Property Tax Revenue Increase Amendments

87
53F-2-301
53F-8-301
59-2-102
59-2-103
59-2-103.5
59-2-804
59-2-913
59-2-919
59-2-924
59-2-926
103
103
Property Tax Revenue Increase Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Tiara Auxier
Senate Sponsor:
LONG TITLE
General Description:
This bill modifies provisions relating to property tax new growth increases.
Highlighted Provisions:
This bill:
limits how much revenue a taxing entity receives from new growth; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
53F-2-301
Effective
07/01/26
Effective
01/01/27
, as last amended by Laws of Utah
2025, Chapter 518
53F-8-301
Effective
01/01/27
, as renumbered and amended by Laws of Utah 2018,
Chapter 2
59-2-102
Effective
01/01/27
, as last amended by Laws of Utah 2025, Chapter 234
59-2-103
Effective
01/01/27
, as last amended by Laws of Utah 2025, Chapter 234
59-2-103.5
Effective
01/01/27
, as last amended by Laws of Utah 2025, Chapter 234
59-2-804
Effective
01/01/27
, as last amended by Laws of Utah 2025, Chapter 234
59-2-913
Effective
01/01/27
, as last amended by Laws of Utah 2018, Chapter 368
59-2-919
Effective
01/01/27
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
59-2-924
Effective
01/01/27
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
59-2-926
Effective
07/01/26
Effective
01/01/27
, as last amended by Laws of Utah
2025, Chapter 518
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
53F-2-301
is amended to read:
53F-2-301
Effective
07/01/26
Effective
01/01/27
. Minimum basic tax rate for a
fiscal year that begins after July 1, 2022.
(1)
As used in this section:
(a)
"Basic levy increment rate" means a tax rate that will generate an amount of revenue
equal to $75,000,000.
(b)
"Commission" means the State Tax Commission.
(c)
"Inflation adjusted budget increase" means the amount provided in Subsection
(2)(a)

for the previous fiscal year multiplied by the inflation factor.
(d)
"Inflation factor" means:
(i)
the increase in the Consumer Price Index for all urban consumers, prepared by the
United States Bureau of Statistics, during the preceding calendar year; or
(ii)
if there is not an increase in the Consumer Price Index for all urban consumers,
prepared by the United States Bureau of Statistics, during the preceding calendar
year, zero.
(c)
(e)
"Maximum new growth revenue" means the lesser of:
(i)
the eligible new growth, as defined in Section
59-2-924
, multiplied by the
minimum basic rate; or
(ii)
the inflation adjusted budget increase.
(f)
"Minimum basic local amount" means an amount that is:
(i)
equal to the sum of:
(A)
the school districts' contribution to the basic school program the previous
fiscal year;
(B)
the amount generated by the basic levy increment rate; and
(C)
the maximum new growth revenue; and
(C)
the eligible new growth, as defined in Section
59-2-924
and rules of the State
Tax Commission multiplied by the minimum basic rate; and
(ii)
set annually by the Legislature in Subsection
(2)(a)
.
(d)
(g)
"Minimum basic tax rate" means a tax rate certified by consensus between the
commission, the Governor's Office of Planning and Budget, and the Office of the
Legislative Fiscal Analyst that will generate an amount of revenue equal to the
minimum basic local amount described in Subsection
(2)(a)
.
(2)
(a)
The minimum basic local amount for the fiscal year that begins on July 1, 2025, is
$810,593,200 in revenue statewide.
(b)
The preliminary estimate of the minimum basic tax rate for a fiscal year that begins
on July 1, 2025, is .001408.
(3)
(a)
On or before June 22, the commission, the Governor's Office of Planning and
Budget, and the Office of the Legislative Fiscal Analyst shall by consensus certify
the minimum basic tax rate for the year.
(b)
The estimate of the minimum basic tax rate provided in Subsection
(2)(b)
is based on
a forecast for property values for the next calendar year.
(c)
The certified minimum basic tax rate described in Subsection
(3)(a)
is based on
property values as of January 1 of the current calendar year, except personal property,
which is based on values from the previous calendar year.
(4)
(a)
To qualify for receipt of the state contribution toward the basic school program
and as a school district's contribution toward the cost of the basic school program for
the school district, each local school board shall impose the minimum basic tax rate.
(b)
(i)
The state is not subject to the notice requirements of Section
59-2-926
before
imposing the tax rates described in this Subsection
(4)
.
(ii)
The state is subject to the notice requirements of Section
59-2-926
if the state
authorizes a tax rate that exceeds the tax rates described in this Subsection
(4)
.
(5)
(a)
The state shall contribute to each school district toward the cost of the basic
school program in the school district an amount of money that is the difference
between the cost of the school district's basic school program and the sum of revenue
generated by the school district by the following:
(i)
the minimum basic tax rate; and
(ii)
the basic levy increment rate.
(b)
(i)
If the difference described in Subsection
(5)(a)
equals or exceeds the cost of the
basic school program in a school district, no state contribution shall be made to
the basic school program for the school district.
(ii)
The proceeds of the difference described in Subsection
(5)(a)
that exceed the cost
of the basic school program shall be paid into the Uniform School Fund as
provided by law and by the close of the fiscal year in which the proceeds were
calculated.
(6)
Upon appropriation by the Legislature, the Division of Finance shall deposit an amount
equal to the proceeds generated statewide by the basic levy increment rate into the
Minimum Basic Growth Account created in Section
53F-9-302
.
(7)
Nothing in the repeal of the tax rate indexed to the increase in the value of the WPU
affects the ongoing appropriations to the Teacher and Student Success Account created
in Section
53F-9-306
.
Section 2. Section
53F-8-301
is amended to read:
53F-8-301
Effective
01/01/27
. State-supported voted local levy authorized --
Election requirements -- Reconsideration of the program.
(1)
(a)
The terms defined in Section
53F-2-102
apply to this section.
(b)
As used in this section:
(i)
"Inflation adjusted budget increase" means the amount of ad valorem property tax
revenue derived from a voted local levy for the previous fiscal year multiplied by
the inflation factor.
(ii)
"Inflation factor" means:
(A)
the increase in the Consumer Price Index for all urban consumers, prepared by
the United States Bureau of Statistics, during the preceding calendar year; or
(B)
if there is not an increase in the Consumer Price Index for all urban
consumers, prepared by the United States Bureau of Statistics, during the
preceding calendar year, zero.
(iii)
"Maximum new growth revenue" means the lesser of:
(A)
the eligible new growth, as defined in Section
59-2-924
, multiplied by the
voted local levy; or
(B)
the inflation adjusted budget increase.
(2)
An election to consider adoption or modification of a voted local levy is required if
initiative petitions signed by 10% of the number of electors who voted at the last
preceding general election are presented to the local school board or by action of the
local school board.
(3)
(a)
(i)
To impose a voted local levy, a majority of the electors of a school district
voting at an election in the manner set forth in Subsections
(8)
and
(9)
must vote
in favor of a special tax.
(ii)
The tax rate may not exceed .002 per dollar of taxable value.
(b)
Except as provided in Subsection
(3)(c)
,
in order
to receive state support in
accordance with Section
53F-2-601
the first year, a school district shall receive voter
approval no later than December 1 of the year
prior to
before
implementation.
(c)
Beginning on or after January 1, 2012, a school district may receive state support in
accordance with Section
53F-2-601
without complying with the requirements of
Subsection
(3)(b)
if the local school board imposed a tax in accordance with this
section during the taxable year beginning on January 1, 2011
,
and ending on
December 31, 2011.
(4)
(a)
An election to modify an existing voted local levy is not a reconsideration of the
existing authority unless the proposition submitted to the electors expressly so states.
(b)
A majority vote opposing a modification does not deprive the local school board of
authority to continue the levy.
(c)
If adoption of a voted local levy is contingent upon an offset reducing other local
school board levies, the local school board shall allow the electors, in an election, to
consider modifying or discontinuing the imposition of the levy prior to a subsequent
increase in other levies that would increase the total local school board levy.
(d)
Nothing contained in this section terminates, without an election, the authority of a
local school board to continue imposing an existing voted local levy previously
authorized by the voters as a voted leeway program.
(5)
Notwithstanding Section
59-2-919
, a local school board may budget an increased
amount of ad valorem property tax revenue derived from a voted local levy imposed
under this section in addition to
revenue from eligible new growth as defined in Section
59-2-924
,
maximum new growth revenue
without having to comply with the notice
requirements of Section
59-2-919
, if:
(a)
the voted local levy is approved:
(i)
in accordance with Subsections
(8)
and
(9)
on or after January 1, 2003; and
(ii)
within the four-year period immediately preceding the year in which the local
school board seeks to budget an increased amount of ad valorem property tax
revenue derived from the voted local levy; and
(b)
for a voted local levy approved or modified in accordance with this section on or
after January 1, 2009, the local school board complies with the requirements of
Subsection
(7)
.
(6)
Notwithstanding Section
59-2-919
, a local school board may levy a tax rate under this
section that exceeds the certified tax rate without having to comply with the notice
requirements of Section
59-2-919
if:
(a)
the levy exceeds the certified tax rate as the result of a local school board budgeting
an increased amount of ad valorem property tax revenue derived from a voted local
levy imposed under this section;
(b)
the voted local levy was approved:
(i)
in accordance with Subsections
(8)
and
(9)
on or after January 1, 2003; and
(ii)
within the four-year period immediately preceding the year in which the local
school board seeks to budget an increased amount of ad valorem property tax
revenue derived from the voted local levy; and
(c)
for a voted local levy approved or modified in accordance with this section on or
after January 1, 2009, the local school board complies with requirements of
Subsection
(7)
.
(7)
For purposes of Subsection
(5)(b)
or
(6)(c)
, the proposition submitted to the electors
regarding the adoption or modification of a voted local levy shall contain the following
statement:
"A vote in favor of this tax means that the local school board of [name of the school
district] may increase revenue from this property tax without advertising the increase for the
next five years."
(8)
(a)
Before a local school board may impose a property tax levy pursuant to this
section, a local school board shall submit an opinion question to the school district's
registered voters voting on the imposition of the tax rate so that each registered voter
has the opportunity to express the registered voter's opinion on whether the tax rate
should be imposed.
