Minimum Basic Tax Rate Amendments

26
11-13-302
51-9-1001
53F-2-205
53F-2-301
53F-2-301
53F-2-515
59-2-902
59-2-903
59-2-904
59-2-1317
0
Minimum Basic Tax Rate Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Lincoln Fillmore
House Sponsor:
LONG TITLE
General Description:
This bill amends provisions related to the minimum basic tax that school districts impose.
Highlighted Provisions:
This bill:
ensures state funding in an amount that covers the total cost of the basic school program
for a school district that imposes the minimum basic tax rate;
requires school districts that impose the minimum basic tax to remit to the state the
revenue the tax generates;
creates a special revenue fund for the revenue that the minimum basic tax generates;
requires a specific statement on the property tax notice;
repeals provisions regarding state and local contributions toward the basic school
program; 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:
11-13-302
,
Effective
05/06/26
as last amended by Laws of Utah 2023, Chapter 7
53F-2-205
,
Effective
05/06/26
as last amended by Laws of Utah 2023, Chapter 7
53F-2-301
,
Effective
05/06/26
Superseded
07/01/26
as last amended by Laws of Utah
2025, Chapter 6
53F-2-301
,
Effective
07/01/26
as last amended by Laws of Utah 2025, Chapter 518
53F-2-515
,
Effective
05/06/26
as last amended by Laws of Utah 2023, Chapter 7
59-2-902
,
Effective
05/06/26
as last amended by Laws of Utah 1993, Chapters 4, 227
59-2-904
,
Effective
05/06/26
as last amended by Laws of Utah 2011, Chapter 371
59-2-1317
,
Effective
05/06/26
as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
ENACTS:
51-9-1001
,
Effective
05/06/26
Utah Code Annotated 1953
REPEALS:
59-2-903
,
Effective
05/06/26
as last amended by Laws of Utah 1988, Chapter 3
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
11-13-302
is amended to read:
11-13-302
Effective
05/06/26
. Payment of fee in lieu of ad valorem property tax
by certain energy suppliers -- Method of calculating -- Collection -- Extent of tax lien.
(1)
(a)
Each project entity created under this chapter that owns a project and that sells any
capacity, service, or other benefit from it to an energy supplier or suppliers whose
tangible property is not exempted by Utah Constitution
,
Article XIII, Section 3, from
the payment of ad valorem property tax, shall pay an annual fee in lieu of ad valorem
property tax as provided in this section to each taxing jurisdiction within which the
project or any part of it is located.
(b)
For purposes of this section, "annual fee" means the annual fee described in
Subsection
(1)(a)
that is in lieu of ad valorem property tax.
(c)
The requirement to pay an annual fee shall commence:
(i)
with respect to each taxing jurisdiction that is a candidate receiving the benefit of
impact alleviation payments under contracts or determination orders provided for
in Sections
11-13-305
and
11-13-306
, with the fiscal year of the candidate
following the fiscal year of the candidate in which the date of commercial
operation of the last generating unit, other than any generating unit providing
additional project capacity, of the project occurs, or, in the case of any facilities
providing additional project capacity, with the fiscal year of the candidate
following the fiscal year of the candidate in which the date of commercial
operation of the generating unit providing the additional project capacity occurs;
and
(ii)
with respect to any taxing jurisdiction other than a taxing jurisdiction described in
Subsection
(1)(c)(i)
, with the fiscal year of the taxing jurisdiction in which
construction of the project commences, or, in the case of facilities providing
additional project capacity, with the fiscal year of the taxing jurisdiction in which
construction of those facilities commences.
(d)
The requirement to pay an annual fee shall continue for the period of the useful life
of the project or facilities.
(2)
(a)
The annual fees due a school district shall be as provided in Subsection
(2)(b)

