Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 446 (2019GS)

Sponsor

Rep. Spendlove, R.

Final action

Governor Signed 3/26/2019

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• amends the date by which certain taxing entities are required to make a final budgeting decision related to additional ad valorem tax revenue after a truth in taxation hearing;
• amends the date by which certain taxing entities are required to conduct certain budgeting activities;
• amends provisions related to the submission of a resolution to the State Tax Commission;
• provides a deadline for a certain public meeting that is part of the truth in taxation process; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

TRUTH IN TAXATION REVISIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Robert M. Spendlove
Senate Sponsor: 
Kirk A. Cullimore
LONG TITLE
General Description:
This bill amends provisions related to truth in taxation and approval of a budget by a
taxing entity.
Highlighted Provisions:
This bill:
▸ amends the date by which certain taxing entities are required to make a final
budgeting decision related to additional ad valorem tax revenue after a truth in
taxation hearing;
▸ amends the date by which certain taxing entities are required to conduct certain
budgeting activities;
▸ amends provisions related to the submission of a resolution to the State Tax
Commission;
▸ provides a deadline for a certain public meeting that is part of the truth in taxation
process; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
10-5-109
, as last amended by Laws of Utah 2018, Chapter 101
10-5-112
, as last amended by Laws of Utah 1989, Chapter 118
10-6-118
, as last amended by Laws of Utah 2018, Chapter 101
10-6-133
, as last amended by Laws of Utah 2014, Chapter 176
10-6-135
, as last amended by Laws of Utah 2017, Chapter 71
59-2-919
, as last amended by Laws of Utah 2018, Chapters 68 and 415
59-2-920
, as last amended by Laws of Utah 1988, Chapter 3
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.
(1) Before June 30 of each year, or [
August 17
] 
September 1
 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.
(2) The council shall file a copy of the final budget for each fund with the state auditor
within 30 days after adoption.
Section 2. Section 
10-5-112
 is amended to read:
10-5-112.
Property tax levy set by ordinance -- Maximum -- Certification.
(1) Not later than June 22 of each year, or [
August 17
] 
September 1
 in the case of a
property tax increase under Sections 
59-2-919
 through 
59-2-923
, the council, at a regular
meeting or special meeting called for that purpose, shall by ordinance or resolution set the real
and personal property tax levy for town purposes, but the levy may be set at an appropriate later
date with the approval of the State Tax Commission.
(2) The combined levies for each town, for all purposes in any year, excluding the
retirement of general obligation bonds and the payment of any interest, and taxes expressly
authorized by law to be levied in addition, may not exceed .007 per dollar of taxable value of
taxable property.
(3) The town clerk shall certify the ordinance or resolution setting the levy to the
county auditor, or auditors, if the town is located in more than one county, not later than June
22 of each year.
Section 3. Section 
10-6-118
 is amended to read:
10-6-118.
Adoption of final budget -- Certification and filing.
(1) Before 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
] 
September 1
 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.
(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 4. Section 
10-6-133
 is amended to read:
10-6-133.
Property tax levy -- Time for setting -- Computation of total levy --
Apportionment of proceeds -- Maximum levy.
(1) (a) Before June 22 of each year, or [
August 17
] 
September 1
 in the case of a
property tax rate increase under Sections 
59-2-919
 through 
59-2-923
, the governing body of
each city, including charter cities, at a regular meeting or special meeting called for that
purpose, shall by ordinance or resolution set the real and personal property tax levy for various
municipal purposes.
(b) Notwithstanding Subsection (1)(a), the governing body may set the levy at an
appropriate later date with the approval of the State Tax Commission.
(2) In its computation of the total levy, the governing body shall determine the
requirements of each fund for which property taxes are to be levied and shall specify in its
ordinance or resolution adopting the levy the amount apportioned to each fund.
(3) The proceeds of the levy apportioned for city general fund purposes shall be
credited as revenue in the city general fund.
(4) The proceeds of the levy apportioned for special fund purposes shall be credited to
the appropriate accounts in the applicable special funds.
(5) The combined levies for each city, including charter cities, for all purposes in any
year, excluding the retirement of general obligation bonds and the payment of any interest, and
taxes expressly authorized by law to be levied in addition, may not exceed .007 per dollar of
taxable value of taxable property.
Section 5. Section 
10-6-135
 is amended to read:
10-6-135.
Operating and capital budgets.
(1) (a) As used in this section, "operating and capital budget" means a plan of financial
operation for an enterprise fund or other required special fund that includes estimates of
operating resources, expenses, and other outlays for a fiscal period.
(b) Except as otherwise expressly provided, any reference to "budget" or "budgets" and
the procedures and controls relating to a budget or budgets in other sections of this chapter do