(b)
The election required by this Subsection
(8)
shall be held:
(i)
at a regular general election conducted in accordance with the procedures and
requirements of
Title 20A, Election Code
, governing regular elections;
(ii)
at a municipal general election conducted in accordance with the procedures and
requirements of Section
20A-1-202
; or
(iii)
at a local special election conducted in accordance with the procedures and
requirements of Section
20A-1-203
.
(c)
Notwithstanding the requirements of Subsections
(8)(a)
and
(b)
, beginning on or
after January 1, 2012, a local school board may levy a tax rate in accordance with this
section without complying with the requirements of Subsections
(8)(a)
and
(b)
if the
local school board imposed a tax in accordance with this section at any time during
the taxable year beginning on January 1, 2011, and ending on December 31, 2011.
(9)
If a local school board determines that a majority of the school district's registered
voters voting on the imposition of the tax rate have voted in favor of the imposition of
the tax rate in accordance with Subsection
(8)
, the local school board may impose the
tax rate.
Section 3. Section
59-2-102
is amended to read:
59-2-102
Effective
01/01/27
. Definitions.
As used in this chapter:
(1)
(a)
"Acquisition cost" means
any
a
cost required to put an item of tangible personal
property into service.
(b)
"Acquisition cost" includes:
(i)
the purchase price of a new or used item;
(ii)
the cost of freight, shipping, loading at origin, unloading at destination, crating,
skidding, or
any
other applicable cost of shipping;
(iii)
the cost of installation, engineering, rigging, erection, or assembly, including
foundations, pilings, utility connections, or similar costs; and
(iv)
sales and use taxes.
(2)
"Aerial applicator" means aircraft or rotorcraft used exclusively for the purpose of
engaging in dispensing activities directly affecting agriculture or horticulture with an
airworthiness certificate from the Federal Aviation Administration certifying the aircraft
or rotorcraft's use for agricultural and pest control purposes.
(3)
"Air charter service" means an air carrier operation that requires the customer to hire an
entire aircraft rather than book passage in whatever capacity is available on a scheduled
trip.
(4)
"Air contract service" means an air carrier operation available only to customers that
engage the services of the carrier through a contractual agreement and excess capacity
on any trip and is not available to the public at large.
(5)
"Aircraft" means the same as that term is defined in Section
72-10-102
.
(6)
(a)
Except as provided in Subsection (6)(b), "airline"
"Airline"
means an air carrier
that:
(i)
operates:
(A)
on an interstate route; and
(B)
on a scheduled basis; and
(ii)
offers to fly one or more passengers or cargo on the basis of available capacity on
a regularly scheduled route.
(b)
"Airline" does not include an:
(i)
air charter service; or
(ii)
air contract service.
(7)
"Assessment roll" or "assessment book" means a permanent record of the assessment of
property as assessed by the county assessor and the commission and may be maintained
manually or as a computerized file as a consolidated record or as multiple records by
type, classification, or categories.
(8)
"Base parcel" means a parcel of property that was legally:
(a)
subdivided into two or more lots, parcels, or other divisions of land; or
(b)
(i)
combined with one or more other parcels of property; and
(ii)
subdivided into two or more lots, parcels, or other divisions of land.
(9)
(a)
"Certified revenue levy" means a property tax levy that provides an amount of ad
valorem property tax revenue equal to the sum of:
(i)
the amount of ad valorem property tax revenue to be generated statewide in the
previous year from imposing a multicounty assessing and collecting levy, as
specified in Section
59-2-1602
; and
(ii)
the
product
lesser
of:
(A)
eligible new growth, as defined in Section
59-2-924
; and
, multiplied by
(B)
the multicounty assessing and collecting levy certified by the commission
for the previous year
.
; or
(B)
the amount of ad valorem property tax revenue to be generated statewide in
the previous year from imposing a multicounty assessing and collecting levy,
as specified in Section
59-2-1602
, multiplied by the inflation factor.
(b)
For purposes of this Subsection
(9)
, "ad valorem property tax revenue" does not
include property tax 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.
(c)
For purposes of calculating the certified revenue levy described in this Subsection
(9)
,
the commission shall use:
(i)
the taxable value of real property assessed by a county assessor contained on the
assessment 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 assessor
contained on the prior year's assessment roll.
(10)
"County-assessed commercial vehicle" means:
(a)
any
a
commercial vehicle, trailer, or semitrailer that is not apportioned under
Section
41-1a-301
and is not operated interstate to transport the vehicle owner's
goods or property in furtherance of the owner's commercial enterprise;
(b)
any
a
passenger vehicle owned by a business and used by
its
the business's

employees for transportation as a company car or vanpool vehicle; and
(c)
vehicles that are
a vehicle that is
:
(i)
especially constructed for towing or wrecking, and that
are
is
not otherwise used
to transport goods, merchandise, or people for compensation;
(ii)
used or licensed as taxicabs or limousines;
(iii)
used as rental passenger cars, travel trailers, or motor homes;
(iv)
used or licensed in this state for use as ambulances or hearses;
(v)
especially designed and used for garbage and rubbish collection; or
(vi)
used exclusively to transport students or
their
the students'
instructors to or from
any
a
private, public, or religious school or school activities.
(11)
"Eligible judgment" means a final and unappealable judgment or order under Section
59-2-1330
:
(a)
that became a final and unappealable judgment or order no more than 14 months
before the day on which the notice described in Section
59-2-919.1
is required to be
provided; and
(b)
for which a taxing entity's share of the final and unappealable judgment or order is
greater than or equal to the lesser of:
(i)
$5,000; or
(ii)
2.5% of the total ad valorem property taxes collected by the taxing entity in the
previous fiscal year.
(12)
(a)
"Escaped property" means
any
property, whether personal
, land
or real
, or
any improvements to the property
,
that
is
are
subject to taxation and
is
are
:
(i)
inadvertently omitted from the tax rolls, assigned to the incorrect parcel, or
assessed to the wrong taxpayer by the assessing authority;
(ii)
undervalued or omitted from the tax rolls because of the failure of the taxpayer to
comply with the reporting requirements of this chapter; or
(iii)
undervalued because of errors made by the assessing authority based upon
incomplete or erroneous information
furnished by
the taxpayer
provides
.
(b)
"Escaped property" does not include property that is undervalued because of the use
of a different valuation methodology or because of a different application of the same
valuation methodology.
(13)
(a)
"Fair market value" means the amount at which property would change hands
between a willing buyer and a willing seller, neither being under any compulsion to
buy or sell and both having reasonable knowledge of the relevant facts.
(b)
For purposes of taxation, "fair market value" shall be determined using the current
zoning laws applicable to the property in question, except in cases where there is a
reasonable probability of a change in the zoning laws affecting that property in the
tax year in question and the change would have an appreciable influence upon the
value.
(14)
"Geothermal fluid" means water in any form at temperatures greater than 120 degrees
centigrade naturally present in a geothermal system.
(15)
"Geothermal resource" means:
(a)
the natural heat of the earth at temperatures greater than 120 degrees centigrade; and
(b)
the energy, in whatever form, including pressure, present in, resulting from, created
by, or which may be extracted from that natural heat, directly or through a material
medium.
(16)
(a)
"Goodwill" means:
(i)
acquired goodwill that is reported as goodwill on the books and records that a
taxpayer maintains for financial reporting purposes; or
(ii)
the ability of a business to:
(A)
generate income that exceeds a normal rate of return on assets and that results
from a factor described in Subsection
(16)(b)
; or
(B)
obtain an economic or competitive advantage resulting from a factor described
in Subsection
(16)(b)
.
(b)
The following factors apply to Subsection
(16)(a)(ii)
:
(i)
superior management skills;
(ii)
reputation;
(iii)
customer relationships;
(iv)
patronage; or
(v)
a factor similar to Subsections
(16)(b)(i)
through
(iv)
.
(c)
"Goodwill" does not include:
(i)
the intangible property described in Subsection
(20)(a)
(22)(a)
or
(b)
;
(ii)
locational attributes of real property, including:
(A)
zoning;
(B)
location;
(C)
view;
(D)
a geographic feature;
(E)
an easement;
(F)
a covenant;
(G)
proximity to raw materials;
(H)
the condition of surrounding property; or
(I)
proximity to markets;
(iii)
value attributable to the identification of an improvement to real property,
including:
(A)
reputation of the designer, builder, or architect of the improvement;
(B)
a name given to, or associated with, the improvement; or
(C)
the historic significance of an improvement; or
(iv)
the enhancement or assemblage value specifically attributable to the interrelation
of the existing tangible property in place working together as a unit.
(17)
"Governing body" means:
(a)
for a county, city, or town, the legislative body of the county, city, or town;
(b)
for a special district under Title 17B, Limited Purpose Local Government Entities -
Special Districts, the

special district's board of trustees;
(c)
for a school district, the local board of education;
(d)
for a special service district under Title 17D, Chapter 1, Special Service District Act:
(i)
the legislative body of the county or municipality that created the special service
district, to the extent that the county or municipal legislative body has not
delegated authority to an administrative control board established under Section
17D-1-301
; or
(ii)
the administrative control board, to the extent that the county or municipal
legislative body has delegated authority to an administrative control board
established under Section
17D-1-301
; or
(e)
for a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure
District Act, the public infrastructure district's board of trustees.
(18)
"Gross vehicle weight rating" means the maximum gross vehicle weight rating as
reported by the manufacturer of the motor vehicle for the vehicle identification number.
(19)
(a)
Except as provided in Subsection (19)(c), "improvement"
"Improvement"

means a building, structure, fixture, fence, or other item that is permanently attached
to land, regardless of whether the title has been acquired to the land, if:
(i)
(A)
attachment to land is essential to the operation or use of the item; and
(B)
the manner of attachment to land suggests that the item will remain attached to
the land in the same place over the useful life of the item; or
(ii)
removal of the item would:
(A)
cause substantial damage to the item; or
(B)
require substantial alteration or repair of a structure to which the item is
attached.
(b)
"Improvement" includes:
(i)
an accessory to an item described in Subsection
(19)(a)
(22)(a)
if the accessory is:
(A)
essential to the operation of the item described in Subsection
(19)(a)
(22)(a)
;
and
(B)
installed solely to serve the operation of the item described in Subsection
(19)(a)
(22)(a)
; and
(ii)
an item described in Subsection
(19)(a)
(22)(a)
that is temporarily detached from
the land for repairs and remains located on the land.
