1     
MINIMUM BASIC TAX RATE REDUCTION

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Bradley G. Last

5     
Senate Sponsor: Lincoln Fillmore

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the basic tax rate to fund public education.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends the years in which a freeze is in effect on the minimum basic tax rate;
13          ▸     repeals the weighted pupil unit (WPU) value rate;
14          ▸     repeals a study and reporting requirement related to the WPU value rate; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          This bill provides retrospective operation.
20     Utah Code Sections Affected:
21     AMENDS:
22          11-13-302, as last amended by Laws of Utah 2018, Chapters 415 and 456
23          11-13-310, as last amended by Laws of Utah 2018, Chapters 415 and 456
24          53E-1-202, as last amended by Laws of Utah 2021, Chapters 251 and 319
25          53F-2-205, as last amended by Laws of Utah 2021, Chapter 382
26          53F-2-301, as last amended by Laws of Utah 2021, Chapter 319
27          53F-2-515, as last amended by Laws of Utah 2018, Chapter 456 and renumbered and
28     amended by Laws of Utah 2018, Chapter 2
29          53F-9-302, as last amended by Laws of Utah 2019, Chapter 186
30          53F-9-305, as last amended by Laws of Utah 2019, Chapter 186
31          53F-9-306, as last amended by Laws of Utah 2019, Chapter 186
32          53G-3-304, as last amended by Laws of Utah 2018, Chapters 281, 456 and renumbered
33     and amended by Laws of Utah 2018, Chapter 3
34          59-2-919.1, as last amended by Laws of Utah 2020, Chapter 78
35          59-2-926, as last amended by Laws of Utah 2018, Chapters 415 and 456
36          63I-2-211, as last amended by Laws of Utah 2018, Chapters 337 and 456
37          63I-2-253, as last amended by Laws of Utah 2021, First Special Session, Chapter 14
38          63I-2-259, as last amended by Laws of Utah 2021, Chapter 370
39     REPEALS:
40          53F-2-301.5, as last amended by Laws of Utah 2021, Chapter 6
41     

42     Be it enacted by the Legislature of the state of Utah:
43          Section 1. Section 11-13-302 is amended to read:
44          11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
45     suppliers -- Method of calculating -- Collection -- Extent of tax lien.
46          (1) (a) Each project entity created under this chapter that owns a project and that sells
47     any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
48     property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
49     valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
50     this section to each taxing jurisdiction within which the project or any part of it is located.
51          (b) For purposes of this section, "annual fee" means the annual fee described in
52     Subsection (1)(a) that is in lieu of ad valorem property tax.
53          (c) The requirement to pay an annual fee shall commence:
54          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
55     impact alleviation payments under contracts or determination orders provided for in Sections
56     11-13-305 and 11-13-306, with the fiscal year of the candidate following the fiscal year of the
57     candidate in which the date of commercial operation of the last generating unit, other than any
58     generating unit providing additional project capacity, of the project occurs, or, in the case of
59     any facilities providing additional project capacity, with the fiscal year of the candidate
60     following the fiscal year of the candidate in which the date of commercial operation of the
61     generating unit providing the additional project capacity occurs; and
62          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
63     Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
64     project commences, or, in the case of facilities providing additional project capacity, with the
65     fiscal year of the taxing jurisdiction in which construction of those facilities commences.
66          (d) The requirement to pay an annual fee shall continue for the period of the useful life
67     of the project or facilities.
68          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
69     because the ad valorem property tax imposed by a school district and authorized by the
70     Legislature represents both:
71          (i) a levy mandated by the state for the state minimum school program under Section
72     53F-2-301 [or 53F-2-301.5, as applicable]; and
73          (ii) local levies for capital outlay and other purposes under Sections 53F-8-303,
74     53F-8-301, and 53F-8-302.
75          (b) The annual fees due a school district shall be as follows:
76          (i) the project entity shall pay to the school district an annual fee for the state minimum
77     school program at the rate imposed by the school district and authorized by the Legislature
78     under Section 53F-2-301 [or 53F-2-301.5, as applicable] ; and
79          (ii) for all other local property tax levies authorized to be imposed by a school district,
80     the project entity shall pay to the school district either:
81          (A) an annual fee; or
82          (B) impact alleviation payments under contracts or determination orders provided for
83     in Sections 11-13-305 and 11-13-306.
84          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
85     by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
86     multiplying the fee base or value determined in accordance with Subsection (4) for that year of
87     the portion of the project located within the jurisdiction by the percentage of the project which
88     is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
89          (b) As used in this section, "tax rate," when applied in respect to a school district,
90     includes any assessment to be made by the school district under Subsection (2) or Section
91     63M-5-302.
92          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
93     an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
94     the proceeds of which were used to provide public facilities and services for impact alleviation
95     in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306.
96          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
97          (i) take into account the fee base or value of the percentage of the project located
98     within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
99     capacity, service, or other benefit sold to the supplier or suppliers; and
100          (ii) reflect any credit to be given in that year.
101          (4) (a) Except as otherwise provided in this section, the annual fees required by this
102     section shall be paid, collected, and distributed to the taxing jurisdiction as if:
103          (i) the annual fees were ad valorem property taxes; and
104          (ii) the project were assessed at the same rate and upon the same measure of value as
105     taxable property in the state.
