2006 Utah Code - 59-2-924 (Superseded 01/01/07) — Report of valuation of property to county auditor and commission -- Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation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.

     59-2-924 (Superseded 01/01/07).   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) (a) Before June 1 of each year, the county assessor of each county shall deliver to the county auditor and the commission the following statements:
     (i) a statement containing the aggregate valuation of all taxable property in each taxing entity; and
     (ii) a statement containing the taxable value of any additional personal property estimated by the county assessor to be subject to taxation in the current year.
     (b) The county auditor shall, on or before June 8, transmit to the governing body of each taxing entity:
     (i) the statements described in Subsections (1)(a)(i) and (ii);
     (ii) an estimate of the revenue from personal property;
     (iii) the certified tax rate; and
     (iv) all forms necessary to submit a tax levy request.
     (2) (a) (i) 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.
     (ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not include:
     (A) collections from redemptions;
     (B) interest; and
     (C) penalties.
     (iii) (A) Except as provided in Subsection (2)(a)(v), the certified tax rate shall be calculated by dividing the ad valorem property tax revenues budgeted for the prior year by the taxing entity by the amount calculated under Subsection (2)(a)(iii)(B).
     (B) For purposes of Subsection (2)(a)(iii)(A), the legislative body of a taxing entity shall calculate an amount as follows:
     (I) calculate for the taxing entity the difference between:
     (Aa) the aggregate taxable value of all property taxed; and
     (Bb) any redevelopment adjustments for the current calendar year;
     (II) after making the calculation required by Subsection (2)(a)(iii)(B)(I), calculate an amount determined by increasing or decreasing the amount calculated under Subsection (2)(a)(iii)(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 (2)(a)(iii)(B)(II), calculate the product of:
     (Aa) the amount calculated under Subsection (2)(a)(iii)(B)(II); and
     (Bb) 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 (2)(a)(iii)(B)(III), calculate an amount determined by subtracting from the amount calculated under Subsection (2)(a)(iii)(B)(III) any new growth as defined in this section:
     (Aa) within the taxing entity; and
     (Bb) for the current calendar year.

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     (C) For purposes of Subsection (2)(a)(iii)(B)(I), the aggregate taxable value of all property taxed includes:
     (I) the total taxable value of the real and personal property contained on the tax rolls; and
     (II) the taxable value of any additional personal property estimated by the county assessor to be subject to taxation in the current year.
     (D) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission may prescribe rules for calculating redevelopment adjustments for a calendar year.
     (iv) (A) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the commission shall make rules determining the calculation of ad valorem property tax revenues budgeted by a taxing entity.
     (B) For purposes of Subsection (2)(a)(iv)(A), 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.
     (v) The certified tax rates for the taxing entities described in this Subsection (2)(a)(v) shall be calculated as follows:
     (A) except as provided in Subsection (2)(a)(v)(B), for new taxing entities the certified tax rate is zero;
     (B) for each 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 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:
     (I) school leeways provided for under Sections 11-2-7, 53A-16-110, 53A-17a-125, 53A-17a-127, 53A-17a-134, 53A-17a-143, 53A-17a-145, and 53A-21-103; and
     (II) levies to pay for the costs of state legislative mandates or judicial or administrative orders under Section 59-2-906.3.
     (vi) (A) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall be established at that rate which is sufficient to generate only the revenue required to satisfy one or more eligible judgments, as defined in Section 59-2-102.
     (B) The ad valorem property tax revenue generated by the judgment levy shall not be considered in establishing the taxing entity's aggregate certified tax rate.
     (b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the taxable value of property on the assessment roll.
     (ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the assessment roll does not include new growth as defined in Subsection (2)(b)(iii).
     (iii) "New growth" means:
     (A) the difference between the increase in taxable value of the taxing entity from the previous calendar year to the current year; minus
     (B) the amount of an increase in taxable value described in Subsection (2)(b)(iv).
     (iv) Subsection (2)(b)(iii)(B) applies to the following increases in taxable value:
     (A) the amount of increase to locally assessed real property taxable values resulting from

