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S.B. 156
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PROPERTY TAX - GOVERNING BODY AND
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VOTER APPROVAL
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2000 GENERAL SESSION
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STATE OF UTAH
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Sponsor: L. Steven Poulton
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AN ACT RELATING TO THE PROPERTY TAX ACT; REINSTATING THE REQUIREMENT
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THAT A TAXING ENTITY IS REQUIRED TO OBTAIN GOVERNING BODY APPROVAL
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AND VOTER APPROVAL TO IMPOSE A TAX RATE THAT EXCEEDS THE CERTIFIED
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TAX RATE; PROVIDING EXCEPTIONS TO THE GOVERNING BODY AND VOTER
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APPROVAL REQUIREMENTS; DELETING OBSOLETE LANGUAGE; MAKING
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TECHNICAL CHANGES; AND PROVIDING FOR RETROSPECTIVE OPERATION.
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This act affects sections of Utah Code Annotated 1953 as follows:
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AMENDS:
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59-2-924, as last amended by Chapter 353, Laws of Utah 1999
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
59-2-924
is amended to read:
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59-2-924. Report of valuation of property to county auditor and commission --
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Transmittal by auditor to governing bodies -- Certified tax rate -- Adoption of tentative
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budget.
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(1) (a) Before June 1 of each year, the county assessor of each county shall deliver to the
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county auditor and the commission the following statements:
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(i) a statement containing the aggregate valuation of all taxable property in each taxing
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entity; and
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(ii) a statement containing the taxable value of any additional personal property estimated
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by the county assessor to be subject to taxation in the current year.
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(b) The county auditor shall, on or before June 8, transmit to the governing body of each
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taxing entity:
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(i) the statements described in Subsections (1)(a)(i) and (ii);
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(ii) an estimate of the revenue from personal property;
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(iii) the certified tax rate; and
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(iv) all forms necessary to submit a tax levy request.
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(2) (a) (i) The "certified tax rate" means a tax rate that will provide the same ad valorem
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property tax revenues for a taxing entity as were collected by that taxing entity for the prior year.
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(ii) For purposes of this Subsection (2), "ad valorem property tax revenues" do not include:
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(A) collections from redemptions;
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(B) interest; and
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(C) penalties.
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(iii) Except as provided in Subsection (2)(a)(iv), the certified tax rate shall be calculated
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by dividing the ad valorem property tax revenues collected for the prior year by the taxing entity
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by the taxable value established in accordance with Section
59-2-913
.
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(iv) The certified tax rates for the taxing entities described in this Subsection (2)(a)(iv)
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shall be calculated as follows:
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(A) except as provided in Subsection (2)(a)(iv)(B), for new taxing entities the certified tax
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rate is zero;
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(B) for each municipality incorporated on or after July 1, 1996, the certified tax rate is:
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(I) in a county of the first, second, or third class, the levy imposed for municipal-type
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services under Sections
17-34-1
and
17-36-9
; and
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(II) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
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purposes and such other levies imposed solely for the municipal-type services identified in Section
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17-34-2
and Subsection
17-36-3
(22); and
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(C) for debt service voted on by the public, the certified tax rate shall be the actual levy
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imposed by that section, except that the certified tax rates for the following levies shall be
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calculated in accordance with Section
59-2-913
and this section:
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(I) school leeways provided for under Sections
11-2-7
,
53A-16-110
,
53A-17a-125
,
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53A-17a-127
,
53A-17a-134
,
53A-17a-143
,
53A-17a-145
, and
53A-21-103
; and
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(II) levies to pay for the costs of state legislative mandates or judicial or administrative
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orders under Section
59-2-906.3
.
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(v) A judgment levy imposed under Section
59-2-1328
or Section
59-2-1330
shall be
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established at that rate which is sufficient to generate only the revenue required to satisfy the
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known, unpaid judgments. The ad valorem property tax revenue generated by the judgment levy
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shall not be considered in establishing the taxing entity's aggregate certified tax rate.
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(b) (i) For the purpose of calculating the certified tax rate, the county auditor shall use the
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taxable value of property on the assessment roll.
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(ii) For purposes of Subsection (2)(b)(i), the taxable value of property on the assessment
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roll does not include new growth as defined in Subsection (2)(b)(iii).
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(iii) "New growth" means:
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(A) the difference between the increase in taxable value of the taxing entity from the
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previous calendar year to the current year; minus
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(B) the amount of increase to locally assessed real property taxable values resulting from
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factoring, reappraisal, or any other adjustments.
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(c) Beginning January 1, 1997, if a taxing entity receives increased revenues from uniform
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fees on tangible personal property under Section
59-2-404
,
59-2-405
, or
59-2-405.1
as a result of
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any county imposing a sales and use tax under Title 59, Chapter 12, Part 11, County Option Sales
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and Use Tax, the taxing entity shall decrease its certified tax rate to offset the increased revenues.
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(d) (i) Beginning July 1, 1997, if a county has imposed a sales and use tax under Title 59,
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Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate shall be:
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(A) decreased on a one-time basis by the amount of the estimated sales tax revenue to be
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distributed to the county under Subsection
59-12-1102
(3); and
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(B) increased by the amount necessary to offset the county's reduction in revenue from
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uniform fees on tangible personal property under Section
59-2-404
,
59-2-405
, or
59-2-405.1
as a
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result of the decrease in the certified tax rate under Subsection (2)(d)(i)(A).
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(ii) The commission shall determine estimates of sales tax distributions for purposes of
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Subsection (2)(d)(i).
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[(e) For the calendar year beginning on January 1, 1998, and ending December 31, 1998,
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a taxing entity's certified tax rate shall be increased by the amount necessary to offset the decrease
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in revenues from uniform fees on tangible personal property under Section
59-2-405
as a result of
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the decrease in uniform fees on tangible personal property under Section
59-2-405
enacted by the
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Legislature during the 1997 Annual General Session.]
