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 theexisting district's bonded indebtedness and other indebtedness for which the property within thenew district remains subject to the levy of taxes to pay a proportionate share of the existingdistrict's outstanding indebtedness.
(b) The proportionate share of the existing district's outstanding indebtedness for whichproperty within the new district remains subject to the levy of taxes shall be calculated bydetermining the proportion that the total assessed valuation of the property within the new districtbears 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 theschool district board of the remaining district.
(c) The agreement reflecting the determinations made under this Subsection (1) shall takeeffect 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 thenew district sufficient to pay the new district's proportionate share of the indebtednessdetermined under this section, and shall annually report the amount of the proceeds of the tax tothe business administrator of the new district.
(3) (a) The boards of the remaining and new districts shall determine by mutualagreement the disposition of bonds approved but not issued by the existing district before thecreation of the new district based primarily on the representation made to the voters at the time ofthe bond election.
(b) Before a determination is made under Subsection (3)(a), a remaining district may notissue bonds approved but not issued before the creation of the new district if property in the newdistrict would be subject to the levy of a tax to pay the bonds.
Amended by Chapter 92, 2008 General Session