(c)
"Improvement" does not include:
(i)
an item
considered to be personal property pursuant
that, according
to rules
made in accordance with Section
59-2-107
, is personal property
;
(ii)
a moveable item that is attached to land for stability only or for an obvious
temporary purpose;
(iii)
(A)
manufacturing equipment and machinery; or
(B)
essential accessories to manufacturing equipment and machinery;
(iv)
an item attached to the land in a manner that facilitates removal without
substantial damage to the land or the item; or
(v)
a transportable factory-built housing unit as defined in Section
59-2-1502
if that
transportable factory-built housing unit is considered to be personal property
under Section
59-2-1503
.
(20)
"Inflation adjusted budget increase" means last year's property tax budgeted revenue,
as defined in Section
59-2-919
, multiplied by the inflation factor.
(21)
"Inflation factor" means:
(a)
the increase in the Consumer Price Index for all urban consumers, prepared by the
United States Bureau of Statistics, during the preceding calendar year; or
(b)
if there is not an increase in the Consumer Price Index for all urban consumers,
prepared by the United States Bureau of Statistics, during the preceding calendar
year, zero.
(20)
(22)
"Intangible property" means:
(a)
property that is capable of private ownership separate from tangible property,
including:
(i)
money;
(ii)
credits;
(iii)
bonds;
(iv)
stocks;
(v)
representative property;
(vi)
franchises;
(vii)
licenses;
(viii)
trade names;
(ix)
copyrights; and
(x)
patents;
(b)
a low-income housing tax credit;
(c)
goodwill; or
(d)
a clean or renewable energy tax credit or incentive, including:
(i)
a federal renewable energy production tax credit under Section 45, Internal
Revenue Code;
(ii)
a federal energy credit for qualified renewable electricity production facilities
under Section 48, Internal Revenue Code;
(iii)
a federal grant for a renewable energy property under American Recovery and
Reinvestment Act of 2009, Pub. L. No. 111-5, Section 1603; and
(iv)
a tax credit under Subsection
59-7-614(5)
.
(21)
(23)
"Livestock" means:
(a)
a domestic animal;
(b)
a fish;
(c)
a fur-bearing animal;
(d)
a honeybee; or
(e)
poultry.
(22)
(24)
"Low-income housing tax credit" means:
(a)
a federal low-income housing tax credit under Section 42, Internal Revenue Code; or
(b)
a low-income housing tax credit under Section
59-7-607
or Section
59-10-1010
.
(25)
"Maximum new growth revenue" means revenue equal to the lesser of:
(a)
the certified tax rate multiplied by eligible new growth as defined in Section
59-2-924
;
or
(b)
the inflation adjusted budget increase.
(23)
(26)
"Metalliferous minerals" includes gold, silver, copper, lead, zinc, and uranium.
(24)
(27)
"Mine" means a natural deposit of either metalliferous or nonmetalliferous
valuable mineral.
(25)
(28)
"Mining" means the process of producing, extracting, leaching, evaporating, or
otherwise removing a mineral from a mine.
(26)
(29)
(a)
"Mobile flight equipment" means tangible personal property that is owned
or operated by an air charter service, air contract service, or airline and:
(i)
is capable of flight or is attached to an aircraft that is capable of flight; or
(ii)
is contained in an aircraft that is capable of flight if the tangible personal property
is intended to be used:
(A)
during multiple flights;
(B)
during a takeoff, flight, or landing; and
(C)
as a service provided by an air charter service, air contract service, or airline.
(b)
(i)
"Mobile flight equipment" does not include a spare part other than a spare
engine that is rotated at regular intervals with an engine that is attached to the
aircraft.
(ii)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules defining the term "regular intervals."
(27)
(30)
"Nonmetalliferous minerals" includes
, but is not limited to,
oil, gas, coal, salts,
sand, rock, gravel, and all carboniferous materials.
(28)
(31)
"Part-year residential property" means property that is not residential property on
January 1 of a calendar year but becomes residential property after January 1 of the
calendar year.
(29)
(32)
"Personal property" includes:
(a)
every class of property as defined in Subsection
(30)
(33)
that is the subject of
ownership and is not real estate or an improvement;
(b)
any
a
pipe laid in or affixed to land whether or not the ownership of the pipe is
separate from the ownership of the underlying land, even if the pipe meets the
definition of an improvement;
(c)
bridges and ferries
a bridge or a ferry
;
(d)
livestock; and
(e)
an
outdoor advertising
structures
structure
as defined in Section
72-7-502
.
(30)
(33)
(a)
"Property" means property that is subject to assessment and taxation
according to
its
the property's
value.
(b)
"Property" does not include intangible property as defined in this section.
(31)
(34)
(a)
"Public utility" means:
(i)
the operating property of a railroad, gas corporation, oil or gas transportation or
pipeline company, coal slurry pipeline company, electrical corporation, sewerage
corporation, or heat corporation where the company performs the service for, or
delivers the commodity to, the public generally or companies serving the public
generally, or in the case of a gas corporation or an electrical corporation, where
the gas or electricity is sold or furnished to any member or consumers within the
state for domestic, commercial, or industrial use; and
(ii)
the operating property of any entity or person defined under Section
54-2-1

except water corporations.
(b)
"Public utility" does not include the operating property of a telecommunications
service provider.
(32)
(35)
(a)
Subject to Subsection
(32)(b)
(35)(b)
, "qualifying exempt primary
residential rental personal property" means household furnishings, furniture, and
equipment that:
(i)
are used exclusively within a dwelling unit that is the primary residence of a
tenant;
(ii)
are owned by the owner of the dwelling unit that is the primary residence of a
tenant; and
(iii)
after applying the residential exemption described in Section
59-2-103
, are
exempt from taxation under this chapter in accordance with Subsection
59-2-1115(2)
.
(b)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of this
Subsection
(32)
(35)
and Subsection
(35)
(38)
.
(33)
(36)
"Real estate" or "real property" includes:
(a)
the possession of, claim to, ownership of, or right to the possession of land;
(b)
all mines, minerals, and quarries in and under the land, all timber belonging to
individuals or corporations growing or being on the lands of this state or the United
States, and all rights and privileges appertaining to these; and
(c)
improvements.
(34)
(37)
(a)
"Relationship with an owner of the property's land surface rights" means a
relationship described in Subsection 267(b), Internal Revenue Code, except that the
term 25% shall be substituted for the term 50% in Subsection 267(b), Internal
Revenue Code.
(b)
For purposes of determining if a relationship described in Subsection 267(b), Internal
Revenue Code, exists, the ownership of stock
shall be
is
determined using the
ownership rules in Subsection 267(c), Internal Revenue Code.
(35)
(38)
(a)
"Residential property," for purposes of the reductions and adjustments
under this chapter, means
any
property used for residential purposes as a primary
residence.
(b)
"Residential property" includes:
(i)
except as provided in Subsection (35)(b)(ii), includes
household furnishings,
furniture, and equipment if the household furnishings, furniture, and equipment
are:
(A)
used exclusively within a dwelling unit that is the primary residence of a
tenant; and
(B)
owned by the owner of the dwelling unit that is the primary residence of a
tenant; and
(ii)
if the county assessor determines that the property will be used for residential
purposes as a primary residence:
(A)
property under construction; or
(B)
unoccupied property.
(c)
"Residential property" does not include property used for transient residential use.
(d)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may by rule define the term "dwelling unit" for purposes of Subsection
(32)
(35)
and this Subsection
(35)
(38)
.
(36)
(39)
"Split estate mineral rights owner" means a person that:
(a)
has a legal right to extract a mineral from property;
(b)
does not hold more than a 25% interest in:
(i)
the land surface rights of the property where the wellhead is located; or
(ii)
an entity with an ownership interest in the land surface rights of the property
where the wellhead is located;
(c)
is not an entity in which the owner of the land surface rights of the property where
the wellhead is located holds more than a 25% interest; and
(d)
does not have a relationship with an owner of the land surface rights of the property
where the wellhead is located.
(37)
(40)
(a)
"State-assessed commercial vehicle" means:
(i)
any
a
commercial vehicle, trailer, or semitrailer that operates interstate or
intrastate to transport passengers, freight, merchandise, or other property for hire;
or
(ii)
any
a
commercial vehicle, trailer, or semitrailer that operates interstate and
transports the vehicle owner's goods or property in furtherance of the owner's
commercial enterprise.
(b)
"State-assessed commercial vehicle" does not include
vehicles used for hire that are
a vehicle used for hire that is
specified in Subsection
(10)(c)
as
a
county-assessed
commercial
vehicles
vehicle
.
(38)
(41)
"Subdivided lot" means a lot, parcel, or other division of land, that is a division
of a base parcel.
(39)
(42)
"Tax area" means a geographic area created by the overlapping boundaries of
one or more taxing entities.
(40)
(43)
"Taxable value" means fair market value less any applicable reduction allowed
for residential property under Section
59-2-103
.
(41)
(44)
"Taxing entity" means
any
a
county, city, town, school district, special taxing
district, special district under Title 17B, Limited Purpose Local Government Entities -
Special Districts, or
other
another
political subdivision of the state with the authority to
levy a tax on property.
(42)
(45)
(a)
"Tax roll" means a permanent record of the taxes charged on property, as
extended on the assessment roll, and may be maintained on the same record or
records as the assessment roll or may be maintained on a separate record properly
indexed to the assessment roll.
(b)
"Tax roll" includes tax books, tax lists, and other similar materials.
(43)
(46)
"Telecommunications service provider" means the same as that term is defined in
Section
59-12-102
.
Section 4. Section
59-2-103
is amended to read:
59-2-103
Effective
01/01/27
. Rate of assessment of property -- Residential
property.
(1)
As used in this section:
(a)
(i)
"Household" means the association of individuals who live in the same
dwelling, sharing the dwelling's furnishings, facilities, accommodations, and
expenses.
(ii)
"Household" includes married individuals, who are not legally separated, who
have established domiciles at separate locations within the state.
(b)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules defining the term "domicile."
(2)
All tangible taxable property located within the state shall be assessed and taxed at a
uniform and equal rate on the basis of its fair market value, as valued on January 1,
unless otherwise provided by law.
(3)
Subject to Subsections
(4)
through
(6)
and Section
59-2-103.5
, for a calendar year, the
fair market value of residential property located within the state is allowed a residential
exemption equal to a 45% reduction in the value of the property.
