ad valorem property
291     tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
292          (f) "Eligible new growth" means the greater of:
293          (i) zero; or
294          (ii) the sum of:
295          (A) locally assessed new growth;
296          (B) centrally assessed new growth; and
297          (C) project area new growth.
298          (g) "Incremental value" means the same as that term is defined in Section 17C-1-102.
299          (h) (i) "Locally assessed new growth" means the greater of:
300          (A) zero; or
301          (B) the amount calculated by subtracting the year end taxable value of real property the
302     county assessor assesses in accordance with Part 3, County Assessment, for the previous year,
303     adjusted for prior year end incremental value from the taxable value of real property the county
304     assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted
305     for current year incremental value.
306          (ii) "Locally assessed new growth" does not include a change in:

307          (A) value as a result of factoring in accordance with Section 59-2-704, reappraisal, or
308     another adjustment; or
309          (B) assessed value based on whether a property is allowed a residential exemption for a
310     primary residence under Section 59-2-103.
311          (i) "Project area" means the same as that term is defined in Section 17C-1-102.
312          (j) "Project area new growth" means an amount equal to the incremental value that is
313     no longer provided to an agency as tax increment.
314          (2) Before June 1 of each year, the county assessor of each county shall deliver to the
315     county auditor and the commission the following statements:
316          (a) a statement containing the aggregate valuation of all taxable real property a county
317     assessor assesses in accordance with Part 3, County Assessment, for each taxing entity; and
318          (b) a statement containing the taxable value of all personal property a county assessor
319     assesses in accordance with Part 3, County Assessment, from the prior year end values.
320          (3) The county auditor shall, on or before June 8, transmit to the governing body of
321     each taxing entity:
322          (a) the statements described in Subsections (2)(a) and (b);
323          (b) an estimate of the revenue from personal property;
324          (c) the certified tax rate; and
325          (d) all forms necessary to submit a tax levy request.
326          (4) (a) Except as otherwise provided in this section, the certified tax rate shall be
327     calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the
328     prior year by the amount calculated under Subsection (4)(b).
329          (b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
330     calculate an amount as follows:
331          (i) calculate for the taxing entity the difference between:
332          (A) the aggregate taxable value of all property taxed; and
333          (B) any adjustments for current year incremental value;
334          (ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
335     determined by increasing or decreasing the amount calculated under Subsection (4)(b)(i) by the
336     average of the percentage net change in the value of taxable property for the equalization
337     period for the three calendar years immediately preceding the current calendar year;

338          (iii) after making the calculation required by Subsection (4)(b)(ii), calculate the product
339     of:
340          (A) the amount calculated under Subsection (4)(b)(ii); and
341          (B) the percentage of property taxes collected for the five calendar years immediately
342     preceding the current calendar year; and
343          (iv) after making the calculation required by Subsection (4)(b)(iii), calculate an amount
344     determined by subtracting eligible new growth from the amount calculated under Subsection
345     (4)(b)(iii).
346          (5) A certified tax rate for a taxing entity described in this Subsection (5) shall be
347     calculated as follows:
348          (a) except as provided in Subsection (5)(b), for a new taxing entity, the certified tax
349     rate is zero;
350          (b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
351          (i) in a county of the first, second, or third class, the levy imposed for municipal-type
352     services under Sections 17-34-1 and 17-36-9; and
353          (ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
354     purposes and such other levies imposed solely for the municipal-type services identified in
355     Section 17-34-1 and Subsection 17-36-3(22); and
356          (c) for debt service voted on by the public, the certified tax rate is the actual levy
357     imposed by that section, except that a certified tax rate for the following levies shall be
358     calculated in accordance with Section 59-2-913 and this section:
359          (i) a school levy provided for under Section 53A-16-113, 53A-17a-133, or
360     53A-17a-164; and
361          (ii) a levy to pay for the costs of state legislative mandates or judicial or administrative
362     orders under Section 59-2-1602.
363          (6) (a) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 may be
364     imposed at a rate that is sufficient to generate only the revenue required to satisfy one or more
365     eligible judgments.
366          (b) The ad valorem property tax revenue generated by a judgment levy described in
367     Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate certified tax
368     rate.

369          (7) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
370          (i) the taxable value of real property:
371          (A) the county assessor assesses in accordance with Part 3, County Assessment; and
372          (B) contained on the assessment roll;
373          (ii) the year end taxable value of personal property:
374          (A) a county assessor assesses in accordance with Part 3, County Assessment; and
375          (B) contained on the prior year's assessment roll; and
376          (iii) the taxable value of real and personal property the commission assesses in
377     accordance with Part 2, Assessment of Property.
378          (b) For purposes of Subsection (7)(a), taxable value does not include eligible new
379     growth.
380          (8) (a) On or before June 22, a taxing entity shall annually adopt a tentative budget.
381          (b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall
382     notify the county auditor of:
383          (i) the taxing entity's intent to exceed the certified tax rate; and
384          (ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
385          (c) The county auditor shall notify property owners of any intent to levy a tax rate that
386     exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
387          (9) (a) Subject to Subsection (9)(d), the commission shall provide notice, through
388     electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim
389     Committee if:
390          (i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
391     taxable value of the real and personal property the commission assesses in accordance with
392     Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental
393     value; and
394          (ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year end
395     taxable value of the real and personal property of a taxpayer the commission assesses in
396     accordance with Part 2, Assessment of Property, for the previous year.
397          (b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
398     subtracting the taxable value of real and personal property the commission assesses in
399     accordance with Part 2, Assessment of Property, for the current year, adjusted for current year

400     incremental value, from the year end taxable value of the real and personal property the
401     commission assesses in accordance with Part 2, Assessment of Property, for the previous year,
402     adjusted for prior year end incremental value.
403          (c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
404     subtracting the total taxable value of real and personal property of a taxpayer the commission
405     assesses in accordance with Part 2, Assessment of Property, for the current year, from the total
406     year end taxable value of the real and personal property of a taxpayer the commission assesses
407     in accordance with Part 2, Assessment of Property, for the previous year.
408          (d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet
409     the requirement under Subsection (9)(a)(ii).
410          Section 5. Retrospective operation.
411          This bill has retrospective operation to January 1, 2017.






Legislative Review Note
Office of Legislative Research and General Counsel