1     
PROPERTY TAX RELIEF MODIFICATIONS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jim Dabakis

5     
House Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions relating to water conservancy district property tax levies.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that property tax collections of certain water conservancy districts may not
13     exceed a certain amount with exceptions;
14          ▸     provides that if a water conservancy district determines that emergency
15     circumstances exist, a water conservancy district may levy a property tax that
16     exceeds the property tax collection restriction in certain circumstances;
17          ▸     prohibits certain water conservancy districts from issuing bonds secured by certain
18     property tax revenue; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          17B-2a-1006, as last amended by Laws of Utah 2010, Chapter 159
27     


28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 17B-2a-1006 is amended to read:
30          17B-2a-1006. Limits on water conservancy district property tax levy -- Additional
31     levy.
32          (1) Except as provided in Subsection (2), and subject to [Subsection] Subsections (3)
33     and (4) and Section 17B-2a-1009, the property tax levy of a water conservancy district for all
34     purposes may not exceed:
35          (a) .0001 per dollar of taxable value of taxable property in the district, before the
36     earliest of:
37          (i) the planning or design of works;
38          (ii) the acquisition of the site or right-of-way on which the works will be constructed;
39     or
40          (iii) the commencement of construction of the works; and
41          (b) .0002 per dollar of taxable value of taxable property in the district, after the earliest
42     of the events listed in Subsection (1)(a).
43          (2) Subject to Subsection (3) and Section 17B-2a-1009:
44          (a) in a district that contains land located within the Lower Colorado River Basin, the
45     levy after the earliest of the events listed in Subsection (1)(a) may be increased to a maximum
46     of .001 per dollar of taxable value of taxable property in the district; and
47          (b) in a district to be served under a contract, water appropriation, water allotment, or
48     otherwise by water apportioned by the Colorado River Compact to the Upper Basin, the levy
49     after the earliest of the events listed in Subsection (1)(a) may be increased to a maximum of
50     .0004 per dollar of taxable value of taxable property.
51          (3) [A] Subject to the restriction in Subsection (4), a water conservancy district may
52     impose an additional property tax levy, not to exceed .0001 per dollar of taxable value of
53     taxable property in the district, if the additional levy is necessary to provide adequate funds to
54     pay maturing bonds or other debts of the district.
55          (4) (a) Except as provided in Subsections (4)(b) and (c), beginning on July 1, 2020,
56     property tax collections by a water conservancy district may not exceed 15% of a district's total
57     annual revenues according to the district's most recent audited financial statement on record
58     with the state auditor if all or part of the district's service area is within a county of the first or

59     second class.
60          (b) A water conservancy district with a service area that comprises more than five
61     counties as of January 1, 2016, is exempt from the restriction in Subsection (4)(a).
62          (c) If a water conservancy district determines that emergency circumstances exist, a
63     water conservancy district may levy a property tax that exceeds the property tax collection
64     restriction under Subsection (4)(a) if approved by at least 75% of water conservancy district
65     voters at an election held for that purpose.
66          (5) Beginning on July 1, 2017, a water conservancy district subject to the restriction in
67     Subsection (4) may not issue bonds secured by property tax revenue levied under this section.






Legislative Review Note
Office of Legislative Research and General Counsel