(4)
Part-year residential property located within the state is allowed the residential
exemption described in Subsection
(3)
if the part-year residential property is used as
residential property for 183 or more consecutive calendar days during the calendar year
for which the owner seeks to obtain the residential exemption.
(5)
No more than one acre of land per residential unit may qualify for the residential
exemption described in Subsection
(3)
.
(6)
(a)
Except as provided in Subsections
(6)(b)(ii)
and
(iii)
, a residential exemption
described in Subsection
(3)
is limited to one primary residence per household.
(b)
An owner of multiple primary residences located within the state is allowed a
residential exemption under Subsection
(3)
for:
(i)
subject to Subsection
(6)(a)
, the primary residence of the owner;
(ii)
each residential property that is the primary residence of a tenant; and
(iii)
subject to Subsection
59-2-103.5(4)
, each residential property described in
Subsection
59-2-102(35)(b)(ii)
59-2-102(38)(b)(ii)
.
Section 5. Section
59-2-103.5
is amended to read:
59-2-103.5
Effective
01/01/27
. Procedures to obtain an exemption for
residential property -- Procedure if property owner or property no longer qualifies to
receive a residential exemption.
(1)
Subject to Subsections
(4)
, (5), (6), and (11), for residential property other than
part-year residential property, a county legislative body may adopt an ordinance that
requires an owner to file an application with the county board of equalization before the
county applies a residential exemption authorized under Section
59-2-103
to the value of
the residential property if:
(a)
the residential property was ineligible for the residential exemption during the
calendar year immediately preceding the calendar year for which the owner is
seeking to have the residential exemption applied to the value of the residential
property;
(b)
an ownership interest in the residential property changes; or
(c)
the county board of equalization determines that there is reason to believe that the
residential property no longer qualifies for the residential exemption.
(2)
(a)
The application described in Subsection
(1)
:
(i)
shall be on a form the commission provides by rule and makes available to the
counties;
(ii)
shall be signed by the owner of the residential property; and
(iii)
may not request the sales price of the residential property.
(b)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may make rules providing the contents of the form described in
Subsection
(2)(a)
.
(c)
For purposes of the application described in Subsection
(1)
, a county may not request
information from an owner of a residential property beyond the information in the
form provided by the commission under this Subsection
(2)
.
(3)
(a)
Regardless of whether a county legislative body adopts an ordinance described in
Subsection
(1)
, before a county may apply a residential exemption to the value of
part-year residential property, an owner of the property shall:
(i)
subject to Subsection
(6)
, file the application described in Subsection
(2)(a)
with
the county board of equalization; and
(ii)
include as part of the application described in Subsection
(2)(a)
a statement that
certifies:
(A)
the date the part-year residential property became residential property;
(B)
that the part-year residential property will be used as residential property for
183 or more consecutive calendar days during the calendar year for which the
owner seeks to obtain the residential exemption; and
(C)
that the owner, or a member of the owner's household, may not claim a
residential exemption for any property for the calendar year for which the
owner seeks to obtain the residential exemption, other than the part-year
residential property, or as allowed under Section
59-2-103
with respect to the
primary residence or household furnishings, furniture, and equipment of the
owner's tenant.
(b)
If an owner files an application under this Subsection
(3)
on or after May 1 of the
calendar year for which the owner seeks to obtain the residential exemption, the
county board of equalization may require the owner to pay an application fee not to
exceed $50.
(4)
Before a county allows residential property described in Subsection
59-2-102(35)(b)(ii)
59-2-102(38)(b)(ii)
a residential exemption authorized under Section
59-2-103
, an
owner of the residential property shall file with the county assessor a written declaration
that:
(a)
states under penalty of perjury that, to the best of each owner's knowledge, upon
completion of construction or occupancy of the residential property, the residential
property will be used for residential purposes as a primary residence;
(b)
is signed by each owner of the residential property; and
(c)
is on a form approved by the commission.
(5)
(a)
Before a county allows residential property described in Subsection
59-2-103(6)(b)

a residential exemption authorized under Section
59-2-103
, an owner of the
residential property shall file with the county assessor a written declaration that:
(i)
states under penalty of perjury that, to the best of each owner's knowledge, the
residential property will be used for residential purposes as a primary residence of
a tenant;
(ii)
is signed by each owner of the residential property; and
(iii)
is on a form approved by the commission.
(b)
(i)
(A)
In addition to the declaration, a county assessor may request from an
owner a current lease agreement signed by the tenant.
(B)
If the lease agreement is insufficient for a county assessor to make a
determination about eligibility for a residential exemption, a county assessor
may request a copy of the real estate insurance policy for the property.
(C)
If the real estate insurance policy is insufficient for a county assessor to make
a determination about eligibility for a residential exemption, a county assessor
may request a copy of a filing from the most recent federal tax return showing
that the owner had profit or loss from the residential property as a rental.
(ii)
A county assessor may not request information from an owner's tenant.
(6)
(a)
Except as provided in Subsection
(6)(b)
, the county board of equalization may not
accept from a property owner an application to receive a residential exemption
authorized under Section
59-2-103
for the property owner's primary residence that is
filed after the later of:
(i)
September 15 of the calendar year for which the property owner seeks to receive
the residential exemption; or
(ii)
the last day of a 45-day period beginning on the day on which the county auditor
provides the notice under Section
59-2-919.1
.
(b)
(i)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may make rules providing for circumstances under which the
county board of equalization is required to accept a property owner's application
for a residential exemption authorized under Section
59-2-103
that is filed after
the time period described in Subsection
(6)(a)
.
(ii)
The commission shall report to the Revenue and Taxation Interim Committee on
any rules promulgated under this Subsection
(6)(b)
.
(7)
Except as provided in Subsection
(8)
, if a property owner no longer qualifies to receive
a residential exemption authorized under Section
59-2-103
for the property owner's
primary residence, the property owner shall:
(a)
file a written statement with the county board of equalization of the county in which
the property is located:
(i)
on a form provided by the county board of equalization; and
(ii)
notifying the county board of equalization that the property owner no longer
qualifies to receive a residential exemption authorized under Section
59-2-103
for
the property owner's primary residence; and
(b)
declare on the property owner's individual income tax return under Chapter 10,
Individual Income Tax Act, for the taxable year for which the property owner no
longer qualifies to receive a residential exemption authorized under Section
59-2-103

for the property owner's primary residence, that the property owner no longer
qualifies to receive a residential exemption authorized under Section
59-2-103
for the
property owner's primary residence.
(8)
A property owner is not required to file a written statement or make the declaration
described in Subsection
(7)
if the property owner:
(a)
changes primary residences;
(b)
qualified to receive a residential exemption authorized under Section
59-2-103
for
the residence that was the property owner's former primary residence; and
(c)
qualifies to receive a residential exemption authorized under Section
59-2-103
for the
residence that is the property owner's current primary residence.
(9)
Subsections
(2)
through
(8)
do not apply to qualifying exempt primary residential rental
personal property.
(10)
(a)
Subject to Subsection
(11)
, for the first calendar year in which a property owner
qualifies to receive a residential exemption under Section
59-2-103
, a county assessor
may require the property owner to file a signed statement described in Section
59-2-306
.
(b)
Subject to Subsection
(11)
and notwithstanding Section
59-2-306
, for a calendar year
after the calendar year described in Subsection
(10)(a)
in which a property owner
qualifies for an exemption authorized under Section
59-2-1115
for qualifying exempt
primary residential rental personal property, a signed statement described in Section
59-2-306
with respect to the qualifying exempt primary residential rental personal
property may only require the property owner to certify, under penalty of perjury,
that the property owner qualifies for the exemption authorized under Section
59-2-1115
.
(11)
(a)
After an ownership interest in residential property changes, the county assessor
shall:
(i)
notify the owner of the residential property that the owner is required to submit a
written declaration described in Subsection
(11)(d)
within 90 days after the day on
which the county assessor mails the notice under this Subsection
(11)(a)
; and
(ii)
provide the owner of the residential property with the form described in
Subsection
(11)(e)
to make the written declaration described in Subsection
(11)(d)
.
(b)
A county assessor is not required to provide a notice to an owner of residential
property under Subsection
(11)(a)
if the situs address of the residential property is the
same as any one of the following:
(i)
the mailing address of the residential property owner or the tenant of the
residential property;
(ii)
the address listed on the:
(A)
residential property owner's driver license; or
(B)
tenant of the residential property's driver license; or
(iii)
the address listed on the:
(A)
residential property owner's voter registration; or
(B)
tenant of the residential property's voter registration.
(c)
A county assessor is not required to provide a notice to an owner of residential
property under Subsection
(11)(a)
if:
(i)
the owner is using a post office box or rural route box located in the county where
the residential property is located; and
(ii)
the residential property is located in a county of the fourth, fifth, or sixth class.
(d)
An owner of residential property that receives a notice described in Subsection
(11)(a)
shall submit a written declaration to the county assessor under penalty of
perjury certifying the information contained in the form described in Subsection
(11)(e)
.
(e)
The written declaration required by Subsection
(11)(d)
shall be:
(i)
signed by the owner of the residential property; and
(ii)
in substantially the following form:
"Residential Property Declaration
This form must be submitted to the County Assessor's office where your new residential
property is located within 90 days of receipt. Failure to do so will result in the county assessor
taking action that could result in the withdrawal of the primary residential exemption from
your residential property.
Residential Property Owner Information
Name(s):__________________________________________________
Home Phone:_______________________________________________
Work Phone:_______________________________________________
Mailing Address:____________________________________________
Residential Property Information
Physical Address:___________________________________________
Certification
1. Is this property used as a primary residential property or part-year residential
property for you or another person?
"Part-year residential property" means owned property that is not residential property on
January 1 of a calendar year but becomes residential property after January 1 of the calendar
year.
Yes
No
2. Will this primary residential property or part-year residential property be occupied
for 183 or more consecutive calendar days by the owner or another person?
A part-year residential property occupied for 183 or more consecutive calendar days in a
calendar year by the owner(s) or a tenant is eligible for the exemption.
Yes
No
If a property owner or a property owner's spouse claims a residential exemption under
Utah Code Ann.
