Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 124 First Substitute (2018GS)

Sponsor

Sen. Fillmore, L.

Final action

Governor Signed 3/15/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends the deadline by which a taxing entity is required to adopt certain budgets; and
• makes technical changes.

Every vote on this bill

Bill text

BUDGET DEADLINE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor: 
Susan Pulsipher
LONG TITLE
General Description:
This bill amends certain deadlines related to local government budgets.
Highlighted Provisions:
This bill:
▸ amends the deadline by which a taxing entity is required to adopt certain budgets;
and
▸ makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
10-5-109
, as last amended by Laws of Utah 1989, Chapter 118
10-6-118
, as last amended by Laws of Utah 2001, Chapter 178
17C-1-601.5
, as renumbered and amended by Laws of Utah 2016, Chapter 350
53G-7-303
, as renumbered and amended by Laws of Utah 2018, Chapter 3
59-2-924
, as last amended by Laws of Utah 2017, Chapter 390
63H-1-701
, as last amended by Laws of Utah 2015, Chapters 258 and 377
63H-2-502
, as enacted by Laws of Utah 2009, Chapter 378
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
10-5-109
 is amended to read:
10-5-109.
Adoption of budgets -- Filing.
[
Prior to June 22
]
(1) Before June 30
 of each year, or August 17 in the case of a property tax increase
under Sections 
59-2-919
 through 
59-2-923
, the council shall by resolution or ordinance adopt a
budget for the ensuing fiscal year for each fund for which a budget is required under this
chapter. [
A
]
(2) The council shall file a
 copy of the final budget for each fund [
shall be filed
] with
the state auditor within 30 days after adoption.
Section 2. Section 
10-6-118
 is amended to read:
10-6-118.
Adoption of final budget -- Certification and filing.
(1)
 Before [
the last June 22
] 
June 30
 of each fiscal period, or, in the case of a property
tax increase under Sections 
59-2-919
 through 
59-2-923
, before August 17 of the year for which
a property tax increase is proposed, the governing body shall by resolution or ordinance adopt a
budget for the ensuing fiscal period for each fund for which a budget is required under this
chapter. [
A copy of the final budget for each fund shall be certified by the budget officer and
filed with the state auditor within 30 days after adoption.
]
(2) The budget officer of the governing body shall certify a copy of the final budget and
file the copy with the state auditor within 30 days after adoption.
Section 3. Section 
17C-1-601.5
 is amended to read:
17C-1-601.5.
Annual agency budget -- Fiscal year -- Public hearing required --
Auditor forms -- Requirement to file form.
(1) Each agency shall prepare an annual budget of the agency's revenues and
expenditures for each fiscal year.
(2) The board shall adopt each agency budget:
(a) for an agency created by a municipality, before June [
] 
; or
(b) for an agency created by a county, before December 15.
(3) The agency's fiscal year shall be the same as the fiscal year of the community that
created the agency.
(4) (a) Before adopting an annual budget, each board shall hold a public hearing on the
annual budget.
(b) Each agency shall provide notice of the public hearing on the annual budget by:
(i) (A) publishing at least one notice in a newspaper of general circulation within the
agency boundaries, one week before the public hearing; or
(B) if there is no newspaper of general circulation within the agency boundaries,
posting a notice of the public hearing in at least three public places within the agency
boundaries; and
(ii) publishing notice on the Utah Public Notice Website created in Section 
63F-1-701
,
at least one week before the public hearing.
(c) Each agency shall make the annual budget available for public inspection at least
three days before the date of the public hearing.
(5) The state auditor shall prescribe the budget forms and the categories to be contained
in each annual budget, including:
(a) revenues and expenditures for the budget year;
(b) legal fees; and
(c) administrative costs, including rent, supplies, and other materials, and salaries of
agency personnel.
(6) (a) Within 90 days after adopting an annual budget, each board shall file a copy of
the annual budget with the auditor of the county in which the agency is located, the State Tax
Commission, the state auditor, the State Board of Education, and each taxing entity from which
the agency receives project area funds.
(b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
state as a taxing entity is met if the agency files a copy with the State Tax Commission and the
state auditor.
Section 4. Section 
53G-7-303
 is amended to read:
53G-7-303.
Local governing board budget procedures.
(1) As used in this section:
(a) "Budget officer" means:
(i) for a school district, the school district's superintendent; or
(ii) for a charter school, an individual selected by the charter school governing board.
(b) "Governing board" means:
(i) for a school district, the local school board; or
(ii) for a charter school, the charter school governing board.
(2) (a) For a school district, before June [
] 
 of each year, a local school board shall
adopt a budget and make appropriations for the next fiscal year.
(b) For a school district, if the tax rate in the school district's proposed budget exceeds
the certified tax rate defined in Section 
59-2-924
, the local school board shall comply with
Section 
59-2-919
 in adopting the budget, except as provided by Section 
53F-8-301
.
(3) (a) For a school district, before the adoption or amendment of a budget, a local
school board shall hold a public hearing, as defined in Section 
10-9a-103
, on the proposed
budget or budget amendment.
(b) In addition to complying with Title 52, Chapter 4, Open and Public Meetings Act,
in regards to the public hearing described in Subsection (3)(a), at least 10 days prior to the
public hearing, a local school board shall:
(i) publish a notice of the public hearing in a newspaper or combination of newspapers
of general circulation in the school district, except as provided in Section 
45-1-101
;
(ii) publish a notice of the public hearing electronically in accordance with Section
45-1-101
;
