Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 328 First Substitute (2015GS)

Sponsor

Rep. McCay, D.

Final action

House/ filed 3/12/2015

Outcome

Failed / filed without passage

Summary

What it does

• This bill:
• defines terms;
• modifies the calculation of certain property tax rates;
• repeals obsolete language; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TAX CHANGES
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Daniel McCay
Senate Sponsor: 
____________
LONG TITLE
General Description:
This bill addresses property taxes and related provisions.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ modifies the calculation of certain property tax rates;
▸ repeals obsolete language; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
20A-7-613
, as enacted by Laws of Utah 2014, Chapter 395
53A-16-106
, as last amended by Laws of Utah 2008, Chapters 61, 231, and 236
53A-16-113
, as last amended by Laws of Utah 2013, Chapter 287
53A-17a-103
, as last amended by Laws of Utah 2014, Chapter 389
53A-17a-133
, as last amended by Laws of Utah 2014, Chapter 189
53A-17a-164
, as last amended by Laws of Utah 2013, Chapters 178 and 313
53A-19-105
, as last amended by Laws of Utah 2009, Chapter 204
59-2-102
, as last amended by Laws of Utah 2014, Chapters 65 and 411
59-2-913
, as last amended by Laws of Utah 2014, Chapter 279
59-2-919
, as and further amended by Revisor Instructions, Laws of Utah 2014, Chapter
256 and last amended by Laws of Utah 2014, Chapter 256
59-2-924
, as last amended by Laws of Utah 2014, Chapter 270
59-2-924.2
, as and further amended by Revisor Instructions, Laws of Utah 2014,
Chapter 270 and last amended by Laws of Utah 2014, Chapter 270
59-2-924.3
, as last amended by Laws of Utah 2011, Chapter 371
59-2-926
, as last amended by Laws of Utah 2009, Chapter 388
59-2-1330
, as last amended by Laws of Utah 2008, Chapters 61, 231, 236, and 301
63I-1-259
, as last amended by Laws of Utah 2014, Chapter 54
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
20A-7-613
 is amended to read:
20A-7-613.
Property tax referendum petition.
(1) As used in this section:
(a) "Certified tax rate" [
is as defined in Subsection
] 
means the same as that term is
defined in Section
59-2-924
[
(3)(a)
].
(b) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year
that begins on July 1 and ends on June 30.
(2) Except as provided in this section, the requirements of this part apply to a
referendum petition challenging a fiscal year taxing entity's legislative body's vote to impose a
tax rate that exceeds the certified tax rate.
(3) Notwithstanding Subsection 
20A-7-604
(5), the local clerk shall number each of the
referendum packets and return them to the sponsors within two working days.
(4) Notwithstanding Subsection 
20A-7-606
(1), the sponsors shall deliver each signed
and verified referendum packet to the county clerk of the county in which the packet was
circulated no later than 40 days after the day on which the local clerk complies with Subsection
(3).
(5) Notwithstanding Subsections 
20A-7-606
(2) and (3), the county clerk shall take the
actions required in Subsections 
20A-7-606
(2) and (3) within 10 working days after the day on
which the county clerk receives the signed and verified referendum packet as described in
Subsection (4).
(6) The local clerk shall take the actions required by Section 
20A-7-607
 within two
working days after the day on which the local clerk receives the referendum packets from the
county clerk.
(7) Notwithstanding Subsection 
20A-7-608
(2), the local attorney shall prepare the
ballot title within two working days after the day on which the referendum petition is declared
sufficient for submission to a vote of the people.
(8) Notwithstanding Subsection 
20A-7-609
(2)(d), a referendum that qualifies for the
ballot under this section shall appear on the ballot for the earlier of the next regular general
election or the next municipal general election unless a special election is called.
(9) Notwithstanding the requirements related to absentee ballots under this title:
(a) the election officer shall prepare absentee ballots for those voters who have
requested an absentee ballot as soon as possible after the ballot title is prepared as described in
Subsection (7); and
(b) the election officer shall mail absentee ballots on a referendum under this section
the later of:
(i) the time provided in Section 
20A-3-305
 or 
20A-16-403
; or
(ii) the time that absentee ballots are prepared for mailing under this section.
(10) Section 
20A-7-402
 does not apply to a referendum described in this section.
(11) (a) If a majority of voters does not vote against imposing the tax at a rate
calculated to generate the increased revenue budgeted, adopted, and approved by the fiscal year
taxing entity's legislative body:
(i) the certified tax rate for the fiscal year during which the referendum petition is filed
is its most recent certified tax rate; and
(ii) the proposed increased revenues for purposes of establishing the certified tax rate
for the fiscal year after the fiscal year described in Subsection (11)(a)(i) are the proposed
increased revenues budgeted, adopted, and approved by the fiscal year taxing entity's legislative
body before the filing of the referendum petition.
(b) If a majority of voters votes against imposing a tax at the rate established by the
vote of the fiscal year taxing entity's legislative body, the certified tax rate for the fiscal year
taxing entity is its most recent certified tax rate.
(c) If the tax rate is set in accordance with Subsection (11)(a)(ii), a fiscal year taxing
entity is not required to comply with the notice and public hearing requirements of Section
59-2-919
 if the fiscal year taxing entity complies with those notice and public hearing
requirements before the referendum petition is filed.
(12) The ballot title shall, at a minimum, include in substantially this form the
following: "Shall the [name of the taxing entity] be authorized to levy a tax rate in the amount
sufficient to generate an increased property tax revenue of [amount] for fiscal year [year] as
budgeted, adopted, and approved by the [name of the taxing entity]".
(13) A fiscal year taxing entity shall pay the county the costs incurred by the county
that are directly related to meeting the requirements of this section and that the county would
not have incurred but for compliance with this section.
(14) (a) An election officer shall include on a ballot a referendum that has not yet
qualified for placement on the ballot, if:
(i) sponsors file an application for a referendum described in this section;
(ii) the ballot will be used for the election for which the sponsors are attempting to
qualify the referendum; and
(iii) the deadline for qualifying the referendum for placement on the ballot occurs after
the day on which the ballot will be printed.
(b) If an election officer includes on a ballot a referendum described in Subsection
(14)(a), the ballot title shall comply with Subsection (12).
(c) If an election officer includes on a ballot a referendum described in Subsection
(14)(a) that does not qualify for placement on the ballot, the election officer shall inform the
voters by any practicable method that the referendum has not qualified for the ballot and that
votes cast in relation to the referendum will not be counted.
Section 2. Section 
53A-16-106
 is amended to read:
53A-16-106.
Annual certification of tax rate proposed by local school board --
Inclusion of school district budget -- Modified filing date.
(1) Prior to June 22 of each year, each local school board shall certify to the county
legislative body in which the district is located, on forms prescribed by the State Tax
Commission, the proposed tax rate approved by the local school board.
(2) A copy of the district's budget, including items under Section 
53A-19-101
, and a
certified copy of the local school board's resolution which approved the budget and set the tax
rate for the subsequent school year beginning July 1 shall accompany the tax rate.
(3) If the tax rate approved by the board is in excess of the [
"
]certified tax rate[
"
]
,
 as
defined [
under Subsection
] 
in Section
59-2-924
[
(3)(a)
], the date for filing the tax rate and
budget adopted by the board shall be that established under Section 
59-2-919
.
Section 3. Section 
53A-16-113
 is amended to read:
53A-16-113.
Capital local levy -- First class county required levy -- Allowable
uses of collected revenue.
(1) (a) Subject to the other requirements of this section, a local school board may levy a
tax to fund the school district's capital projects.
(b) A tax rate imposed by a school district pursuant to this section may not exceed
.0030 per dollar of taxable value in any calendar year.
(2) A school district that imposes a capital local levy in the calendar year beginning on
January 1, 2012, is exempt from the public notice and hearing requirements of Section
59-2-919
 if the school district budgets an amount of ad valorem property tax revenue equal to
or less than the sum of the following amounts:
(a) the amount of revenue generated during the calendar year beginning on January 1,
2011, from the sum of the following levies of a school district:
(i) a capital outlay levy imposed under Section 
53A-16-107
; and
(ii) the portion of the 10% of basic levy described in Section 
53A-17a-145
 that is
budgeted for debt service or capital outlay; and
(b) revenue from 
eligible
 new growth as defined in [
Subsection
] 
Section
59-2-924
[
(4)(c)
].
(3) Beginning January 1, 2012, in order to qualify for receipt of the state contribution
toward the minimum school program described in Section 
53A-17a-103
, a local school board
in a county of the first class shall impose a capital local levy of at least .0006 per dollar of
taxable value.
(4) (a) The county treasurer of a county of the first class shall distribute revenues
generated by the .0006 portion of the capital local levy required in Subsection (2) to school
districts within the county in accordance with Section 
53A-16-114
.
(b) If a school district in a county of the first class imposes a capital local levy pursuant
to this section that exceeds .0006 per dollar of taxable value, the county treasurer shall
distribute revenues generated by the portion of the capital local levy that exceeds .0006 to the
school district imposing the levy.
(5) (a) Subject to Subsections (5)(b), (c), and (d), for fiscal year 2013-14, a local school
board may utilize the proceeds of a maximum of .0024 per dollar of taxable value of the local
school board's annual capital local levy for general fund purposes if the proceeds are not
committed or dedicated to pay debt service or bond payments.
(b) If a local school board uses the proceeds described in Subsection (5)(a) for general
fund purposes, the local school board shall notify the public of the local school board's use of
the capital local levy proceeds for general fund purposes:
(i) prior to the local school board's budget hearing in accordance with the notification
requirements described in Section 
53A-19-102
; and
(ii) at a budget hearing required in Section 
53A-19-102
.
(c) A local school board may not use the proceeds described in Subsection (5)(a) to
fund the following accounting function classifications as provided in the Financial Accounting
for Local and State School Systems guidelines developed by the National Center for Education
Statistics:
(i) 2300 Support Services - General District Administration; or
(ii) 2500 Support Services - Central Services.
(d) A local school board may not use the proceeds from a distribution described in
Subsection (4) for general fund purposes.
Section 4. Section 
53A-17a-103
 is amended to read:
53A-17a-103.
Definitions.
As used in this chapter:
(1) "Basic state-supported school program" or "basic program" means public education
programs for kindergarten, elementary, and secondary school students that are operated and
maintained for the amount derived by multiplying the number of weighted pupil units for each
school district or charter school by the value established each year in statute, except as
otherwise provided in this chapter.
(2) (a) "Certified revenue levy" means a property tax levy that provides an amount of
ad valorem property tax revenue equal to the sum of:
(i) the amount of ad valorem property tax revenue to be generated statewide in the
previous year from imposing a minimum basic tax rate, as specified in Subsection
53A-17a-135
(1)(a); and
(ii) the product of:
(A) 
eligible
 new growth, as defined in:
(I) Section 
59-2-924
; and
(II) rules of the State Tax Commission; and
(B) the minimum basic tax rate certified by the State Tax Commission for the previous
year.
(b) For purposes of this Subsection (2), "ad valorem property tax revenue" does not
include property tax revenue received statewide from personal property that is:
(i) assessed by a county assessor in accordance with Title 59, Chapter 2, Part 3, County
Assessment; and
(ii) semiconductor manufacturing equipment.
(c) For purposes of calculating the certified revenue levy described in this Subsection
(2), the State Tax Commission shall use:
(i) the taxable value of real property assessed by a county assessor contained on the
assessment roll;
(ii) the taxable value of real and personal property assessed by the State Tax
Commission; and
(iii) the taxable year end value of personal property assessed by a county assessor
contained on the prior year's assessment roll.
(3) "Pupil in average daily membership (ADM)" means a full-day equivalent pupil.
(4) (a) "State-supported minimum school program" or "Minimum School Program"
means public school programs for kindergarten, elementary, and secondary schools as
described in this Subsection (4).
(b) The minimum school program established in school districts and charter schools
shall include the equivalent of a school term of nine months as determined by the State Board
of Education.