factoring, reappraisal, or any other adjustments; or
     (B) 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:
     (I) the Legislature;
     (II) a court;
     (III) the commission in an administrative rule; or
     (IV) the commission in an administrative order.
     (c) 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.
     (d) (i) 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:
     (A) 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
     (B) 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 (2)(d)(i)(A).
     (ii) The commission shall determine estimates of sales and use tax distributions for purposes of Subsection (2)(d)(i).
     (e) Beginning January 1, 1998, if a municipality has imposed an additional resort communities sales 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.
     (f) For the calendar year beginning on January 1, 1999, and ending on December 31, 1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the adjustment in revenues from uniform fees on tangible personal property under Section 59-2-405.1 as a result of the adjustment in uniform fees on tangible personal property under Section 59-2-405.1 enacted by the Legislature during the 1998 Annual General Session.
     (g) For purposes of Subsections (2)(h) through (j):
     (i) "1998 actual collections" means the amount of revenues a taxing entity actually collected for the calendar year beginning on January 1, 1998, under Section 59-2-405 for:
     (A) motor vehicles required to be registered with the state that weigh 12,000 pounds or less; and
     (B) state-assessed commercial vehicles required to be registered with the state that weigh 12,000 pounds or less.
     (ii) "1999 actual collections" means the amount of revenues a taxing entity actually collected for the calendar year beginning on January 1, 1999, under Section 59-2-405.1.
     (h) For the calendar year beginning on January 1, 2000, the commission shall make the following adjustments:
     (i) the commission shall make the adjustment described in Subsection (2)(i)(i) if, for the

calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater than the sum of:
     (A) the taxing entity's 1999 actual collections; and
     (B) any adjustments the commission made under Subsection (2)(f);
     (ii) the commission shall make the adjustment described in Subsection (2)(i)(ii) if, for the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were greater than the taxing entity's 1999 actual collections, but the taxing entity's 1998 actual collections were less than the sum of:
     (A) the taxing entity's 1999 actual collections; and
     (B) any adjustments the commission made under Subsection (2)(f); and
     (iii) the commission shall make the adjustment described in Subsection (2)(i)(iii) if, for the calendar year beginning on January 1, 1999, a taxing entity's 1998 actual collections were less than the taxing entity's 1999 actual collections.
     (i) (i) For purposes of Subsection (2)(h)(i), the commission shall increase a taxing entity's certified tax rate under this section and a taxing entity's certified revenue levy under Section 59-2-906.1 by the amount necessary to offset the difference between:
     (A) the taxing entity's 1998 actual collections; and
     (B) the sum of:
     (I) the taxing entity's 1999 actual collections; and
     (II) any adjustments the commission made under Subsection (2)(f).
     (ii) For purposes of Subsection (2)(h)(ii), the commission shall decrease a taxing entity's certified tax rate under this section and a taxing entity's certified revenue levy under Section 59-2-906.1 by the amount necessary to offset the difference between:
     (A) the sum of:
     (I) the taxing entity's 1999 actual collections; and
     (II) any adjustments the commission made under Subsection (2)(f); and
     (B) the taxing entity's 1998 actual collections.
     (iii) For purposes of Subsection (2)(h)(iii), the commission shall decrease a taxing entity's certified tax rate under this section and a taxing entity's certified revenue levy under Section 59-2-906.1 by the amount of any adjustments the commission made under Subsection (2)(f).
     (j) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for purposes of Subsections (2)(f) through (i), the commission may make rules establishing the method for determining a taxing entity's 1998 actual collections and 1999 actual collections.
     (k) (i) (A) For fiscal year 2000, the certified tax rate of each county required under Subsection 17-34-1(4)(a) to provide advanced life support and paramedic services to the unincorporated area of the county shall be decreased by the amount necessary to reduce revenues in that fiscal year by an amount equal to the difference between the amount the county budgeted in its 2000 fiscal year budget for advanced life support and paramedic services countywide and the amount the county spent during fiscal year 2000 for those services, excluding amounts spent from a municipal services fund for those services.
     (B) For fiscal year 2001, the certified tax rate of each county to which Subsection (2)(k)(i)(A) applies shall be decreased by the amount necessary to reduce revenues in that fiscal year by the amount that the county spent during fiscal year 2000 for advanced life support and paramedic services countywide, excluding amounts spent from a municipal services fund for