because the ad valorem property tax imposed by a school district and authorized by
the Legislature represents both:
(i)
a levy mandated by the state
as a condition of the school district receiving state
funding
for the state minimum school program under Section
53F-2-301
; and
(ii)
local levies for capital outlay and other purposes under Sections
53F-8-303
,
53F-8-301
, and
53F-8-302
.
(b)
The annual fees due a school district shall be as follows:
(i)
the project entity shall pay to the
school district
state
an annual fee for the state
minimum school program at the rate imposed by the school district and authorized
by the Legislature under Section
53F-2-301
; and
(ii)
for all other local property tax levies authorized to be imposed by a school
district, the project entity shall pay to the school district either:
(A)
an annual fee; or
(B)
impact alleviation payments under contracts or determination orders provided
for in Sections
11-13-305
and
11-13-306
.
(3)
(a)
An annual fee due a taxing jurisdiction for a particular year shall be calculated by
multiplying the tax rate or rates of the jurisdiction for that year by the product
obtained by multiplying the fee base or value determined in accordance with
Subsection
(4)
for that year of the portion of the project located within the
jurisdiction by the percentage of the project which is used to produce the capacity,
service, or other benefit sold to the energy supplier or suppliers.
(b)
As used in this section, "tax rate," when applied in respect to a school district,
includes any assessment to be made by the school district under Subsection
(2)
or
Section
63M-5-302
.
(c)
There is to be credited against the annual fee due a taxing jurisdiction for each year,
an amount equal to the debt service, if any, payable in that year by the project entity
on bonds, the proceeds of which were used to provide public facilities and services
for impact alleviation in the taxing jurisdiction in accordance with Sections
11-13-305

and
11-13-306
.
(d)
The tax rate for the taxing jurisdiction for that year shall be computed so as to:
(i)
take into account the fee base or value of the percentage of the project located
within the taxing jurisdiction determined in accordance with Subsection
(4)
used
to produce the capacity, service, or other benefit sold to the supplier or suppliers;
and
(ii)
reflect any credit to be given in that year.
(4)
(a)
Except as otherwise provided in this section, the annual fees required by this
section shall be paid, collected, and distributed to the taxing jurisdiction as if:
(i)
the annual fees were ad valorem property taxes; and
(ii)
the project were assessed at the same rate and upon the same measure of value as
taxable property in the state.
(b)
(i)
Notwithstanding Subsection
(4)(a)
, for purposes of an annual fee required by
this section, the fee base of a project may be determined in accordance with an
agreement among:
(A)
the project entity; and
(B)
any county that:
(I)
is due an annual fee from the project entity; and
(II)
agrees to have the fee base of the project determined in accordance with the
agreement described in this Subsection
(4)
.
(ii)
The agreement described in Subsection
(4)(b)(i)
:
(A)
shall specify each year for which the fee base determined by the agreement
shall be used for purposes of an annual fee; and
(B)
may not modify any provision of this chapter except the method by which the
fee base of a project is determined for purposes of an annual fee.
(iii)
For purposes of an annual fee imposed by a taxing jurisdiction within a county
described in Subsection
(4)(b)(i)(B)
, the fee base determined by the agreement
described in Subsection
(4)(b)(i)
shall be used for purposes of an annual fee
imposed by that taxing jurisdiction.
(iv)
(A)
If there is not agreement as to the fee base of a portion of a project for any
year, for purposes of an annual fee, the State Tax Commission shall determine
the value of that portion of the project for which there is not an agreement:
(I)
for that year; and
(II)
using the same measure of value as is used for taxable property in the state.
(B)
The valuation required by Subsection
(4)(b)(iv)(A)
shall be made by the State
Tax Commission in accordance with rules made by the State Tax Commission.
(c)
Payments of the annual fees shall be made from:
(i)
the proceeds of bonds issued for the project; and
(ii)
revenues derived by the project entity from the project.
(d)
(i)
The contracts of the project entity with the purchasers of the capacity, service,
or other benefits of the project whose tangible property is not exempted by Utah
Constitution
,
Article XIII, Section 3, from the payment of ad valorem property tax
shall require each purchaser, whether or not located in the state, to pay, to the
extent not otherwise provided for, its share, determined in accordance with the
terms of the contract, of these fees.
(ii)
It is the responsibility of the project entity to enforce the obligations of the
purchasers.
(5)
(a)
The responsibility of the project entity to make payment of the annual fees is
limited to the extent that there is legally available to the project entity, from bond
proceeds or revenues, money to make these payments, and the obligation to make
payments of the annual fees is not otherwise a general obligation or liability of the
project entity.
(b)
No tax lien may attach upon any property or money of the project entity by virtue of
any failure to pay all or any part of an annual fee.
(c)
The project entity or any purchaser may contest the validity of an annual fee to the
same extent as if the payment was a payment of the ad valorem property tax itself.
(d)
The payments of an annual fee shall be reduced to the extent that any contest is
successful.
(6)
(a)
The annual fee described in Subsection
(1)
:
(i)
shall be paid by a public agency that:
(A)
is not a project entity; and
(B)
owns an interest in a facility providing additional project capacity if the
interest is otherwise exempt from taxation pursuant to
Utah Constitution,
Article XIII, Section 3
; and
(ii)
for a public agency described in Subsection
(6)(a)(i)
, shall be calculated in
accordance with Subsection
(6)(b)
.
(b)
The annual fee required under Subsection
(6)(a)
shall be an amount equal to the tax
rate or rates of the applicable taxing jurisdiction multiplied by the product of the
following:
(i)
the fee base or value of the facility providing additional project capacity located
within the jurisdiction;
(ii)
the percentage of the ownership interest of the public agency in the facility; and
(iii)
the portion, expressed as a percentage, of the public agency's ownership interest
that is attributable to the capacity, service, or other benefit from the facility that is
sold, including any subsequent sale, resale, or layoff, by the public agency to an
energy supplier or suppliers whose tangible property is not exempted by
Utah
Constitution, Article XIII, Section 3
, from the payment of ad valorem property tax.
(c)
A public agency paying the annual fee pursuant to Subsection
(6)(a)
shall have the
obligations, credits, rights, and protections set forth in Subsections
(1)
through
(5)