59-2-103
for property in this state that is the primary residence of the property
owner or the property owner's spouse, that claim of a residential exemption shall be considered
in determining whether the property owner and the property owner's spouse have domicile in
Utah for income tax purposes.
Signature
Under penalties of perjury, I declare to the best of my knowledge and belief, this
declaration and accompanying pages are true, correct, and complete.
__________________(Owner signature) _____________________Date (mm/dd/yyyy)
__________________(Owner printed name)
."
(f)
For purposes of a written declaration described in this Subsection
(11)
, a county may
not request information from a property owner beyond the information described in
the form provided in Subsection
(11)(e)
.
(g)
(i)
If, after receiving a written declaration filed under Subsection
(11)(d)
, the
county determines that the property has been incorrectly qualified or disqualified
to receive a residential exemption, the county shall:
(A)
redetermine the property's qualification to receive a residential exemption; and
(B)
notify the claimant of the redetermination and the county's reason for the
redetermination.
(ii)
The redetermination provided in Subsection
(11)(g)(i)(A)
is final unless:
(A)
except as provided in Subsection
(11)(g)(iii)
, the property owner appeals the
redetermination to the board of equalization in accordance with Subsection
59-2-1004(2)
; or
(B)
the county determines that the property is eligible to receive a primary
residential exemption as part-year residential property.
(iii)
The board of equalization may not accept an appeal that is filed after the later of:
(A)
September 15 of the current calendar year; or
(B)
the last day of the 45-day period beginning on the day on which the county
auditor provides the notice under Section
59-2-919.1
.
(h)
(i)
If a residential property owner fails to file a written declaration required by
Subsection
(11)(d)
, the county assessor shall mail to the owner of the residential
property a notice that:
(A)
the property owner failed to file a written declaration as required by
Subsection
(11)(d)
; and
(B)
the property owner will no longer qualify to receive the residential exemption
authorized under Section
59-2-103
for the property that is the subject of the
written declaration if the property owner does not file the written declaration
required by Subsection
(11)(d)
within 30 days after the day on which the
county assessor mails the notice under this Subsection
(11)(h)(i)
.
(ii)
If a property owner fails to file a written declaration required by Subsection
(11)(d)
after receiving the notice described in Subsection
(11)(h)(i)
, the property
owner no longer qualifies to receive the residential exemption authorized under
Section
59-2-103
in the calendar year for the property that is the subject of the
written declaration unless:
(A)
except as provided in Subsection
(11)(h)(iii)
, the property owner appeals the
redetermination to the board of equalization in accordance with Subsection
59-2-1004(2)
; or
(B)
the county determines that the property is eligible to receive a primary
residential exemption as part-year residential property.
(iii)
The board of equalization may not accept an appeal that is filed after the later of:
(A)
September 15 of the current calendar year; or
(B)
the last day of the 45-day period beginning on the day on which the county
auditor provides the notice under Section
59-2-919.1
.
(iv)
A property owner that is disqualified to receive the residential exemption under
Subsection
(11)(h)(ii)
may file an application described in Subsection
(1)
to
determine whether the owner is eligible to receive the residential exemption.
(i)
The requirements of this Subsection
(11)
do not apply to a county assessor in a
county that adopts and enforces an ordinance described in Subsection
(1)
.
Section 6. Section
59-2-804
is amended to read:
59-2-804
Effective
01/01/27
. Interstate allocation of mobile flight equipment.
(1)
As used in this section:
(a)
"Aircraft type" means a particular model of aircraft as designated by the
manufacturer of the aircraft.
(b)
"Airline ground hours calculation" means an amount equal to the product of:
(i)
the total number of hours aircraft owned or operated by an airline are on the
ground, calculated by aircraft type; and
(ii)
the cost percentage.
(c)
"Airline revenue ton miles" means, for an airline, the total revenue ton miles during
the calendar year that immediately precedes the January 1 described in Section
59-2-103
.
(d)
"Cost percentage" means a fraction, calculated by aircraft type, the numerator of
which is the airline's average cost of the aircraft type and the denominator of which is
the airline's average cost of the aircraft type:
(i)
owned or operated by the airline; and
(ii)
that has the lowest average cost.
(e)
"Ground hours factor" means the product of:
(i)
a fraction, the numerator of which is the Utah ground hours calculation and the
denominator of which is the airline ground hours calculation; and
(ii)
.50.
(f)
(i)
Except as provided in Subsection
(1)(f)(ii)
, "mobile
"Mobile
flight equipment"
is as defined in Section
59-2-102
.
(ii)
"Mobile flight equipment" does not include tangible personal property described
in Subsection
59-2-102(26)
59-2-102(29)
owned by an:
(A)
air charter service; or
(B)
air contract service.
(g)
"Mobile flight equipment allocation factor" means the sum of:
(i)
the ground hours factor; and
(ii)
the revenue ton miles factor.
(h)
"Revenue ton miles" is determined in accordance with 14 C.F.R.
Part 241
.
(i)
"Revenue ton miles factor" means the product of:
(i)
a fraction, the numerator of which is the Utah revenue ton miles and the
denominator of which is the airline revenue ton miles; and
(ii)
.50.
(j)
"Utah ground hours calculation" means an amount equal to the product of:
(i)
the total number of hours aircraft owned or operated by an airline are on the
ground in this state, calculated by aircraft type; and
(ii)
the cost percentage.
(k)
"Utah revenue ton miles" means, for an airline, the total revenue ton miles within the
borders of this state:
(i)
during the calendar year that immediately precedes the January 1 described in
Section
59-2-103
; and
(ii)
from flight stages that originate or terminate in this state.
(2)
For purposes of the assessment of an airline's mobile flight equipment by the
commission, a portion of the value of the airline's mobile flight equipment shall be
allocated to the state by calculating the product of:
(a)
the total value of the mobile flight equipment; and
(b)
the mobile flight equipment allocation factor.
Section 7. Section
59-2-913
is amended to read:
59-2-913
Effective
01/01/27
. Definitions -- Statement of amount and purpose of
levy -- Contents of statement -- Filing with county auditor -- Transmittal to commission --
Calculations for establishing tax levies -- Format of statement.
(1)
As used in this section,
"budgeted property tax revenues
"property tax budgeted
revenue
" does not include property tax revenue received by a taxing entity from personal
property that is:
(a)
assessed by a county assessor in accordance with
Part 3, County Assessment
; and
(b)
semiconductor manufacturing equipment.
(2)
(a)
The legislative body of each taxing entity shall file a statement as provided in this
section with the county auditor of the county in which the taxing entity is located.
(b)
The auditor shall annually transmit the statement to the commission:
(i)
before June 22; or
(ii)
with the
commission's
approval
of the commission, on a subsequent date prior to
on a date that is later than June 22 but before
the date required by Section
59-2-1317
for the county treasurer to provide the notice under Section
59-2-1317
.
(c)
The statement shall contain the amount and purpose of each levy fixed by the
legislative body of the taxing entity.
(3)
For purposes of establishing the levy set for each of a taxing entity's applicable funds,
the legislative body of the taxing entity shall calculate an amount determined by
dividing the
budgeted property tax revenues
property tax budgeted revenue
, specified
in a budget that has been adopted and approved
prior to
before
setting the levy, by the
amount calculated under Subsections
59-2-924(4)(b)(i)
through
(iv)
.
(4)
The format of the statement under this section shall:
(a)
be determined by the commission; and
(b)
cite any applicable statutory provisions that:
(i)
require a specific levy; or
(ii)
limit the property tax levy for any taxing entity.
(5)
The commission may require certification that the information submitted on a statement
under this section is true and correct.
Section 8. Section
59-2-919
is amended to read:
59-2-919
Effective
01/01/27
. Notice and public hearing requirements for
certain tax increases -- Exceptions -- Audit.
(1)
As used in this section:
(a)
"Additional ad valorem tax revenue" means ad valorem property tax revenue
generated by the portion of the tax rate that exceeds the taxing entity's certified tax
rate.
(b)
"Ad valorem tax revenue" means ad valorem property tax revenue not including

revenue from
:
(i)
eligible new growth
maximum new growth revenue
; or
(ii)
revenue from
personal property that is:
(A)
assessed by a county assessor in accordance with Part
3, County Assessment
;
and
(B)
semiconductor manufacturing equipment.
(c)
"Base year" means a taxing entity's fiscal year that immediately precedes the fiscal
year in which the taxing entity first adopted a budget below last year's property tax
budgeted revenue.
(d)
"Base year budgeted revenue" means the property tax budgeted revenue, excluding
eligible new growth, for the base year.
(e)
"Calendar year taxing entity" means a taxing entity that operates under a fiscal year
that begins on January 1 and ends on December 31.
(f)
"County executive calendar year taxing entity" means a calendar year taxing entity
that operates under the county executive-council form of government described in
Section
17-62-203
.
(g)
"Current calendar year" means the calendar year immediately preceding the calendar
year for which a calendar year taxing entity seeks to levy a tax rate that exceeds the
calendar year taxing entity's certified tax rate.
(h)
"Eligible new growth" means the same as that term is defined in Section
59-2-924
.
(i)
"Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that
begins on July 1 and ends on June 30.
(j)
"Meeting" means the same as that term is defined in Section
52-4-103
.
(k)
(j)
(i)
"Last year's property tax budgeted revenue" means the revenue a taxing
entity budgeted to be generated from a property tax levy for the previous fiscal
year.
(ii)
"Last year's property tax budgeted revenue" does not include:
(i)
(A)
revenue received by a taxing entity from a debt service levy voted on by
the public;
(ii)
(B)
revenue generated by the
combined
minimum
basic
tax
rate as defined
in Section
53F-2-301
; or
(iii)
(C)
revenue generated by the charter school levy described in Section
53F-2-703
.
(k)
"Meeting" means the same as that term is defined in Section
52-4-103
.
(l)
"Truth-in-taxation exemption period" means a six-year period that begins with the
base year.
(2)
Except as provided in Subsection
(11)
, a taxing entity may not levy a tax rate that
exceeds the taxing entity's certified tax rate unless the taxing entity meets:
(a)
the requirements of this section that apply to the taxing entity; and
(b)
all other requirements as may be required by law.