(c) (i) The board shall establish the number of days or equivalent instructional hours
that school is held for an academic school year.
(ii) Education, enhanced by utilization of technologically enriched delivery systems,
when approved by local school boards or charter school governing boards, shall receive full
support by the State Board of Education as it pertains to fulfilling the attendance requirements,
excluding time spent viewing commercial advertising.
(d) (i) A local school board or charter school governing board may reallocate up to 32
instructional hours or 4 school days established under Subsection (4)(c) for teacher preparation
time or teacher professional development.
(ii) A reallocation of instructional hours or school days under Subsection (4)(d)(i) is
subject to the approval of two-thirds of the members of a local school board or charter school
governing board voting in a regularly scheduled meeting:
(A) at which a quorum of the local school board or charter school governing board is
present; and
(B) held in compliance with Title 52, Chapter 4, Open and Public Meetings Act.
(iii) If a local school board or charter school governing board reallocates instructional
hours or school days as provided by this Subsection (4)(d), the school district or charter school
shall notify students' parents and guardians of the school calendar at least 90 days before the
beginning of the school year.
(iv) Instructional hours or school days reallocated for teacher preparation time or
teacher professional development pursuant to this Subsection (4)(d) is considered part of a
school term referred to in Subsection (4)(b).
(e) The Minimum School Program includes a program or allocation funded by a line
item appropriation or other appropriation designated as follows:
(i) Basic School Program;
(ii) Related to Basic Programs;
(iii) Voted and Board Levy Programs; or
(iv) Minimum School Program.
(5) "Weighted pupil unit or units or WPU or WPUs" means the unit of measure of
factors that is computed in accordance with this chapter for the purpose of determining the
costs of a program on a uniform basis for each district.
Section 5. Section 
53A-17a-133
 is amended to read:
53A-17a-133.
State-supported voted local levy authorized -- Election
requirements -- State guarantee -- Reconsideration of the program.
(1) As used in this section, "voted and board local levy funding balance" means the
difference between:
(a) the amount appropriated for the voted and board local levy program in a fiscal year;
and
(b) the amount necessary to provide the state guarantee per weighted pupil unit as
determined under this section and Section 
53A-17a-164
 in the same fiscal year.
(2) An election to consider adoption or modification of a voted local levy is required if
initiative petitions signed by 10% of the number of electors who voted at the last preceding
general election are presented to the local school board or by action of the board.
(3) (a) (i) To impose a voted local levy, a majority of the electors of a district voting at
an election in the manner set forth in Subsections (9) and (10) must vote in favor of a special
tax.
(ii) The tax rate may not exceed .002 per dollar of taxable value.
(b) Except as provided in Subsection (3)(c), in order to receive state support the first
year, a district must receive voter approval no later than December 1 of the year prior to
implementation.
(c) Beginning on or after January 1, 2012, a school district may receive state support in
accordance with Subsection (4) without complying with the requirements of Subsection (3)(b)
if the local school board imposed a tax in accordance with this section during the taxable year
beginning on January 1, 2011 and ending on December 31, 2011.
(4) (a) In addition to the revenue a school district collects from the imposition of a levy
pursuant to this section, the state shall contribute an amount sufficient to guarantee $27.36 per
weighted pupil unit for each .0001 of the first .0016 per dollar of taxable value.
(b) The same dollar amount guarantee per weighted pupil unit for the .0016 per dollar
of taxable value under Subsection (4)(a) shall apply to the portion of the board local levy
authorized in Section 
53A-17a-164
, so that the guarantee shall apply up to a total of .002 per
dollar of taxable value if a school district levies a tax rate under both programs.
(c) (i) Beginning July 1, 2014, the $27.36 guarantee under Subsections (4)(a) and (b)
shall be indexed each year to the value of the weighted pupil unit for the grades 1 through 12
program by making the value of the guarantee equal to .00963 times the value of the prior
year's weighted pupil unit for the grades 1 through 12 program.
(ii) The guarantee shall increase by .0005 times the value of the prior year's weighted
pupil unit for the grades 1 through 12 program for each succeeding year subject to the
Legislature appropriating funds for an increase in the guarantee.
(d) (i) The amount of state guarantee money to which a school district would otherwise
be entitled to receive under this Subsection (4) may not be reduced for the sole reason that the
district's levy is reduced as a consequence of changes in the certified tax rate under Section
59-2-924
 pursuant to changes in property valuation.
(ii) Subsection (4)(d)(i) applies for a period of five years following any such change in
the certified tax rate.
(e) The guarantee provided under this section does not apply to the portion of a voted
local levy rate that exceeds the voted local levy rate that was in effect for the previous fiscal
year, unless an increase in the voted local levy rate was authorized in an election conducted on
or after July 1 of the previous fiscal year and before December 2 of the previous fiscal year.
(f) (i) If a voted and board local levy funding balance exists for the prior fiscal year, the
State Board of Education shall:
(A) use the voted and board local levy funding balance to increase the value of the state
guarantee per weighted pupil unit described in Subsection (4)(c) in the current fiscal year; and
(B) distribute the state contribution to the voted and board local levy programs to
school districts based on the increased value of the state guarantee per weighted pupil unit
described in Subsection (4)(f)(i)(A).
(ii) The State Board of Education shall report action taken under this Subsection (4)(f)
to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and
Budget.
(5) (a) An election to modify an existing voted local levy is not a reconsideration of the
existing authority unless the proposition submitted to the electors expressly so states.
(b) A majority vote opposing a modification does not deprive the district of authority to
continue the levy.
(c) If adoption of a voted local levy is contingent upon an offset reducing other local
school board levies, the board must allow the electors, in an election, to consider modifying or
discontinuing the imposition of the levy prior to a subsequent increase in other levies that
would increase the total local school board levy.
(d) Nothing contained in this section terminates, without an election, the authority of a
school district to continue imposing an existing voted local levy previously authorized by the
voters as a voted leeway program.
(6) Notwithstanding Section 
59-2-919
, a school district may budget an increased
amount of ad valorem property tax revenue derived from a voted local levy imposed under this
section in addition to revenue from 
eligible
 new growth as defined in [
Subsection
] 
Section
59-2-924
[
(4)
], without having to comply with the notice requirements of Section 
59-2-919
, if:
(a) the voted local levy is approved:
(i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
(ii) within the four-year period immediately preceding the year in which the school
district seeks to budget an increased amount of ad valorem property tax revenue derived from
the voted local levy; and
(b) for a voted local levy approved or modified in accordance with this section on or
after January 1, 2009, the school district complies with the requirements of Subsection (8).
(7) Notwithstanding Section 
59-2-919
, a school district may levy a tax rate under this
section that exceeds the certified tax rate without having to comply with the notice
requirements of Section 
59-2-919
 if:
(a) the levy exceeds the certified tax rate as the result of a school district budgeting an
increased amount of ad valorem property tax revenue derived from a voted local levy imposed
under this section;
(b) the voted local levy was approved:
(i) in accordance with Subsections (9) and (10) on or after January 1, 2003; and
(ii) within the four-year period immediately preceding the year in which the school
district seeks to budget an increased amount of ad valorem property tax revenue derived from
the voted local levy; and
(c) for a voted local levy approved or modified in accordance with this section on or
after January 1, 2009, the school district complies with requirements of Subsection (8).
(8) For purposes of Subsection (6)(b) or (7)(c), the proposition submitted to the
electors regarding the adoption or modification of a voted local levy shall contain the following
statement:
"A vote in favor of this tax means that (name of the school district) may increase
revenue from this property tax without advertising the increase for the next five years."
(9) (a) Before imposing a property tax levy pursuant to this section, a school district
shall submit an opinion question to the school district's registered voters voting on the
imposition of the tax rate so that each registered voter has the opportunity to express the
registered voter's opinion on whether the tax rate should be imposed.
(b) The election required by this Subsection (9) shall be held:
(i) at a regular general election conducted in accordance with the procedures and
requirements of Title 20A, Election Code, governing regular elections;
(ii) at a municipal general election conducted in accordance with the procedures and
requirements of Section 
20A-1-202
; or
(iii) at a local special election conducted in accordance with the procedures and
requirements of Section 
20A-1-203
.
(c) Notwithstanding the requirements of Subsections (9)(a) and (b), beginning on or
after January 1, 2012, a school district may levy a tax rate in accordance with this section
without complying with the requirements of Subsections (9)(a) and (b) if the school district
imposed a tax in accordance with this section at any time during the taxable year beginning on
January 1, 2011, and ending on December 31, 2011.
(10) If a school district determines that a majority of the school district's registered
voters voting on the imposition of the tax rate have voted in favor of the imposition of the tax
rate in accordance with Subsection (9), the school district may impose the tax rate.
Section 6. Section 
53A-17a-164
 is amended to read:
53A-17a-164.
Board local levy -- State guarantee.
(1) Subject to the other requirements of this section, for a calendar year beginning on
or after January 1, 2012, a local school board may levy a tax to fund the school district's
general fund.
(2) (a) Except as provided in Subsection (2)(b), a tax rate imposed by a school district
pursuant to this section may not exceed .0018 per dollar of taxable value in any calendar year.
(b) A tax rate imposed by a school district pursuant to this section may not exceed
.0025 per dollar of taxable value in any calendar year if, during the calendar year beginning on
January 1, 2011, the school district's combined tax rate for the following levies was greater
than .0018 per dollar of taxable value:
(i) a recreation levy imposed under Section 
11-2-7
;
(ii) a transportation levy imposed under Section 
53A-17a-127
;
(iii) a board-authorized levy imposed under Section 
53A-17a-134
;
(iv) an impact aid levy imposed under Section 
53A-17a-143
;
(v) the portion of a 10% of basic levy imposed under Section 
53A-17a-145
 that is
budgeted for purposes other than capital outlay or debt service;
(vi) a reading levy imposed under Section 
53A-17a-151
; and
(vii) a tort liability levy imposed under Section 
63G-7-704
.
(3) (a) In addition to the revenue a school district collects from the imposition of a levy
pursuant to this section, the state shall contribute an amount sufficient to guarantee that each
.0001 of the first .0004 per dollar of taxable value generates an amount equal to the state
guarantee per weighted pupil unit described in Subsection 
53A-17a-133
(4).
(b) (i) The amount of state guarantee money to which a school district would otherwise
be entitled to under this Subsection (3) may not be reduced for the sole reason that the district's
levy is reduced as a consequence of changes in the certified tax rate under Section 
59-2-924
pursuant to changes in property valuation.
(ii) Subsection (3)(b)(i) applies for a period of five years following any changes in the
certified tax rate.
(4) A school district that imposes a board local levy in the calendar year beginning on
January 1, 2012, is exempt from the public notice and hearing requirements of Section
59-2-919
 if the school district budgets an amount of ad valorem property tax revenue equal to
or less than the sum of the following amounts:
(a) the amount of revenue generated during the calendar year beginning on January 1,
2011, from the sum of the following levies of a school district:
(i) a recreation levy imposed under Section 
11-2-7
;
(ii) a transportation levy imposed under Section 
53A-17a-127
;
(iii) a board-authorized levy imposed under Section 
53A-17a-134
;
(iv) an impact aid levy imposed under Section 
53A-17a-143
;
(v) the portion of a 10% of basic levy imposed under Section 
53A-17a-145
 that is
budgeted for purposes other than capital outlay or debt service;
(vi) a reading levy imposed under Section 
53A-17a-151
; and
(vii) a tort liability levy imposed under Section 
63G-7-704
; and
(b) revenue from 
eligible
 new growth as defined in [
Subsection
] 
Section
59-2-924
[
(4)(c)
].
Section 7. Section 
53A-19-105
 is amended to read:
53A-19-105.
School district interfund transfers.
(1) A school district shall spend revenues only within the fund for which they were
originally authorized, levied, collected, or appropriated.
(2) Except as otherwise provided in this section, school district interfund transfers of
residual equity are prohibited.
(3) The State Board of Education may authorize school district interfund transfers of
residual equity when a district states its intent to create a new fund or expand, contract, or
liquidate an existing fund.
