1     
REDUCTION OF MINIMUM BASIC TAX RATE

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Wayne A. Harper

5     
House Sponsor: Robert M. Spendlove

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to the minimum basic tax rate that funds public
10     education.
11     Highlighted Provisions:
12          This bill:
13          ▸     reduces the revenue target for revenue that the minimum basic tax generates;
14          ▸     repeals the weighted pupil unit (WPU) value rate;
15          ▸     repeals obsolete provisions related to a past freeze on the basic tax rate, including
16     the equity pupil tax rate; and
17          ▸     makes technical and conforming changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          This bill provides a special effective date.
22          This bill provides retrospective operation.
23          This bill provides a coordination clause.
24     Utah Code Sections Affected:
25     AMENDS:
26          11-13-302, as last amended by Laws of Utah 2022, Chapter 239
27          11-13-310, as last amended by Laws of Utah 2018, Chapters 415, 456
28          53E-1-202, as last amended by Laws of Utah 2022, Chapter 274
29          53F-2-205, as last amended by Laws of Utah 2021, Chapter 382
30          53F-2-301, as last amended by Laws of Utah 2021, Chapter 319
31          53F-2-515, as last amended by Laws of Utah 2018, Chapter 456 and renumbered and
32     amended by Laws of Utah 2018, Chapter 2
33          53F-9-302, as last amended by Laws of Utah 2022, Chapter 456
34          53F-9-305, as last amended by Laws of Utah 2022, Chapter 456
35          53F-9-306, as last amended by Laws of Utah 2022, Chapter 456
36          53G-3-304, as last amended by Laws of Utah 2018, Chapters 281, 456 and renumbered
37     and amended by Laws of Utah 2018, Chapter 3
38          59-2-919.1, as last amended by Laws of Utah 2022, Chapter 293
39          59-2-926, as last amended by Laws of Utah 2022, Chapter 451
40          63I-2-211, as last amended by Laws of Utah 2018, Chapters 337, 456
41          63I-2-253, as last amended by Laws of Utah 2022, Chapters 208, 229, 274, 354, 370,
42     and 409
43          63I-2-259, as last amended by Laws of Utah 2022, Chapter 264
44     REPEALS:
45          53F-2-301.5, as last amended by Laws of Utah 2022, Chapters 1, 409
46     Utah Code Sections Affected by Coordination Clause:
47          53F-2-301, as last amended by Laws of Utah 2021, Chapter 319
48     

49     Be it enacted by the Legislature of the state of Utah:
50          Section 1. Section 11-13-302 is amended to read:
51          11-13-302. Payment of fee in lieu of ad valorem property tax by certain energy
52     suppliers -- Method of calculating -- Collection -- Extent of tax lien.
53          (1) (a) Each project entity created under this chapter that owns a project and that sells
54     any capacity, service, or other benefit from it to an energy supplier or suppliers whose tangible
55     property is not exempted by Utah Constitution Article XIII, Section 3, from the payment of ad
56     valorem property tax, shall pay an annual fee in lieu of ad valorem property tax as provided in
57     this section to each taxing jurisdiction within which the project or any part of it is located.
58          (b) For purposes of this section, "annual fee" means the annual fee described in
59     Subsection (1)(a) that is in lieu of ad valorem property tax.
60          (c) The requirement to pay an annual fee shall commence:
61          (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
62     impact alleviation payments under contracts or determination orders provided for in Sections
63     11-13-305 and 11-13-306, with the fiscal year of the candidate following the fiscal year of the
64     candidate in which the date of commercial operation of the last generating unit, other than any
65     generating unit providing additional project capacity, of the project occurs, or, in the case of
66     any facilities providing additional project capacity, with the fiscal year of the candidate
67     following the fiscal year of the candidate in which the date of commercial operation of the
68     generating unit providing the additional project capacity occurs; and
69          (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
70     Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which construction of the
71     project commences, or, in the case of facilities providing additional project capacity, with the
72     fiscal year of the taxing jurisdiction in which construction of those facilities commences.
73          (d) The requirement to pay an annual fee shall continue for the period of the useful life
74     of the project or facilities.
75          (2) (a) The annual fees due a school district shall be as provided in Subsection (2)(b)
76     because the ad valorem property tax imposed by a school district and authorized by the
77     Legislature represents both:
78          (i) a levy mandated by the state for the state minimum school program under Section
79     53F-2-301 [or 53F-2-301.5, as applicable]; and
80          (ii) local levies for capital outlay and other purposes under Sections 53F-8-303,
81     53F-8-301, and 53F-8-302.
82          (b) The annual fees due a school district shall be as follows:
83          (i) the project entity shall pay to the school district an annual fee for the state minimum
84     school program at the rate imposed by the school district and authorized by the Legislature
85     under Section 53F-2-301 [or 53F-2-301.5, as applicable]; and
86          (ii) for all other local property tax levies authorized to be imposed by a school district,
87     the project entity shall pay to the school district either:
88          (A) an annual fee; or
89          (B) impact alleviation payments under contracts or determination orders provided for
90     in Sections 11-13-305 and 11-13-306.
91          (3) (a) An annual fee due a taxing jurisdiction for a particular year shall be calculated
92     by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by
93     multiplying the fee base or value determined in accordance with Subsection (4) for that year of
94     the portion of the project located within the jurisdiction by the percentage of the project which
95     is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.
96          (b) As used in this section, "tax rate," when applied in respect to a school district,
97     includes any assessment to be made by the school district under Subsection (2) or Section
98     63M-5-302.