with respect to its ownership interest as though it were a project entity.
(d)
On or before March 1 of each year, a project entity that owns a project and that
provides any capacity, service, or other benefit to an energy supplier or a public
agency shall file an electronic report with the State Tax Commission that identifies:
(i)
each energy supplier and public agency to which the project entity delivers
capacity, service, or other benefit; and
(ii)
the amount of capacity, service, or other benefit delivered to each energy supplier
and public agency.
Section 2. Section
51-9-1001
is enacted to read:
51-9-1001
Effective
05/06/26
. Minimum Basic Tax Special Revenue Fund.
(1)
As used in this section, "fund" means the Minimum Basic Tax Special Revenue Fund
that this section creates.
(2)
There is created a special revenue fund known as the "Minimum Basic Tax Special
Revenue Fund" that consists of:
(a)
money deposited by the state treasurer in accordance with Section
53F-2-301
; and
(b)
interest earned on the money in the fund.
(3)
Money in the fund may be used for statewide purposes consistent with the General Fund.
Section 3. Section
53F-2-205
is amended to read:
53F-2-205
Effective
05/06/26
. Powers and duties of state board to adjust
Minimum School Program allocations -- Use of remaining funds at the end of a fiscal
year.
(1)
As used in this section:
(a)
"ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
Sec. 6301 et seq.
(b)
"Program" means a program or allocation funded by a line item appropriation or
other appropriation designated as:
(i)
Basic Program;
(ii)
Related to Basic Programs;
(iii)
Voted and Board Levy Programs; or
(iv)
Minimum School Program.
(2)
Except as provided in Subsection
(3)