(3)
(a)
Subject to Subsection
(3)(b)
and except as provided in Subsection
(5)
, a calendar
year taxing entity may levy a tax rate that exceeds the calendar year taxing entity's
certified tax rate if the calendar year taxing entity:
(i)
14 or more days before the date of the regular general election or municipal
general election held in the current calendar year, states at a public meeting:
(A)
that the calendar year taxing entity intends to levy a tax rate that exceeds the
calendar year taxing entity's certified tax rate;
(B)
the dollar amount of and purpose for additional ad valorem tax revenue that
would be generated by the proposed increase in the certified tax rate; and
(C)
the approximate percentage increase in ad valorem tax revenue for the taxing
entity based on the proposed increase described in Subsection
(3)(a)(i)(B)
;
(ii)
provides notice for the public meeting described in Subsection
(3)(a)(i)
in
accordance with Title
52, Chapter 4
, Open and Public Meetings Act, including
providing a separate item on the meeting agenda that notifies the public that the
calendar year taxing entity intends to make the statement described in Subsection
(3)(a)(i)
;
(iii)
meets the advertisement requirements of Subsections
(6)
and
(7)
before the
calendar year taxing entity conducts the public hearing required by Subsection
(3)(a)(v)
;
(iv)
provides notice by mail:
(A)
seven or more days before the regular general election or municipal general
election held in the current calendar year; and
(B)
as provided in Subsection
(3)(c)
; and
(v)
conducts a public hearing that is held:
(A)
in accordance with Subsections
(8)
and
(9)
; and
(B)
in conjunction with the public hearing required by Section
17-63-304
or
17B-1-610
.
(b)
(i)
For a county executive calendar year taxing entity, the statement described in
Subsection
(3)(a)(i)
shall be made by the:
(A)
county council;
(B)
county executive; or
(C)
both the county council and county executive.
(ii)
If the county council makes the statement described in Subsection
(3)(a)(i)
or the
county council states a dollar amount of additional ad valorem tax revenue that is
greater than the amount of additional ad valorem tax revenue previously stated by
the county executive in accordance with Subsection
(3)(a)(i)
, the county executive
calendar year taxing entity shall:
(A)
make the statement described in Subsection
(3)(a)(i)
14 or more days before
the county executive calendar year taxing entity conducts the public hearing
under Subsection
(3)(a)(v)
; and
(B)
provide the notice required by Subsection
(3)(a)(iv)
14 or more days before
the county executive calendar year taxing entity conducts the public hearing
required by Subsection
(3)(a)(v)
.
(c)
The notice described in Subsection
(3)(a)(iv)
:
(i)
shall be mailed to each owner of property:
(A)
within the calendar year taxing entity; and
(B)
listed on the assessment roll;
(ii)
shall be printed on a separate form that:
(A)
is developed by the commission;
(B)
states at the top of the form, in bold upper-case type no smaller than 18 point
"NOTICE OF PROPOSED TAX INCREASE"; and
(C)
may be mailed with the notice required by Section
59-2-1317
;
(iii)
shall contain for each property described in Subsection
(3)(c)(i)
:
(A)
the value of the property for the current calendar year;
(B)
the tax on the property for the current calendar year; and
(C)
subject to Subsection
(3)(d)
, for the calendar year for which the calendar year
taxing entity seeks to levy a tax rate that exceeds the calendar year taxing
entity's certified tax rate, the estimated tax on the property;
(iv)
shall contain the following statement:
"[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar
year]. This notice contains estimates of the tax on your property and the proposed tax increase
on your property as a result of this tax increase. These estimates are calculated on the basis of
[insert previous applicable calendar year] data. The actual tax on your property and proposed
tax increase on your property may vary from this estimate.";
(v)
shall state the dollar amount of additional ad valorem tax revenue that would be
generated each year by the proposed increase in the certified tax rate;
(vi)
shall include a brief statement of the primary purpose for the proposed tax
increase, including the taxing entity's intended use of additional ad valorem tax
revenue described in Subsection
(3)(c)(v)
;
(vii)
shall state the date, time, and place of the public hearing described in Subsection
(3)(a)(v)
;
(viii)
shall state the
Internet
internet
address for the taxing entity's public website;
(ix)
may contain other information approved by the commission; and
(x)
if sent in calendar year 2024, 2025, or 2026, shall contain:
(A)
notice that the taxpayer may request electronic notice as described in
Subsection
17-71-302(1)(m)
; and
(B)
instructions describing how to elect to receive a notice as described in
Subsection
17-71-302(1)(m)
.
(d)
For purposes of Subsection
(3)(c)(iii)(C)
, a calendar year taxing entity shall calculate
the estimated tax on property on the basis of:
(i)
data for the current calendar year; and
(ii)
the amount of additional ad valorem tax revenue stated in accordance with this
section.
(4)
Except as provided in Subsection
(5)
, a fiscal year taxing entity may levy a tax rate that
exceeds the fiscal year taxing entity's certified tax rate if the fiscal year taxing entity:
(a)
provides notice by meeting the advertisement requirements of Subsections
(6)
and
(7)

before the fiscal year taxing entity conducts the public meeting at which the fiscal
year taxing entity's annual budget is adopted; and
(b)
conducts a public hearing in accordance with Subsections
(8)
and
(9)
before the
fiscal year taxing entity's annual budget is adopted.
(5)
(a)
A taxing entity is not required to meet the notice or public hearing requirements of
Subsection
(3)
or
(4)
if the taxing entity is expressly exempted by law from
complying with the requirements of this section.
(b)
A taxing entity is not required to meet the notice requirements of Subsection
(3)
or
(4)
if:
(i)
Section
53F-8-301
allows the taxing entity to levy a tax rate that exceeds that
certified tax rate without having to comply with the notice provisions of this
section; or
(ii)
the taxing entity:
(A)
budgeted less than $20,000 in ad valorem tax revenue for the previous fiscal
year; and
(B)
sets a budget during the current fiscal year of less than $20,000 of ad valorem
tax revenue.
(6)
(a)
Before holding the public hearing described in Subsection
(3)(a)(v)
or
(4)(b)
, a
taxing entity proposing a tax rate increase under this section shall publish an
advertisement regarding the proposed tax increase:
(i)
electronically in accordance with Section
45-1-101
; and
(ii)
as a class A notice under Section
63G-30-102
.
(b)
The advertisement described in Subsection
(6)(a)
shall:
(i)
be published for at least 14 days before the day on which the taxing entity
conducts the public hearing described in Subsection
(3)(a)(v)
or
(4)(b)
; and
(ii)
substantially be in the following form and content:
"NOTICE OF PROPOSED TAX INCREASE
(NAME OF TAXING ENTITY)
The (name of the taxing entity) is proposing to increase its property tax revenue.
The (name of the taxing entity) tax on a (insert the average value of a residence in
the taxing entity rounded to the nearest thousand dollars) residence would increase from
$______ to $________, which is $_______ per year.
The (name of the taxing entity) tax on a (insert the value of a business having the
same value as the average value of a residence in the taxing entity) business would increase
from $________ to $_______, which is $______ per year.
If the proposed budget is approved, (name of the taxing entity) would receive an
additional $______ in property tax revenue per year as a result of the tax increase.
If the proposed budget is approved, (name of the taxing entity) would increase its
property tax budgeted revenue by ___% above last year's property tax budgeted revenue
excluding
eligible
maximum
new growth
revenue
.
The (name of the taxing entity) invites all concerned citizens to a public hearing for the
purpose of hearing comments regarding the proposed tax increase and to explain the reasons
for the proposed tax increase. You have the option to attend or participate in the public hearing
in person or online.
PUBLIC HEARING
Date/Time:
(date) (time)
Location:
(name of meeting place and address of meeting place)
Virtual Meeting Link:
(Internet address for remote participation and live streaming
options)
To obtain more information regarding the tax increase, citizens may contact the (name
of the taxing entity) at (phone number of taxing entity) or visit (Internet address for the taxing
entity's public website)."
(7)
The commission:
(a)
shall adopt rules in accordance with Title
63G, Chapter 3
, Utah Administrative
Rulemaking Act, governing the joint use of one advertisement described in
Subsection
(6)
by two or more taxing entities; and
(b)
subject to Section
45-1-101
, may authorize a taxing entity's use of a
commission-approved direct notice to each taxpayer if:
(i)
the direct notice is different and separate from the notice required under Section
59-2-919.1
; and
(ii)
the taxing entity petitions the commission for the use of a commission-approved
direct notice.
(8)
(a)
(i)
On or before June 1, a fiscal year taxing entity shall notify the commission
and the county auditor of the date, time, and place of the public hearing described
in Subsection
(4)(b)
.
(ii)
On or before October 1 of the current calendar year, a calendar year taxing entity
shall notify the commission and the county auditor of the date, time, and place of
the public hearing described in Subsection
(3)(a)(v)
.
(b)
(i)
A public hearing described in Subsection
(3)(a)(v)
or
(4)(b)
shall be:
(A)
open to the public;
(B)
held at a meeting of the taxing entity with no items on the agenda other than
discussion and action on the taxing entity's intent to levy a tax rate that exceeds
the taxing entity's certified tax rate, the taxing entity's budget, a special
district's or special service district's fee implementation or increase, or a
combination of these items; and
(C)
available for individuals to attend or participate either in person or remotely
through electronic means.
(ii)
The governing body of a taxing entity conducting a public hearing described in
Subsection
(3)(a)(v)
or
(4)(b)
shall:
(A)
state the dollar amount of additional ad valorem tax revenue that would be
generated each year by the proposed increase in the certified tax rate;
(B)
explain the reasons for the proposed tax increase, including the taxing entity's
intended use of additional ad valorem tax revenue described in Subsection
(8)(b)(ii)(A)
;
(C)
if the county auditor compiles the list required by Section
59-2-919.2
, present
the list at the public hearing and make the list available on the taxing entity's
public website; and
(D)
provide an interested party desiring to be heard an opportunity to present oral
testimony within reasonable time limits and without unreasonable restriction
on the number of individuals allowed to make public comment.
(c)
(i)
Except as provided in Subsection
(8)(c)(ii)
, a taxing entity may not schedule a
public hearing described in Subsection
(3)(a)(v)
or
(4)(b)
at the same time as the
public hearing of another overlapping taxing entity in the same county.
(ii)
The taxing entities in which the power to set tax levies is vested in the same
governing board or authority may consolidate the public hearings described in
Subsection
(3)(a)(v)
or
(4)(b)
into one public hearing.