99          (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
100     an amount equal to the debt service, if any, payable in that year by the project entity on bonds,
101     the proceeds of which were used to provide public facilities and services for impact alleviation
102     in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306.
103          (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
104          (i) take into account the fee base or value of the percentage of the project located
105     within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the
106     capacity, service, or other benefit sold to the supplier or suppliers; and
107          (ii) reflect any credit to be given in that year.
108          (4) (a) Except as otherwise provided in this section, the annual fees required by this
109     section shall be paid, collected, and distributed to the taxing jurisdiction as if:
110          (i) the annual fees were ad valorem property taxes; and
111          (ii) the project were assessed at the same rate and upon the same measure of value as
112     taxable property in the state.
113          (b) (i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
114     this section, the fee base of a project may be determined in accordance with an agreement
115     among:
116          (A) the project entity; and
117          (B) any county that:
118          (I) is due an annual fee from the project entity; and
119          (II) agrees to have the fee base of the project determined in accordance with the
120     agreement described in this Subsection (4).
121          (ii) The agreement described in Subsection (4)(b)(i):
122          (A) shall specify each year for which the fee base determined by the agreement shall be
123     used for purposes of an annual fee; and
124          (B) may not modify any provision of this chapter except the method by which the fee
125     base of a project is determined for purposes of an annual fee.
126          (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
127     described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in
128     Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing
129     jurisdiction.
130          (iv) (A) If there is not agreement as to the fee base of a portion of a project for any
131     year, for purposes of an annual fee, the State Tax Commission shall determine the value of that
132     portion of the project for which there is not an agreement:
133          (I) for that year; and
134          (II) using the same measure of value as is used for taxable property in the state.
135          (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax
136     Commission in accordance with rules made by the State Tax Commission.
137          (c) Payments of the annual fees shall be made from:
138          (i) the proceeds of bonds issued for the project; and
139          (ii) revenues derived by the project entity from the project.
140          (d) (i) The contracts of the project entity with the purchasers of the capacity, service, or
141     other benefits of the project whose tangible property is not exempted by Utah Constitution
142     Article XIII, Section 3, from the payment of ad valorem property tax shall require each
143     purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for,
144     its share, determined in accordance with the terms of the contract, of these fees.
145          (ii) It is the responsibility of the project entity to enforce the obligations of the
146     purchasers.
147          (5) (a) The responsibility of the project entity to make payment of the annual fees is
148     limited to the extent that there is legally available to the project entity, from bond proceeds or
149     revenues, money to make these payments, and the obligation to make payments of the annual
150     fees is not otherwise a general obligation or liability of the project entity.
151          (b) No tax lien may attach upon any property or money of the project entity by virtue of
152     any failure to pay all or any part of an annual fee.
153          (c) The project entity or any purchaser may contest the validity of an annual fee to the
154     same extent as if the payment was a payment of the ad valorem property tax itself.
155          (d) The payments of an annual fee shall be reduced to the extent that any contest is
156     successful.
157          (6) (a) The annual fee described in Subsection (1):
158          (i) shall be paid by a public agency that:
159          (A) is not a project entity; and
160          (B) owns an interest in a facility providing additional project capacity if the interest is
161     otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3; and
162          (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
163     accordance with Subsection (6)(b).
164          (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
165     rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:
166          (i) the fee base or value of the facility providing additional project capacity located
167     within the jurisdiction;
168          (ii) the percentage of the ownership interest of the public agency in the facility; and
169          (iii) the portion, expressed as a percentage, of the public agency's ownership interest
170     that is attributable to the capacity, service, or other benefit from the facility that is sold,
171     including any subsequent sale, resale, or layoff, by the public agency to an energy supplier or
172     suppliers whose tangible property is not exempted by Utah Constitution, Article XIII, Section
173     3, from the payment of ad valorem property tax.
174          (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
175     obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect
176     to its ownership interest as though it were a project entity.
177          (d) On or before March 1 of each year, a project entity that owns a project and that
178     provides any capacity, service, or other benefit to an energy supplier or a public agency shall
179     file an electronic report with the State Tax Commission that identifies:
180          (i) each energy supplier and public agency to which the project entity delivers capacity,
181     service, or other benefit; and
182          (ii) the amount of capacity, service, or other benefit delivered to each energy supplier
183     and public agency.
184          Section 2. Section 11-13-310 is amended to read:
185          11-13-310. Termination of impact alleviation contract.
186          (1) If the project or any part of it or the facilities providing additional project capacity
187     or any part of them, or the output from the project or facilities providing additional project
188     capacity become subject, in addition to the requirements of Section 11-13-302, to ad valorem
189     property taxation or other payments in lieu of ad valorem property taxation, or other form of
190     tax equivalent payments to any candidate which is a party to an impact alleviation contract with
191     respect to the project or facilities providing additional project capacity or is receiving impact
192     alleviation payments or means with respect to the project or facilities providing additional
193     project capacity pursuant to a determination by the board, then the impact alleviation contract
194     or the requirement to make impact alleviation payments or provide means therefor pursuant to
195     the determination, as the case may be, shall, at the election of the candidate, terminate.
196          (2) In any event, each impact alleviation contract or determination order shall terminate
197     upon the project, or, in the case of facilities providing additional project capacity, those
198     facilities becoming subject to the provisions of Section 11-13-302, except that no impact
199     alleviation contract or agreement entered by a school district shall terminate because of in lieu
200     ad valorem property tax fees levied under Subsection 11-13-302(2)(b)(i) or because of ad
201     valorem property taxes levied under Section 53F-2-301 [or 53F-2-301.5, as applicable,] for the
202     state minimum school program.