not apply or refer to the operating and capital budgets described in this section.
(2) At or before the time the governing body adopts budgets for the funds described in
Section 
10-6-109
, the governing body shall adopt:
(a) an operating and capital budget for each enterprise fund for the ensuing fiscal
period; and
(b) the type of budget for other special funds as required by the Uniform Accounting
Manual for Utah Cities.
(3) (a) The governing body shall adopt and administer an operating and capital budget
in accordance with this Subsection (3).
(b) At or before the first regularly scheduled meeting of the governing body in the last
May of the current fiscal period, the budget officer shall:
(i) prepare for the ensuing fiscal period and file with the governing body a tentative
operating and capital budget for:
(A) each enterprise fund; and
(B) other required special funds;
(ii) include with the tentative operating and capital budget described in Subsection
(3)(c) specific work programs as submitted by each department head; and
(iii) include any other supporting data required by the governing body.
(c) Each city of the first or second class shall, and each city of the third, fourth, or fifth
class may, submit a supplementary estimate of all capital projects which a department head
believes should be undertaken within the three next succeeding fiscal periods.
(d) (i) Subject to Subsection (3)(d)(ii), the budget officer shall prepare all estimates
after review and consultation with each department head described in Subsection (3)(c).
(ii) After complying with Subsection (3)(d)(i), the budget officer may revise any
departmental estimate before it is filed with the governing body.
(4) (a) Each tentative budget, amendment to a budget, or budget shall be reviewed and
considered by the governing body at any regular meeting or special meeting called for that
purpose.
(b) The governing body may make changes in the tentative budgets.
(5) Budgets for enterprise or other required special funds shall comply with the public
hearing requirements established in Sections 
10-6-113
 and 
10-6-114
.
(6) (a) Before the last 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
] 
September 1
 of the
year for which a property tax increase is proposed, the governing body shall adopt an operating
and capital budget for each applicable fund for the ensuing fiscal period.
(b) A copy of the budget as finally adopted for each fund shall be:
(i) certified by the budget officer;
(ii) filed by the budget officer in the office of the city auditor or city recorder;
(iii) available to the public during regular business hours; and
(iv) filed with the state auditor within 30 days after the day on which the budget is
adopted.
(7) (a) Upon final adoption, the operating and capital budget is in effect for the budget
period, subject to later amendment.
(b) During the budget period the governing body may, in any regular meeting or special
meeting called for that purpose, review any one or more of the operating and capital budgets
for the purpose of determining if the total of any of them should be increased.
(c) If the governing body decides that the budget total of one or more of the funds
should be increased under Subsection (7)(b), the governing body shall follow the procedures
set forth in Section 
10-6-136
.
(8) Expenditures from operating and capital budgets shall conform to the requirements
relating to budgets specified in Sections 
10-6-121
 through 
10-6-126
.
Section 6. 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) "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.
(b) "Ad valorem tax revenue" means ad valorem property tax revenue not including
revenue from:
(i) eligible new growth as defined in Section 
59-2-924
; or
(ii) personal property that is:
(A) assessed by a county assessor in accordance with Part 3, County Assessment; and
(B) semiconductor manufacturing equipment.
(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
17-52a-203
.
(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.
(g) "Last year's property tax budgeted revenue" does not include revenue received by a
taxing entity from a debt service levy voted on by the public.
(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 
53F-8-301
 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 eligible 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
:
(i)
 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[
.
]
; and
(ii) if the taxing entity is a fiscal year taxing entity, hold the public meeting described
in Subsection (9)(a)(i) before September 1.
(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.
Section 7. Section 
59-2-920
 is amended to read:
59-2-920.
Resolution and levy to be forwarded to commission.
[
The resolution approved in the manner provided under Section 
59-2-919
 shall be
included
]
(1) If a taxing entity, after fulfilling the requirements of Section 
59-2-919
, adopts a
resolution to levy a tax rate that exceeds the taxing entity's certified tax rate, the taxing entity
shall forward the resolution to the tax commission along
 with the statement of the amount and
purpose of the levy required under Sections 
59-2-912
 and 
59-2-913
 [
and forwarded to the
commission under Section 
59-2-913
].
(2)
 No tax rate in excess of the certified tax rate may be certified by the commission or
implemented by the taxing entity until the resolution [
required under Section 
59-2-919
]
described in Subsection (1)
 is adopted by the governing authority of the taxing entity and
submitted to the commission. [
If the resolution is not forwarded to the county auditor by
August 17, the auditor shall forward the certified tax rate to the commission.
]