59-2-924 - 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 autho
59-2-924. Report of valuation of property to county auditor and commission --Transmittal by auditor to governing bodies -- Certified tax rate -- Calculation of certifiedtax rate -- Rulemaking authority -- Adoption of tentative budget.
(1) Before June 1 of each year, the county assessor of each county shall deliver to thecounty auditor and the commission the following statements:
(a) a statement containing the aggregate valuation of all taxable real property assessed bya county assessor in accordance with Part 3, County Assessment, for each taxing entity; and
(b) a statement containing the taxable value of all personal property assessed by a countyassessor in accordance with Part 3, County Assessment, from the prior year end values.
(2) The county auditor shall, on or before June 8, transmit to the governing body of eachtaxing entity:
(a) the statements described in Subsections (1)(a) and (b);
(b) an estimate of the revenue from personal property;
(c) the certified tax rate; and
(d) all forms necessary to submit a tax levy request.
(3) (a) The "certified tax rate" means a tax rate that will provide the same ad valoremproperty tax revenues for a taxing entity as were budgeted by that taxing entity for the prior year.
(b) For purposes of this Subsection (3):
(i) "Ad valorem property tax revenues" do not include:
(A) interest;
(B) penalties; and
(C) revenue received by a taxing entity from personal property that is:
(I) assessed by a county assessor in accordance with Part 3, County Assessment; and
(II) semiconductor manufacturing equipment.
(ii) "Aggregate taxable value of all property taxed" means:
(A) the aggregate taxable value of all real property assessed by a county assessor inaccordance with Part 3, County Assessment, for the current year;
(B) the aggregate taxable year end value of all personal property assessed by a countyassessor in accordance with Part 3, County Assessment, for the prior year; and
(C) the aggregate taxable value of all real and personal property assessed by thecommission in accordance with Part 2, Assessment of Property, for the current year.
(c) (i) Except as otherwise provided in this section, the certified tax rate shall becalculated by dividing the ad valorem property tax revenues budgeted for the prior year by thetaxing entity by the amount calculated under Subsection (3)(c)(ii).
(ii) For purposes of Subsection (3)(c)(i), the legislative body of a taxing entity shallcalculate an amount as follows:
(A) calculate for the taxing entity the difference between:
(I) the aggregate taxable value of all property taxed; and
(II) any redevelopment adjustments for the current calendar year;
(B) after making the calculation required by Subsection (3)(c)(ii)(A), calculate an amountdetermined by increasing or decreasing the amount calculated under Subsection (3)(c)(ii)(A) bythe average of the percentage net change in the value of taxable property for the equalizationperiod for the three calendar years immediately preceding the current calendar year;
(C) after making the calculation required by Subsection (3)(c)(ii)(B), calculate theproduct of:
(I) the amount calculated under Subsection (3)(c)(ii)(B); and
(II) the percentage of property taxes collected for the five calendar years immediatelypreceding the current calendar year; and
(D) after making the calculation required by Subsection (3)(c)(ii)(C), calculate anamount determined by subtracting from the amount calculated under Subsection (3)(c)(ii)(C) anynew growth as defined in this section:
(I) within the taxing entity; and
(II) for the following calendar year:
(Aa) for new growth from real property assessed by a county assessor in accordance withPart 3, County Assessment and all property assessed by the commission in accordance withSection 59-2-201, the current calendar year; and
(Bb) for new growth from personal property assessed by a county assessor in accordancewith Part 3, County Assessment, the prior calendar year.
(iii) For purposes of Subsection (3)(c)(ii)(A), the aggregate taxable value of all propertytaxed:
(A) except as provided in Subsection (3)(c)(iii)(B) or (3)(c)(ii)(C), is as defined inSubsection (3)(b)(ii);
(B) does not include the total taxable value of personal property contained on the taxrolls of the taxing entity that is:
(I) assessed by a county assessor in accordance with Part 3, County Assessment; and
(II) semiconductor manufacturing equipment; and
(C) for personal property assessed by a county assessor in accordance with Part 3,County Assessment, the taxable value of personal property is the year end value of the personalproperty contained on the prior year's tax rolls of the entity.
(iv) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or afterJanuary 1, 2007, the value of taxable property does not include the value of personal propertythat is:
(A) within the taxing entity assessed by a county assessor in accordance with Part 3,County Assessment; and
(B) semiconductor manufacturing equipment.
(v) For purposes of Subsection (3)(c)(ii)(C)(II), for calendar years beginning on or afterJanuary 1, 2007, the percentage of property taxes collected does not include property taxescollected from personal property that is:
(A) within the taxing entity assessed by a county assessor in accordance with Part 3,County Assessment; and
(B) semiconductor manufacturing equipment.
(vi) For purposes of Subsection (3)(c)(ii)(B), for calendar years beginning on or afterJanuary 1, 2009, the value of taxable property does not include the value of personal propertythat is within the taxing entity assessed by a county assessor in accordance with Part 3, CountyAssessment.
(vii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may prescribe rules for calculating redevelopment adjustments for a calendar year.