203          (3) In addition, if the construction of the project, or, in the case of facilities providing
204     additional project capacity, of those facilities, is permanently terminated for any reason, each
205     impact alleviation contract and determination order, and the payments and means required
206     thereunder, shall terminate.
207          (4) No termination of an impact alleviation contract or determination order may
208     terminate or reduce any liability previously incurred pursuant to the contract or determination
209     order by the candidate beneficiary under it.
210          (5) If the provisions of Section 11-13-302, or its successor, are held invalid by a court
211     of competent jurisdiction, and no ad valorem taxes or other form of tax equivalent payments
212     are payable, the remaining provisions of this chapter shall continue in operation without regard
213     to the commencement of commercial operation of the last generating unit of that project or of
214     facilities providing additional project capacity.
215          Section 3. Section 53E-1-202 is amended to read:
216          53E-1-202. Reports to and action required of the Public Education
217     Appropriations Subcommittee.
218          (1) In accordance with applicable provisions and Section 68-3-14, the following
219     recurring reports are due to the Public Education Appropriations Subcommittee:
220          (a) the State Superintendent's Annual Report by the state board described in Section
221     53E-1-203;
222          (b) the report described in Section 53E-10-703 by the Utah Leading through Effective,
223     Actionable, and Dynamic Education director on research and other activities; and
224          (c) the report by the STEM Action Center Board described in Section 9-22-109,
225     including the information described in Section 9-22-113 on the status of the computer science
226     initiative.
227          (2) In accordance with applicable provisions, the Public Education Appropriations
228     Subcommittee shall complete [the following: (a) the review described in Section 53F-2-301 of
229     the WPU value rate; and (b)], if required, the study described in Section 53F-4-304 of
230     scholarship payments.
231          Section 4. Section 53F-2-205 is amended to read:
232          53F-2-205. Powers and duties of state board to adjust Minimum School Program
233     allocations -- Use of remaining funds at the end of a fiscal year.
234          (1) As used in this section:
235          (a) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
236     Sec. 6301 et seq.
237          (b) "Program" means a program or allocation funded by a line item appropriation or
238     other appropriation designated as:
239          (i) Basic Program;
240          (ii) Related to Basic Programs;
241          (iii) Voted and Board Levy Programs; or
242          (iv) Minimum School Program.
243          (2) Except as provided in Subsection (3) or (5), if the number of weighted pupil units
244     in a program is underestimated, the state board shall reduce the value of the weighted pupil unit
245     in that program so that the total amount paid for the program does not exceed the amount
246     appropriated for the program.
247          (3) If the number of weighted pupil units in a program is overestimated, the state board
248     shall spend excess money appropriated for the following purposes giving priority to the
249     purpose described in Subsection (3)(a):
250          (a) to support the value of the weighted pupil unit in a program within the basic
251     state-supported school program in which the number of weighted pupil units is underestimated;
252          (b) to support the state guaranteed local levy increments as defined in Section
253     53F-2-601, if:
254          (i) local contributions to the voted local levy program or board local levy program are
255     overestimated; or
256          (ii) the number of weighted pupil units within school districts qualifying for a
257     guarantee is underestimated;
258          (c) to support the state supplement to local property taxes allocated to charter schools,
259     if the state supplement is less than the amount prescribed by Section 53F-2-704;
260          (d) to fund the cost of the salary supplements described in Section 53F-2-504; or
261          (e) to support a school district with a loss in student enrollment as provided in Section
262     53F-2-207.
263          (4) If local contributions from the minimum basic tax rate imposed under Section
264     53F-2-301 [or 53F-2-301.5, as applicable,] are overestimated, the state board shall reduce the
265     value of the weighted pupil unit for all programs within the basic state-supported school
266     program so the total state contribution to the basic state-supported school program does not
267     exceed the amount of state funds appropriated.
268          (5) If local contributions from the minimum basic tax rate imposed under Section
269     53F-2-301 [or 53F-2-301.5, as applicable,] are underestimated, the state board shall:
270          (a) spend the excess local contributions for the purposes specified in Subsection (3),
271     giving priority to supporting the value of the weighted pupil unit in programs within the basic
272     state-supported school program in which the number of weighted pupil units is underestimated;
273     and
274          (b) reduce the state contribution to the basic state-supported school program so the
275     total cost of the basic state-supported school program does not exceed the total state and local
276     funds appropriated to the basic state-supported school program plus the local contributions
277     necessary to support the value of the weighted pupil unit in programs within the basic
278     state-supported school program in which the number of weighted pupil units is underestimated.
279          (6) Except as provided in Subsection (3) or (5), the state board shall reduce the state
280     guarantee per weighted pupil unit provided under the local levy state guarantee program
281     described in Section 53F-2-601, if:
282          (a) local contributions to the voted local levy program or board local levy program are
283     overestimated; or
284          (b) the number of weighted pupil units within school districts qualifying for a
285     guarantee is underestimated.
286          (7) Money appropriated to the state board is nonlapsing, including appropriations to the
287     Minimum School Program and all agencies, line items, and programs under the jurisdiction of
288     the state board.
289          (8) The state board shall report actions taken by the state board under this section to the
290     Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and Budget.
291          Section 5. Section 53F-2-301 is amended to read:
292          53F-2-301. Minimum basic tax rate for a fiscal year that begins after July 1, 2022.
293          (1) The provisions of this section are not in effect for a fiscal year that begins on July 1,
294     2018, 2019, 2020, 2021, or 2022.
295          (2) As used in this section:
296          (a) "Basic levy increment rate" means a tax rate that will generate an amount of
297     revenue equal to $75,000,000.