106          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
107     this section, the fee base of a project may be determined in accordance with an agreement
108     among:
109          (A) the project entity; and
110          (B) any county that:
111          (I) is due an annual fee from the project entity; and
112          (II) agrees to have the fee base of the project determined in accordance with the
113     agreement described in this Subsection (4).
114          (ii) The agreement described in Subsection (4)(b)(i):
115          (A) shall specify each year for which the fee base determined by the agreement shall be
116     used for purposes of an annual fee; and
117          (B) may not modify any provision of this chapter except the method by which the fee
118     base of a project is determined for purposes of an annual fee.
119          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
120     described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
121     Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
122     jurisdiction.
123          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
124     year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
125     portion of the project for which there is not an agreement:
126          (I) for that year; and
127          (II) using the same measure of value as is used for taxable property in the state.
128          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
129     Commission in accordance with rules made by the State Tax Commission.
130          (c) Payments of the annual fees shall be made from:
131          (i) the proceeds of bonds issued for the project; and
132          (ii) revenues derived by the project entity from the project.
133          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
134     other benefits of the project whose tangible property is not exempted by Utah Constitution
135     Article XIII, Section 3, from the payment of ad valorem property tax shall require each
136     purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
137     its share, determined in accordance with the terms of the contract, of these fees.
138          (ii) It is the responsibility of the project entity to enforce the obligations of the
139     purchasers.
140          (5) (a) The responsibility of the project entity to make payment of the annual fees is
141     limited to the extent that there is legally available to the project entity, from bond proceeds or
142     revenues, money to make these payments, and the obligation to make payments of the annual
143     fees is not otherwise a general obligation or liability of the project entity.
144          (b) No tax lien may attach upon any property or money of the project entity by virtue of
145     any failure to pay all or any part of an annual fee.
146          (c) The project entity or any purchaser may contest the validity of an annual fee to the
147     same extent as if the payment was a payment of the ad valorem property tax itself.
148          (d) The payments of an annual fee shall be reduced to the extent that any contest is
149     successful.
150          (6) (a) The annual fee described in Subsection (1):
151          (i) shall be paid by a public agency that:
152          (A) is not a project entity; and
153          (B) owns an interest in a facility providing additional project capacity if the interest is
154     otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
155          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
156     accordance with Subsection (6)(b).
157          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
158     rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
159          (i) the fee base or value of the facility providing additional project capacity located
160     within the jurisdiction;
161          (ii) the percentage of the ownership interest of the public agency in the facility; and
162          (iii) the portion, expressed as a percentage, of the public agency's ownership interest
163     that is attributable to the capacity, service, or other benefit from the facility that is sold by the
164     public agency to an energy supplier or suppliers whose tangible property is not exempted by
165     Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
166          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
167     obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
168     to its ownership interest as though it were a project entity.
169          Section 2. Section 11-13-310 is amended to read:
170          11-13-310. Termination of impact alleviation contract.
171          (1) If the project or any part of it or the facilities providing additional project capacity
172     or any part of them, or the output from the project or facilities providing additional project
173     capacity become subject, in addition to the requirements of Section 11-13-302, to ad valorem
174     property taxation or other payments in lieu of ad valorem property taxation, or other form of
175     tax equivalent payments to any candidate which is a party to an impact alleviation contract with
176     respect to the project or facilities providing additional project capacity or is receiving impact
177     alleviation payments or means with respect to the project or facilities providing additional
178     project capacity pursuant to a determination by the board, then the impact alleviation contract
179     or the requirement to make impact alleviation payments or provide means therefor pursuant to
180     the determination, as the case may be, shall, at the election of the candidate, terminate.
181          (2) In any event, each impact alleviation contract or determination order shall terminate
182     upon the project, or, in the case of facilities providing additional project capacity, those
183     facilities becoming subject to the provisions of Section 11-13-302, except that no impact
184     alleviation contract or agreement entered by a school district shall terminate because of in lieu
185     ad valorem property tax fees levied under Subsection 11-13-302(2)(b)(i) or because of ad
186     valorem property taxes levied under Section 53F-2-301 [or 53F-2-301.5, as applicable,] for the
187     state minimum school program.
188          (3) In addition, if the construction of the project, or, in the case of facilities providing
189     additional project capacity, of those facilities, is permanently terminated for any reason, each
190     impact alleviation contract and determination order, and the payments and means required
191     thereunder, shall terminate.
192          (4) No termination of an impact alleviation contract or determination order may
193     terminate or reduce any liability previously incurred pursuant to the contract or determination
194     order by the candidate beneficiary under it.
195          (5) If the provisions of Section 11-13-302, or its successor, are held invalid by a court
196     of competent jurisdiction, and no ad valorem taxes or other form of tax equivalent payments
197     are payable, the remaining provisions of this chapter shall continue in operation without regard
198     to the commencement of commercial operation of the last generating unit of that project or of
199     facilities providing additional project capacity.
200          Section 3. Section 53E-1-202 is amended to read:
201          53E-1-202. Reports to and action required of the Public Education
202     Appropriations Subcommittee.
203          (1) In accordance with applicable provisions and Section 68-3-14, the following
204     recurring reports are due to the Public Education Appropriations Subcommittee:
205          (a) the State Superintendent's Annual Report by the state board described in Section
206     53E-1-203;
207          (b) the report described in Section 53E-10-703 by the Utah Leading through Effective,
208     Actionable, and Dynamic Education director on research and other activities; and
209          (c) the report by the STEM Action Center Board described in Section 9-22-109,
210     including the information described in Section 9-22-113 on the status of the computer science
211     initiative.