(iii) file a copy of the proposed budget with the local school board's business
administrator for public inspection; and
(iv) post the proposed budget on the school district's Internet website.
(c) A notice of a public hearing on a school district's proposed budget shall include
information on how the public may access the proposed budget as provided in Subsections
(3)(b)(iii) and (iv).
(4) For a charter school, before June [
] 
 of each year, a charter school governing
board shall adopt a budget for the next fiscal year.
(5) Within 30 days of adopting a budget, a governing board shall file a copy of the
adopted budget with the state auditor and the State Board of Education.
Section 5. 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 -- Calculation of certified tax
rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
commission.
(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) penalties;
(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 taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current year; and
(C) 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.
(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) "Centrally assessed benchmark value" means an amount equal to the highest year
end taxable value of real and personal property the commission assesses in accordance with
Part 2, Assessment of Property, for a previous calendar year that begins on or after January 1,
2015, adjusted for taxable value attributable to:
(i) an annexation to a taxing entity; or
(ii) an incorrect allocation of taxable value of real or personal property the commission
assesses in accordance with Part 2, Assessment of Property. 
(d) (i) "Centrally assessed new growth" means the greater of:
(A) zero; or
(B) the amount calculated by subtracting the centrally assessed benchmark value
adjusted for prior year end incremental value from the taxable value of real and personal
property the commission assesses in accordance with Part 2, Assessment of Property, for the
current year, adjusted for current year incremental value.
(ii) "Centrally assessed new growth" 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.
(e) "Certified tax rate" means a tax rate that will provide the same ad valorem property
tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
(f) "Eligible new growth" means the greater of:
(i) zero; or
(ii) the sum of:
(A) locally assessed new growth;
(B) centrally assessed new growth; and
(C) project area new growth.
(g) "Incremental value" means the same as that term is defined in Section 
17C-1-102
.
(h) (i) "Locally assessed new growth" means the greater of:
(A) zero; or
(B) the amount calculated by subtracting the year end taxable value of real property the
county assessor assesses in accordance with Part 3, County Assessment, for the previous year,
adjusted for prior year end incremental value from the taxable value of real property the county
assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted
for current year incremental value.
(ii) "Locally assessed new growth" does not include a change in:
(A) value as a result of factoring in accordance with Section 
59-2-704
, reappraisal, or
another adjustment;
(B) assessed value based on whether a property is allowed a residential exemption for a
primary residence under Section 
59-2-103
;
(C) assessed value based on whether a property is assessed under Part 5, Farmland
Assessment Act; or
(D) assessed value based on whether a property is assessed under Part 17, Urban
Farming Assessment Act.
(i) "Project area" means the same as that term is defined in Section 
17C-1-102
.
(j) "Project area new growth" means an amount equal to the incremental value that is
no longer provided to an agency as tax increment.
(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 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 a county assessor
assesses in accordance with Part 3, County Assessment, from the prior year end values.
(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 (2)(a) and (b);
(b) an estimate of the revenue from personal property;
(c) the certified tax rate; and
(d) all forms necessary to submit a tax levy request.
(4) (a) Except as otherwise provided in this section, the certified tax rate shall be
calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the
prior year by the amount calculated under Subsection (4)(b).
(b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
calculate an amount as follows:
(i) calculate for the taxing entity the difference between:
(A) the aggregate taxable value of all property taxed; and
(B) any adjustments for current year incremental value;
(ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
determined by increasing or decreasing the amount calculated under Subsection (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;
(iii) after making the calculation required by Subsection (4)(b)(ii), calculate the product
of:
(A) the amount calculated under Subsection (4)(b)(ii); and
(B) the percentage of property taxes collected for the five calendar years immediately
preceding the current calendar year; and
(iv) after making the calculation required by Subsection (4)(b)(iii), calculate an amount
determined by subtracting eligible new growth from the amount calculated under Subsection
(4)(b)(iii).
(5) A certified tax rate for a taxing entity described in this Subsection (5) shall be
calculated as follows:
(a) except as provided in Subsection (5)(b), for a new taxing entity, the certified tax
rate is zero;
(b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(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
(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
(c) for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall be
calculated in accordance with Section 
59-2-913
 and this section:
(i) a school levy provided for under Section 
53A-16-113
, 
53A-17a-133
, or
53A-17a-164
; and
(ii) a levy to pay for the costs of state legislative mandates or judicial or administrative
orders under Section 
59-2-1602
.
(6) (a) A judgment levy imposed under Section 
59-2-1328
 or 
59-2-1330
 may be
imposed at a rate that is sufficient to generate only the revenue required to satisfy one or more
eligible judgments.
(b) The ad valorem property tax revenue generated by a judgment levy described in
Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate certified tax
rate.
(7) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
(i) the taxable value of real property:
(A) the 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
(iii) the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property.
(b) For purposes of Subsection (7)(a), taxable value does not include eligible new
growth.
(8) (a) On or before June [
] 
, a taxing entity shall annually adopt a tentative
budget.
(b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall
notify the county auditor of:
(i) the taxing entity's intent to exceed the certified tax rate; and
(ii) the amount by which the taxing entity 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
.
(9) (a) Subject to Subsection (9)(d), the commission shall provide notice, through
electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim
Committee if:
(i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
taxable value of the real and personal property the commission assesses in accordance with
Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental
value; and
(ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year end
taxable value of the real and personal property of a taxpayer the commission assesses in
accordance with Part 2, Assessment of Property, for the previous year.
(b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
subtracting the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the current year, adjusted for current year
incremental value, from the year end taxable value of the real and personal property the
commission assesses in accordance with Part 2, Assessment of Property, for the previous year,
adjusted for prior year end incremental value.
(c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
subtracting the total taxable value of real and personal property of a taxpayer the commission
assesses in accordance with Part 2, Assessment of Property, for the current year, from the total
year end taxable value of the real and personal property of a taxpayer the commission assesses
in accordance with Part 2, Assessment of Property, for the previous year.
(d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet
the requirement under Subsection (9)(a)(ii).
Section 6. Section 
63H-1-701
 is amended to read:
63H-1-701.
Annual authority budget -- Fiscal year -- Public hearing required --
Auditor forms -- Requirement to file form.
(1) The authority shall prepare and its board adopt an annual budget of revenues and
expenditures for the authority for each fiscal year.
(2) Each annual authority budget shall be adopted before June [
] 
.
(3) The authority's fiscal year shall be the period from July 1 to the following June 30.
(4) (a) Before adopting an annual budget, the authority board shall hold a public
hearing on the annual budget.
(b) The authority shall provide notice of the public hearing on the annual budget by
publishing notice:
(i) at least once in a newspaper of general circulation within the state, one week before
the public hearing; and
(ii) on the Utah Public Notice Website created in Section 
63F-1-701
, for at least one
week immediately before the public hearing.
(c) The authority shall make the annual budget available for public inspection at least
three days before the date of the public hearing.
(5) The state auditor shall prescribe the budget forms and the categories to be contained
in each authority budget, including:
(a) revenues and expenditures for the budget year;
(b) legal fees; and
(c) administrative costs, including rent, supplies, and other materials, and salaries of
authority personnel.
(6) (a) Within 30 days after adopting an annual budget, the authority board shall file a
copy of the annual budget with the auditor of each county in which a project area of the
authority is located, the State Tax Commission, the state auditor, the State Board of Education,
and each taxing entity that levies a tax on property from which the authority collects property
tax allocation.
(b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
state as a taxing entity is met if the authority files a copy with the State Tax Commission and
the state auditor.
Section 7. Section 
63H-2-502
 is amended to read:
63H-2-502.
Annual authority budget -- Auditor forms -- Requirement to file
form.
(1) (a) The authority shall prepare an annual budget of revenues and expenditures for
the authority for each fiscal year.
(b) Before June [
] 
 of each year and subject to the other provisions of this section,
the board shall adopt an annual budget of revenues and expenditures of the authority for the
immediately following fiscal year.
(2) (a) Before adopting an annual budget, the board shall hold a public hearing on the
annual budget.
(b) Before holding the public hearing required by this Subsection (2), the board shall
post notice of the public hearing on the Utah Public Notice Website created under Section
63F-1-701
 no less than 14 days before the day on which the public hearing is to be held.
(3) The state auditor shall prescribe the budget forms and the categories to be contained
in each annual budget of the authority, including:
(a) revenues and expenditures for the budget year;
(b) the outstanding bonds and related expenses;
(c) legal fees; and
(d) administrative costs, including:
(i) rent;
(ii) supplies;
(iii) other materials; and
(iv) salaries of authority personnel.
(4) Within 30 days after adopting an annual budget, the board shall file a copy of the
annual budget with:
(a) the State Tax Commission; and
(b) the state auditor.
(5) (a) Subject to Subsection (5)(b), the board may by resolution amend an annual
budget of the authority.
(b) The board may make an amendment of an annual budget that would increase total
expenditures of the authority only after:
(i) holding a public hearing; and
(ii) before holding the public hearing required by this Subsection (5)(b), posting notice
of the public hearing on the Utah Public Notice Website created under Section 
63F-1-701
 no
less than 14 days before the day on which the public hearing is to be held.
(6) The authority may not make expenditures in excess of the total expenditures
established in the annual budget as it is adopted or amended.
Section 8. 
Effective date.
This bill takes effect on January 1, 2019.