298          [(b) "Combined basic rate" means a rate that is the sum of:]
299          [(i) the minimum basic tax rate; and]
300          [(ii) the WPU value rate.]
301          [(c)] (b) "Commission" means the State Tax Commission.
302          [(d) "Equity pupil tax rate" means the tax rate that will generate an amount of revenue
303     equal to the amount generated by the equity pupil tax rate as defined in Section 53F-2-301.5 in
304     the fiscal year that begins July 1, 2022.]
305          [(e)] (c) "Minimum basic local amount" means an amount that is:
306          (i) equal to the sum of:
307          (A) the school districts' contribution to the basic school program the previous fiscal
308     year;
309          (B) the amount generated by the basic levy increment rate; and
310          [(C) the amount generated by the equity pupil tax rate; and]
311          [(D)] (C) the eligible new growth, as defined in Section 59-2-924 and rules of the State
312     Tax Commission multiplied by the minimum basic rate; and
313          (ii) set annually by the Legislature in Subsection (3)(a).
314          [(f)] (d) "Minimum basic tax rate" means a tax rate certified by the commission that
315     will generate an amount of revenue equal to the minimum basic local amount described in
316     Subsection (3)(a).
317          [(g) "Weighted pupil unit value" or "WPU value" means the amount established each
318     year in the enacted public education budget that is multiplied by the number of weighted pupil
319     units to yield the funding level for the basic school program.]
320          [(h) "WPU value amount" means an amount:]
321          [(i) that is equal to the product of:]
322          [(A) the WPU value increase limit; and]
323          [(B) the percentage share of local revenue to the cost of the basic school program in the
324     immediately preceding fiscal year; and]
325          [(ii) set annually by the Legislature in Subsection (4)(a).]
326          [(i) "WPU value increase limit" means the lesser of:]
327          [(i) the total cost to the basic school program to increase the WPU value over the WPU
328     value in the prior fiscal year; or]
329          [(ii) the total cost to the basic school program to increase the WPU value by 4% over
330     the WPU value in the prior fiscal year.]
331          [(j) "WPU value rate" means a tax rate certified by the commission that will generate
332     an amount of revenue equal to the WPU value amount described in Subsection (4)(a).]
333          (3) (a) The minimum basic local amount for the fiscal year that begins on July 1,
334     [2018, is $408,073,800] 2023, is $580,960,800 in revenue statewide.
335          (b) The preliminary estimate of the minimum basic tax rate for a fiscal year that begins
336     on July 1, [2018, is .001498] 2023, is .001089.
337          [(4) (a) The WPU value amount for the fiscal year that begins on July 1, 2018, is
338     $18,650,000 in revenue statewide.]
339          [(b) The preliminary estimate of the WPU value rate for the fiscal year that begins on
340     July 1, 2018, is .000069.]
341          [(5)] (4) (a) On or before June 22, the commission shall certify [for the year: (i)] the
342     minimum basic tax rate[; and] for the year.
343          [(ii) the WPU value rate.]
344          (b) The estimate of the minimum basic tax rate provided in Subsection (3)(b) [and the
345     estimate of the WPU value rate provided in Subsection (4)(b) are] is based on a forecast for
346     property values for the next calendar year.
347          (c) The certified minimum basic tax rate described in Subsection [(5)(a)(i) and the
348     certified WPU value rate described in Subsection (5)(a)(ii) are] (4)(a) is based on property
349     values as of January 1 of the current calendar year, except personal property, which is based on
350     values from the previous calendar year.
351          [(6)] (5) (a) To qualify for receipt of the state contribution toward the basic school
352     program and as a school district's contribution toward the cost of the basic school program for
353     the school district, each local school board shall impose the [combined] minimum basic tax
354     rate.
355          (b) (i) The state is not subject to the notice requirements of Section 59-2-926 before
356     imposing the tax rates described in this Subsection [(6)] (5).
357          (ii) [(A) Except as provided in Subsection (6)(b)(ii)(B), the] The state is subject to the
358     notice requirements of Section 59-2-926 if the state authorizes a tax rate that exceeds the tax
359     rates described in this Subsection [(6)] (5).
360          [(B) For a calendar year that begins on January 1, 2018, the state is not subject to the
361     notice and public hearing requirements of Section 59-2-926 if the state authorizes a combined
362     basic rate that exceeds the tax rates authorized in this section.]
363          [(7)] (6) (a) The state shall contribute to each school district toward the cost of the
364     basic school program in the school district an amount of money that is the difference between
365     the cost of the school district's basic school program and the sum of revenue generated by the
366     school district by the following:
367          [(i) the combined basic rate;]
368          (i) the minimum basic tax rate; and
369          (ii) the basic levy increment rate[; and].
370          [(iii) the equity pupil tax rate.]
371          (b) (i) If the difference described in Subsection [(7)(a)] (6)(a) equals or exceeds the
372     cost of the basic school program in a school district, no state contribution shall be made to the
373     basic school program for the school district.
374          (ii) The proceeds of the difference described in Subsection [(7)(a)] (6)(a) that exceed
375     the cost of the basic school program shall be paid into the Uniform School Fund as provided by
376     law and by the close of the fiscal year in which the proceeds were calculated.
377          [(8)] (7) Upon appropriation by the Legislature, the Division of Finance shall deposit
378     an amount equal to the proceeds generated statewide[: (a)] by the basic levy increment rate into
379     the Minimum Basic Growth Account created in Section 53F-9-302[;].