212          (2) The one-time report by the state board regarding cost centers and implementing
213     activity based costing is due to the Public Education Appropriations Subcommittee in
214     accordance with Section 53E-3-520.
215          (3) In accordance with applicable provisions, the Public Education Appropriations
216     Subcommittee shall complete [the following: (a) the review described in Section 53E-2-301 of
217     the WPU value rate; and (b)], if required, the study described in Section 53F-4-304 of
218     scholarship payments.
219          Section 4. Section 53F-2-205 is amended to read:
220          53F-2-205. Powers and duties of state board to adjust Minimum School Program
221     allocations -- Use of remaining funds at the end of a fiscal year.
222          (1) As used in this section:
223          (a) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
224     Sec. 6301 et seq.
225          (b) "Program" means a program or allocation funded by a line item appropriation or
226     other appropriation designated as:
227          (i) Basic Program;
228          (ii) Related to Basic Programs;
229          (iii) Voted and Board Levy Programs; or
230          (iv) Minimum School Program.
231          (2) Except as provided in Subsection (3) or (5), if the number of weighted pupil units
232     in a program is underestimated, the state board shall reduce the value of the weighted pupil unit
233     in that program so that the total amount paid for the program does not exceed the amount
234     appropriated for the program.
235          (3) If the number of weighted pupil units in a program is overestimated, the state board
236     shall spend excess money appropriated for the following purposes giving priority to the
237     purpose described in Subsection (3)(a):
238          (a) to support the value of the weighted pupil unit in a program within the basic
239     state-supported school program in which the number of weighted pupil units is underestimated;
240          (b) to support the state guaranteed local levy increments as defined in Section
241     53F-2-601, if:
242          (i) local contributions to the voted local levy program or board local levy program are
243     overestimated; or
244          (ii) the number of weighted pupil units within school districts qualifying for a
245     guarantee is underestimated;
246          (c) to support the state supplement to local property taxes allocated to charter schools,
247     if the state supplement is less than the amount prescribed by Section 53F-2-704;
248          (d) to fund the cost of the salary supplements described in Section 53F-2-504; or
249          (e) to support a school district with a loss in student enrollment as provided in Section
250     53F-2-207.
251          (4) If local contributions from the minimum basic tax rate imposed under Section
252     53F-2-301 [or 53F-2-301.5, as applicable,] are overestimated, the state board shall reduce the
253     value of the weighted pupil unit for all programs within the basic state-supported school
254     program so the total state contribution to the basic state-supported school program does not
255     exceed the amount of state funds appropriated.
256          (5) If local contributions from the minimum basic tax rate imposed under Section
257     53F-2-301 [or 53F-2-301.5, as applicable,] are underestimated, the state board shall:
258          (a) spend the excess local contributions for the purposes specified in Subsection (3),
259     giving priority to supporting the value of the weighted pupil unit in programs within the basic
260     state-supported school program in which the number of weighted pupil units is underestimated;
261     and
262          (b) reduce the state contribution to the basic state-supported school program so the
263     total cost of the basic state-supported school program does not exceed the total state and local
264     funds appropriated to the basic state-supported school program plus the local contributions
265     necessary to support the value of the weighted pupil unit in programs within the basic
266     state-supported school program in which the number of weighted pupil units is underestimated.
267          (6) Except as provided in Subsection (3) or (5), the state board shall reduce the state
268     guarantee per weighted pupil unit provided under the local levy state guarantee program
269     described in Section 53F-2-601, if:
270          (a) local contributions to the voted local levy program or board local levy program are
271     overestimated; or
272          (b) the number of weighted pupil units within school districts qualifying for a
273     guarantee is underestimated.
274          (7) Money appropriated to the state board is nonlapsing, including appropriations to the
275     Minimum School Program and all agencies, line items, and programs under the jurisdiction of
276     the state board.
277          (8) The state board shall report actions taken by the state board under this section to the
278     Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and Budget.
279          Section 5. Section 53F-2-301 is amended to read:
280          53F-2-301. Minimum basic tax rate for a fiscal year that begins after July 1, 2021.
281          (1) The provisions of this section are not in effect for a fiscal year that begins on July 1,
282     2018, 2019, 2020, or 2021[, or 2022].
283          (2) As used in this section:
284          (a) "Basic levy increment rate" means a tax rate that will generate an amount of
285     revenue equal to $75,000,000.
286          [(b) "Combined basic rate" means a rate that is the sum of:]
287          [(i) the minimum basic tax rate; and]
288          [(ii) the WPU value rate.]
289          [(c)] (b) "Commission" means the State Tax Commission.
290          [(d)] (c) "Equity pupil tax rate" means the tax rate that [will generate an amount of
291     revenue equal to the amount generated by the equity pupil tax rate as defined in Section
292     53F-2-301.5 in the fiscal year that begins July 1, 2022.] is:
293          (i) calculated by subtracting the minimum basic tax rate from the rate floor; or
294          (ii) zero, if the rate calculated in accordance with Subsection (2)(c)(i) is zero or less.