those services.
     (ii) (A) A city or town located within a county of the first class to which Subsection (2)(k)(i) applies may increase its certified tax rate by the amount necessary to generate within the city or town the same amount of revenues as the county would collect from that city or town if the decrease under Subsection (2)(k)(i) did not occur.
     (B) An increase under Subsection (2)(k)(ii)(A), whether occurring in a single fiscal year or spread over multiple fiscal years, is not subject to the notice and hearing requirements of Sections 59-2-918 and 59-2-919.
     (l) (i) The certified tax rate of each county required under Subsection 17-34-1(4)(b) to provide detective investigative services to the unincorporated area of the county shall be decreased:
     (A) in fiscal year 2001 by the amount necessary to reduce revenues in that fiscal year by at least $4,400,000; and
     (B) in fiscal year 2002 by the amount necessary to reduce revenues in that fiscal year by an amount equal to the difference between $9,258,412 and the amount of the reduction in revenues under Subsection (2)(l)(i)(A).
     (ii) (A) (I) Beginning with municipal fiscal year 2002, a city or town located within a county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the city or town the same amount of revenue as the county would have collected during county fiscal year 2001 from within the city or town except for Subsection (2)(l)(i)(A).
     (II) Beginning with municipal fiscal year 2003, a city or town located within a county to which Subsection (2)(l)(i) applies may increase its certified tax rate to generate within the city or town the same amount of revenue as the county would have collected during county fiscal year 2002 from within the city or town except for Subsection (2)(l)(i)(B).
     (B) (I) Except as provided in Subsection (2)(l)(ii)(B)(II), an increase in the city or town's certified tax rate under Subsection (2)(l)(ii)(A), whether occurring in a single fiscal year or spread over multiple fiscal years, is subject to the notice and hearing requirements of Sections 59-2-918 and 59-2-919.
     (II) For an increase under this Subsection (2)(l)(ii) that generates revenue that does not exceed the same amount of revenue as the county would have collected except for Subsection (2)(l)(i), the requirements of Sections 59-2-918 and 59-2-919 do not apply if the city or town:
     (Aa) publishes a notice that meets the size, type, placement, and frequency requirements of Section 59-2-919, reflects that the increase is a shift of a tax from one imposed by the county to one imposed by the city or town, and explains how the revenues from the tax increase will be used; and
     (Bb) holds a public hearing on the tax shift that may be held in conjunction with the city or town's regular budget hearing.
     (m) (i) This Subsection (2)(m) applies to each county that:
     (A) establishes a countywide special service district under Title 17A, Chapter 2, Part 13, Utah Special Service District Act, to provide jail service, as provided in Subsection 17A-2-1304(1)(a)(x); and
     (B) levies a property tax on behalf of the special service district under Section 17A-2-1322.
     (ii) (A) The certified tax rate of each county to which this Subsection (2)(m) 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.
     (B) Each decrease under Subsection (2)(m)(ii)(A) shall occur contemporaneously with the levy on behalf of the special service district under Section 17A-2-1322.
     (n) (i) As used in this Subsection (2)(n):
     (A) "Annexing county" means a county whose unincorporated area is included within a fire district by annexation.
     (B) "Annexing municipality" means a municipality whose area is included within a fire district by annexation.
     (C) "Equalized fire protection tax rate" means the tax rate that results from:
     (I) calculating, for each participating county and each participating municipality, the property tax revenue necessary 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; and
     (II) adding all the amounts calculated under Subsection (2)(n)(i)(C)(I) 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:
     (Aa) for participating counties, in the unincorporated area of all participating counties; and
     (Bb) for participating municipalities, in all the participating municipalities.
     (D) "Fire district" means a county service area under Title 17A, Chapter 2, Part 4, County Service Area Act, in the creation of which an election was not required under Subsection 17B-2-214(3)(c).
     (E) "Fire protection tax rate" means:
     (I) for an annexing county, the property tax rate that, when applied to taxable property in the unincorporated area of the county, generates enough property tax revenue to cover all the costs associated with providing fire protection, paramedic, and emergency services in the unincorporated area of the county; and
     (II) for an annexing municipality, the property tax rate that generates enough property tax revenue in the municipality to cover all the costs associated with providing fire protection, paramedic, and emergency services in the municipality.
     (F) "Participating county" means a county whose unincorporated area is included within a fire district at the time of the creation of the fire district.
     (G) "Participating municipality" means a municipality whose area is included within a fire district at the time of the creation of the fire district.
     (ii) In the first year following creation of a fire district, the certified tax rate of each participating county and each participating municipality shall be decreased by the amount of the equalized fire protection tax rate.
     (iii) In the first year following annexation to a fire district, the certified tax rate of each annexing county and each annexing municipality shall be decreased by the fire protection tax rate.
     (iv) Each tax levied under this section by a fire district shall be considered to be levied by:
     (A) each participating county and each annexing county for purposes of the county's tax limitation under Section 59-2-908; and

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     (B) 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.
     (3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
     (b) If the taxing entity intends to exceed the certified tax rate, it 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 all property owners of any intent to exceed the certified tax rate in accordance with Subsection 59-2-919(2).
     (4) (a) The 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, with approximately the same amount of money the agency would have received without a reduction in the county's certified tax rate if:
     (i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i);
     (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)(c) or (2)(d)(i); and
     (ii) The certified tax rate of a city, school district, or special 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)(c) or (2)(d)(i), 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, 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)(c) or (2)(d)(i).

Amended by Chapter 359, 2006 General Session
Amended by Chapter 105, 2006 General Session