380          [(b) by the equity pupil tax rate into the Local Levy Growth Account created in Section
381     53F-9-305; and]
382          [(c) by the WPU value rate into the Teacher and Student Success Account created in
383     Section 53F-9-306.]
384          [(9) After July 1, 2021, but before November 30, 2022, the Public Education
385     Appropriations Subcommittee:]
386          [(a) shall review the WPU value rate, the impact of revenues generated by the WPU
387     value rate on public education funding, and whether local school boards should continue to
388     levy the WPU value rate; and]
389          [(b) may recommend an increase, repeal, or continuance of the WPU value rate.]
390          Section 6. Section 53F-2-515 is amended to read:
391          53F-2-515. Federal Impact Aid Program -- Offset for underestimated allocations
392     from the Federal Impact Aid Program.
393          (1) In addition to the revenues received from the levy imposed by a local school board
394     and authorized by the Legislature under Section 53F-2-301 [or 53F-2-301.5, as applicable], the
395     Legislature shall provide an amount equal to the difference between the school district's
396     anticipated receipts under the entitlement for the fiscal year from the Federal Impact Aid
397     Program and the amount the school district actually received from this source for the next
398     preceding fiscal year.
399          (2) If at the end of a fiscal year the sum of the receipts of a school district from a
400     distribution from the Legislature pursuant to Subsection (1) plus the school district's allocations
401     from the Federal Impact Aid Program for that fiscal year exceeds the amount allocated to the
402     school district from the Federal Impact Aid Program for the next preceding fiscal year, the
403     excess funds are carried into the next succeeding fiscal year and become in that year a part of
404     the school district's contribution to the school district's basic program for operation and
405     maintenance under the state minimum school finance law.
406          (3) During the next succeeding fiscal year described in Subsection (2), the school
407     district's required tax rate for the basic program shall be reduced so that the yield from the
408     reduced tax rate plus the carryover funds equal the school district's required contribution to the
409     school district's basic program.
410          (4) For the school district of a local school board that is required to reduce the school
411     district's basic tax rate under this section, the school district shall receive state minimum school
412     program funds as though the reduction in the tax rate had not been made.
413          Section 7. Section 53F-9-302 is amended to read:
414          53F-9-302. Minimum Basic Growth Account.
415          (1) As used in this section, "account" means the Minimum Basic Growth Account
416     created in this section.
417          (2) There is created within the Income Tax Fund a restricted account known as the
418     "Minimum Basic Growth Account."
419          (3) The account shall be funded by amounts deposited into the account in accordance
420     with Section 53F-2-301 [or 53F-2-301.5, as applicable].
421          (4) The account shall earn interest.
422          (5) Interest earned on the account shall be deposited into the account.
423          (6) Upon appropriation by the Legislature:
424          (a) 75% of the money from the account shall be used to fund the state's contribution to
425     the voted local levy guarantee described in Section 53F-2-601;
426          (b) 20% of the money from the account shall be used to fund the Capital Outlay
427     Foundation Program as provided in Section 53F-3-202; and
428          (c) 5% of the money from the account shall be used to fund the Capital Outlay
429     Enrollment Growth Program as provided in Section 53F-3-203.
430          Section 8. Section 53F-9-305 is amended to read:
431          53F-9-305. Local Levy Growth Account.
432          (1) As used in this section, "account" means the Local Levy Growth Account created in
433     this section.
434          (2) There is created within the Income Tax Fund a restricted account known as the
435     "Local Levy Growth Account."
436          (3) The account shall be funded by:
437          (a) amounts deposited into the account in accordance with Section 53F-2-301 [or
438     53F-2-301.5, as applicable]; and
439          (b) other legislative appropriations.
440          (4) The account shall earn interest.
441          (5) Interest earned on the account shall be deposited into the account.
442          (6) The Legislature shall appropriate money in the account to the state board.
443          Section 9. Section 53F-9-306 is amended to read:
444          53F-9-306. Teacher and Student Success Account.
445          (1) As used in this section, "account" means the Teacher and Student Success Account
446     created in this section.
447          (2) There is created within the Income Tax Fund a restricted account known as the
448     "Teacher and Student Success Account."
449          (3) The account shall be funded by[:] legislative appropriations.
450          [(a) amounts deposited into the account in accordance with Section 53F-2-301 or
451     53F-2-301.5, as applicable; and]
452          [(b) other legislative appropriations.]
453          (4) The account shall earn interest.
454          (5) Interest earned on the account shall be deposited into the account.
455          (6) The Legislature shall appropriate money in the account to the state board.
456          Section 10. Section 53G-3-304 is amended to read:
457          53G-3-304. Property tax levies in new district and remaining district --
458     Distribution of property tax revenue.
459          (1) Notwithstanding terms defined in Section 53G-3-102, as used in this section:
460          (a) "Divided school district" or "existing district" means a school district from which a
461     new district is created.
462          (b) "New district" means a school district created under Section 53G-3-302 after May
463     10, 2011.
464          (c) "Property tax levy" means a property tax levy that a school district is authorized to
465     impose, except:
466          (i) the minimum basic tax rate imposed under Section 53F-2-301 [or 53F-2-301.5, as
467     applicable];
468          (ii) a debt service levy imposed under Section 11-14-310; or
469          (iii) a judgment levy imposed under Section 59-2-1330.
470          (d) "Qualifying taxable year" means the calendar year in which a new district begins to
471     provide educational services.
472          (e) "Remaining district" means an existing district after the creation of a new district.
473          (2) A new district and remaining district shall continue to impose property tax levies
474     that were imposed by the divided school district in the taxable year prior to the qualifying
475     taxable year.