or
(5)
, if the number of weighted pupil units in
a program is underestimated, the state board shall reduce the value of the weighted pupil
unit in that program so that the total amount paid for the program does not exceed the
amount appropriated for the program.
(3)
If the number of weighted pupil units in a program is overestimated, the state board
shall spend excess money appropriated for the following purposes giving priority to the
purpose described in Subsection
(3)(a)
:
(a)
to support the value of the weighted pupil unit in a program within the basic
state-supported school program in which the number of weighted pupil units is
underestimated;
(b)
to support the state guaranteed local levy increments as defined in Section
53F-2-601
,
if:
(i)
local contributions to the voted local levy program or board local levy program are
overestimated; or
(ii)
the number of weighted pupil units within school districts qualifying for a
guarantee is underestimated;
(c)
to support the state supplement to local property taxes allocated to charter schools, if
the state supplement is less than the amount prescribed by Section
53F-2-704
;
(d)
to fund the cost of the salary supplements described in Section
53F-2-504
; or
(e)
to support a school district with a loss in student enrollment as provided in Section
53F-2-207
.
(4)
If local contributions from the minimum basic tax rate imposed under Section
53F-2-301
are overestimated, the state board shall reduce the value of the weighted pupil
unit for all programs within the basic state-supported school program so the total state
contribution to the basic state-supported school program does not exceed the amount of
state funds appropriated.
(5)
If local contributions from the minimum basic tax rate imposed under Section
53F-2-301
are underestimated, the state board shall:
(a)
spend the excess local contributions for the purposes specified in Subsection
(3)
,
giving priority to supporting the value of the weighted pupil unit in programs within
the basic state-supported school program in which the number of weighted pupil
units is underestimated; and
(b)
reduce the state contribution to the basic state-supported school program so the total
cost of the basic state-supported school program does not exceed the total state and
local funds appropriated to the basic state-supported school program plus the local
contributions necessary to support the value of the weighted pupil unit in programs
within the basic state-supported school program in which the number of weighted
pupil units is underestimated.
(6)
(4)
Except as provided in Subsection
(3)
or
(5)
, the state board shall reduce the state
guarantee per weighted pupil unit provided under the local levy state guarantee program
described in Section
53F-2-601
, if:
(a)
local contributions to the voted local levy program or board local levy program are
overestimated; or
(b)
the number of weighted pupil units within school districts qualifying for a guarantee
is underestimated.
(7)
(5)
Money appropriated to the state board is nonlapsing, including appropriations to the
Minimum School Program and all agencies, line items, and programs under the
jurisdiction of the state board.
(8)
(6)
The state board shall report actions taken by the state board under this section to the
Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and
Budget.
Section 4. Section
53F-2-301
is amended to read:
53F-2-301
Effective
05/06/26
Superseded
07/01/26
. 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)
"Combined basic rate" means a rate that is the sum of:
(i)
the minimum basic tax rate; and
(ii)
the WPU value rate.
(c)
"Commission" means the State Tax Commission.
(d)
"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
minimum basic
tax rate revenue from within the school district in
the previous fiscal year;
(B)
the amount generated by the basic levy increment rate; 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)
.
(e)
"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)
.
(f)
"Weighted pupil unit value" or "WPU value" means the amount established each year
in the enacted public education budget that is multiplied by the number of weighted
pupil units to yield the funding level for the basic school program.
(g)
"WPU value amount" means an amount:
(i)
that is equal to the product of:
(A)
the WPU value increase limit; and
(B)
the percentage share of local revenue to the cost of the basic school program
in the immediately preceding fiscal year; and
(ii)
set annually by the Legislature in Subsection
(3)(a)
.
(h)
"WPU value increase limit" means the lesser of:
(i)
the total cost to the basic school program to increase the WPU value over the
WPU value in the prior fiscal year; or
(ii)
the total cost to the basic school program to increase the WPU value by 4% over
the WPU value in the prior fiscal year.
(i)
"WPU value rate" means a tax rate certified by the commission that will generate an
amount of revenue equal to the WPU value amount described in Subsection
(3)(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)
The WPU value amount for the fiscal year that begins on July 1, 2025, is
$31,508,600 in revenue statewide.
(b)
The preliminary estimate of the WPU value rate for the fiscal year that begins on
July 1, 2025, is .000055.
(4)
(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 for
the year:
(i)
the minimum basic tax rate; and
(ii)
the WPU value rate.
(b)
The estimate of the minimum basic tax rate provided in Subsection
(2)(b)
and the
estimate of the WPU value rate provided in Subsection
(3)(b)
are based on a forecast
for property values for the next calendar year.
(c)
The certified minimum basic tax rate described in Subsection
(4)(a)(i)
and the
certified WPU value rate described in Subsection
(4)(a)(ii)
are 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.
(5)
(a)
To qualify for receipt of
the
state
contribution toward
funding of
the basic
school program
and as a school district's contribution toward the cost of the basic
school program
for the school district,
each
a
local school board shall impose the
combined basic rate.
(b)
For each local school board imposing the combined basic rate:
(i)
the county treasurer for the county in which the school district is located shall:
(A)
collect the combined basic rate revenue within the portion of the county
within which the school district is located; and
(B)
remit the revenue to the state treasurer each month; and
(ii)
the state treasurer shall:
(A)
deposit the combined basic rate revenue the state treasurer receives from a
county treasurer into the Minimum Basic Tax Special Revenue Fund described
in Section
51-9-1001
; and
(B)
communicate the amount of the deposit to the state board.
(c)
The state board shall distribute to the relevant school district, within 35 days after the
date of the deposit described in Subsection
(5)(b)(ii)
, an amount equal to:
(i)
except as provided in Subsection
(5)(c)(ii)
, the amount the state treasurer
communicates under Subsection
(5)(b)(ii)
; or
(ii)
if the remaining unfunded cost of the school district's basic school program does
not exceed the amount the state treasurer communicates under Subsection
(5)(b)(ii)
,
the remaining unfunded cost of the school district's basic school program.
(b)
(d)
(i)
The state is not subject to the notice requirements of Section
59-2-926