(4) The State Board of Education may also authorize school district interfund transfers
of residual equity for a financially distressed district if the board determines the following:
(a) the district has a significant deficit in its maintenance and operations fund caused
by circumstances not subject to the administrative decisions of the district;
(b) the deficit cannot be reasonably reduced under Section 
53A-19-104
; and
(c) without the transfer, the school district will not be capable of meeting statewide
educational standards adopted by the State Board of Education.
(5) The board shall develop standards for defining and aiding financially distressed
school districts under this section in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act.
(6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
and reported in the debt service fund.
(b) Debt service levies under Subsection 
59-2-924
[
(3)(e)(iii)
]
(5)(c)
 that are not subject
to the public hearing provisions of Section 
59-2-919
 may not be used for any purpose other
than retiring general obligation debt.
(c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
year shall be used in subsequent years for general obligation debt retirement.
(d) Any amounts left in the debt service fund after all general obligation debt has been
retired may be transferred to the capital projects fund upon completion of the budgetary hearing
process required under Section 
53A-19-102
.
Section 8. Section 
59-2-102
 is amended to read:
59-2-102.
Definitions.
As used in this chapter and title:
(1) "Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
engaging in dispensing activities directly affecting agriculture or horticulture with an
airworthiness certificate from the Federal Aviation Administration certifying the aircraft or
rotorcraft's use for agricultural and pest control purposes.
(2) "Air charter service" means an air carrier operation which requires the customer to
hire an entire aircraft rather than book passage in whatever capacity is available on a scheduled
trip.
(3) "Air contract service" means an air carrier operation available only to customers
who engage the services of the carrier through a contractual agreement and excess capacity on
any trip and is not available to the public at large.
(4) "Aircraft" is as defined in Section 
72-10-102
.
(5) (a) Except as provided in Subsection (5)(b), "airline" means an air carrier that:
(i) operates:
(A) on an interstate route; and
(B) on a scheduled basis; and
(ii) offers to fly one or more passengers or cargo on the basis of available capacity on a
regularly scheduled route.
(b) "Airline" does not include an:
(i) air charter service; or
(ii) air contract service.
(6) "Assessment roll" means a permanent record of the assessment of property as
assessed by the county assessor and the commission and may be maintained manually or as a
computerized file as a consolidated record or as multiple records by type, classification, or
categories.
(7) (a) "Certified revenue levy" means a property tax levy that provides an amount of
ad valorem property tax revenue equal to the sum of:
(i) the amount of ad valorem property tax revenue to be generated statewide in the
previous year from imposing a school minimum basic tax rate, as specified in Subsection
53A-17a-135
(1)(a), or multicounty assessing and collecting levy, as specified in Section
59-2-1602
; and
(ii) the product of:
(A) 
eligible
 new growth, as defined in:
(I) Section 
59-2-924
; and
(II) rules of the commission; and
(B) the school minimum basic tax rate or multicounty assessing and collecting levy
certified by the commission for the previous year.
(b) For purposes of this Subsection (7), "ad valorem property tax revenue" does not
include property tax revenue received by a taxing entity from personal property that is:
(i) assessed by a county assessor in accordance with Part 3, County Assessment; and
(ii) semiconductor manufacturing equipment.
(c) For purposes of calculating the certified revenue levy described in this Subsection
(7), the commission shall use:
(i) the taxable value of real property assessed by a county assessor contained on the
assessment roll;
(ii) the taxable value of real and personal property assessed by the commission; and
(iii) the taxable year end value of personal property assessed by a county assessor
contained on the prior year's assessment roll.
(8) "County-assessed commercial vehicle" means:
(a) any commercial vehicle, trailer, or semitrailer which is not apportioned under
Section 
41-1a-301
 and is not operated interstate to transport the vehicle owner's goods or
property in furtherance of the owner's commercial enterprise;
(b) any passenger vehicle owned by a business and used by its employees for
transportation as a company car or vanpool vehicle; and
(c) vehicles that are:
(i) especially constructed for towing or wrecking, and that are not otherwise used to
transport goods, merchandise, or people for compensation;
(ii) used or licensed as taxicabs or limousines;
(iii) used as rental passenger cars, travel trailers, or motor homes;
(iv) used or licensed in this state for use as ambulances or hearses;
(v) especially designed and used for garbage and rubbish collection; or
(vi) used exclusively to transport students or their instructors to or from any private,
public, or religious school or school activities.
(9) (a) Except as provided in Subsection (9)(b), for purposes of Section 
59-2-801
,
"designated tax area" means a tax area created by the overlapping boundaries of only the
following taxing entities:
(i) a county; and
(ii) a school district.
(b) Notwithstanding Subsection (9)(a), "designated tax area" includes a tax area created
by the overlapping boundaries of:
(i) the taxing entities described in Subsection (9)(a); and
(ii) (A) a city or town if the boundaries of the school district under Subsection (9)(a)
and the boundaries of the city or town are identical; or
(B) a special service district if the boundaries of the school district under Subsection
(9)(a) are located entirely within the special service district.
(10) "Eligible judgment" means a final and unappealable judgment or order under
Section 
59-2-1330
:
(a) that became a final and unappealable judgment or order no more than 14 months
prior to the day on which the notice required by Section 
59-2-919.1
 is required to be mailed;
and
(b) for which a taxing entity's share of the final and unappealable judgment or order is
greater than or equal to the lesser of:
(i) $5,000; or
(ii) 2.5% of the total ad valorem property taxes collected by the taxing entity in the
previous fiscal year.
(11) (a) "Escaped property" means any property, whether personal, land, or any
improvements to the property, subject to taxation and is:
(i) inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or assessed
to the wrong taxpayer by the assessing authority;
(ii) undervalued or omitted from the tax rolls because of the failure of the taxpayer to
comply with the reporting requirements of this chapter; or
(iii) undervalued because of errors made by the assessing authority based upon
incomplete or erroneous information furnished by the taxpayer.
(b) Property that is undervalued because of the use of a different valuation
methodology or because of a different application of the same valuation methodology is not
"escaped property."
(12) "Fair market value" means the amount at which property would change hands
between a willing buyer and a willing seller, neither being under any compulsion to buy or sell
and both having reasonable knowledge of the relevant facts. For purposes of taxation, "fair
market value" shall be determined using the current zoning laws applicable to the property in
question, except in cases where there is a reasonable probability of a change in the zoning laws
affecting that property in the tax year in question and the change would have an appreciable
influence upon the value.
(13) "Farm machinery and equipment," for purposes of the exemption provided under
Section 
59-2-1101
, means tractors, milking equipment and storage and cooling facilities, feed
handling equipment, irrigation equipment, harvesters, choppers, grain drills and planters, tillage
tools, scales, combines, spreaders, sprayers, haying equipment, including balers and cubers,
and any other machinery or equipment used primarily for agricultural purposes; but does not
include vehicles required to be registered with the Motor Vehicle Division or vehicles or other
equipment used for business purposes other than farming.
(14) "Geothermal fluid" means water in any form at temperatures greater than 120
degrees centigrade naturally present in a geothermal system.
(15) "Geothermal resource" means:
(a) the natural heat of the earth at temperatures greater than 120 degrees centigrade;
and
(b) the energy, in whatever form, including pressure, present in, resulting from, created
by, or which may be extracted from that natural heat, directly or through a material medium.
(16) (a) "Goodwill" means:
(i) acquired goodwill that is reported as goodwill on the books and records:
(A) of a taxpayer; and
(B) that are maintained for financial reporting purposes; or
(ii) the ability of a business to:
(A) generate income:
(I) that exceeds a normal rate of return on assets; and
(II) resulting from a factor described in Subsection (16)(b); or
(B) obtain an economic or competitive advantage resulting from a factor described in
Subsection (16)(b).
(b) The following factors apply to Subsection (16)(a)(ii):
(i) superior management skills;
(ii) reputation;
(iii) customer relationships;
(iv) patronage; or
(v) a factor similar to Subsections (16)(b)(i) through (iv).
(c) "Goodwill" does not include:
(i) the intangible property described in Subsection (20)(a) or (b);
(ii) locational attributes of real property, including:
(A) zoning;
(B) location;
(C) view;
(D) a geographic feature;
(E) an easement;
(F) a covenant;
(G) proximity to raw materials;
(H) the condition of surrounding property; or
(I) proximity to markets;
(iii) value attributable to the identification of an improvement to real property,
including:
(A) reputation of the designer, builder, or architect of the improvement;
(B) a name given to, or associated with, the improvement; or
(C) the historic significance of an improvement; or
(iv) the enhancement or assemblage value specifically attributable to the interrelation
of the existing tangible property in place working together as a unit.
(17) "Governing body" means:
(a) for a county, city, or town, the legislative body of the county, city, or town;
(b) for a local district under Title 17B, Limited Purpose Local Government Entities -
Local Districts, the local district's board of trustees;
(c) for a school district, the local board of education; or
(d) for a special service district under Title 17D, Chapter 1, Special Service District
Act:
(i) the legislative body of the county or municipality that created the special service
district, to the extent that the county or municipal legislative body has not delegated authority
to an administrative control board established under Section 
17D-1-301
; or
(ii) the administrative control board, to the extent that the county or municipal
legislative body has delegated authority to an administrative control board established under
Section 
17D-1-301
.
(18) (a) For purposes of Section 
59-2-103
:
(i) "household" means the association of persons who live in the same dwelling,
sharing its furnishings, facilities, accommodations, and expenses; and
(ii) "household" includes married individuals, who are not legally separated, that have
established domiciles at separate locations within the state.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "domicile."
(19) (a) Except as provided in Subsection (19)(c), "improvement" means a building,
structure, fixture, fence, or other item that is permanently attached to land, regardless of
whether the title has been acquired to the land, if:
(i) (A) attachment to land is essential to the operation or use of the item; and
(B) the manner of attachment to land suggests that the item will remain attached to the
land in the same place over the useful life of the item; or
(ii) removal of the item would:
(A) cause substantial damage to the item; or
(B) require substantial alteration or repair of a structure to which the item is attached.
(b) "Improvement" includes:
(i) an accessory to an item described in Subsection (19)(a) if the accessory is:
(A) essential to the operation of the item described in Subsection (19)(a); and
(B) installed solely to serve the operation of the item described in Subsection (19)(a);
and
(ii) an item described in Subsection (19)(a) that:
(A) is temporarily detached from the land for repairs; and
(B) remains located on the land.
(c) Notwithstanding Subsections (19)(a) and (b), "improvement" does not include:
(i) an item considered to be personal property pursuant to rules made in accordance
with Section 
59-2-107
;
(ii) a moveable item that is attached to land:
(A) for stability only; or
(B) for an obvious temporary purpose;
(iii) (A) manufacturing equipment and machinery; or
(B) essential accessories to manufacturing equipment and machinery;
(iv) an item attached to the land in a manner that facilitates removal without substantial
damage to:
(A) the land; or
(B) the item; or
(v) a transportable factory-built housing unit as defined in Section 
59-2-1502
 if that
transportable factory-built housing unit is considered to be personal property under Section
59-2-1503
.
(20) "Intangible property" means:
(a) property that is capable of private ownership separate from tangible property,
including:
(i) money;
(ii) credits;
(iii) bonds;
(iv) stocks;
(v) representative property;
(vi) franchises;
(vii) licenses;
(viii) trade names;
(ix) copyrights; and
(x) patents;
(b) a low-income housing tax credit;
(c) goodwill; or
(d) a renewable energy tax credit or incentive, including:
(i) a federal renewable energy production tax credit under Section 45, Internal Revenue
Code;
(ii) a federal energy credit for qualified renewable electricity production facilities under
Section 48, Internal Revenue Code;
(iii) a federal grant for a renewable energy property under American Recovery and
Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
(iv) a tax credit under Subsection 
59-7-614
(2)(c).
(21) "Livestock" means:
(a) a domestic animal;
(b) a fur-bearing animal;
(c) a honeybee; or
(d) poultry.