476          (3) Except as provided in Subsection (6), a property tax levy that a new district and
477     remaining district are required to impose under Subsection (2) shall be set at a rate that:
478          (a) is uniform in the new district and remaining district; and
479          (b) generates the same amount of revenue that was generated by the property tax levy
480     within the divided school district in the taxable year prior to the qualifying taxable year.
481          (4) The county treasurer of the county in which a property tax levy is imposed under
482     Subsection (2) shall distribute revenues generated by the property tax levy to the new district
483     and remaining district in proportion to the percentage of the divided school district's enrollment
484     on the October 1 prior to the new district commencing educational services that were enrolled
485     in schools currently located in the new district or remaining district.
486          (5) On or before March 31, a county treasurer shall distribute revenues generated by a
487     property tax levy imposed under Subsection (2) in the prior calendar year to a new district and
488     remaining district as provided in Subsection (4).
489          (6) (a) Subject to the notice and public hearing requirements of Section 59-2-919, a
490     new district or remaining district may set a property tax rate higher than the rate required by
491     Subsection (3), up to:
492          (i) the maximum rate, if any, allowed by law; or
493          (ii) the maximum rate authorized by voters for a voted local levy under Section
494     53F-8-301.
495          (b) The revenues generated by the portion of a property tax rate in excess of the rate
496     required by Subsection (3) shall be retained by the district that imposes the higher rate.
497          Section 11. Section 59-2-919.1 is amended to read:
498          59-2-919.1. Notice of property valuation and tax changes.
499          (1) In addition to the notice requirements of Section 59-2-919, the county auditor, on or
500     before July 22 of each year, shall notify each owner of real estate who is listed on the
501     assessment roll.
502          (2) The notice described in Subsection (1) shall:
503          (a) except as provided in Subsection (6), be sent to all owners of real property by mail
504     10 or more days before the day on which:
505          (i) the county board of equalization meets; and
506          (ii) the taxing entity holds a public hearing on the proposed increase in the certified tax
507     rate;
508          (b) be on a form that is:
509          (i) approved by the commission; and
510          (ii) uniform in content in all counties in the state; and
511          (c) contain for each property:
512          (i) the assessor's determination of the value of the property;
513          (ii) the taxable value of the property;
514          (iii) (A) the deadline for the taxpayer to make an application to appeal the valuation or
515     equalization of the property under Section 59-2-1004; or
516          (B) for property assessed by the commission, the deadline for the taxpayer to apply to
517     the commission for a hearing on an objection to the valuation or equalization of the property
518     under Section 59-2-1007;
519          (iv) for a property assessed by the commission, a statement that the taxpayer may not
520     appeal the valuation or equalization of the property to the county board of equalization;
521          (v) itemized tax information for all applicable taxing entities, including:
522          (A) the dollar amount of the taxpayer's tax liability for the property in the prior year;
523     and
524          (B) the dollar amount of the taxpayer's tax liability under the current rate;
525          (vi) the following, stated separately:
526          (A) the charter school levy described in Section 53F-2-703;
527          (B) the multicounty assessing and collecting levy described in Subsection
528     59-2-1602(2);
529          (C) the county assessing and collecting levy described in Subsection 59-2-1602(4); and
530          [(D) for a fiscal year that begins before July 1, 2023, the combined basic rate as defined
531     in Section 53F-2-301.5; and]
532          [(E)] (D) for a fiscal year that begins on or after July 1, 2023, the [combined] minimum
533     basic tax rate as defined in Section 53F-2-301;
534          (vii) the tax impact on the property;
535          (viii) the time and place of the required public hearing for each entity;
536          (ix) property tax information pertaining to:
537          (A) taxpayer relief;
538          (B) options for payment of taxes;
539          (C) collection procedures; and
540          (D) the residential exemption described in Section 59-2-103;
541          (x) information specifically authorized to be included on the notice under this chapter;
542          (xi) the last property review date of the property as described in Subsection
543     59-2-303.1(1)(c); and
544          (xii) other property tax information approved by the commission.
545          (3) If a taxing entity that is subject to the notice and hearing requirements of
546     Subsection 59-2-919(4) proposes a tax increase, the notice described in Subsection (1) shall
547     state, in addition to the information required by Subsection (2):
548          (a) the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
549          (b) the difference between the dollar amount of the taxpayer's tax liability if the
550     proposed increase is approved and the dollar amount of the taxpayer's tax liability under the
551     current rate, placed in close proximity to the information described in Subsection (2)(c)(viii);
552     and
553          (c) the percentage increase that the dollar amount of the taxpayer's tax liability under
554     the proposed tax rate represents as compared to the dollar amount of the taxpayer's tax liability
555     under the current tax rate.
556          (4) For tax year 2022, the notice described in Subsection (1) shall state:
557          (a) the difference between:
558          (i) the dollar amount of the taxpayer's liability for the combined basic rate as defined in
559     Section 53F-2-301.5; and
560          (ii) the dollar amount that the taxpayer's liability for the combined basic rate as defined
561     in Section 53F-2-301.5 would have been if the combined basic rate were equal to the sum of
562     the minimum basic tax rate and the WPU value rate, as those terms are defined in Section
563     53F-2-301.5; and
564          (b) the percentage change between the amount described in Subsection (4)(a)(i) and the
565     amount described in Subsection (4)(a)(ii).
566          (5) For tax years 2022 through 2025, the notice described in Subsection (1) shall state:
567          (a) the difference between:
568          (i) the dollar amount of the taxpayer's liability for the rate imposed under Subsection
569     59-2-1602(2)(b)(i); and
570          (ii) the dollar amount of the taxpayer's liability if the rate imposed under Subsection
571     59-2-1602(2)(b)(i) were the certified revenue levy; and
572          (b) the percentage change between the amount described in Subsection (5)(a)(i) and the
573     amount described in Subsection (5)(a)(ii).