before imposing the tax rates described in this Subsection
(5)
.
(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
(5)
.
(6)
(a)
The state shall
contribute to
ensure that, for
each school district
toward
described in Subsection
(5)
, the aggregate allocations from state funds under
Subsection
(5)(c)
are equivalent to
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 combined basic rate; and
(ii)
the basic levy increment rate.
(b)
(i)
If the difference described in Subsection
(6)(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
(6)(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.
(7)
Upon appropriation by the Legislature, the Division of Finance shall deposit an amount
equal to the proceeds generated statewide:
(a)
by the basic levy increment rate into the Minimum Basic Growth Account created in
Section
53F-9-302
; and
(b)
by the WPU value rate into the Teacher and Student Success Account created in
Section
53F-9-306
.
Section 5. Section
53F-2-301
is amended to read:
53F-2-301
Effective
07/01/26
. 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)
"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
minimum basic
tax rate revenue from within the school district in
the previous fiscal year;
(B)
the amount generated by the basic levy increment rate; 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)
"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
funding of
the basic
school program
and as a school district's contribution toward the cost of the basic
school program
for the school district,
each
a
local school board shall impose the
minimum basic tax rate.
(b)
For a local school board that imposes the minimum basic tax rate:
(i)
the relevant county treasurer for the county in which the school district is located
shall:
(A)
collect the minimum basic tax rate revenue within the portion of the county
within which the school district is located; and
(B)
remit the revenue to the state treasurer each month; and
(ii)
the state treasurer shall:
(A)
deposit the minimum basic tax rate revenue the state treasurer receives from a
county treasurer into the Minimum Basic Tax Special Revenue Fund described
in Section
51-9-1001
; and
(B)
communicate the amount of the deposit to the state board.
(c)
The state board shall distribute to the relevant school district, within 35 days after the
date of the deposit described in Subsection
(4)(b)(ii)
, an amount equal to:
(i)
except as provided in Subsection
(4)(c)(ii)
, the amount the state treasurer
communicates under Subsection
(4)(b)(ii)
; or
(ii)
if the remaining unfunded cost of the school district's basic school program does
not exceed the amount the state treasurer communicates under Subsection
(4)(b)(ii)
,
the remaining unfunded cost of the school district's basic school program.
(b)
(d)
(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
ensure that, for
each school district
toward
described in Subsection
(4)
, the aggregate allocations from state funds under
Subsection
(4)(c)
are equivalent to
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 6. Section
53F-2-515
is amended to read:
53F-2-515
Effective
05/06/26
. Federal Impact Aid Program -- Offset for
underestimated allocations from the Federal Impact Aid Program.
(1)
In addition to
the revenues received from the levy imposed by a local school board and
authorized by the Legislature under Section
53F-2-301
funds the Legislature
appropriates to the basic school program
, the Legislature shall provide an amount equal
to the difference between the school district's anticipated receipts under the entitlement
for the fiscal year from the Federal Impact Aid Program and the amount the school
district actually received from this source for the next preceding fiscal year.
(2)
If at the end of a fiscal year the sum of the receipts of a school district from a
distribution from the Legislature pursuant to Subsection
(1)
plus the school district's
allocations from the Federal Impact Aid Program for that fiscal year exceeds the amount
allocated to the school district from the Federal Impact Aid Program for the next
preceding fiscal year, the excess funds are carried into the next succeeding fiscal year
and become in that year a part of the
school district's contribution to
state's funding of
the cost of
the school district's basic program for operation and maintenance under
the
state minimum school finance law
Section
53F-2-301
.
(3)
During the next succeeding fiscal year described in Subsection
(2)
, the school district's
required tax rate for the basic program shall be reduced so that the yield from the
reduced tax rate plus the carryover funds equal the school district's required contribution
to
toward the cost of
the school district's basic program.
(4)
For the school district of a local school board that is required to reduce the school
district's basic tax rate under this section, the school district shall receive state minimum
school program funds as though the reduction in the tax rate had not been made.
Section 7. Section
59-2-902
is amended to read:
59-2-902
Effective
05/06/26
. Minimum basic tax levy for school districts.
(1)
If any county fails to comply with Section
59-2-704
, then this section determines the
adjustment of the basic school levy for school districts within the county.