295          [(e)] (d) "Minimum basic local amount" means an amount that is:
296          (i) equal to the sum of:
297          (A) the school districts' contribution to the basic school program the previous fiscal
298     year;
299          (B) the amount generated by the basic levy increment rate;
300          (C) the amount generated by the equity pupil tax rate; and
301          (D) the eligible new growth, as defined in Section 59-2-924 and rules of the State Tax
302     Commission multiplied by the minimum basic rate; and
303          (ii) set annually by the Legislature in Subsection (3)(a).
304          [(f)] (e) "Minimum basic tax rate" means a tax rate certified by the commission that
305     will generate an amount of revenue equal to the minimum basic local amount described in
306     Subsection (3)(a).
307          [(g) "Weighted pupil unit value" or "WPU value" means the amount established each
308     year in the enacted public education budget that is multiplied by the number of weighted pupil
309     units to yield the funding level for the basic school program.]
310          [(h) "WPU value amount" means an amount:]
311          [(i) that is equal to the product of:]
312          [(A) the WPU value increase limit; and]
313          [(B) the percentage share of local revenue to the cost of the basic school program in the
314     immediately preceding fiscal year; and]
315          [(ii) set annually by the Legislature in Subsection (4)(a).]
316          [(i) "WPU value increase limit" means the lesser of:]
317          [(i) the total cost to the basic school program to increase the WPU value over the WPU
318     value in the prior fiscal year; or]
319          [(ii) the total cost to the basic school program to increase the WPU value by 4% over
320     the WPU value in the prior fiscal year.]
321          [(j) "WPU value rate" means a tax rate certified by the commission that will generate
322     an amount of revenue equal to the WPU value amount described in Subsection (4)(a).]
323          (3) (a) The minimum basic local amount for the fiscal year that begins on July 1, 2018,
324     is $408,073,800 in revenue statewide.
325          (b) The preliminary estimate of the minimum basic tax rate for a fiscal year that begins
326     on July 1, 2018, is .001498.
327          [(4) (a) The WPU value amount for the fiscal year that begins on July 1, 2018, is
328     $18,650,000 in revenue statewide.]
329          [(b) The preliminary estimate of the WPU value rate for the fiscal year that begins on
330     July 1, 2018, is .000069.]
331          [(5)] (4) (a) On or before June 22, the commission shall certify [for the year: (i)] the
332     minimum basic tax rate[; and] for the year.
333          [(ii) the WPU value rate.]
334          (b) The estimate of the minimum basic tax rate provided in Subsection (3)(b) [and the
335     estimate of the WPU value rate provided in Subsection (4)(b) are] is based on a forecast for
336     property values for the next calendar year.
337          (c) The certified minimum basic tax rate described in Subsection [(5)(a)(i) and the
338     certified WPU value rate described in Subsection (5)(a)(ii) are] (4)(a) is based on property
339     values as of January 1 of the current calendar year, except personal property, which is based on
340     values from the previous calendar year.
341          [(6)] (5) (a) To qualify for receipt of the state contribution toward the basic school
342     program and as a school district's contribution toward the cost of the basic school program for
343     the school district, each local school board shall impose the [combined] minimum basic tax
344     rate.
345          (b) (i) The state is not subject to the notice requirements of Section 59-2-926 before
346     imposing the tax rates described in this Subsection [(6)] (5).
347          (ii) [(A) Except as provided in Subsection (6)(b)(ii)(B), the] The state is subject to the
348     notice requirements of Section 59-2-926 if the state authorizes a tax rate that exceeds the tax
349     rates described in this Subsection [(6)] (5).
350           [(B) For a calendar year that begins on January 1, 2018, the state is not subject to the
351     notice and public hearing requirements of Section 59-2-926 if the state authorizes a combined
352     basic rate that exceeds the tax rates authorized in this section.]
353          [(7)] (6) (a) The state shall contribute to each school district toward the cost of the
354     basic school program in the school district an amount of money that is the difference between
355     the cost of the school district's basic school program and the sum of revenue generated by the
356     school district by the following:
357          (i) the [combined] minimum basic tax rate;
358          (ii) the basic levy increment rate; and
359          (iii) the equity pupil tax rate.
360          (b) (i) If the difference described in Subsection [(7)] (6)(a) equals or exceeds the cost
361     of the basic school program in a school district, no state contribution shall be made to the basic
362     school program for the school district.
363          (ii) The proceeds of the difference described in Subsection [(7)] (6)(a) that exceed the
364     cost of the basic school program shall be paid into the Uniform School Fund as provided by
365     law and by the close of the fiscal year in which the proceeds were calculated.
366          [(8)] (7) Upon appropriation by the Legislature, the Division of Finance shall deposit
367     an amount equal to the proceeds generated statewide:
368          (a) by the basic levy increment rate into the Minimum Basic Growth Account created
369     in Section 53F-9-302; and
370          (b) by the equity pupil tax rate into the Local Levy Growth Account created in Section
371     53F-9-305[; and].
372          [(c) by the WPU value rate into the Teacher and Student Success Account created in
373     Section 53F-9-306.]
374          [(9) After July 1, 2021, but before November 30, 2022, the Public Education
375     Appropriations Subcommittee:]
376          [(a) shall review the WPU value rate, the impact of revenues generated by the WPU
377     value rate on public education funding, and whether local school boards should continue to
378     levy the WPU value rate; and]
379          [(b) may recommend an increase, repeal, or continuance of the WPU value rate.]
