Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 428 (2025GS)

Sponsor

Rep. Koford, Jill

Final action

Governor Signed 3/26/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• requires the minimum basic tax rate imposed by school districts to be certified by consensus between the State Tax Commission, the Governor's Office of Planning and Budget, and the Office of the Legislative Fiscal Analyst;
• allows for the use of money in the Public Education Economic Stabilization Restricted Account to fund certain shortfalls in the basic school program; and
• makes technical changes.

Every vote on this bill

Bill text

7
53F-2-301
53F-9-204
0
Property Tax Changes
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jill Koford
Senate Sponsor: Stephanie Pitcher
LONG TITLE
General Description:
This bill modifies provisions related to property tax.
Highlighted Provisions:
This bill:
requires the minimum basic tax rate imposed by school districts to be certified by 
consensus between the State Tax Commission, the Governor's Office of Planning and 
Budget, and the Office of the Legislative Fiscal Analyst;
allows for the use of money in the Public Education Economic Stabilization Restricted 
Account to fund certain shortfalls in the basic school program; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53F-2-301
, as last amended by Laws of Utah 2024, Chapters 124, 460
53F-9-204
, as last amended by Laws of Utah 2024, Chapter 322
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
53F-2-301
 is amended to read:
53F-2-301
. Minimum basic tax rate for a fiscal year that begins after July 1, 
2022.
(1)
As used in this section:
(a)
"Basic levy increment rate" means a tax rate that will generate an amount of revenue 
equal to $75,000,000.
(b)
"Combined basic rate" means a rate that is the sum of:
(i)
the minimum basic tax rate; and
(ii)
the WPU value rate.
(c)
"Commission" means the State Tax Commission.
(d)
"Minimum basic local amount" means an amount that is:
(i)
equal to the sum of:
(A)
the school districts' contribution to the basic school program the previous 
fiscal year;
(B)
the amount generated by the basic levy increment rate; and
(C)
the eligible new growth, as defined in Section 
59-2-924
 and rules of the State 
Tax Commission multiplied by the minimum basic rate; and
(ii)
set annually by the Legislature in Subsection (2)(a).
(e)
"Minimum basic tax rate" means a tax rate certified by 
consensus between 
the 
commission
, the Governor's Office of Planning and Budget, and the Office of the 
Legislative Fiscal Analyst
 that will generate an amount of revenue equal to the 
minimum basic local amount described in Subsection (2)(a).
(f)
"Weighted pupil unit value" or "WPU value" means the amount established each year 
in the enacted public education budget that is multiplied by the number of weighted 
pupil units to yield the funding level for the basic school program.
(g)
"WPU value amount" means an amount:
(i)
that is equal to the product of:
(A)
the WPU value increase limit; and
(B)
the percentage share of local revenue to the cost of the basic school program 
in the immediately preceding fiscal year; and
(ii)
set annually by the Legislature in Subsection (3)(a).
(h)
"WPU value increase limit" means the lesser of:
(i)
the total cost to the basic school program to increase the WPU value over the 
WPU value in the prior fiscal year; or
(ii)
the total cost to the basic school program to increase the WPU value by 4% over 
the WPU value in the prior fiscal year.
(i)
"WPU value rate" means a tax rate certified by the commission that will generate an 
amount of revenue equal to the WPU value amount described in Subsection (3)(a).
(2)
(a)
The minimum basic local amount for the fiscal year that begins on July 1, 2024, is 
$759,529,000 in revenue statewide.
(b)
The preliminary estimate of the minimum basic tax rate for a fiscal year that begins 
on July 1, 2024, is .001429.
(3)
(a)
The WPU value amount for the fiscal year that begins on July 1, 2024, is 
$29,240,600 in revenue statewide.
(b)
The preliminary estimate of the WPU value rate for the fiscal year that begins on 
July 1, 2024, is .000055.
(4)
(a)
On or before June 22, the commission
, the Governor's Office of Planning and 
Budget, and the Office of the Legislative Fiscal Analyst
 shall 
by consensus 
certify for 
the year:
(i)
the minimum basic tax rate; and
(ii)
the WPU value rate.
(b)
The estimate of the minimum basic tax rate provided in Subsection (2)(b) and the 
estimate of the WPU value rate provided in Subsection (3)(b) are based on a forecast 
for property values for the next calendar year.
(c)
The certified minimum basic tax rate described in Subsection (4)(a)(i) and the 
certified WPU value rate described in Subsection (4)(a)(ii) are based on property 
values as of January 1 of the current calendar year, except personal property, which is 