(2)
(a)
Before June 15, the commission shall ascertain from the State Board of Education
the number of weighted pupil units in each school district in the state for the school
year commencing July 1 of the current calendar year, estimated according to
the
Title 53F, Chapter 2, State Funding --
Minimum School Program
Act
, and the
money necessary for the cost of the operation and maintenance of the minimum
school program of the state for the school fiscal year beginning July 1 of the current
calendar year.

(b)
The commission shall then estimate the amounts of all surpluses in the Uniform
School Fund, as of July 1 of the current calendar year, available for the operation and
maintenance of the program, and shall estimate the anticipated income to the fund
available for those purposes for the current school year from all sources, including
revenues from taxes on income or from taxes on intangible property pursuant to
Utah
Constitution,
Article XIII,
Sec. 12, Utah Constitution
Section 12
.
(2)
(3)
(a)
The commission shall then determine for each school district the amount to
be raised by the minimum basic tax levy
as its contribution toward the cost
for the
school district to access state funding
of the basic
state-supported
school
program,
as required by
the
Title 53F, Chapter 2, State Funding --
Minimum School Program

Act
.
(3)
(4)
Each county auditor shall be notified by the commission that the minimum basic
tax levy shall be imposed by the school district, to which shall be added an additional
amount, if any, due to local undervaluation as provided in this section.

(a)
The auditor shall inform the county legislative body as to the amount of the levy.

(b)
The county legislative body shall at the time and in the manner provided by law
make the levy upon the taxable property in the school district together with further
levies for school purposes as may be required by each school district to pay the costs
of programs in excess of the basic state-supported school program.
(4)
(5)
If the levy applied under this section raises an amount in excess of the total basic
state-supported school program for a school district, the excess amount shall be remitted
by the school district to the State Board of Education to be credited to the Uniform
School Fund for allocation to school districts to support the basic state-supported school
program.
The availability of money shall be considered by the commission in fixing
the state property levy as provided in
the
Title 53F, Chapter 2, State Funding --

Minimum School Program
Act
.
(5)
(6)
(a)
If the levy does not raise an amount in excess of
an amount equal to the cost
of
the total basic state-supported school program for a district, then the difference
between the amount which the local levy will raise within the district, and the total
cost of the basic state-supported school program within the district shall be computed.
This difference, if any, shall be apportioned from the Uniform School Fund to each
school district as the contribution of the state to the basic state-supported school
program for the district, subject to the following conditions:
(a)
(b)
(i)
Before the apportionment is made, the
The
commission shall determine if
the local taxable valuation of any school district is undervalued according to law
and if so, the dollar amount of the undervaluation.

(ii)
The dollar amount of the undervaluation shall be multiplied by the district basic
uniform school levy at 98%.

(iii)
The resulting dollar amount shall be divided by the current year estimated yield
of .0002 per dollar of taxable value at 98% based on the district's taxable valuation
prior to adjusting for undervaluation.
(b)
(c)
(i)
The resulting levy amount shall be added to the required district basic
uniform levy to determine the combined district basic school levy adjusted for
undervaluation.