(22) "Low-income housing tax credit" means:
(a) a federal low-income housing tax credit under Section 42, Internal Revenue Code;
or
(b) a low-income housing tax credit under:
(i) Section 
59-7-607
; or
(ii) Section 
59-10-1010
.
(23) "Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
(24) "Mine" means a natural deposit of either metalliferous or nonmetalliferous
valuable mineral.
(25) "Mining" means the process of producing, extracting, leaching, evaporating, or
otherwise removing a mineral from a mine.
(26) (a) "Mobile flight equipment" means tangible personal property that is:
(i) owned or operated by an:
(A) air charter service;
(B) air contract service; or
(C) airline; and
(ii) (A) capable of flight;
(B) attached to an aircraft that is capable of flight; or
(C) contained in an aircraft that is capable of flight if the tangible personal property is
intended to be used:
(I) during multiple flights;
(II) during a takeoff, flight, or landing; and
(III) as a service provided by an air charter service, air contract service, or airline.
(b) (i) "Mobile flight equipment" does not include a spare part other than a spare
engine that is rotated:
(A) at regular intervals; and
(B) with an engine that is attached to the aircraft.
(ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "regular intervals."
(27) "Nonmetalliferous minerals" includes, but is not limited to, oil, gas, coal, salts,
sand, rock, gravel, and all carboniferous materials.
(28) "Part-year residential property" means property that is not residential property on
January 1 of a calendar year but becomes residential property after January 1 of the calendar
year.
(29) "Personal property" includes:
(a) every class of property as defined in Subsection (30) that is the subject of
ownership and not included within the meaning of the terms "real estate" and "improvements";
(b) gas and water mains and pipes laid in roads, streets, or alleys;
(c) bridges and ferries;
(d) livestock; and
(e) outdoor advertising structures as defined in Section 
72-7-502
.
(30) (a) "Property" means property that is subject to assessment and taxation according
to its value.
(b) "Property" does not include intangible property as defined in this section.
(31) "Public utility," for purposes of this chapter, means the operating property of a
railroad, gas corporation, oil or gas transportation or pipeline company, coal slurry pipeline
company, electrical corporation, telephone corporation, sewerage corporation, or heat
corporation where the company performs the service for, or delivers the commodity to, the
public generally or companies serving the public generally, or in the case of a gas corporation
or an electrical corporation, where the gas or electricity is sold or furnished to any member or
consumers within the state for domestic, commercial, or industrial use. Public utility also
means the operating property of any entity or person defined under Section 
54-2-1
 except water
corporations.
(32) (a) Subject to Subsection (32)(b), "qualifying exempt primary residential rental
personal property" means household furnishings, furniture, and equipment that:
(i) are used exclusively within a dwelling unit that is the primary residence of a tenant;
(ii) are owned by the owner of the dwelling unit that is the primary residence of a
tenant; and
(iii) after applying the residential exemption described in Section 
59-2-103
, are exempt
from taxation under this chapter in accordance with Subsection 
59-2-1115
(2).
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of this Subsection (32)
and Subsection (35).
(33) "Real estate" or "real property" includes:
(a) the possession of, claim to, ownership of, or right to the possession of land;
(b) all mines, minerals, and quarries in and under the land, all timber belonging to
individuals or corporations growing or being on the lands of this state or the United States, and
all rights and privileges appertaining to these; and
(c) improvements.
(34) "Relationship with an owner of the property's land surface rights" means a
relationship described in Subsection 267(b), Internal Revenue Code:
(a) except that notwithstanding Subsection 267(b), Internal Revenue Code, the term
25% shall be substituted for the term 50% in Subsection 267(b), Internal Revenue Code; and
(b) using the ownership rules of Subsection 267(c), Internal Revenue Code, for
determining the ownership of stock.
(35) (a) Subject to Subsection (35)(b), "residential property," for the purposes of the
reductions and adjustments under this chapter, means any property used for residential
purposes as a primary residence.
(b) Subject to Subsection (35)(c), "residential property":
(i) except as provided in Subsection (35)(b)(ii), includes household furnishings,
furniture, and equipment if the household furnishings, furniture, and equipment are:
(A) used exclusively within a dwelling unit that is the primary residence of a tenant;
and
(B) owned by the owner of the dwelling unit that is the primary residence of a tenant;
and
(ii) does not include property used for transient residential use.
(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of Subsection (32) and
this Subsection (35).
(36) "Split estate mineral rights owner" means a person who:
(a) has a legal right to extract a mineral from property;
(b) does not hold more than a 25% interest in:
(i) the land surface rights of the property where the wellhead is located; or
(ii) an entity with an ownership interest in the land surface rights of the property where
the wellhead is located;
(c) is not an entity in which the owner of the land surface rights of the property where
the wellhead is located holds more than a 25% interest; and
(d) does not have a relationship with an owner of the land surface rights of the property
where the wellhead is located.
(37) (a) "State-assessed commercial vehicle" means:
(i) any commercial vehicle, trailer, or semitrailer which operates interstate or intrastate
to transport passengers, freight, merchandise, or other property for hire; or
(ii) any commercial vehicle, trailer, or semitrailer which operates interstate and
transports the vehicle owner's goods or property in furtherance of the owner's commercial
enterprise.
(b) "State-assessed commercial vehicle" does not include vehicles used for hire which
are specified in Subsection (8)(c) as county-assessed commercial vehicles.
(38) "Taxable value" means fair market value less any applicable reduction allowed for
residential property under Section 
59-2-103
.
(39) "Tax area" means a geographic area created by the overlapping boundaries of one
or more taxing entities.
(40) "Taxing entity" means any county, city, town, school district, special taxing
district, local district under Title 17B, Limited Purpose Local Government Entities - Local
Districts, or other political subdivision of the state with the authority to levy a tax on property.
(41) "Tax roll" means a permanent record of the taxes charged on property, as extended
on the assessment roll and may be maintained on the same record or records as the assessment
roll or may be maintained on a separate record properly indexed to the assessment roll. It
includes tax books, tax lists, and other similar materials.
Section 9. Section 
59-2-913
 is amended to read:
59-2-913.
Definitions -- Statement of amount and purpose of levy -- Contents of
statement -- Filing with county auditor -- Transmittal to commission -- Calculations for
establishing tax levies -- Format of statement.
(1) As used in this section, "budgeted property tax revenues" does not include property
tax revenue received by a taxing entity from personal property that is:
(a) assessed by a county assessor in accordance with Part 3, County Assessment; and
(b) semiconductor manufacturing equipment.
(2) (a) The legislative body of each taxing entity shall file a statement as provided in
this section with the county auditor of the county in which the taxing entity is located.
(b) The auditor shall annually transmit the statement to the commission:
(i) before June 22; or
(ii) with the approval of the commission, on a subsequent date prior to the date
required by Section 
59-2-1317
 for the county treasurer to provide the notice under Section
59-2-1317
.
(c) The statement shall contain the amount and purpose of each levy fixed by the
legislative body of the taxing entity.
(3) For purposes of establishing the levy set for each of a taxing entity's applicable
funds, the legislative body of the taxing entity shall calculate an amount determined by dividing
the budgeted property tax revenues, specified in a budget which has been adopted and
approved prior to setting the levy, by the amount calculated under Subsections
59-2-924
[
(3)(c)(ii)(A) through (C)
]
(4)(b)(i) through (iii)
.
(4) The format of the statement under this section shall:
(a) be determined by the commission; and
(b) cite any applicable statutory provisions that:
(i) require a specific levy; or
(ii) limit the property tax levy for any taxing entity.
(5) The commission may require certification that the information submitted on a
statement under this section is true and correct.
Section 10. Section 
59-2-919
 is amended to read:
59-2-919.
Notice and public hearing requirements for certain tax increases --
Exceptions.
(1) As used in this section:
(a) "Ad valorem tax revenue" means ad valorem property tax revenue not including
revenue from 
eligible
 new growth as defined in Section 
59-2-924
.
(b) "Additional ad valorem tax revenue" means ad valorem property tax revenue
generated by the portion of the tax rate that exceeds the taxing entity's certified tax rate.
(c) "Calendar year taxing entity" means a taxing entity that operates under a fiscal year
that begins on January 1 and ends on December 31.
(d) "County executive calendar year taxing entity" means a calendar year taxing entity
that operates under the county executive-council form of government described in Section
17-52-504
.
(e) "Current calendar year" means the calendar year immediately preceding the
calendar year for which a calendar year taxing entity seeks to levy a tax rate that exceeds the
calendar year taxing entity's certified tax rate.
(f) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that
begins on July 1 and ends on June 30.
(2) A taxing entity may not levy a tax rate that exceeds the taxing entity's certified tax
rate unless the taxing entity meets:
(a) the requirements of this section that apply to the taxing entity; and
(b) all other requirements as may be required by law.
(3) (a) Subject to Subsection (3)(b) and except as provided in Subsection (5), a calendar
year taxing entity may levy a tax rate that exceeds the calendar year taxing entity's certified tax
rate if the calendar year taxing entity:
(i) 14 or more days before the date of the regular general election or municipal general
election held in the current calendar year, states at a public meeting:
(A) that the calendar year taxing entity intends to levy a tax rate that exceeds the
calendar year taxing entity's certified tax rate;
(B) the dollar amount of and purpose for additional ad valorem tax revenue that would
be generated by the proposed increase in the certified tax rate; and
(C) the approximate percentage increase in ad valorem tax revenue for the taxing entity
based on the proposed increase described in Subsection (3)(a)(i)(B);
(ii) provides notice for the public meeting described in Subsection (3)(a)(i) in
accordance with Title 52, Chapter 4, Open and Public Meetings Act, including providing a
separate item on the meeting agenda that notifies the public that the calendar year taxing entity
intends to make the statement described in Subsection (3)(a)(i);
(iii) meets the advertisement requirements of Subsections (6) and (7) before the
calendar year taxing entity conducts the public hearing required by Subsection (3)(a)(v);
(iv) provides notice by mail:
(A) seven or more days before the regular general election or municipal general
election held in the current calendar year; and
(B) as provided in Subsection (3)(c); and
(v) conducts a public hearing that is held:
(A) in accordance with Subsections (8) and (9); and
(B) in conjunction with the public hearing required by Section 
17-36-13
 or 
17B-1-610
.
(b) (i) For a county executive calendar year taxing entity, the statement described in
Subsection (3)(a)(i) shall be made by the:
(A) county council;
(B) county executive; or
(C) both the county council and county executive.
(ii) If the county council makes the statement described in Subsection (3)(a)(i) or the
county council states a dollar amount of additional ad valorem tax revenue that is greater than
the amount of additional ad valorem tax revenue previously stated by the county executive in
accordance with Subsection (3)(a)(i), the county executive calendar year taxing entity shall:
(A) make the statement described in Subsection (3)(a)(i) 14 or more days before the
county executive calendar year taxing entity conducts the public hearing under Subsection
(3)(a)(v); and
(B) provide the notice required by Subsection (3)(a)(iv) 14 or more days before the
county executive calendar year taxing entity conducts the public hearing required by
Subsection (3)(a)(v).
(c) The notice described in Subsection (3)(a)(iv):
(i) shall be mailed to each owner of property:
(A) within the calendar year taxing entity; and
(B) listed on the assessment roll;
(ii) shall be printed on a separate form that:
(A) is developed by the commission;
(B) states at the top of the form, in bold upper-case type no smaller than 18 point
"NOTICE OF PROPOSED TAX INCREASE"; and
(C) may be mailed with the notice required by Section 
59-2-1317
;
(iii) shall contain for each property described in Subsection (3)(c)(i):
(A) the value of the property for the current calendar year;
(B) the tax on the property for the current calendar year; and
(C) subject to Subsection (3)(d), for the calendar year for which the calendar year
taxing entity seeks to levy a tax rate that exceeds the calendar year taxing entity's certified tax
rate, the estimated tax on the property;
(iv) shall contain the following statement:
"[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar
year]. This notice contains estimates of the tax on your property and the proposed tax increase
on your property as a result of this tax increase. These estimates are calculated on the basis of
[insert previous applicable calendar year] data. The actual tax on your property and proposed
tax increase on your property may vary from this estimate.";
(v) shall state the date, time, and place of the public hearing described in Subsection
(3)(a)(v); and
(vi) may contain other property tax information approved by the commission.