based on values from the previous calendar year.
(5)
(a)
To qualify for receipt of the state contribution toward the basic school program 
and as a school district's contribution toward the cost of the basic school program for 
the school district, each local school board shall impose the combined basic rate.
(b)
(i)
The state is not subject to the notice requirements of Section 
59-2-926
 before 
imposing the tax rates described in this Subsection (5).
(ii)
The state is subject to the notice requirements of Section 
59-2-926
 if the state 
authorizes a tax rate that exceeds the tax rates described in this Subsection (5).
(6)
(a)
The state shall contribute to each school district toward the cost of the basic 
school program in the school district an amount of money that is the difference 
between the cost of the school district's basic school program and the sum of revenue 
generated by the school district by the following:
(i)
the combined basic rate; and
(ii)
the basic levy increment rate.
(b)
(i)
If the difference described in Subsection (6)(a) equals or exceeds the cost of the 
basic school program in a school district, no state contribution shall be made to 
the basic school program for the school district.
(ii)
The proceeds of the difference described in Subsection (6)(a) that exceed the cost 
of the basic school program shall be paid into the Uniform School Fund as 
provided by law and by the close of the fiscal year in which the proceeds were 
calculated.
(7)
Upon appropriation by the Legislature, the Division of Finance shall deposit an amount 
equal to the proceeds generated statewide:
(a)
by the basic levy increment rate into the Minimum Basic Growth Account created in 
Section 
53F-9-302
; and
(b)
by the WPU value rate into the Teacher and Student Success Account created in 
Section 
53F-9-306
.
Section 2, Section 
53F-9-204
 is amended to read:
53F-9-204
. Public Education Economic Stabilization Restricted Account.
(1)
There is created within the Uniform School Fund a restricted account known as the 
"Public Education Economic Stabilization Restricted Account."
(2)
(a)
Except as provided in Subsection (2)(b), the account shall be funded from the 
following revenue sources:
(i)
15% of the difference between, as determined by the Office of the Legislative 
Fiscal Analyst:
(A)
the estimated amount of ongoing Income Tax Fund and Uniform School Fund 
revenue available for the Legislature to appropriate for the next fiscal year; and
(B)
the amount of ongoing appropriations from the Income Tax Fund and Uniform 
School Fund in the current fiscal year; and
(ii)
other appropriations as the Legislature may designate.
(b)
If the appropriation described in Subsection (2)(a) would cause the ongoing 
appropriations to the account to exceed 11% of Uniform School Fund appropriations 
described in Section 
53F-9-201.1
 for the same fiscal year, the Legislature shall 
appropriate only those funds necessary to ensure that the ongoing appropriations to 
the account equal 11% of Uniform School Fund appropriations for that fiscal year.
(3)
Subject to the availability of ongoing appropriations to the account, in accordance with 
Utah Constitution, Article X, Section 5, Subsection (4), the ongoing appropriation to the 
account shall be used to fund:
(a)
except for a year described in Subsection (3)(b)
 or (c)
, one-time appropriations to the 
public education system; 
and
(b)
the Minimum School Program for a year in which Income Tax Fund revenue and 
Uniform School Fund revenue are insufficient to fund:
(i)
ongoing appropriations to the public education system; and
(ii)
enrollment growth and inflation estimates, as defined in Section 
53F-9-201.1
.
; 
and
(c)
the minimum basic local amount as defined in Section 
53F-2-301
 for a year in which 
the minimum basic tax rate, as defined in Section 
53F-2-301
, is insufficient to 
generate the amount described in Subsection 
53F-2-301(2)(a)
.
(4)
(a)
The account shall earn interest.
(b)
All interest earned on account money shall be deposited in the account.
(5)
On or before December 31, 2023, and every three years thereafter, the Office of the 
Legislative Fiscal Analyst shall:
(a)
review the percentages described in Subsections (2)(a)(i) and (2)(b); and
(b)
recommend to the Executive Appropriations Subcommittee any changes based on 
the review described in Subsection (5)(a).
(6)
In preparing budget bills for a given fiscal year, the Executive Appropriations 
Committee shall make the one-time appropriations described in Subsection (3)(a) by 
appropriating at least the lesser of 10% of the total amount of the one-time 
appropriations; or 
(a)
the cost of providing 32 paid professional hours for teachers in accordance with 
Section 
53F-7-203
; and
(b)
the amount to make the distribution required under Section 
53F-2-527
.
Section 3. 
Effective Date.
This bill takes effect on May 7, 2025.
3-14-25 2:25 PM