(ii)
The combined rate of levy shall be certified to the county auditor and employed
by the auditor and the county legislative body in lieu of the required basic school
local levy.
Section 8. Section
59-2-904
is amended to read:
59-2-904
Effective
05/06/26
. Participation by district in state's contributions to
state-supported levy program.
(1)
In addition to the
funding of the
basic
state contribution
school program
provided in
Section
59-2-902
, a school district may participate in the state's contributions to the
state-supported levy program by conforming to the requirements of
the
Title 53F,
Chapter 2, State Funding --
Minimum School Program
Act
,
and by making the
required additional levy.
(2)
A school district that participates in the state-supported levy program shall certify to the
State Board of Education the results of its determination and the amount of the board or
voted local levy that the district will impose.
Section 9. Section
59-2-1317
is amended to read:
59-2-1317
Effective
05/06/26
. Tax notice -- Contents of notice -- Procedures
and requirements for providing notice.
(1)
As used in this section, "political subdivision lien" means the same as that term is
defined in Section
11-60-102
.
(2)
Subject to the other provisions of this section, the county treasurer shall:
(a)
collect the taxes and tax notice charges; and
(b)
provide a notice to each taxpayer that contains the following:
(i)
the kind and value of property assessed to the taxpayer;
(ii)
the street address of the property, if available to the county;
(iii)
that the property may be subject to a detailed review in the next year under
Section
59-2-303.1
;
(iv)
the amount of taxes levied;
(v)
regarding the minimum basic tax described in Section
53F-2-301
, the following
statement:
"The minimum basic tax generates an amount that the district remits to the
state. The state remits an equivalent amount of state funds to the school district
and any additional state funds to ensure the full cost of the district's basic school
program.";
(v)
(vi)
a separate statement of the taxes levied only on a certain kind or class of
property for a special purpose;
(vi)
(vii)
instructions for payment of the taxes and tax notice charges applicable to
the property, including the taxpayer's payment options and collection procedures;
(vii)
(viii)
any tax notice charges applicable to the property, including:
(A)
if applicable, a political subdivision lien for road damage that a railroad
company causes, as described in Section
10-7-30
;
(B)
if applicable, a political subdivision lien for municipal water distribution, as
described in Section
10-8-17
, or a political subdivision lien for an increase in
supply from a municipal water distribution, as described in Section
10-8-19
;
(C)
if applicable, a political subdivision lien for unpaid abatement fees as
described in Section
10-11-4
;
(D)
if applicable, a political subdivision lien for the unpaid portion of an
assessment assessed in accordance with Title
11, Chapter 42
, Assessment Area
Act, or Title
11, Chapter 42a
, Commercial Property Assessed Clean Energy
Act, including unpaid costs, charges, and interest as of the date the local entity
certifies the unpaid amount to the county treasurer;
(E)
if applicable, for a special district in accordance with Section
17B-1-902
, a
political subdivision lien for an unpaid fee, administrative cost, or interest;
(F)
if applicable, a political subdivision lien for an unpaid irrigation district use
charge as described in Section
17B-2a-506
;
(G)
if applicable, a political subdivision lien for a contract assessment under a
water contract, as described in Section
17B-2a-1007
;
(H)
if applicable, a property tax penalty that a public infrastructure district
imposes, as described in Section
17D-4-304
; and
(I)
if applicable, an annual payment to the Military Installation Development
Authority or an entity designated by the authority in accordance with Section
63H-1-501
;
(viii)
(ix)
if a county's tax notice includes an assessment area charge, a statement
that, due to potentially ongoing assessment area charges, costs, penalties, and
interest, payment of a tax notice charge may not:
(A)
pay off the full amount the property owner owes to the tax notice entity; or
(B)
cause a release of the lien underlying the tax notice charge;
(ix)
(x)
if applicable, the annual payment described in Subsection
63H-1-501(4)(a)
;
(x)
(xi)
the date the taxes and tax notice charges are due;
(xi)
(xii)
the street address or website at which the taxes and tax notice charges may
be paid;
(xii)
