53A-16-107 - Capital outlay levy -- Maintenance of school facilities -- Authority to use proceeds of .0002 tax rate -- Restrictions and procedure -- Limited authority to use proceeds for general fund
53A-16-107. Capital outlay levy -- Maintenance of school facilities -- Authority touse proceeds of .0002 tax rate -- Restrictions and procedure -- Limited authority to useproceeds for general fund purposes -- Notification required when using proceeds forgeneral fund purposes.
(1) Subject to Subsection (3) and except as provided in Subsection (5), a local schoolboard may annually impose a capital outlay levy not to exceed .0024 per dollar of taxable valueto be used for:
(a) capital outlay;
(b) debt service; and
(c) subject to Subsection (2), school facility maintenance.
(2) (a) A local school board may utilize the proceeds of a maximum of .0002 per dollarof taxable value of the local school board's annual capital outlay levy for the maintenance ofschool facilities in the school district.
(b) A local school board that uses the option provided under Subsection (2)(a) shall:
(i) maintain the same level of expenditure for maintenance in the current year as it did inthe preceding year, plus the annual average percentage increase applied to the maintenance andoperation budget for the current year; and
(ii) identify the expenditure of capital outlay funds for maintenance by a district projectnumber to ensure that the funds are expended in the manner intended.
(c) The State Board of Education shall establish by rule the expenditure classification formaintenance under this program using a standard classification system.
(3) Beginning January 1, 2009, in order to qualify for receipt of the state contributiontoward the minimum school program, a local school board in a county of the first class shallimpose a capital outlay levy of at least .0006 per dollar of taxable value.
(4) (a) The county treasurer of a county of the first class shall distribute revenuesgenerated by the .0006 portion of the capital outlay levy required in Subsection (3) to schooldistricts within the county in accordance with Section 53A-16-107.1.
(b) If a school district in a county of the first class imposes a capital outlay levy pursuantto this section which exceeds .0006 per dollar of taxable value, the county treasurer of a countyof the first class shall distribute revenues generated by the portion of the capital outlay levywhich exceeds .0006 to the school district imposing the levy.
(5) (a) Notwithstanding Subsections (1)(a), (b), and (c) and subject to Subsections (5)(b),(c), and (d), for fiscal years 2010-11 and 2011-12, a local school board may use the proceeds ofthe local school board's capital outlay levy for general fund purposes if the proceeds are notcommitted or dedicated to pay debt service or bond payments.
(b) If a local school board uses the proceeds described in Subsection (5)(a) for generalfund purposes, the local school board shall notify the public of the local school board's use of thecapital outlay levy proceeds for general fund purposes:
(i) prior to the board's budget hearing in accordance with the notification requirementsdescribed in Section 53A-19-102; and
(ii) at a budget hearing required in Section 53A-19-102.
(c) A local school board may not use the proceeds described in Subsection (5)(a) to fundthe following accounting function classifications as provided in the Financial Accounting forLocal and State School Systems guidelines developed by the National Center for EducationStatistics:
(i) 2300 Support Services - General District Administration; or
(ii) 2500 Support Services - Central Services.
(d) A local school board may not use the proceeds from a distribution described inSection 53A-16-107.1 for general fund purposes.
Amended by Chapter 3, 2010 General Session
Amended by Chapter 135, 2010 General Session
Amended by Chapter 160, 2010 General Session