574          (6) (a) Subject to the other provisions of this Subsection (6), a county auditor may, at
575     the county auditor's discretion, provide the notice required by this section to a taxpayer by
576     electronic means if a taxpayer makes an election, according to procedures determined by the
577     county auditor, to receive the notice by electronic means.
578          (b) (i) If a notice required by this section is sent by electronic means, a county auditor
579     shall attempt to verify whether a taxpayer receives the notice.
580          (ii) If receipt of the notice sent by electronic means cannot be verified 14 days or more
581     before the county board of equalization meets and the taxing entity holds a public hearing on a
582     proposed increase in the certified tax rate, the notice required by this section shall also be sent
583     by mail as provided in Subsection (2).
584          (c) A taxpayer may revoke an election to receive the notice required by this section by
585     electronic means if the taxpayer provides written notice to the county auditor on or before April
586     30.
587          (d) An election or a revocation of an election under this Subsection (6):
588          (i) does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
589     before the due date for paying the tax; or
590          (ii) does not alter the requirement that a taxpayer appealing the valuation or the
591     equalization of the taxpayer's real property submit the application for appeal within the time
592     period provided in Subsection 59-2-1004(3).
593          (e) A county auditor shall provide the notice required by this section as provided in
594     Subsection (2), until a taxpayer makes a new election in accordance with this Subsection (6), if:
595          (i) the taxpayer revokes an election in accordance with Subsection (6)(c) to receive the
596     notice required by this section by electronic means; or
597          (ii) the county auditor finds that the taxpayer's electronic contact information is invalid.
598          (f) A person is considered to be a taxpayer for purposes of this Subsection (6)
599     regardless of whether the property that is the subject of the notice required by this section is
600     exempt from taxation.
601          Section 12. Section 59-2-926 is amended to read:
602          59-2-926. Proposed tax increase by state -- Notice -- Contents -- Dates.
603          If the state authorizes a tax rate that exceeds the [applicable] minimum basic tax rate
604     described in Section 53F-2-301 [or 53F-2-301.5], or authorizes a levy pursuant to Section
605     59-2-1602 that exceeds the certified revenue levy as defined in Section 59-2-102, the state shall
606     publish a notice no later than 10 days after the last day of the annual legislative general session
607     that meets the following requirements:
608          (1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state
609     authorized a levy that generates revenue in excess of the previous year's ad valorem tax
610     revenue, plus eligible new growth as defined in Section 59-2-924, but exclusive of revenue
611     from collections from redemptions, interest, and penalties:
612          (i) in a newspaper of general circulation in the state; and
613          (ii) as required in Section 45-1-101.
614          (b) Except an advertisement published on a website, the advertisement described in
615     Subsection (1)(a):
616          (i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
617     point, and surrounded by a 1/4-inch border;
618          (ii) may not be placed in that portion of the newspaper where legal notices and
619     classified advertisements appear; and
620          (iii) shall be run once.
621          (2) The form and content of the notice shall be substantially as follows:
622          
"NOTICE OF TAX INCREASE

623          The state has budgeted an increase in its property tax revenue from $__________ to
624     $__________ or ____%. The increase in property tax revenues will come from the following
625     sources (include all of the following provisions):
626          (a) $__________ of the increase will come from (provide an explanation of the cause
627     of adjustment or increased revenues, such as reappraisals or factoring orders);
628          (b) $__________ of the increase will come from natural increases in the value of the
629     tax base due to (explain cause of eligible new growth, such as new building activity,
630     annexation, etc.); and
631          (c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
632     the basic state-supported school program, applicable tax rate for the Property Tax Valuation
633     Fund, or both) paid $____________ in property taxes would pay the following:
634          (i) $__________ if the state of Utah did not budget an increase in property tax revenue
635     exclusive of eligible new growth; and
636          (ii) $__________ under the increased property tax revenues exclusive of eligible new
637     growth budgeted by the state of Utah."
638          Section 13. Section 63I-2-211 is amended to read:
639          63I-2-211. Repeal dates: Title 11.
640          Reserved
641          [(1) Subsections 11-13-302(2)(a)(i) and (2)(b)(i), the language that states "or
642     53F-2-301.5, as applicable" is repealed July 1, 2023.]
643          [(2) Section 11-13-310, the language that states "or 53F-2-301.5, as applicable," is
644     repealed July 1, 2023.]
645          [(3) Title 11, Chapter 53, Residential Property Reimbursement, is repealed on January
646     1, 2020.]
647          Section 14. Section 63I-2-253 is amended to read:
648          63I-2-253. Repeal dates: Titles 53 through 53G.
649          [(1) (a) Subsection 53B-2a-108(5), regarding exceptions to the composition of a
650     technical college board of trustees, is repealed July 1, 2022.]
651          [(b) When repealing Subsection 53B-2a-108(5), the Office of Legislative Research and
652     General Counsel shall, in addition to its authority under Subsection 36-12-12(3), make
653     necessary changes to subsection numbering and cross references.]
654          [(2)] (1) Section 53B-6-105.7 is repealed July 1, 2024.
655          [(3)] (2) Section 53B-7-707 regarding performance metrics for technical colleges is
656     repealed July 1, 2023.
657          [(4)] (3) Section 53B-8-114 is repealed July 1, 2024.