(d) For purposes of Subsection (3)(c)(iii)(C), a calendar year taxing entity shall
calculate the estimated tax on property on the basis of:
(i) data for the current calendar year; and
(ii) the amount of additional ad valorem tax revenue stated in accordance with this
section.
(4) Except as provided in Subsection (5), a fiscal year taxing entity may levy a tax rate
that exceeds the fiscal year taxing entity's certified tax rate if the fiscal year taxing entity:
(a) provides notice by meeting the advertisement requirements of Subsections (6) and
(7) before the fiscal year taxing entity conducts the public meeting at which the fiscal year
taxing entity's annual budget is adopted; and
(b) conducts a public hearing in accordance with Subsections (8) and (9) before the
fiscal year taxing entity's annual budget is adopted.
(5) (a) A taxing entity is not required to meet the notice or public hearing requirements
of Subsection (3) or (4) if the taxing entity is expressly exempted by law from complying with
the requirements of this section.
(b) A taxing entity is not required to meet the notice requirements of Subsection (3) or
(4) if:
(i) Section 
53A-17a-133
 allows the taxing entity to levy a tax rate that exceeds that
certified tax rate without having to comply with the notice provisions of this section; or
(ii) the taxing entity:
(A) budgeted less than $20,000 in ad valorem tax revenues for the previous fiscal year;
and
(B) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax
revenues.
(6) (a) Subject to Subsections (6)(d) and (7)(b), the advertisement described in this
section shall be published:
(i) subject to Section 
45-1-101
, in a newspaper or combination of newspapers of
general circulation in the taxing entity;
(ii) electronically in accordance with Section 
45-1-101
; and
(iii) on the Utah Public Notice Website created in Section 
63F-1-701
.
(b) The advertisement described in Subsection (6)(a)(i) shall:
(i) be no less than 1/4 page in size;
(ii) use type no smaller than 18 point; and
(iii) be surrounded by a 1/4-inch border.
(c) The advertisement described in Subsection (6)(a)(i) may not be placed in that
portion of the newspaper where legal notices and classified advertisements appear.
(d) It is the intent of the Legislature that:
(i) whenever possible, the advertisement described in Subsection (6)(a)(i) appear in a
newspaper that is published at least one day per week; and
(ii) the newspaper or combination of newspapers selected:
(A) be of general interest and readership in the taxing entity; and
(B) not be of limited subject matter.
(e) (i) The advertisement described in Subsection (6)(a)(i) shall:
(A) except as provided in Subsection (6)(f), be run once each week for the two weeks
before a taxing entity conducts a public hearing described under Subsection (3)(a)(v) or (4)(b);
and
(B) state that the taxing entity will meet on a certain day, time, and place fixed in the
advertisement, which shall be seven or more days after the day the first advertisement is
published, for the purpose of hearing comments regarding any proposed increase and to explain
the reasons for the proposed increase.
(ii) The advertisement described in Subsection (6)(a)(ii) shall:
(A) be published two weeks before a taxing entity conducts a public hearing described
in Subsection (3)(a)(v) or (4)(b); and
(B) state that the taxing entity will meet on a certain day, time, and place fixed in the
advertisement, which shall be seven or more days after the day the first advertisement is
published, for the purpose of hearing comments regarding any proposed increase and to explain
the reasons for the proposed increase.
(f) If a fiscal year taxing entity's public hearing information is published by the county
auditor in accordance with Section 
59-2-919.2
, the fiscal year taxing entity is not subject to the
requirement to run the advertisement twice, as required by Subsection (6)(e)(i), but shall run
the advertisement once during the week before the fiscal year taxing entity conducts a public
hearing at which the taxing entity's annual budget is discussed.
(g) For purposes of Subsection (3)(a)(iii) or (4)(a), the form and content of an
advertisement shall be substantially as follows:
"NOTICE OF PROPOSED TAX INCREASE
(NAME OF TAXING ENTITY)
The (name of the taxing entity) is proposing to increase its property tax revenue.
• The (name of the taxing entity) tax on a (insert the average value of a residence
in the taxing entity rounded to the nearest thousand dollars) residence would
increase from $______ to $________, which is $_______ per year.
• The (name of the taxing entity) tax on a (insert the value of a business having
the same value as the average value of a residence in the taxing entity) business
would increase from $________ to $_______, which is $______ per year.
• If the proposed budget is approved, (name of the taxing entity) would increase
its property tax budgeted revenue by ___% above last year's property tax
budgeted revenue excluding new growth.
All concerned citizens are invited to a public hearing on the tax increase.
PUBLIC HEARING
Date/Time: (date) (time)
Location: (name of meeting place and address of meeting place)
To obtain more information regarding the tax increase, citizens may contact the (name
of the taxing entity) at (phone number of taxing entity)."
(7) The commission:
(a) shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, governing the joint use of one advertisement described in Subsection (6) by
two or more taxing entities; and
(b) subject to Section 
45-1-101
, may authorize:
(i) the use of a weekly newspaper:
(A) in a county having both daily and weekly newspapers if the weekly newspaper
would provide equal or greater notice to the taxpayer; and
(B) if the county petitions the commission for the use of the weekly newspaper; or
(ii) the use by a taxing entity of a commission approved direct notice to each taxpayer
if:
(A) the cost of the advertisement would cause undue hardship;
(B) the direct notice is different and separate from that provided for in Section
59-2-919.1
; and
(C) the taxing entity petitions the commission for the use of a commission approved
direct notice.
(8) (a) (i) (A) A fiscal year taxing entity shall, on or before March 1, notify the county
legislative body in which the fiscal year taxing entity is located of the date, time, and place of
the first public hearing at which the fiscal year taxing entity's annual budget will be discussed.
(B) A county that receives notice from a fiscal year taxing entity under Subsection
(8)(a)(i)(A) shall include on the notice required by Section 
59-2-919.1
 the date, time, and place
of the public hearing described in Subsection (8)(a)(i)(A).
(ii) A calendar year taxing entity shall, on or before October 1 of the current calendar
year, notify the county legislative body in which the calendar year taxing entity is located of the
date, time, and place of the first public hearing at which the calendar year taxing entity's annual
budget will be discussed.
(b) (i) A public hearing described in Subsection (3)(a)(v) or (4)(b) shall be open to the
public.
(ii) The governing body of a taxing entity conducting a public hearing described in
Subsection (3)(a)(v) or (4)(b) shall provide an interested party desiring to be heard an
opportunity to present oral testimony within reasonable time limits.
(c) (i) Except as provided in Subsection (8)(c)(ii), a taxing entity may not schedule a
public hearing described in Subsection (3)(a)(v) or (4)(b) at the same time as the public hearing
of another overlapping taxing entity in the same county.
(ii) The taxing entities in which the power to set tax levies is vested in the same
governing board or authority may consolidate the public hearings described in Subsection
(3)(a)(v) or (4)(b) into one public hearing.
(d) A county legislative body shall resolve any conflict in public hearing dates and
times after consultation with each affected taxing entity.
(e) A taxing entity shall hold a public hearing described in Subsection (3)(a)(v) or
(4)(b) beginning at or after 6 p.m.
(9) (a) If a taxing entity does not make a final decision on budgeting additional ad
valorem tax revenue at a public hearing described in Subsection (3)(a)(v) or (4)(b), the taxing
entity shall announce at that public hearing the scheduled time and place of the next public
meeting at which the taxing entity will consider budgeting the additional ad valorem tax
revenue.
(b) A calendar year taxing entity may not adopt a final budget that budgets an amount
of additional ad valorem tax revenue that exceeds the largest amount of additional ad valorem
tax revenue stated at a public meeting under Subsection (3)(a)(i).
(c) A public hearing on levying a tax rate that exceeds a fiscal year taxing entity's
certified tax rate may coincide with a public hearing on the fiscal year taxing entity's proposed
annual budget.
(10) Notwithstanding any other provision of this section, the amendments to this
section in Laws of Utah 2014, Chapter 256, Section 2, apply to:
(a) actions a fiscal year taxing entity is required to take with respect to the fiscal year
taxing entity's budgetary process for a fiscal year that begins on or after July 1, 2014; or
(b) actions a calendar year taxing entity is required to take with respect to the calendar
year taxing entity's budgetary process for a fiscal year that begins on or after January 1, 2015.
Section 11. Section 
59-2-924
 is amended to read:
59-2-924.
Definitions -- Report of valuation of property to county auditor and
commission -- Transmittal by auditor to governing bodies -- Certified tax rate --
Calculation of certified tax rate -- Rulemaking authority -- Adoption of tentative budget.
(1) As used in this section:
(a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with
this chapter.
(ii) "Ad valorem property tax revenue" does not include:
(A) interest;
(B) a penalty;
(C) collections from redemptions; or
(D) revenue received by a taxing entity from personal property that is semiconductor
manufacturing equipment assessed by a county assessor in accordance with Part 3, County
Assessment.
(b) (i) "Aggregate taxable value of all property taxed" means:
(A) the aggregate taxable value of all real property a county assessor assesses in
accordance with Part 3, County Assessment, for the current year;
(B) the aggregate year end taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls
of the taxing entity; and
(C) the aggregate taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current year.
(ii) "Aggregate taxable value of all property taxed" does not include the aggregate year
end taxable value of personal property that is:
(A) semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B) contained on the prior year's tax rolls of the taxing entity.
(c) (i) "Annual growth for commission assessed real and personal property" means the
difference between:
(A) the taxable value of all real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for a calendar year; and
(B) the year end taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the calendar year prior to the
calendar year described in Subsection (1)(c)(i)(A).
(ii) "Annual growth for commission assessed real and personal property" does not
include a change in value as a result of a change in the method of apportioning the value
prescribed by the Legislature, a court, or the commission in an administrative rule or
administrative order.
(d) (i) "Annual growth for locally assessed personal property" means the difference
between:
(A) the year end taxable value of all personal property a county assessor assesses in
accordance with Part 3, County Assessment, for the prior calendar year; and
(B) the year end taxable value of all personal property a county assessor assesses in
accordance with Part 3, County Assessment, for the calendar year prior to the calendar year
described in Subsection (1)(d)(i).
(ii) "Annual growth for locally assessed personal property" does not include the
aggregate year end taxable value of personal property that is:
(A) semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B) contained on the prior year's tax rolls of the taxing entity.
(e) "Certified tax rate" means a tax rate that will provide the same ad valorem property
tax revenue for a taxing entity as the taxing entity budgeted for the prior year.
(f) (i) "Eligible new growth" means the sum of:
(A) new growth for commission assessed real and personal property;
(B) new growth for locally assessed personal property; and
(C) new growth for locally assessed real property.
(ii) "Eligible new growth" includes revenue that a taxing entity receives as a result of
an agency, as defined in Section 
17C-1-102
, no longer receiving tax increment as defined in
Section 
17C-1-102
.
(g) (i) "New growth for commission assessed real and personal property" means an
amount equal to the 10-year average of the most recent 10 years of annual growth for
commission assessed real and personal property, adjusted for redevelopment.
(ii) "New growth for commission assessed real and personal property" does not include
a change in value as a result of a change in the method of apportioning the value prescribed by
the Legislature, a court, or the commission in an administrative rule or administrative order.
(h) "New growth for locally assessed personal property" means an amount equal to the
10-year average of the most recent 10 years of annual growth for locally assessed personal
property, adjusted for redevelopment.
(i) (i) "New growth for locally assessed real property" means the difference between:
(A) the taxable value of all real property the county assessor assesses in accordance
with Part 3, County Assessment, for the current year, adjusted for redevelopment; and
(B) the year end taxable value of all real property the county assessor assesses in
accordance with Part 3, County Assessment, for the prior year, adjusted for redevelopment.