380          Section 6. Section 53F-2-515 is amended to read:
381          53F-2-515. Federal Impact Aid Program -- Offset for underestimated allocations
382     from the Federal Impact Aid Program.
383          (1) In addition to the revenues received from the levy imposed by a local school board
384     and authorized by the Legislature under Section 53F-2-301 [or 53F-2-301.5, as applicable], the
385     Legislature shall provide an amount equal to the difference between the school district's
386     anticipated receipts under the entitlement for the fiscal year from the Federal Impact Aid
387     Program and the amount the school district actually received from this source for the next
388     preceding fiscal year.
389          (2) If at the end of a fiscal year the sum of the receipts of a school district from a
390     distribution from the Legislature pursuant to Subsection (1) plus the school district's allocations
391     from the Federal Impact Aid Program for that fiscal year exceeds the amount allocated to the
392     school district from the Federal Impact Aid Program for the next preceding fiscal year, the
393     excess funds are carried into the next succeeding fiscal year and become in that year a part of
394     the school district's contribution to the school district's basic program for operation and
395     maintenance under the state minimum school finance law.
396          (3) During the next succeeding fiscal year described in Subsection (2), the school
397     district's required tax rate for the basic program shall be reduced so that the yield from the
398     reduced tax rate plus the carryover funds equal the school district's required contribution to the
399     school district's basic program.
400          (4) For the school district of a local school board that is required to reduce the school
401     district's basic tax rate under this section, the school district shall receive state minimum school
402     program funds as though the reduction in the tax rate had not been made.
403          Section 7. Section 53F-9-302 is amended to read:
404          53F-9-302. Minimum Basic Growth Account.
405          (1) As used in this section, "account" means the Minimum Basic Growth Account
406     created in this section.
407          (2) There is created within the Education Fund a restricted account known as the
408     "Minimum Basic Growth Account."
409          (3) The account shall be funded by amounts deposited into the account in accordance
410     with Section 53F-2-301 [or 53F-2-301.5, as applicable].
411          (4) The account shall earn interest.
412          (5) Interest earned on the account shall be deposited into the account.
413          (6) Upon appropriation by the Legislature:
414          (a) 75% of the money from the account shall be used to fund the state's contribution to
415     the voted local levy guarantee described in Section 53F-2-601;
416          (b) 20% of the money from the account shall be used to fund the Capital Outlay
417     Foundation Program as provided in Section 53F-3-202; and
418          (c) 5% of the money from the account shall be used to fund the Capital Outlay
419     Enrollment Growth Program as provided in Section 53F-3-203.
420          Section 8. Section 53F-9-305 is amended to read:
421          53F-9-305. Local Levy Growth Account.
422          (1) As used in this section, "account" means the Local Levy Growth Account created in
423     this section.
424          (2) There is created within the Education Fund a restricted account known as the
425     "Local Levy Growth Account."
426          (3) The account shall be funded by:
427          (a) amounts deposited into the account in accordance with Section 53F-2-301 [or
428     53F-2-301.5, as applicable]; and
429          (b) other legislative appropriations.
430          (4) The account shall earn interest.
431          (5) Interest earned on the account shall be deposited into the account.
432          (6) The Legislature shall appropriate money in the account to the state board.
433          Section 9. Section 53F-9-306 is amended to read:
434          53F-9-306. Teacher and Student Success Account.
435          (1) As used in this section, "account" means the Teacher and Student Success Account
436     created in this section.
437          (2) There is created within the Education Fund a restricted account known as the
438     "Teacher and Student Success Account."
439          (3) The account shall be funded by[: (a) amounts deposited into the account in
440     accordance with Section 53F-2-301 or 53F-2-301.5, as applicable; and (b) other] legislative
441     appropriations.
442          (4) The account shall earn interest.
443          (5) Interest earned on the account shall be deposited into the account.
444          (6) The Legislature shall appropriate money in the account to the state board.
445          Section 10. Section 53G-3-304 is amended to read:
446          53G-3-304. Property tax levies in new district and remaining district --
447     Distribution of property tax revenue.
448          (1) Notwithstanding terms defined in Section 53G-3-102, as used in this section:
449          (a) "Divided school district" or "existing district" means a school district from which a
450     new district is created.
451          (b) "New district" means a school district created under Section 53G-3-302 after May
452     10, 2011.
453          (c) "Property tax levy" means a property tax levy that a school district is authorized to
454     impose, except:
455          (i) the minimum basic tax rate imposed under Section 53F-2-301 [or 53F-2-301.5, as
456     applicable];
457          (ii) a debt service levy imposed under Section 11-14-310; or
458          (iii) a judgment levy imposed under Section 59-2-1330.
459          (d) "Qualifying taxable year" means the calendar year in which a new district begins to
460     provide educational services.
461          (e) "Remaining district" means an existing district after the creation of a new district.
462          (2) A new district and remaining district shall continue to impose property tax levies
463     that were imposed by the divided school district in the taxable year prior to the qualifying
464     taxable year.