(d)
The county auditor shall resolve any conflict in public hearing dates and times after
consultation with each affected taxing entity.
(e)
(i)
A taxing entity shall hold a public hearing described in Subsection
(3)(a)(v)
or
(4)(b)
beginning at or after 6 p.m.
(ii)
If a taxing entity holds a public meeting for the purpose of addressing general
business of the taxing entity on the same date as a public hearing described in
Subsection
(3)(a)(v)
or
(4)(b)
, the public meeting addressing general business
items shall conclude before the beginning of the public hearing described in
Subsection
(3)(a)(v)
or
(4)(b)
.
(f)
(i)
Except as provided in Subsection
(8)(f)(ii)
, a taxing entity may not hold the
public hearing described in Subsection
(3)(a)(v)
or
(4)(b)
on the same date as
another public hearing of the taxing entity.
(ii)
A taxing entity may hold the following hearings on the same date as a public
hearing described in Subsection
(3)(a)(v)
or
(4)(b)
:
(A)
a budget hearing;
(B)
if the taxing entity is a special district or a special service district, a fee
hearing described in Section
17B-1-643
;
(C)
if the taxing entity is a town, an enterprise fund hearing described in Section
10-5-107.5
; or
(D)
if the taxing entity is a city, an enterprise fund hearing described in Section
10-6-135.5
.
(9)
(a)
If a taxing entity does not make a final decision on budgeting additional ad
valorem tax revenue at a public hearing described in Subsection
(3)(a)(v)
or
(4)(b)
,
the taxing entity shall:
(i)
announce at that public hearing the scheduled time and place of the next public
meeting at which the taxing entity will consider budgeting the additional ad
valorem tax revenue; and
(ii)
if the taxing entity is a fiscal year taxing entity, hold the public meeting described
in Subsection
(9)(a)(i)
before September 1.
(b)
A calendar year taxing entity may not adopt a final budget that budgets an amount of
additional ad valorem tax revenue that exceeds the largest amount of additional ad
valorem tax revenue stated at a public meeting under Subsection
(3)(a)(i)
.
(c)
A public hearing on levying a tax rate that exceeds a fiscal year taxing entity's
certified tax rate may coincide with a public hearing on the fiscal year taxing entity's
proposed annual budget.
(10)
(a)
A county auditor may conduct an audit to verify a taxing entity's compliance
with Subsection
(8)
.
(b)
If the county auditor, after completing an audit, finds that a taxing entity has failed to
meet the requirements of Subsection
(8)
, the county auditor shall prepare and submit
a report of the auditor's findings to the commission.
(c)
The commission may not certify a tax rate that exceeds a taxing entity's certified tax
rate if, on or before September 15 of the year in which the taxing entity is required to
hold the public hearing described in Subsection
(3)(a)(v)
or
(4)(b)
, the commission
determines that the taxing entity has failed to meet the requirements of Subsection
(8)
.
(11)
For a fiscal year within a truth-in-taxation exemption period, a taxing entity may adopt
a budget that is equal to or less than the base year budgeted revenue without complying
with this section.
Section 9. Section
59-2-924
is amended to read:
59-2-924
Effective
01/01/27
. Definitions -- Report of valuation of property to
county auditor and commission -- Transmittal by auditor to governing bodies --
Calculation of certified tax rate -- Rulemaking authority -- Adoption of tentative budget
-- Notice provided by the commission.
(1)
As used in this section:
(a)
(i)
"Ad valorem property tax revenue" means revenue collected in accordance with
this chapter.
(ii)
"Ad valorem property tax revenue" does not include:
(A)
interest;
(B)
penalties;
(C)
collections from redemptions; or
(D)
revenue received by a taxing entity from personal property that is
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment.
(b)
"Adjusted tax increment" means the same as that term is defined in Section
17C-1-102
.
(c)
(i)
"Aggregate taxable value of all property taxed" means:
(A)
the aggregate taxable value of all real property a county assessor assesses in
accordance with Part 3, County Assessment, for the current year;
(B)
the aggregate taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current
year; and
(C)
the aggregate year end taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, contained on the prior
year's tax rolls of the taxing entity.
(ii)
"Aggregate taxable value of all property taxed" does not include the aggregate
year end taxable value of personal property that is:
(A)
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B)
contained on the prior year's tax rolls of the taxing entity.
(d)
"Base taxable value" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
the same as that term is defined in Section
11-59-207
11-59-208
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(v)
for an authority created under Section
63H-1-201
, the same as that term is defined
in Section
63H-1-102
;
(vi)
for a host local government, the same as that term is defined in Section
63N-2-502
;
(vii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, a property's taxable value as shown upon
the assessment roll last equalized during the base year, as that term is defined in
Section
10-21-101
or Section
17-80-101
;
(ix)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, a property's taxable value as shown upon the
assessment roll last equalized during the base year, as that term is defined in
Section
63N-3-1601
;
(x)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, a property's taxable value as shown upon
the assessment roll last equalized during the property tax base year, as that term is
defined in Section
63N-3-1701
; or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
value of the property within an electrical energy development zone, as shown on
the assessment roll last equalized before the creation of the electrical development
zone, as that term is defined in Section
79-6-1104
.
(e)
"Centrally assessed benchmark value" means an amount equal to the average year
end taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous three calendar
years, adjusted for taxable value attributable to:
(i)
an annexation to a taxing entity;
(ii)
an incorrect allocation of taxable value of real or personal property the
commission assesses in accordance with Part 2, Assessment of Property; or
(iii)
a change in value as a result of a change in the method of apportioning the value
prescribed by the Legislature, a court, or the commission in an administrative rule
or administrative order.
(f)
"Centrally assessed industry" means the following industry classes the commission
assesses in accordance with Part 2, Assessment of Property:
(i)
air carrier;
(ii)
coal;
(iii)
coal load out property;
(iv)
electric generation;
(v)
electric rural;
(vi)
electric utility;
(vii)
gas utility;
(viii)
ground access property;
(ix)
land only property;
(x)
liquid pipeline;
(xi)
metalliferous mining;
(xii)
nonmetalliferous mining;
(xiii)
oil and gas gathering;
(xiv)
oil and gas production;
(xv)
oil and gas water disposal;
(xvi)
railroad;
(xvii)
sand and gravel; and
(xviii)
uranium.
(g)
(i)
"Centrally assessed new growth" means the greater of:
(A)
for each centrally assessed industry, zero; or
(B)
the amount calculated by subtracting the centrally assessed benchmark value
for each centrally assessed industry, adjusted for prior year end incremental
value, from the taxable value of real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for each centrally
assessed industry for the current year, adjusted for current year incremental
value.
(ii)
"Centrally assessed new growth" does not include a change in value for a
centrally assessed industry as a result of a change in the method of apportioning
the value prescribed by the Legislature, a court, or the commission in an
administrative rule or administrative order.
(h)
"Certified tax rate" means a tax rate that will provide the same ad valorem property
tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
(i)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(j)
"Eligible new growth" means the greater of:
(i)
zero; or
(ii)
the sum of:
(A)
locally assessed new growth;
(B)
centrally assessed new growth; and
(C)
project area new growth or hotel property new growth.
(k)
"Host local government" means the same as that term is defined in Section
63N-2-502
.
(l)
"Hotel property" means the same as that term is defined in Section
63N-2-502
.
(m)
"Hotel property new growth" means an amount equal to the incremental value that is
no longer provided to a host local government as incremental property tax revenue.
(n)
"Incremental property tax revenue" means the same as that term is defined in Section
63N-2-502
.
(o)
"Incremental value" means:
(i)
for an authority created under Section
11-58-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a project area and on which property tax
differential is collected; and
(B)
the number that represents the percentage of the property tax differential that
is paid to the authority;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount calculated by multiplying:
(A)
the difference between the current assessed value of the property and the base
taxable value; and
(B)
the number that represents the percentage of the property tax augmentation, as
defined in Section
11-59-207
, that is paid to the Point of the Mountain State
Land Authority;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the amount calculated by multiplying:
(A)
the difference between the taxable value for the current year and the base
taxable value of the property that is located within a project area; and
(B)
the number that represents the percentage of enhanced property tax revenue,
as defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which tax increment is collected;
and
(B)
the number that represents the adjusted tax increment from that project area
that is paid to the agency;
(v)
for an authority created under Section
63H-1-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which property tax allocation is
collected; and
(B)
the number that represents the percentage of the property tax allocation from
that project area that is paid to the authority;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a housing and transit reinvestment zone or
convention center reinvestment zone and on which tax increment is collected;
and
(B)
the number that represents the percentage of the tax increment that is paid to
the housing and transit reinvestment zone or convention center reinvestment
zone;
(vii)
for a host local government, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
hotel property on which incremental property tax revenue is collected; and
(B)
the number that represents the percentage of the incremental property tax
revenue from that hotel property that is paid to the host local government;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a home ownership promotion zone and on which
tax increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the home ownership promotion zone;
(ix)
for a first home investment zone created in accordance with Title 63N, Chapter
3, Part 16, First Home Investment Zone Act, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a first home investment zone and on which tax
increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the first home investment zone;
(x)
for a major sporting event venue zone created pursuant to Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, an amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a qualified development zone for a major sporting
event venue zone and upon which property tax increment is collected; and
(B)
the number that represents the percentage of tax increment that is paid to the
major sporting event venue zone, as approved by a major sporting event venue
zone committee described in Section
63N-1a-1706
; or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the electrical energy developmental zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
community reinvestment agency and the Electrical Energy Development
Investment Fund created in Section
79-6-1105
.
(p)
(i)
"Locally assessed new growth" means the greater of:
(A)
zero; or
(B)
the amount calculated by subtracting the year end taxable value of real
property the county assessor assesses in accordance with Part 3, County
Assessment, for the previous year, adjusted for prior year end incremental
value from the taxable value of real property the county assessor assesses in
accordance with Part 3, County Assessment, for the current year, adjusted for
current year incremental value.
(ii)
"Locally assessed new growth" does not include a change in:
(A)
value as a result of factoring in accordance with Section
59-2-704
, reappraisal,
or another adjustment;
(B)
assessed value based on whether a property is allowed a residential exemption
for a primary residence under Section
59-2-103
;
(C)
assessed value based on whether a property is assessed under Part 5, Farmland
Assessment Act; or
(D)
assessed value based on whether a property is assessed under Part 17, Urban
Farming Assessment Act.