(ii) "New growth for locally assessed real property" does not include a change in value
as a result of factoring in accordance with Section 
59-2-704
, reappraisal, or another adjustment.
[
(1)
] 
(2)
 Before June 1 of each year, the county assessor of each county shall deliver to
the county auditor and the commission the following statements:
(a) a statement containing the aggregate valuation of all taxable real property [
assessed
by
] a county assessor 
assesses
 in accordance with Part 3, County Assessment, for each taxing
entity; and
(b) a statement containing the taxable value of all personal property [
assessed by
] a
county assessor 
assesses
 in accordance with Part 3, County Assessment, from the prior year
end values.
[
(2)
] 
(3)
 The county auditor shall, on or before June 8, transmit to the governing body
of each taxing entity:
(a) the statements described in Subsections [
(1)
] 
(2)
(a) and (b);
(b) an estimate of the revenue from personal property;
(c) the certified tax rate 
calculated in accordance with this section
; and
(d) all forms necessary to submit a tax levy request.
[
(3) (a) The "certified tax rate" means a tax rate that will provide the same ad valorem
property tax revenues for a taxing entity as were budgeted by that taxing entity for the prior
year.
]
[
(b) For purposes of this Subsection (3):
]
[
(i) "Ad valorem property tax revenues" do not include:
]
[
(A) interest;
]
[
(B) penalties; and
]
[
(C) revenue received by a taxing entity from personal property that is:
]
[
(I) assessed by a county assessor in accordance with Part 3, County Assessment; and
]
[
(II) semiconductor manufacturing equipment.
]
[
(ii) "Aggregate taxable value of all property taxed" means:
]
[
(A) the aggregate taxable value of all real property assessed by a county assessor in
accordance with Part 3, County Assessment, for the current year;
]
[
(B) the aggregate taxable year end value of all personal property assessed by a county
assessor in accordance with Part 3, County Assessment, for the prior year; and
]
[
(C) the aggregate taxable value of all real and personal property assessed by the
commission in accordance with Part 2, Assessment of Property, for the current year.
]
[
(c) (i)
] 
(4) (a)
 Except as otherwise provided in this section, the certified tax rate shall
be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by
[
the
] 
a
 taxing entity by the amount calculated under Subsection [
(3)(c)(ii)
] 
(4)(b)
.
[
(ii)
] 
(b)
 For purposes of Subsection [
(3)(c)(i)
] 
(4)(a)
, the legislative body of a taxing
entity shall calculate an amount as follows:
[
(A)
] 
(i)
 calculate for the taxing entity the difference between:
[
(I)
] 
(A)
 the aggregate taxable value of all property taxed; and
[
(II)
] 
(B)
 any redevelopment adjustments for the current calendar year;
[
(B)
] 
(ii)
 after making the calculation required by Subsection [
(3)(c)(ii)(A)
] 
(4)(b)(i)
,
calculate an amount determined by increasing or decreasing the amount calculated under
Subsection [
(3)(c)(ii)(A)
] 
(4)(b)(i)
 by the average of the percentage net change in the value of
taxable property for the equalization period for the three calendar years immediately preceding
the current calendar year;
[
(C)
] 
(iii)
 after making the calculation required by Subsection [
(3)(c)(ii)(B)
] 
(4)(b)(ii)
,
calculate the product of:
[
(I)
] 
(A)
 the amount calculated under Subsection [
(3)(c)(ii)(B)
] 
(4)(b)(ii)
; and
[
(II)
] 
(B)
 the [
percentage
] 
average of the percentages
 of property taxes collected for the
five calendar years immediately preceding the current calendar year; and
[
(D)
] 
(iv)
 after making the calculation required by Subsection [
(3)(c)(ii)(C)
] 
(4)(b)(iii)
,
calculate an amount determined by subtracting 
eligible new growth
 from the amount calculated
under [
Subsection (3)(c)(ii)(C) any new growth as defined in this section:
] 
Subsection
(4)(b)(iii).
[
(I) within the taxing entity; and
]
[
(II) for the following calendar year:
]
[
(Aa) for new growth from real property assessed by a county assessor in accordance
with Part 3, County Assessment and all property assessed by the commission in accordance
with Section 
59-2-201
, the current calendar year; and
]
[
(Bb) for new growth from personal property assessed by a county assessor in
accordance with Part 3, County Assessment, the prior calendar year.
]
[
(iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all
property taxed:
]
[
(A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined in
Subsection (3)(b)(ii);
]
[
(B) does not include the total taxable value of personal property contained on the tax
rolls of the taxing entity that is:
]
[
(I) assessed by a county assessor in accordance with Part 3, County Assessment; and
]
[
(II) semiconductor manufacturing equipment; and
]
[
(C) for personal property assessed by a county assessor in accordance with Part 3,
County Assessment, the taxable value of personal property is the year end value of the personal
property contained on the prior year's tax rolls of the entity.
]
[
(iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
January 1, 2007, the value of taxable property does not include the value of personal property
that is:
]
[
(A) within the taxing entity assessed by a county assessor in accordance with Part 3,
County Assessment; and
]
[
(B) semiconductor manufacturing equipment.
]
[
(v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or
after January 1, 2007, the percentage of property taxes collected does not include property taxes
collected from personal property that is:
]
[
(A) within the taxing entity assessed by a county assessor in accordance with Part 3,
County Assessment; and
]
[
(B) semiconductor manufacturing equipment.
]
[
(vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or after
January 1, 2009, the value of taxable property does not include the value of personal property
that is within the taxing entity assessed by a county assessor in accordance with Part 3, County
Assessment.
]
[
(vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may prescribe rules for calculating redevelopment adjustments for a calendar
year.
]
[
(viii) (A) Except as provided in Subsections (3)(c)(ix) and (x), for purposes of
Subsection (3)(c)(i), a taxing entity's ad valorem property tax revenues budgeted for the prior
year shall be decreased by an amount of revenue equal to the five-year average of the most
recent prior five years of redemptions adjusted by the five-year average redemption calculated
for the prior year as reported on the county treasurer's final annual settlement required under
Subsection 
59-2-1365
(2).
]
[
(B) A decrease under Subsection (3)(c)(viii)(A) does not apply to the multicounty
assessing and collecting levy authorized in Subsection 
59-2-1602
(2)(a), the certified revenue
levy, or the minimum basic tax rate established in Section 
53A-17a-135
.
]
[
(ix) As used in Subsection (3)(c)(x):
]
[
(A) "One-fourth of qualifying redemptions excess amount" means a qualifying
redemptions excess amount divided by four.
]
[
(B) "Qualifying redemptions" means that, for a calendar year, a taxing entity's total
amount of redemptions is greater than three times the five-year average of the most recent prior
five years of redemptions calculated for the prior year under Subsection (3)(c)(viii)(A).
]
[
(C) "Qualifying redemptions base amount" means an amount equal to three times the
five-year average of the most recent prior five years of redemptions for a taxing entity, as
reported on the county treasurer's final annual settlement required under Subsection
59-2-1365
(2).
]
[
(D) "Qualifying redemptions excess amount" means the amount by which a taxing
entity's qualifying redemptions for a calendar year exceed the qualifying redemptions base
amount for that calendar year.
]
[
(x) (A) If, for a calendar year, a taxing entity has qualifying redemptions, the
redemption amount for purposes of calculating the five-year redemption average required by
Subsection (3)(c)(viii)(A) is as provided in Subsections (3)(c)(x)(B) and (C).
]
[
(B) For the initial calendar year a taxing entity has qualifying redemptions, the taxing
entity's redemption amount for that calendar year is the qualifying redemptions base amount.
]
[
(C) For each of the four calendar years after the calendar year described in Subsection
(3)(c)(x)(B), one-fourth of the qualifying redemptions excess amount shall be added to the
redemption amount.
]
[
(d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission shall make rules determining the calculation of ad valorem property tax
revenues budgeted by a taxing entity.
]
[
(ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted
by a taxing entity shall be calculated in the same manner as budgeted property tax revenues are
calculated for purposes of Section 
59-2-913
.
]
[
(e)
] 
(5)
 The certified tax rates for the taxing entities described in this Subsection
[
(3)(e)
] 
(5)
 shall be calculated as follows:
[
(i)
] 
(a)
 except as provided in Subsection [
(3)(e)(ii)
] 
(5)(b)
, for 
a
 new taxing [
entities
]
entity
 the certified tax rate is zero;
[
(ii)
] 
(b)
 for [
each
] 
a
 municipality incorporated on or after July 1, 1996, the certified
tax rate is:
[
(A)
] 
(i)
 in a county of the first, second, or third class, the levy imposed for
municipal-type services under Sections 
17-34-1
 and 
17-36-9
; and
[
(B)
] 
(ii)
 in a county of the fourth, fifth, or sixth class, the levy imposed for general
county purposes and such other levies imposed solely for the municipal-type services identified
in Section 
17-34-1
 and Subsection 
17-36-3
(22); and
[
(iii)
] 
(c)
 for debt service voted on by the public, the certified tax rate shall be the
actual levy imposed by that section, except that the certified tax rates for the following levies
shall be calculated in accordance with Section 
59-2-913
 and this section:
[
(A)
] 
(i) a
 school [
levies
] 
levy
 provided for under [
Sections
] 
Section
53A-16-113
,
53A-17a-133
, [
and
] 
or
53A-17a-164
; [
and
] 
or
[
(B) levies
] 
(ii) a levy
 to pay for the costs of state legislative mandates or judicial or
administrative orders under Section 
59-2-1602
.
[
(f) (i)
] 
(6) (a)
 A judgment levy imposed under Section 
59-2-1328
 or 
59-2-1330
 shall
be [
established at that
] 
imposed at a
 rate [
which
] 
that
 is sufficient to generate only the revenue
required to satisfy one or more eligible judgments[
, as defined in Section 
59-2-102
].
[
(ii)
] 
(b)
 The ad valorem property tax revenue generated by [
the
] 
a
 judgment levy
[
shall
] 
described in Subsection (6)(a) may
 not be considered in establishing [
the
] 
a
 taxing
entity's aggregate certified tax rate.
[
(g)
] 
(7)
 The ad valorem property tax revenue generated by the capital local levy
described in Section 
53A-16-113
 within a taxing entity in a county of the first class:
[
(i)
] 
(a)
 may not be considered in establishing the school district's aggregate certified
tax rate; and
[
(ii)
] 
(b)
 shall be included by the commission in establishing a certified tax rate for that
capital [
outlay
] 
local
 levy determined in accordance with the calculation described in
Subsection 
59-2-913
(3).
[
(4)
] 
(8)
 (a) For the purpose of calculating the certified tax rate, the county auditor shall
use:
(i) the taxable value of real property [
assessed by a county assessor contained on the
assessment roll;
]
:
(A) a county assessor assesses in accordance with Part 3, County Assessment; and
(B) contained on the assessment roll;
(ii) the year end taxable value of personal property:
(A) a county assessor assesses in accordance with Part 3, County Assessment; and
(B) contained on the prior year's assessment roll; and
[
(ii)
] 
(iii)
 the taxable value of real and personal property [
assessed by
] the
commission[
; and
] 
assesses in accordance with Section 
59-2-201
.
[
(iii) the taxable year end value of personal property assessed by a county assessor
contained on the prior year's assessment roll.
]
(b) For purposes of Subsection [
(4)(a)(i)
] 
(8)(a)
, the taxable value of real property on
the assessment roll does not include 
eligible
 new growth [
as defined in Subsection (4)(c)
].
[
(c) "New growth" means:
]
[
(i) the difference between the increase in taxable value of the following property of
the taxing entity from the previous calendar year to the current year:
]
[
(A) real property assessed by a county assessor in accordance with Part 3, County
Assessment; and
]
[
(B) property assessed by the commission under Section 
59-2-201
; plus
]
[
(ii) the difference between the increase in taxable year end value of personal property
of the taxing entity from the year prior to the previous calendar year to the previous calendar
year; minus
]
[
(iii) the amount of an increase in taxable value described in Subsection (4)(e).