465          (3) Except as provided in Subsection (6), a property tax levy that a new district and
466     remaining district are required to impose under Subsection (2) shall be set at a rate that:
467          (a) is uniform in the new district and remaining district; and
468          (b) generates the same amount of revenue that was generated by the property tax levy
469     within the divided school district in the taxable year prior to the qualifying taxable year.
470          (4) The county treasurer of the county in which a property tax levy is imposed under
471     Subsection (2) shall distribute revenues generated by the property tax levy to the new district
472     and remaining district in proportion to the percentage of the divided school district's enrollment
473     on the October 1 prior to the new district commencing educational services that were enrolled
474     in schools currently located in the new district or remaining district.
475          (5) On or before March 31, a county treasurer shall distribute revenues generated by a
476     property tax levy imposed under Subsection (2) in the prior calendar year to a new district and
477     remaining district as provided in Subsection (4).
478          (6) (a) Subject to the notice and public hearing requirements of Section 59-2-919, a
479     new district or remaining district may set a property tax rate higher than the rate required by
480     Subsection (3), up to:
481          (i) the maximum rate, if any, allowed by law; or
482          (ii) the maximum rate authorized by voters for a voted local levy under Section
483     53F-8-301.
484          (b) The revenues generated by the portion of a property tax rate in excess of the rate
485     required by Subsection (3) shall be retained by the district that imposes the higher rate.
486          Section 11. Section 59-2-919.1 is amended to read:
487          59-2-919.1. Notice of property valuation and tax changes.
488          (1) In addition to the notice requirements of Section 59-2-919, the county auditor, on or
489     before July 22 of each year, shall notify each owner of real estate who is listed on the
490     assessment roll.
491          (2) The notice described in Subsection (1) shall:
492          (a) except as provided in Subsection (5), be sent to all owners of real property by mail
493     10 or more days before the day on which:
494          (i) the county board of equalization meets; and
495          (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax
496     rate;
497          (b) be on a form that is:
498          (i) approved by the commission; and
499          (ii) uniform in content in all counties in the state; and
500          (c) contain for each property:
501          (i) the assessor's determination of the value of the property;
502          (ii) the taxable value of the property;
503          (iii) (A) the deadline for the taxpayer to make an application to appeal the valuation or
504     equalization of the property under Section 59-2-1004; or
505          (B) for property assessed by the commission, the deadline for the taxpayer to apply to
506     the commission for a hearing on an objection to the valuation or equalization of the property
507     under Section 59-2-1007;
508          (iv) for a property assessed by the commission, a statement that the taxpayer may not
509     appeal the valuation or equalization of the property to the county board of equalization;
510          (v) itemized tax information for all applicable taxing entities, including:
511          (A) the dollar amount of the taxpayer's tax liability for the property in the prior year;
512     and
513          (B) the dollar amount of the taxpayer's tax liability under the current rate;
514          (vi) the following, stated separately:
515          (A) the charter school levy described in Section 53F-2-703;
516          (B) the multicounty assessing and collecting levy described in Subsection
517     59-2-1602(2);
518          (C) the county assessing and collecting levy described in Subsection 59-2-1602(4);
519          (D) for a fiscal year that begins before July 1, [2023] 2022, the combined basic rate as
520     defined in Section 53F-2-301.5; and
521          (E) for a fiscal year that begins on or after July 1, [2023] 2022, the [combined]
522     minimum basic tax rate as defined in Section 53F-2-301;
523          (vii) the tax impact on the property;
524          (viii) the time and place of the required public hearing for each entity;
525          (ix) property tax information pertaining to:
526          (A) taxpayer relief;
527          (B) options for payment of taxes;
528          (C) collection procedures; and
529          (D) the residential exemption described in Section 59-2-103;
530          (x) information specifically authorized to be included on the notice under this chapter;
531          (xi) the last property review date of the property as described in Subsection
532     59-2-303.1(1)(c); and
533          (xii) other property tax information approved by the commission.
534          (3) If a taxing entity that is subject to the notice and hearing requirements of
535     Subsection 59-2-919(4) proposes a tax increase, the notice described in Subsection (1) shall
536     state, in addition to the information required by Subsection (2):
537          (a) the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
538          (b) the difference between the dollar amount of the taxpayer's tax liability if the
539     proposed increase is approved and the dollar amount of the taxpayer's tax liability under the
540     current rate, placed in close proximity to the information described in Subsection (2)(c)(viii);
541     and
542          (c) the percentage increase that the dollar amount of the taxpayer's tax liability under
543     the proposed tax rate represents as compared to the dollar amount of the taxpayer's tax liability
544     under the current tax rate.
545          (4) If a change to state law increases a tax rate stated on a notice described in
546     Subsection (1), the notice described in Subsection (1) shall state in addition to the information
547     required by Subsections (2) and (3):
548          (a) the difference between the dollar amount of the taxpayer's tax liability under the
549     current tax rate and the dollar amount of the taxpayer's tax liability before the change to state
550     law became effective; and
551          (b) the percentage increase that the dollar amount of the taxpayer's tax liability under
552     the current tax rate represents as compared to the dollar amount of the taxpayer's tax liability
553     under the tax rate before the change to state law becomes effective.
554          (5) (a) Subject to the other provisions of this Subsection (5), a county auditor may, at
555     the county auditor's discretion, provide the notice required by this section to a taxpayer by
556     electronic means if a taxpayer makes an election, according to procedures determined by the
557     county auditor, to receive the notice by electronic means.
