2010 Utah Code
Title 53A - State System of Public Education
Chapter 02 - School Districts
53A-2-121 - Indebtedness on property within new school district.

53A-2-121. Indebtedness on property within new school district.
(1) (a) The boards of the remaining and new districts shall determine the portion of the existing district's bonded indebtedness and other indebtedness for which the property within the new district remains subject to the levy of taxes to pay a proportionate share of the existing district's outstanding indebtedness.
(b) The proportionate share of the existing district's outstanding indebtedness for which property within the new district remains subject to the levy of taxes shall be calculated by determining the proportion that the total assessed valuation of the property within the new district bears to the total assessed valuation of the existing district:
(i) in the year immediately preceding the date the new district was created; or
(ii) at a time mutually agreed upon by the school district board of the new district and the school district board of the remaining district.
(c) The agreement reflecting the determinations made under this Subsection (1) shall take effect upon being filed with the county legislative body and the State Board of Education.
(2) The board of the remaining district shall continue to levy a tax on property within the new district sufficient to pay the new district's proportionate share of the indebtedness determined under this section, and shall annually report the amount of the proceeds of the tax to the business administrator of the new district.
(3) (a) The boards of the remaining and new districts shall determine by mutual agreement the disposition of bonds approved but not issued by the existing district before the creation of the new district based primarily on the representation made to the voters at the time of the bond election.
(b) Before a determination is made under Subsection (3)(a), a remaining district may not issue bonds approved but not issued before the creation of the new district if property in the new district would be subject to the levy of a tax to pay the bonds.

Amended by Chapter 92, 2008 General Session