]
[
(d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of the
taxing entity does not include the taxable value of personal property that is:
]
[
(i) contained on the tax rolls of the taxing entity if that property is assessed by a
county assessor in accordance with Part 3, County Assessment; and
]
[
(ii) semiconductor manufacturing equipment.
]
[
(e) Subsection (4)(c)(iii) applies to the following increases in taxable value:
]
[
(i) the amount of increase to locally assessed real property taxable values resulting
from factoring, reappraisal, or any other adjustments; or
]
[
(ii) the amount of an increase in the taxable value of property assessed by the
commission under Section 
59-2-201
 resulting from a change in the method of apportioning the
taxable value prescribed by:
]
[
(A) the Legislature;
]
[
(B) a court;
]
[
(C) the commission in an administrative rule; or
]
[
(D) the commission in an administrative order.
]
[
(f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal
property on the prior year's assessment roll does not include:
]
[
(i) new growth as defined in Subsection (4)(c); or
]
[
(ii) the total taxable year end value of personal property contained on the prior year's
tax rolls of the taxing entity that is:
]
[
(A) assessed by a county assessor in accordance with Part 3, County Assessment; and
]
[
(B) semiconductor manufacturing equipment.
]
(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules for calculating redevelopment adjustments for a calendar year.
[
(5)
] 
(10)
 (a) On or before June 22, [
each
] 
a
 taxing entity shall annually adopt a
tentative budget.
(b) If the taxing entity intends to exceed the certified tax rate, [
it
] 
the taxing entity
 shall
notify the county auditor of:
(i) its intent to exceed the certified tax rate; and
(ii) the amount by which it proposes to exceed the certified tax rate.
(c) The county auditor shall notify property owners of any intent to levy a tax rate that
exceeds the certified tax rate in accordance with Sections 
59-2-919
 and 
59-2-919.1
.
Section 12. Section 
59-2-924.2
 is amended to read:
59-2-924.2.
Adjustments to the calculation of a taxing entity's certified tax rate.
(1) For purposes of this section, "certified tax rate" means a certified tax rate calculated
in accordance with Section 
59-2-924
.
(2) Beginning January 1, 1997, if a taxing entity receives increased revenues from
uniform fees on tangible personal property under Section 
59-2-404
, 
59-2-405
, 
59-2-405.1
,
59-2-405.2
, or 
59-2-405.3
 as a result of any county imposing a sales and use tax under Chapter
12, Part 11, County Option Sales and Use Tax, the taxing entity shall decrease its certified tax
rate to offset the increased revenues.
(3) (a) Beginning July 1, 1997, if a county has imposed a sales and use tax under
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
(i) decreased on a one-time basis by the amount of the estimated sales and use tax
revenue to be distributed to the county under Subsection 
59-12-1102
(3); and
(ii) increased by the amount necessary to offset the county's reduction in revenue from
uniform fees on tangible personal property under Section 
59-2-404
, 
59-2-405
, 
59-2-405.1
,
59-2-405.2
, or 
59-2-405.3
 as a result of the decrease in the certified tax rate under Subsection
(3)(a)(i).
(b) The commission shall determine estimates of sales and use tax distributions for
purposes of Subsection (3)(a).
(4) Beginning January 1, 1998, if a municipality has imposed an additional resort
communities sales and use tax under Section 
59-12-402
, the municipality's certified tax rate
shall be decreased on a one-time basis by the amount necessary to offset the first 12 months of
estimated revenue from the additional resort communities sales and use tax imposed under
Section 
59-12-402
.
(5) (a) This Subsection (5) applies to each county that:
(i) establishes a countywide special service district under Title 17D, Chapter 1, Special
Service District Act, to provide jail service, as provided in Subsection 
17D-1-201
(10); and
(ii) levies a property tax on behalf of the special service district under Section
17D-1-105
.
(b) (i) The certified tax rate of each county to which this Subsection (5) applies shall be
decreased by the amount necessary to reduce county revenues by the same amount of revenues
that will be generated by the property tax imposed on behalf of the special service district.
(ii) Each decrease under Subsection (5)(b)(i) shall occur contemporaneously with the
levy on behalf of the special service district under Section 
17D-1-105
.
(6) (a) As used in this Subsection (6):
(i) "Annexing county" means a county whose unincorporated area is included within a
public safety district by annexation.
(ii) "Annexing municipality" means a municipality whose area is included within a
public safety district by annexation.
(iii) "Equalized public safety protection tax rate" means the tax rate that results from:
(A) calculating, for each participating county and each participating municipality, the
property tax revenue necessary:
(I) in the case of a fire district, to cover all of the costs associated with providing fire
protection, paramedic, and emergency services:
(Aa) for a participating county, in the unincorporated area of the county; and
(Bb) for a participating municipality, in the municipality; or
(II) in the case of a police district, to cover all the costs:
(Aa) associated with providing law enforcement service:
(Ii) for a participating county, in the unincorporated area of the county; and
(IIii) for a participating municipality, in the municipality; and
(Bb) that the police district board designates as the costs to be funded by a property
tax; and
(B) adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
participating counties and all participating municipalities and then dividing that sum by the
aggregate taxable value of the property, as adjusted in accordance with Section 
59-2-913
:
(I) for participating counties, in the unincorporated area of all participating counties;
and
(II) for participating municipalities, in all the participating municipalities.
(iv) "Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
Area Act:
(A) created to provide fire protection, paramedic, and emergency services; and
(B) in the creation of which an election was not required under Subsection
17B-1-214
(3)(c).
(v) "Participating county" means a county whose unincorporated area is included
within a public safety district at the time of the creation of the public safety district.
(vi) "Participating municipality" means a municipality whose area is included within a
public safety district at the time of the creation of the public safety district.
(vii) "Police district" means a service area under Title 17B, Chapter 2a, Part 9, Service
Area Act, within a county of the first class:
(A) created to provide law enforcement service; and
(B) in the creation of which an election was not required under Subsection
17B-1-214
(3)(c).
(viii) "Public safety district" means a fire district or a police district.
(ix) "Public safety service" means:
(A) in the case of a public safety district that is a fire district, fire protection,
paramedic, and emergency services; and
(B) in the case of a public safety district that is a police district, law enforcement
service.
(b) In the first year following creation of a public safety district, the certified tax rate of
each participating county and each participating municipality shall be decreased by the amount
of the equalized public safety tax rate.
(c) In the first budget year following annexation to a public safety district, the certified
tax rate of each annexing county and each annexing municipality shall be decreased by an
amount equal to the amount of revenue budgeted by the annexing county or annexing
municipality:
(i) for public safety service; and
(ii) in:
(A) for a taxing entity operating under a January 1 through December 31 fiscal year,
the prior calendar year; or
(B) for a taxing entity operating under a July 1 through June 30 fiscal year, the prior
fiscal year.
(d) Each tax levied under this section by a public safety district shall be considered to
be levied by:
(i) each participating county and each annexing county for purposes of the county's tax
limitation under Section 
59-2-908
; and
(ii) each participating municipality and each annexing municipality for purposes of the
municipality's tax limitation under Section 
10-5-112
, for a town, or Section 
10-6-133
, for a
city.
(e) The calculation of a public safety district's certified tax rate for the year of
annexation shall be adjusted to include an amount of revenue equal to one half of the amount
of revenue budgeted by the annexing entity for public safety service in the annexing entity's
prior fiscal year if:
(i) the public safety district operates on a January 1 through December 31 fiscal year;
(ii) the public safety district approves an annexation of an entity operating on a July 1
through June 30 fiscal year; and
(iii) the annexation described in Subsection (6)(e)(ii) takes effect on July 1.
[
(7) For the calendar year beginning on January 1, 2007, the calculation of a taxing
entity's certified tax rate, calculated in accordance with Section 
59-2-924
, shall be adjusted by
the amount necessary to offset any change in the certified tax rate that may result from
excluding the following from the certified tax rate under Subsection 
59-2-924
(3) enacted by the
Legislature during the 2007 General Session:
]
[
(a) personal property tax revenue:
]
[
(i) received by a taxing entity;
]
[
(ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
]
[
(iii) for personal property that is semiconductor manufacturing equipment; or
]
[
(b) the taxable value of personal property:
]
[
(i) contained on the tax rolls of a taxing entity;
]
[
(ii) assessed by a county assessor in accordance with Part 3, County Assessment; and
]
[
(iii) that is semiconductor manufacturing equipment.
]
[
(8)
] 
(7)
 (a) The 
base
 taxable value [
for the base year
] under Subsection 
17C-1-102
(6)
shall be reduced for any year to the extent necessary to provide a community development and
renewal agency established under Title 17C, Limited Purpose Local Government Entities -
Community Development and Renewal Agencies Act, with approximately the same amount of
money the agency would have received without a reduction in the county's certified tax rate,
calculated in accordance with Section 
59-2-924
, if:
(i) in that year there is a decrease in the certified tax rate under Subsection (2) or (3)(a);
(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
previous year; and
(iii) the decrease results in a reduction of the amount to be paid to the agency under
Section 
17C-1-403
 or 
17C-1-404
.
(b) The base taxable value under Subsection 
17C-1-102
(6) shall be increased in any
year to the extent necessary to provide a community development and renewal agency with
approximately the same amount of money as the agency would have received without an
increase in the certified tax rate that year if:
(i) in that year the base taxable value under Subsection 
17C-1-102
(6) is reduced due to
a decrease in the certified tax rate under Subsection (2) or (3)(a); and
(ii) the certified tax rate of a city, school district, local district, or special service
district increases independent of the adjustment to the taxable value of the base year.
(c) Notwithstanding a decrease in the certified tax rate under Subsection (2) or (3)(a),
the amount of money allocated and, when collected, paid each year to a community
development and renewal agency established under Title 17C, Limited Purpose Local
Government Entities - Community Development and Renewal Agencies Act, for the payment
of bonds or other contract indebtedness, but not for administrative costs, may not be less than
that amount would have been without a decrease in the certified tax rate under Subsection (2)
or (3)(a).
[
(9)
] 
(8)
 (a) For the calendar year beginning on January 1, 2014, the calculation of a
county assessing and collecting levy shall be adjusted by the amount necessary to offset:
(i) any change in the certified tax rate that may result from amendments to Part 16,
Multicounty Assessing and Collecting Levy, in Laws of Utah 2014, Chapter 270, Section 3;
and
(ii) the difference in the amount of revenue a taxing entity receives from or contributes
to the Property Tax Valuation Agency Fund, created in Section 
59-2-1602
, that may result from
amendments to Part 16, Multicounty Assessing and Collecting Levy, in Laws of Utah 2014,
Chapter 270, Section 3.
(b) A taxing entity is not required to comply with the notice and public hearing
requirements in Section 
59-2-919
 for an adjustment to the county assessing and collecting levy
described in Subsection [
(9)
] 
(8)
(a).
Section 13. Section 
59-2-924.3
 is amended to read:
59-2-924.3.
Adjustment of the calculation of the certified tax rate for a school
district imposing a capital local levy in a county of the first class.
(1) As used in this section:
(a) "Capital local levy increment" means the amount of revenue equal to the difference
between:
(i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
within a school district during a fiscal year; and
(ii) the amount of revenue the school district received during the same fiscal year from
the distribution described in Section 
53A-16-114
.
(b) "Contributing school district" means a school district in a county of the first class
that in a fiscal year receives less revenue from the distribution described in Section
53A-16-114
 than it would have received during the same fiscal year from a levy imposed
within the school district of .0006 per dollar of taxable value.
(c) "Receiving school district" means a school district in a county of the first class that
in a fiscal year receives more revenue from the distribution described in Section 
53A-16-114
than it would have received during the same fiscal year from a levy imposed within the school
district of .0006 per dollar of taxable value.
(2) A receiving school district shall decrease its capital local levy certified tax rate
under Subsection 
59-2-924
[
(3)(g)(ii)
]
(7)(b)
 by the amount required to offset the receiving
school district's estimated capital local levy increment for the prior fiscal year.