558          (b) (i) If a notice required by this section is sent by electronic means, a county auditor
559     shall attempt to verify whether a taxpayer receives the notice.
560          (ii) If receipt of the notice sent by electronic means cannot be verified 14 days or more
561     before the county board of equalization meets and the taxing entity holds a public hearing on a
562     proposed increase in the certified tax rate, the notice required by this section shall also be sent
563     by mail as provided in Subsection (2).
564          (c) A taxpayer may revoke an election to receive the notice required by this section by
565     electronic means if the taxpayer provides written notice to the county auditor on or before April
566     30.
567          (d) An election or a revocation of an election under this Subsection (5):
568          (i) does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
569     before the due date for paying the tax; or
570          (ii) does not alter the requirement that a taxpayer appealing the valuation or the
571     equalization of the taxpayer's real property submit the application for appeal within the time
572     period provided in Subsection 59-2-1004(3).
573          (e) A county auditor shall provide the notice required by this section as provided in
574     Subsection (2), until a taxpayer makes a new election in accordance with this Subsection (5), if:
575          (i) the taxpayer revokes an election in accordance with Subsection (5)(c) to receive the
576     notice required by this section by electronic means; or
577          (ii) the county auditor finds that the taxpayer's electronic contact information is invalid.
578          (f) A person is considered to be a taxpayer for purposes of this Subsection (5)
579     regardless of whether the property that is the subject of the notice required by this section is
580     exempt from taxation.
581          Section 12. Section 59-2-926 is amended to read:
582          59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
583          If the state authorizes a tax rate that exceeds the [applicable] tax rate described in
584     Section 53F-2-301 [or 53F-2-301.5], or authorizes a levy pursuant to Section 59-2-1602 that
585     exceeds the certified revenue levy as defined in Section 59-2-102, the state shall publish a
586     notice no later than 10 days after the last day of the annual legislative general session that
587     meets the following requirements:
588          (1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state
589     authorized a levy that generates revenue in excess of the previous year's ad valorem tax
590     revenue, plus eligible new growth as defined in Section 59-2-924, but exclusive of revenue
591     from collections from redemptions, interest, and penalties:
592          (i) in a newspaper of general circulation in the state; and
593          (ii) as required in Section 45-1-101.
594          (b) Except an advertisement published on a website, the advertisement described in
595     Subsection (1)(a):
596          (i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
597     point, and surrounded by a 1/4-inch border;
598          (ii) may not be placed in that portion of the newspaper where legal notices and
599     classified advertisements appear; and
600          (iii) shall be run once.
601          (2) The form and content of the notice shall be substantially as follows:
602     
"NOTICE OF TAX INCREASE

603          The state has budgeted an increase in its property tax revenue from $__________ to
604     $__________ or ____%. The increase in property tax revenues will come from the following
605     sources (include all of the following provisions):
606          (a) $__________ of the increase will come from (provide an explanation of the cause
607     of adjustment or increased revenues, such as reappraisals or factoring orders);
608          (b) $__________ of the increase will come from natural increases in the value of the
609     tax base due to (explain cause of eligible new growth, such as new building activity,
610     annexation, etc.);
611          (c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
612     the basic state-supported school program, applicable tax rate for the Property Tax Valuation
613     Agency Fund, or both) paid $____________ in property taxes would pay the following:
614          (i) $__________ if the state of Utah did not budget an increase in property tax revenue
615     exclusive of eligible new growth; and
616          (ii) $__________ under the increased property tax revenues exclusive of eligible new
617     growth budgeted by the state of Utah."
618          Section 13. Section 63I-2-211 is amended to read:
619          63I-2-211. Repeal dates -- Title 11.
620           [(1) Subsections 11-13-302(2)(a)(i) and (2)(b)(i), the language that states "or
621     53F-2-301.5, as applicable" is repealed July 1, 2023.]
622          [(2) Section 11-13-310, the language that states "or 53F-2-301.5, as applicable," is
623     repealed July 1, 2023.]
624          [(3)] Title 11, Chapter 53, Residential Property Reimbursement, is repealed on January
625     1, 2020.
626          Section 14. Section 63I-2-253 is amended to read:
627          63I-2-253. Repeal dates -- Titles 53 through 53G.
628          (1) Section 53-1-106.1 is repealed January 1, 2022.
629          (2) (a) Section 53-2a-217, regarding procurement during an epidemic or pandemic
630     emergency, is repealed on December 31, 2021.
631          (b) When repealing Section 53-2a-217, the Office of Legislative Research and General
632     Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
633     necessary changes to subsection numbering and cross references.
634          (3) Section 53-2a-219, in relation to termination of emergency powers pertaining to
635     COVID-19, is repealed on July 1, 2021.
636          (4) (a) Subsection 53B-2a-108(5), regarding exceptions to the composition of a
637     technical college board of trustees, is repealed July 1, 2022.
638          (b) When repealing Subsection 53B-2a-108(5), the Office of Legislative Research and
639     General Counsel shall, in addition to its authority under Subsection 36-12-12(3), make
640     necessary changes to subsection numbering and cross references.
641          (5) Section 53B-6-105.7 is repealed July 1, 2024.
642          (6) (a) Subsection 53B-7-705(6)(b)(iii)(A), the language that states "Except as
643     provided in Subsection (6)(b)(iii)(B)," is repealed July 1, 2021.