(xiii)
the date on which the taxes and tax notice charges are delinquent;
(xiii)
(xiv)
the penalty imposed on delinquent taxes and tax notice charges;
(xiv)
(xv)
a statement that explains the taxpayer's right to direct allocation of a
partial payment in accordance with Subsection
(9)
;
(xv)
(xvi)
other information specifically authorized to be included on the notice
under this chapter;
(xvi)
(xvii)
other property tax information approved by the commission; and
(xvii)
(xviii)
if sent in calendar year 2024, 2025, or 2026:
(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)
.
(3)
(a)
Unless expressly allowed under this section or another statutory provision, the
treasurer may not add an amount to be collected to the property tax notice.
(b)
If the county treasurer adds an amount to be collected to the property tax notice
under this section or another statutory provision that expressly authorizes the item's
inclusion on the property tax notice:
(i)
the amount constitutes a tax notice charge; and
(ii)
(A)
the tax notice charge has the same priority as property tax; and
(B)
a delinquency of the tax notice charge triggers a tax sale, in accordance with
Section
59-2-1343
.
(4)
For any property for which property taxes or tax notice charges are delinquent, the
notice described in Subsection
(2)
shall state, "Prior taxes or tax notice charges are
delinquent on this parcel."
(5)
Except as provided in Subsection
(6)
, the county treasurer shall:
(a)
mail the notice required by this section, postage prepaid; or
(b)
leave the notice required by this section at the taxpayer's residence or usual place of
business, if known.
(6)
(a)
Subject to the other provisions of this Subsection
(6)
, a county treasurer may, at
the county treasurer's discretion, provide the notice required by this section by
electronic mail if a taxpayer makes an election, according to procedures determined
by the county treasurer, to receive the notice by electronic mail.
(b)
A taxpayer may revoke an election to receive the notice required by this section by
electronic mail if the taxpayer provides written notice to the treasurer on or before
October 1.
(c)
A revocation of an election under this section does not relieve a taxpayer of the duty
to pay a tax or tax notice charge due under this chapter on or before the due date for
paying the tax or tax notice charge.
(d)
A county treasurer shall provide the notice required by this section using a method
described in Subsection
(5)
, until a taxpayer makes a new election in accordance with
this Subsection
(6)
, if:
(i)
the taxpayer revokes an election in accordance with Subsection
(6)(b)
to receive
the notice required by this section by electronic mail; or
(ii)
the county treasurer finds that the taxpayer's electronic mail address is invalid.
(e)
A person is considered to be a taxpayer for purposes of this Subsection
(6)
regardless
of whether the property that is the subject of the notice required by this section is
exempt from taxation.
(7)
(a)
The county treasurer shall provide the notice required by this section to a taxpayer
on or before November 1.
(b)
The county treasurer shall keep on file in the county treasurer's office the information
set forth in the notice.
(c)
The county treasurer is not required to mail a tax receipt acknowledging payment.
(8)
This section does not apply to property taxed under Section
59-2-1302
or
59-2-1307
.
(9)
(a)
A taxpayer who pays less than the full amount due on the taxpayer's property tax
notice may, on a form provided by the county treasurer, direct how the county
treasurer allocates the partial payment between:
(i)
the total amount due for property tax;
(ii)
the amount due for assessments, past due special district fees, and other tax notice
charges; and
(iii)
any other amounts due on the property tax notice.
(b)
The county treasurer shall comply with a direction submitted to the county treasurer
in accordance with Subsection
(9)(a)
.
(c)
The provisions of this Subsection
(9)
do not:
(i)
affect the right or ability of a local entity to pursue any available remedy for
non-payment of any item listed on a taxpayer's property tax notice; or
(ii)
toll or otherwise change any time period related to a remedy described in
Subsection
(9)(c)(i)
.
Section 10.
Repealer.
Remittance to credit of Uniform School Fund of money in excess of
basic state-supported school program -- Manner.
Section 11.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect
May 6, 2026
.
(2)
The actions affecting Section 53F-2-301
Effective
07/01/26
take effect on
July 1, 2026
.
1-2-26 3:21 PM