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2017 Utah Code
Title 63G - General Government
Chapter 7 - Governmental Immunity Act of Utah
Part 7 - Payment Process and Sources for Paying Proved Claims Against Governmental Entities
Section 704 - Tax levy by political subdivisions for payment of claims, judgments, or insurance premiums.
Universal Citation: UT Code § 63G-7-704 (2017)
Effective 3/28/2017
63G-7-704. Tax levy by political subdivisions for payment of claims, judgments, or insurance premiums.
Amended by Chapter 453, 2017 General Session
63G-7-704. Tax levy by political subdivisions for payment of claims, judgments, or insurance premiums.
- (1) Notwithstanding any provision of law to the contrary, a political subdivision may levy an annual property tax sufficient to pay:
- (a) any claim, settlement, or judgment, including interest payments and issuance costs for bonds issued under Subsection 11-14-103(1)(d) to pay the portion of any claim, settlement, or judgment that exceeds $3,000,000;
- (b) the costs to defend against any claim, settlement, or judgment; or
- (c) for the establishment and maintenance of a reserve fund for the payment of claims, settlements, or judgments that may be reasonably anticipated.
- (2)
- (a) The payments authorized to pay for punitive damages or to pay the premium for authorized insurance is money spent for a public purpose within the meaning of this section and Utah Constitution, Article XIII, Sec. 5, even though, as a result of the levy, the maximum levy as otherwise restricted by law is exceeded.
- (b)
- (i) Except as provided in Subsection (2)(b)(ii), a levy under this section may not exceed .0001 per dollar of taxable value of taxable property.
- (ii) A levy under Subsection (1)(a) to pay the portion of any claim, settlement, or judgment that exceeds $3,000,000 may not exceed .001 per dollar of taxable value of taxable property.
- (c) Except as provided in Subsection 17-36-29(1), the revenues derived from this levy may not be used for any purpose other than those specified in this section.
- (3) Beginning January 1, 2012, a local school board may not levy a tax in accordance with this section.
- (4) A political subdivision that levies an annual property tax under Subsection (1)(a) to pay the portion of any claim, settlement, or judgment that exceeds $3,000,000:
- (a) shall comply with the notice and public hearing requirements under Section 59-2-919; and
- (b) may levy the annual property tax until the bonds' maturity dates expire.
Amended by Chapter 453, 2017 General Session
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