644          (b) Subsection 53B-7-705(6)(b)(iii)(B), regarding comparing a technical college's
645     change in performance with the technical college's average performance, is repealed July 1,
646     2021.
647          (7) (a) Subsection 53B-7-707(3)(a)(ii), the language that states "Except as provided in
648     Subsection (3)(b)," is repealed July 1, 2021.
649          (b) Subsection 53B-7-707(3)(b), regarding performance data of a technical college
650     during a fiscal year before fiscal year 2020, is repealed July 1, 2021.
651          (8) Section 53B-7-707 regarding performance metrics for technical colleges is repealed
652     July 1, 2023.
653          (9) Section 53B-8-114 is repealed July 1, 2024.
654          (10) The following sections, regarding the Regents' scholarship program, are repealed
655     on July 1, 2023:
656          (a) Section 53B-8-202;
657          (b) Section 53B-8-203;
658          (c) Section 53B-8-204; and
659          (d) Section 53B-8-205.
660          (11) Section 53B-10-101 is repealed on July 1, 2027.
661          (12) Title 53B, Chapter 18, Part 14, Uintah Basin Air Quality Research Project, is
662     repealed July 1, 2023.
663          (13) Section 53E-1-202.2, regarding a Public Education Appropriations Subcommittee
664     evaluation and recommendations, is repealed January 1, 2024.
665          (14) Section 53E-3-520 is repealed July 1, 2021.
666          (15) Subsection 53E-10-309(7), related to the PRIME pilot program, is repealed July 1,
667     2024.
668          [(16) In Subsections 53F-2-205(4) and (5), regarding the State Board of Education's
669     duties if contributions from the minimum basic tax rate are overestimated or underestimated,
670     the language that states "or 53F-2-301.5, as applicable" is repealed July 1, 2023.]
671          [(17)] (16) Section 53F-2-209, regarding local education agency budgetary flexibility,
672     is repealed July 1, 2024.
673          [(18)] (17) Subsection 53F-2-301(1), relating to the years the section is not in effect, is
674     repealed July 1, 2023.
675          [(19)] (18) Section 53F-2-302.1, regarding the Enrollment Growth Contingency
676     Program, is repealed July 1, 2023.
677          [(20)] (19) Subsection 53F-2-314(4), relating to a one-time expenditure between the
678     at-risk WPU add-on funding and previous at-risk funding, is repealed January 1, 2024.
679          [(21)] (20) Section 53F-2-418, regarding the Supplemental Educator COVID-19
680     Stipend, is repealed January 1, 2022.
681          [(22) In Subsection 53F-2-515(1), the language that states "or 53F-2-301.5, as
682     applicable" is repealed July 1, 2023.]
683          [(23)] (21) Section 53F-4-207 is repealed July 1, 2022.
684          [(24)] (22) Subsection 53F-4-401(3)(b), regarding a child enrolled or eligible for
685     enrollment in kindergarten, is repealed July 1, 2022.
686          [(25)] (23) In Subsection 53F-4-404(4)(c), the language that states "Except as provided
687     in Subsection (4)(d)" is repealed July 1, 2022.
688          [(26)] (24) Subsection 53F-4-404(4)(d) is repealed July 1, 2022.
689          [(27) In Subsection 53F-9-302(3), the language that states "or 53F-2-301.5, as
690     applicable" is repealed July 1, 2023.]
691          [(28) In Subsection 53F-9-305(3)(a), the language that states "or 53F-2-301.5, as
692     applicable" is repealed July 1, 2023.]
693          [(29) In Subsection 53F-9-306(3)(a), the language that states "or 53F-2-301.5, as
694     applicable" is repealed July 1, 2023.]
695          [(30) In Subsection 53G-3-304(1)(c)(i), the language that states "or 53F-2-301.5, as
696     applicable" is repealed July 1, 2023.]
697          [(31)] (25) Subsections 53G-10-204(1)(c) through (e), and Subsection 53G-10-204(6),
698     related to the civics engagement pilot program, are repealed on July 1, 2023.
699          [(32)] (26) On July 1, 2023, when making changes in this section, the Office of
700     Legislative Research and General Counsel shall, in addition to the office's authority under
701     Subsection 36-12-12(3), make corrections necessary to ensure that sections and subsections
702     identified in this section are complete sentences and accurately reflect the office's perception of
703     the Legislature's intent.
704          Section 15. Section 63I-2-259 is amended to read:
705          63I-2-259. Repeal dates -- Title 59.
706          [(1) In Section 59-2-926, the language that states "applicable" and "or 53F-2-301.5" is
707     repealed July 1, 2023.]
708          [(2)] (1) Subsection 59-7-106(1)(w) is repealed December 31, 2021.
709          [(3)] (2) Section 59-7-620 is repealed December 31, 2021.
710          [(4)] (3) Subsection 59-10-114(2)(j) is repealed December 31, 2021.
711          Section 16. Repealer.
712          This bill repeals:
713          Section 53F-2-301.5, Minimum basic tax rate for a fiscal year that begins on July 1,
714     2018, 2019, 2020, 2021, or 2022.
715          Section 17. Retrospective operation.
716          This bill has retrospective operation for a taxable year beginning on or after January 1,
717     2022.