658          [(5)] (4) The following provisions, regarding the Regents' scholarship program, are
659     repealed on July 1, 2023:
660          (a) in Subsection 53B-8-105(12), the language that states, "or any scholarship
661     established under Sections 53B-8-202 through 53B-8-205";
662          (b) Section 53B-8-202;
663          (c) Section 53B-8-203;
664          (d) Section 53B-8-204; and
665          (e) Section 53B-8-205.
666          [(6)] (5) Section 53B-10-101 is repealed on July 1, 2027.
667          [(7)] (6) Title 53B, Chapter 18, Part 14, Uintah Basin Air Quality Research Project, is
668     repealed July 1, 2023.
669          [(8)] (7) Subsection 53E-1-201(1)(s) regarding the report by the Educational
670     Interpretation and Translation Services Procurement Advisory Council is repealed July 1, 2024.
671          [(9)] (8) Section 53E-1-202.2, regarding a Public Education Appropriations
672     Subcommittee evaluation and recommendations, is repealed January 1, 2024.
673          [(10)] (9) Subsection 53E-10-309(7), related to the PRIME pilot program, is repealed
674     July 1, 2024.
675          [(11) In Subsections 53F-2-205(4) and (5), regarding the State Board of Education's
676     duties if contributions from the minimum basic tax rate are overestimated or underestimated,
677     the language that states "or 53F-2-301.5, as applicable" is repealed July 1, 2023.]
678          [(12)] (10) Section 53F-2-209, regarding local education agency budgetary flexibility,
679     is repealed July 1, 2024.
680          [(13)] (11) Subsection 53F-2-301(1), relating to the years the section is not in effect, is
681     repealed July 1, 2023.
682          [(14)] (12) Section 53F-2-302.1, regarding the Enrollment Growth Contingency
683     Program, is repealed July 1, 2023.
684          [(15)] (13) Subsection 53F-2-314(4), relating to a one-time expenditure between the
685     at-risk WPU add-on funding and previous at-risk funding, is repealed January 1, 2024.
686          [(16)] (14) Section 53F-2-524, regarding teacher bonuses for extra work assignments,
687     is repealed July 1, 2024.
688          [(17) In Subsection 53F-2-515(1), the language that states "or 53F-2-301.5, as
689     applicable" is repealed July 1, 2023.]
690          [(18) Subsection 53F-4-401(3)(b), regarding a child enrolled or eligible for enrollment
691     in kindergarten, is repealed July 1, 2022.]
692          [(19) In Subsection 53F-4-404(4)(c), the language that states "Except as provided in
693     Subsection (4)(d)" is repealed July 1, 2022.]
694          [(20) Subsection 53F-4-404(4)(d) is repealed July 1, 2022.]
695          [(21) In Subsection 53F-9-302(3), the language that states "or 53F-2-301.5, as
696     applicable" is repealed July 1, 2023.]
697          [(22) In Subsection 53F-9-305(3)(a), the language that states "or 53F-2-301.5, as
698     applicable" is repealed July 1, 2023.]
699          [(23) In Subsection 53F-9-306(3)(a), the language that states "or 53F-2-301.5, as
700     applicable" is repealed July 1, 2023.]
701          [(24) In Subsection 53G-3-304(1)(c)(i), the language that states "or 53F-2-301.5, as
702     applicable" is repealed July 1, 2023.]
703          [(25)] (15) On July 1, 2023, when making changes in this section, the Office of
704     Legislative Research and General Counsel shall, in addition to the office's authority under
705     Subsection 36-12-12(3), make corrections necessary to ensure that sections and subsections
706     identified in this section are complete sentences and accurately reflect the office's perception of
707     the Legislature's intent.
708          Section 15. Section 63I-2-259 is amended to read:
709          63I-2-259. Repeal dates: Title 59.
710          [(1) In Section 59-2-926, the language that states "applicable" and "or 53F-2-301.5" is
711     repealed July 1, 2023.]
712          [(2)] (1) Subsection 59-7-610(8), relating to claiming a tax credit in the same taxable
713     year as the targeted business income tax credit, is repealed December 31, 2024.
714          [(3)] (2) Subsection 59-7-614.10(5), relating to claiming a tax credit in the same
715     taxable year as the targeted business income tax credit, is repealed December 31, 2024.
716          [(4)] (3) Section 59-7-624 is repealed December 31, 2024.
717          [(5)] (4) Subsection 59-10-210(2)(b)(vi) is repealed December 31, 2024.
718          [(6)] (5) Subsection 59-10-1007(8), relating to claiming a tax credit in the same taxable
719     year as the targeted business income tax credit, is repealed December 31, 2024.
720          [(7)] (6) Subsection 59-10-1037(5), relating to claiming a tax credit in the same taxable
721     year as the targeted business income tax credit, is repealed December 31, 2024.
722          [(8)] (7) Section 59-10-1112 is repealed December 31, 2024.
723          Section 16. Repealer.
724          This bill repeals:
725          Section 53F-2-301.5, Minimum basic tax rate for a fiscal year that begins on July 1,
726     2018, 2019, 2020, 2021, or 2022.
727          Section 17. Effective date.
728          This bill takes effect on July 1, 2023.
729          Section 18. Retrospective operation.
730          This bill has retrospective operation for a taxable year beginning on or after January 1,
731     2023.
732          Section 19. Coordinating S.B. 141 with S.B. 1 -- Superseding technical and
733     substantive amendments.
734          If this S.B. 141 and S.B. 1, Public Education Base Budget Amendments, both pass and
735     become law, it is the intent of the Legislature that the amendments to Section 53F-2-301 in this
736     bill supersede the amendments to Section 53F-2-301 in S.B. 1 when the Office of Legislative
737     Research and General Counsel prepares the Utah Code database for publication.