(3) A contributing school district is exempt from the notice and public hearing
provisions of Section 
59-2-919
 for the school district's capital local levy certified tax rate
calculated pursuant to Subsection 
59-2-924
[
(3)(g)(ii)
]
(7)(b)
 if:
(a) the contributing school district budgets an increased amount of ad valorem property
tax revenue exclusive of 
eligible
 new growth as defined in [
Subsection
] 
Section
59-2-924
[
(4)
]
for the capital local levy described in Section 
53A-16-113
; and
(b) the increased amount of ad valorem property tax revenue described in Subsection
(3)(a) is less than or equal to the difference between:
(i) the amount of revenue generated by a levy of .0006 per dollar of taxable value
imposed within the contributing school district during the current taxable year; and
(ii) the amount of revenue generated by a levy of .0006 per dollar of taxable value
imposed within the contributing school district during the prior taxable year.
(4) Regardless of the amount a school district receives from the revenue collected from
the .0006 portion of the capital local levy required in Section 
53A-16-113
, the revenue
generated within the school district from the .0006 portion of the capital local levy required in
Section 
53A-16-113
 shall be considered to be budgeted ad valorem property tax revenues of
the school district that levies the .0006 portion of the capital local levy for purposes of
calculating the school district's certified tax rate in accordance with Subsection
59-2-924
[
(3)(g)(ii)
]
(7)(b)
.
Section 14. Section 
59-2-926
 is amended to read:
59-2-926.
Proposed tax increase by state -- Notice -- Contents -- Dates.
If the state authorizes a levy pursuant to Section 
53A-17a-135
 that exceeds the certified
revenue levy as defined in Section 
53A-17a-103
 or authorizes a levy pursuant to Section
59-2-1602
 that exceeds the certified revenue levy as defined in Section 
59-2-102
, the state shall
publish a notice no later than 10 days after the last day of the annual legislative general session
that meets the following requirements:
(1) (a) The Office of the Legislative Fiscal Analyst shall advertise that the state
authorized a levy that generates revenue in excess of the previous year's ad valorem tax
revenue, plus 
eligible
 new growth 
as defined in Section 
59-2-924
, but exclusive of revenue
from collections from redemptions, interest, and penalties:
(i) in a newspaper of general circulation in the state; and
(ii) as required in Section 
45-1-101
.
(b) Except an advertisement published on a website, the advertisement described in
Subsection (1)(a):
(i) shall be no less than 1/4 page in size and the type used shall be no smaller than 18
point, and surrounded by a 1/4-inch border:
(ii) may not be placed in that portion of the newspaper where legal notices and
classified advertisements appear; and
(iii) shall be run once.
(2) The form and content of the notice shall be substantially as follows:
"NOTICE OF TAX INCREASE
The state has budgeted an increase in its property tax revenue from $__________ to
$__________ or ____%. The increase in property tax revenues will come from the following
sources (include all of the following provisions):
(a) $__________ of the increase will come from (provide an explanation of the cause
of adjustment or increased revenues, such as reappraisals or factoring orders);
(b) $__________ of the increase will come from natural increases in the value of the
tax base due to (explain cause of new growth, such as new building activity, annexation, etc.);
(c) a home valued at $100,000 in the state of Utah which based on last year's (levy for
the basic state-supported school program, levy for the Property Tax Valuation Agency Fund, or
both) paid $____________ in property taxes would pay the following:
(i) $__________ if the state of Utah did not budget an increase in property tax revenue
exclusive of new growth; and
(ii) $__________ under the increased property tax revenues exclusive of 
eligible
 new
growth budgeted by the state of Utah."
Section 15. Section 
59-2-1330
 is amended to read:
59-2-1330.
Payment of property taxes -- Payments to taxpayer by state or taxing
entity -- Refund of penalties paid by taxpayer -- Refund of interest paid by taxpayer --
Payment of interest to taxpayer -- Judgment levy -- Objections to assessments by the
commission -- Time periods for making payments to taxpayer.
(1) Unless otherwise specifically provided by statute, property taxes shall be paid
directly to the county assessor or the county treasurer:
(a) on the date that the property taxes are due; and
(b) as provided in this chapter.
(2) A taxpayer shall receive payment as provided in this section if a reduction in the
amount of any tax levied against any property for which the taxpayer paid a tax or any portion
of a tax under this chapter for a calendar year is required by a final and unappealable judgment
or order described in Subsection (3) issued by:
(a) a county board of equalization;
(b) the commission; or
(c) a court of competent jurisdiction.
(3) (a) For purposes of Subsection (2), the state or any taxing entity that has received
property taxes or any portion of property taxes from a taxpayer described in Subsection (2)
shall pay the taxpayer if:
(i) the taxes the taxpayer paid in accordance with Subsection (2) are collected by an
authorized officer of the:
(A) county; or
(B) state; and
(ii) the taxpayer obtains a final and unappealable judgment or order:
(A) from:
(I) a county board of equalization;
(II) the commission; or
(III) a court of competent jurisdiction;
(B) against:
(I) the taxing entity or an authorized officer of the taxing entity; or
(II) the state or an authorized officer of the state; and
(C) ordering a reduction in the amount of any tax levied against any property for which
a taxpayer paid a tax or any portion of a tax under this chapter for the calendar year.
(b) The amount that the state or a taxing entity shall pay a taxpayer shall be determined
in accordance with Subsections (4) through (7).
(4) For purposes of Subsections (2) and (3), the amount the state shall pay to a taxpayer
is equal to the sum of:
(a) if the difference described in this Subsection (4)(a) is greater than $0, the difference
between:
(i) the tax the taxpayer paid to the state in accordance with Subsection (2); and
(ii) the amount of the taxpayer's tax liability to the state after the reduction in the
amount of tax levied against the property in accordance with the final and unappealable
judgment or order described in Subsection (3);
(b) if the difference described in this Subsection (4)(b) is greater than $0, the difference
between:
(i) any penalties the taxpayer paid to the state in accordance with Section 
59-2-1331
;
and
(ii) the amount of penalties the taxpayer is liable to pay to the state in accordance with
Section 
59-2-1331
 after the reduction in the amount of tax levied against the property in
accordance with the final and unappealable judgment or order described in Subsection (3);
(c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
Section 
59-2-1331
 on the amounts described in Subsections (4)(a) and (4)(b); and
(d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
(i) Subsection (4)(a);
(ii) Subsection (4)(b); and
(iii) Subsection (4)(c).
(5) For purposes of Subsections (2) and (3), the amount a taxing entity shall pay to a
taxpayer is equal to the sum of:
(a) if the difference described in this Subsection (5)(a) is greater than $0, the difference
between:
(i) the tax the taxpayer paid to the taxing entity in accordance with Subsection (2); and
(ii) the amount of the taxpayer's tax liability to the taxing entity after the reduction in
the amount of tax levied against the property in accordance with the final and unappealable
judgment or order described in Subsection (3);
(b) if the difference described in this Subsection (5)(b) is greater than $0, the difference
between:
(i) any penalties the taxpayer paid to the taxing entity in accordance with Section
59-2-1331
; and
(ii) the amount of penalties the taxpayer is liable to pay to the taxing entity in
accordance with Section 
59-2-1331
 after the reduction in the amount of tax levied against the
property in accordance with the final and unappealable judgment or order described in
Subsection (3);
(c) as provided in Subsection (6)(a), interest the taxpayer paid in accordance with
Section 
59-2-1331
 on the amounts described in Subsections (5)(a) and (5)(b); and
(d) as provided in Subsection (6)(b), interest on the sum of the amounts described in:
(i) Subsection (5)(a);
(ii) Subsection (5)(b); and
(iii) Subsection (5)(c).
(6) Except as provided in Subsection (7):
(a) interest shall be refunded to a taxpayer on the amount described in Subsection
(4)(c) or (5)(c) in an amount equal to the amount of interest the taxpayer paid in accordance
with Section 
59-2-1331
; and
(b) interest shall be paid to a taxpayer on the amount described in Subsection (4)(d) or
(5)(d):
(i) beginning on the later of:
(A) the day on which the taxpayer paid the tax in accordance with Subsection (2); or
(B) January 1 of the calendar year immediately following the calendar year for which
the tax was due;
(ii) ending on the day on which the state or a taxing entity pays to the taxpayer the
amount required by Subsection (4) or (5); and
(iii) at the interest rate earned by the state treasurer on public funds transferred to the
state treasurer in accordance with Section 
51-7-5
.
(7) Notwithstanding Subsection (6):
(a) the state may not pay or refund interest to a taxpayer under Subsection (6) on any
tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax levied
by the state for that calendar year as stated on the notice required by Section 
59-2-1317
; and
(b) a taxing entity may not pay or refund interest to a taxpayer under Subsection (6) on
any tax the taxpayer paid in accordance with Subsection (2) that exceeds the amount of tax
levied by the taxing entity for that calendar year as stated on the notice required by Section
59-2-1317
.
(8) (a) Each taxing entity may levy a tax to pay its share of the final and unappealable
judgment or order described in Subsection (3) if:
(i) the final and unappealable judgment or order is issued no later than 15 days prior to
the date the [
levy
] 
certified tax rate
 is set under [
Subsection
] 
Section
59-2-924
[
(3)(a)
];
(ii) the amount of the judgment levy is included on the notice under Section
59-2-919.1
; and
(iii) the final and unappealable judgment or order is an eligible judgment, as defined in
Section 
59-2-102
.
(b) The levy under Subsection (8)(a) is in addition to, and exempt from, the maximum
levy established for the taxing entity.
(9) (a) A taxpayer that objects to the assessment of property assessed by the
commission shall pay, on or before the date of delinquency established under Subsection
59-2-1331
(1) or Section 
59-2-1332
, the full amount of taxes stated on the notice required by
Section 
59-2-1317
 if:
(i) the taxpayer has applied to the commission for a hearing in accordance with Section
59-2-1007
 on the objection to the assessment; and
(ii) the commission has not issued a written decision on the objection to the assessment
in accordance with Section 
59-2-1007
.
(b) A taxpayer that pays the full amount of taxes due under Subsection (9)(a) is not
required to pay penalties or interest on an assessment described in Subsection (9)(a) unless:
(i) a final and unappealable judgment or order establishing that the property described
in Subsection (9)(a) has a value greater than the value stated on the notice required by Section
59-2-1317
 is issued by:
(A) the commission; or
(B) a court of competent jurisdiction; and
(ii) the taxpayer fails to pay the additional tax liability resulting from the final and
unappealable judgment or order described in Subsection (9)(b)(i) within a 45-day period after
the county bills the taxpayer for the additional tax liability.
(10) (a) Except as provided in Subsection (10)(b), a payment that is required by this
section shall be paid to a taxpayer:
(i) within 60 days after the day on which the final and unappealable judgment or order
is issued in accordance with Subsection (3); or
(ii) if a judgment levy is imposed in accordance with Subsection (8):
(A) if the payment to the taxpayer required by this section is $5,000 or more, no later
than December 31 of the year in which the judgment levy is imposed; and
(B) if the payment to the taxpayer required by this section is less than $5,000, within
60 days after the date the final and unappealable judgment or order is issued in accordance with
Subsection (3).
(b) Notwithstanding Subsection (10)(a), a taxpayer may enter into an agreement:
(i) that establishes a time period other than a time period described in Subsection
(10)(a) for making a payment to the taxpayer that is required by this section; and
(ii) with:
(A) an authorized officer of a taxing entity for a tax imposed by a taxing entity; or
(B) an authorized officer of the state for a tax imposed by the state.
Section 16. Section 
63I-1-259
 is amended to read:
63I-1-259.
Repeal dates, Title 59.
(1) Subsection 
59-2-924
[
(3)(g)
]
(7)
 is repealed on December 31, 2016.
(2) Section 
59-2-924.3
 is repealed on December 31, 2016.
(3) Section 
59-9-102.5
 is repealed December 31, 2020.
Section 17. 
Effective date.
This bill takes effect on January 1, 2016.
Legislative Review Note
 as of 2-11-15 3:53 PM
Office of Legislative Research and General Counsel