(viii) (A) (I) For purposes of Subsection (3)(c)(i), for a calendar year beginning on orafter January 1, 2010, a taxing entity's ad valorem property tax revenues budgeted for the prioryear shall be decreased by an amount of revenue equal to the five-year average of the most recent
prior five years of redemptions as reported on the county treasurer's final annual settlementrequired under Subsection 59-2-1365(2).
(II) A decrease under Subsection (3)(c)(viii)(A)(I) does not apply to the multicountyassessing and collecting levy authorized in Subsection 59-2-1602(2)(a), the certified revenuelevy, or the minimum basic tax rate established in Section 53A-17a-135.
(B) For the calendar year beginning on January 1, 2010 and ending on December 31,2010, a taxing entity is exempt from the notice and public hearing provisions of Section 59-2-919if the taxing entity budgets an increased amount of ad valorem property tax revenue equal to orless than the taxing entity's five-year average of the most recent prior five years of redemptions asreported on the county treasurer's final annual settlement required under Subsection59-2-1365(2).
(d) (i) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,the commission shall make rules determining the calculation of ad valorem property tax revenuesbudgeted by a taxing entity.
(ii) For purposes of Subsection (3)(d)(i), ad valorem property tax revenues budgeted by ataxing entity shall be calculated in the same manner as budgeted property tax revenues arecalculated for purposes of Section 59-2-913.
(e) The certified tax rates for the taxing entities described in this Subsection (3)(e) shallbe calculated as follows:
(i) except as provided in Subsection (3)(e)(ii), for new taxing entities the certified taxrate is zero;
(ii) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
(A) in a county of the first, second, or third class, the levy imposed for municipal-typeservices under Sections 17-34-1 and 17-36-9; and
(B) in a county of the fourth, fifth, or sixth class, the levy imposed for general countypurposes and such other levies imposed solely for the municipal-type services identified inSection 17-34-1 and Subsection 17-36-3(22); and
(iii) for debt service voted on by the public, the certified tax rate shall be the actual levyimposed by that section, except that the certified tax rates for the following levies shall becalculated in accordance with Section 59-2-913 and this section:
(A) school leeways provided for under Sections 11-2-7, 53A-16-110, 53A-17a-127,53A-17a-133, 53A-17a-134, 53A-17a-143, and 53A-17a-145; and
(B) levies to pay for the costs of state legislative mandates or judicial or administrativeorders under Section 59-2-1604.
(f) (i) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 shall beestablished at that rate which is sufficient to generate only the revenue required to satisfy one ormore eligible judgments, as defined in Section 59-2-102.
(ii) The ad valorem property tax revenue generated by the judgment levy shall not beconsidered in establishing the taxing entity's aggregate certified tax rate.
(g) The ad valorem property tax revenue generated by the capital outlay levy described inSection 53A-16-107 within a taxing entity in a county of the first class:
(i) may not be considered in establishing the school district's aggregate certified tax rate;and
(ii) shall be included by the commission in establishing a certified tax rate for that capitaloutlay levy determined in accordance with the calculation described in Subsection 59-2-913(3).
(4) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
(i) the taxable value of real property assessed by a county assessor contained on theassessment roll;
(ii) the taxable value of real and personal property assessed by the commission; and
(iii) the taxable year end value of personal property assessed by a county assessorcontained on the prior year's assessment roll.
(b) For purposes of Subsection (4)(a)(i), the taxable value of real property on theassessment roll does not include new growth as defined in Subsection (4)(c).
(c) "New growth" means:
(i) the difference between the increase in taxable value of the following property of thetaxing entity from the previous calendar year to the current year:
(A) real property assessed by a county assessor in accordance with Part 3, CountyAssessment; and
(B) property assessed by the commission under Section 59-2-201; plus
(ii) the difference between the increase in taxable year end value of personal property ofthe taxing entity from the year prior to the previous calendar year to the previous calendar year;minus
(iii) the amount of an increase in taxable value described in Subsection (4)(e).
(d) For purposes of Subsection (4)(c)(ii), the taxable value of personal property of thetaxing entity does not include the taxable value of personal property that is:
(i) contained on the tax rolls of the taxing entity if that property is assessed by a countyassessor in accordance with Part 3, County Assessment; and
(ii) semiconductor manufacturing equipment.
(e) Subsection (4)(c)(iii) applies to the following increases in taxable value:
(i) the amount of increase to locally assessed real property taxable values resulting fromfactoring, reappraisal, or any other adjustments; or
(ii) the amount of an increase in the taxable value of property assessed by thecommission under Section 59-2-201 resulting from a change in the method of apportioning thetaxable value prescribed by:
(A) the Legislature;
(B) a court;
(C) the commission in an administrative rule; or
(D) the commission in an administrative order.
(f) For purposes of Subsection (4)(a)(ii), the taxable year end value of personal propertyon the prior year's assessment roll does not include:
(i) new growth as defined in Subsection (4)(c); or
(ii) the total taxable year end value of personal property contained on the prior year's taxrolls of the taxing entity that is:
(A) assessed by a county assessor in accordance with Part 3, County Assessment; and
(B) semiconductor manufacturing equipment.
(5) (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 countyauditor 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 property owners of any intent to levy a tax rate thatexceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
Amended by Chapter 131, 2010 General Session