(q)
"Project area" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iii)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(iv)
for an authority created under Section
63H-1-201
, the same as that term is
defined in Section
63H-1-102
;
(v)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(vi)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(vii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; or
(viii)
for a major sporting event venue zone established under Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
as defined in Section
63N-3-1701
.
(r)
"Project area new growth" means:
(i)
for an authority created under Section
11-58-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
differential;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount equal to the incremental value that is no longer provided to the Point of
the Mountain State Land Authority as property tax augmentation, as defined in
Section
11-59-207
11-59-208
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, an amount equal to the incremental value that is no longer provided to
the Utah Fairpark Area Investment and Restoration District;
(iv)
for an agency created under Section
17C-1-201.5
, an amount equal to the
incremental value that is no longer provided to an agency as tax increment;
(v)
for an authority created under Section
63H-1-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
allocation;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount equal to the incremental value that is no
longer provided to a housing and transit reinvestment zone or convention center
reinvestment zone as tax increment;
(vii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, an amount equal to the incremental value
that is no longer provided to a home ownership promotion zone as tax increment;
(viii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, an amount equal to the incremental value that is
no longer provided to a first home investment zone as tax increment; or
(ix)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, an amount equal to the incremental value
that is no longer provided to the creating entity of a major sporting event venue
zone as property tax increment.
(s)
"Project area incremental revenue" means the same as that term is defined in Section
17C-1-1001
.
(t)
"Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(u)
"Property tax differential" means the same as that term is defined in Sections
11-58-102
and
79-6-1104
.
(v)
"Tax increment" means:
(i)
for a project created under Section
17C-1-201.5
, the same as that term is defined
in Section
17C-1-102
;
(ii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as the term "property tax increment" is defined
in Section
63N-3-602
;
(iii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(iv)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; or
(v)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, property tax increment, as that term is
defined in Section
63N-3-1701
.
(2)
Before June 1 of each year, each county assessor shall deliver to the county auditor and
the commission the following statements:
(a)
a statement containing the aggregate valuation of all taxable real property a county
assessor assesses in accordance with Part 3, County Assessment, for each taxing
entity; and
(b)
a statement containing the taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, from the prior year end
values.
(3)
The
On or before June 8, the
county auditor shall
, on or before June 8,
transmit to the
governing body of each taxing entity:
(a)
the statements described in Subsections
(2)(a)
and
(b)
(2)(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.
(4)
(a)
Except as otherwise provided in this section, the certified tax rate shall be
calculated by dividing the ad valorem property tax revenue that a taxing entity
budgeted for the prior year by the amount calculated under Subsection
(4)(b)
.
(b)
For purposes of Subsection
(4)(a)
, the legislative body of a taxing entity shall
calculate an amount as follows:
(i)
calculate for the taxing entity the difference between:
(A)
the aggregate taxable value of all property taxed; and
(B)
any adjustments for current year incremental value;
(ii)
after making the calculation required by Subsection
(4)(b)(i)
, calculate an amount
determined by increasing or decreasing the amount calculated under Subsection
(4)(b)(i)
by the average of the percentage net change in the value of taxable
property for the equalization period for the three calendar years immediately
preceding the current calendar year;
(iii)
after making the calculation required by Subsection
(4)(b)(ii)
, calculate the
product of:
(A)
the amount calculated under Subsection
(4)(b)(ii)
; and
(B)
the percentage of property taxes collected for the five calendar years
immediately preceding the current calendar year; and
(iv)
after making the calculation required by Subsection
(4)(b)(iii)
, calculate an
amount determined by:
(A)
multiplying the percentage of property taxes collected for the five calendar
years immediately preceding the current calendar year by
eligible
the value
associated with maximum
new growth
revenue
; and
(B)
subtracting the amount calculated under Subsection
(4)(b)(iv)(A)
from the
amount calculated under Subsection
(4)(b)(iii)
.
(5)
A certified tax rate for a taxing entity described in this Subsection
(5)
shall be calculated
as follows:
(a)
except as provided in Subsection
(5)(b)
or
(c)
, for a new taxing entity, the certified
tax rate is zero;
(b)
for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(i)
in a county of the first, second, or third class,
as classified in Section
17-60-104
,
the levy imposed for municipal-type services under Title 17, Chapter 78, Part 5,
Provision of Municipal-Type Services to Unincorporated Areas; and
(ii)
in a county of the fourth, fifth, or sixth class,
as classified in Section
17-60-104
,

the levy imposed for general county purposes and such other levies imposed
solely for the municipal-type services identified in Section
17-78-501
and
Subsection
17-63-101(23)
;
(c)
for a community reinvestment agency that received all or a portion of a taxing
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
Subsection
(4)
except that the commission shall treat the total revenue transferred to
the community reinvestment agency as ad valorem property tax revenue that the
taxing entity budgeted for the prior year; and
(d)
for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall
be calculated in accordance with Section
59-2-913
and this section:
(i)
a school levy provided for under Section
53F-8-301
,
53F-8-302
, or
53F-8-303
; and
(ii)
a levy to pay for the costs of state legislative mandates or judicial or
administrative orders under Section
59-2-1602
.
(6)
(a)
A taxing entity may impose a judgment levy under Section
59-2-1328
or
59-2-1330
at a rate that is sufficient to generate only the revenue required to satisfy
one or more eligible judgments.
(b)
The ad valorem property tax revenue generated by a judgment levy described in
Subsection
(6)(a)
may not be considered in establishing a taxing entity's aggregate
certified tax rate.
(7)
(a)
For the purpose of calculating the certified tax rate, the county auditor shall use:
(i)
the taxable value of real property:
(A)
the county assessor assesses in accordance with Part 3, County Assessment;
and
(B)
contained on the assessment roll;
(ii)
the year end taxable value of personal property:
(A)
a county assessor assesses in accordance with Part 3, County Assessment; and
(B)
contained on the prior year's assessment roll; and
(iii)
the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property.
(b)
For purposes of Subsection
(7)(a)
, taxable value does not include eligible new
growth.
(8)
(a)
On or before June 30 of each year, a taxing entity shall adopt a tentative budget.
(b)
If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
the county auditor of:
(i)
the taxing entity's intent to exceed the certified tax rate; and
(ii)
the amount by which the taxing entity proposes to exceed the certified tax rate.
(c)
The county auditor shall notify property owners of any intent to levy a tax rate that
exceeds the certified tax rate in accordance with Sections
59-2-919
and
59-2-919.1
.
(9)
(a)
Subject to Subsection
(9)(d)
, the commission shall provide notice, through
electronic means on or before July 31, to a taxing entity and the Revenue and
Taxation Interim Committee if:
(i)
the amount calculated under Subsection
(9)(b)
is 10% or more of the year end
taxable value of the real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous year, adjusted
for prior year end incremental value; and
(ii)
the amount calculated under Subsection
(9)(c)
is 50% or more of the total year
end taxable value of the real and personal property of a taxpayer the commission
assesses in accordance with Part 2, Assessment of Property, for the previous year.
(b)
For purposes of Subsection
(9)(a)(i)
, the commission shall calculate an amount by
subtracting the taxable value of real and personal property the commission assesses
in accordance with Part 2, Assessment of Property, for the current year, adjusted for
current year incremental value, from the year end taxable value of the real and
personal property the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year, adjusted for prior year end incremental value.
(c)
For purposes of Subsection
(9)(a)(ii)
, the commission shall calculate an amount by
subtracting the total taxable value of real and personal property of a taxpayer the
commission assesses in accordance with Part 2, Assessment of Property, for the
current year, from the total year end taxable value of the real and personal property of
a taxpayer the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year.
(d)
The notification under Subsection
(9)(a)
shall include a list of taxpayers that meet the
requirement under Subsection
(9)(a)(ii)
.
Section 10. Section
59-2-926
is amended to read:
59-2-926
Effective
07/01/26
Effective
01/01/27
. Proposed tax increase by state
-- Notice -- Contents -- Dates.
If the state authorizes a tax rate that exceeds the minimum basic tax rate described in
Section
53F-2-301
, or authorizes a levy pursuant to Section
59-2-1602
that exceeds the
certified revenue levy
as defined in Section
59-2-102
, the state shall publish a notice no later
than 10 days after the last day of the annual legislative general session that meets the following
requirements:
(1)
(a)
The Office of the Legislative Fiscal Analyst shall advertise that the state
authorized a levy that generates revenue in excess of the previous year's ad valorem
tax revenue, plus
eligible new growth as defined in Section
59-2-924
maximum new
growth revenue
, but exclusive of revenue from collections from redemptions,
interest, and penalties:
(i)
in a newspaper of general circulation in the state; and
(ii)
as required in Section
45-1-101
.
(b)
Except an advertisement published on a website, the advertisement described in
Subsection
(1)(a)
:
(i)
shall be no less than 1/4 page in size and the type used shall be no smaller than 18
point, and surrounded by a 1/4-inch border;
(ii)
may not be placed in that portion of the newspaper where legal notices and
classified advertisements appear; and
(iii)
shall be run once.
(2)
The form and content of the notice shall be substantially as follows:
"NOTICE OF TAX INCREASE
The state has budgeted an increase in its property tax revenue from $__________ to
$__________ or ____%. The increase in property tax
revenues
revenue
will come from the
following sources (include all of the following provisions):
(a)
$__________ of the increase will come from (provide an explanation of the cause of
adjustment or increased
revenues
revenue
, such as reappraisals or factoring orders);
(b)
$__________ of the increase will come from natural increases in the value of the tax
base due to (explain cause of
eligible new growth
maximum new growth revenue
,
such as new building activity, annexation, etc.); and
(c)
a home valued at $100,000 in the state of Utah which based on last year's (levy for
the basic state-supported school program, applicable tax rate for the Property Tax
Valuation Fund, or both) paid $____________ in property taxes would pay the
following:
(i)
$__________ if the state of Utah did not budget an increase in property tax
revenue exclusive of
eligible
maximum
new growth
revenue
; and
(ii)
$__________ under the increased property tax
revenues exclusive of eligible
new growth
revenue exclusive of maximum new growth revenue
budgeted by the
state of Utah."
Section 11.
Effective Date.
This bill takes effect on
January 1, 2027
.
2-4-26 9:45 AM