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[(f)] (e) Beginning January 1, 1998, if a municipality has imposed an additional resort
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communities sales tax under Section
59-12-402
, the municipality's certified tax rate shall be
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decreased on a one-time basis by the amount necessary to offset the first 12 months of estimated
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revenue from the additional resort communities sales tax imposed under Section
59-12-402
.
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[(g) For the calendar year beginning on January 1, 1999, and ending on December 31,
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1999, a taxing entity's certified tax rate shall be adjusted by the amount necessary to offset the
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adjustment in revenues from uniform fees on tangible personal property under Section
59-2-405.1
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as a result of the adjustment in uniform fees on tangible personal property under Section
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59-2-405.1
enacted by the Legislature during the 1998 Annual General Session.]
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(3) (a) On or before June 22, each taxing entity shall annually adopt a tentative budget.
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(b) If the taxing entity intends to exceed the certified tax rate, it shall notify the county
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auditor of:
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(i) its intent to exceed the certified tax rate; and
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(ii) the amount by which it proposes to exceed the certified tax rate.
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(c) The county auditor shall notify all property owners of any intent to exceed the certified
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tax rate in accordance with [Subsection] Section
59-2-919
[(2)].
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(4) (a) The taxable value for the base year under Subsection
17A-2-1247
(2)(a) or
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17A-2-1202
(2), as the case may be, shall be reduced for any year to the extent necessary to provide
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a redevelopment agency established under Title 17A, Chapter 2, Part 12, Utah Neighborhood
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Development Act, with approximately the same amount of money the agency would have received
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without a reduction in the county's certified tax rate if:
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(i) in that year there is a decrease in the certified tax rate under Subsection (2)(c) or
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(2)(d)(i);
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(ii) the amount of the decrease is more than 20% of the county's certified tax rate of the
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previous year; and
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(iii) the decrease results in a reduction of the amount to be paid to the agency under
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Section
17A-2-1247
or
17A-2-1247.5
.
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(b) The taxable value of the base year under Subsection
17A-2-1247
(2)(a) or
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17A-2-1202
(2), as the case may be, shall be increased in any year to the extent necessary to
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provide a redevelopment agency with approximately the same amount of money as the agency
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would have received without an increase in the certified tax rate that year if:
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(i) in that year the taxable value for the base year under Subsection
17A-2-1247
(2) or
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17A-2-1202
(2) is reduced due to a decrease in the certified tax rate under Subsection (2)(c) or
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(2)(d)(i); and
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(ii) the certified tax rate of a city, school district, or special district increases independent
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of the adjustment to the taxable value of the base year.
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(c) Notwithstanding a decrease in the certified tax rate under Subsection (2)(c) or (2)(d)(i),
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the amount of money allocated and, when collected, paid each year to a redevelopment agency
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established under Title 17A, Chapter 2, Part 12, Utah Neighborhood Development Act, for the
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payment of bonds or other contract indebtedness, but not for administrative costs, may not be less
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than that amount would have been without a decrease in the certified tax rate under Subsection
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(2)(c) or (2)(d)(i).
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(5) (a) Except as provided in [Subsections] Subsection (5)(d) [through (f)], for [the]
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calendar [year] years beginning on or after January 1, [1998] 2000, [and ending December 31,
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1998,] to impose a tax rate that exceeds the certified tax rate established in Subsection (2), a taxing
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entity shall obtain approval [for the] to impose the tax [increase by] rate from a majority [vote] of
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the:
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(i) members of the taxing entity's governing body; and
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(ii) [people] taxing entity's registered voters voting on the imposition of the tax as provided
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in Subsection (5)(b).
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(b) To obtain [voter] approval [for a tax increase] to impose a tax rate under Subsection
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(5)(a)(ii), a taxing entity shall:
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(i) hold an election on:
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(A) the fourth Tuesday in June in even-numbered years; or
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(B) the first Tuesday after the first Monday in August; and
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(ii) conduct the election according to the procedures and requirements of Title 20A,
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Election Code, governing [local] the taxing entity's elections.
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(c) A tax rate imposed by a taxing entity under this Subsection (5) may not exceed the
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maximum levy permitted by law under Section
59-2-908
.
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(d) Notwithstanding Subsection (5)(a), a school district is not required to [obtain voter]
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meet the approval [under this Subsection] requirements of Subsections (5)(a)(i) and (ii) to impose
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a tax rate that exceeds the certified tax rate:
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(i) under Section
53A-17a-135
, if the Legislature increases the minimum basic tax rate
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under Section
53A-17a-135
;
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[(ii) under Section
53A-21-103
;]
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[(iii) under Section
53A-16-111
;]
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[(iv)] (ii) if, on or after January 1, [1997] 1999, but on or before December 31, [1997]
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1999, the school district obtained [voter] approval to impose the tax rate pursuant to a statute other
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than this section, requiring approval to impose the tax rate from a majority of the:
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(A) members of the taxing entity's governing body; and
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(B) taxing entity's registered voters voting on the imposition of the tax rate; or
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[(v)] (iii) if, on or after January 1, [1998] 2000, the school district obtains [voter] approval
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to impose the tax rate [under] pursuant to a [statutory provision,] statute other than [the provisions
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of] this section, requiring [voter] approval to impose the tax rate from a majority of the:
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(A) members of the taxing entity's governing body; and
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(B) taxing entity's registered voters voting on the imposition of the tax rate.
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[(e) Notwithstanding Subsection (5)(a), a municipality is not required to obtain voter
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approval under this Subsection (5) to impose a tax rate that exceeds the certified tax rate if:]
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[(i) the municipality meets the requirements of Sections
59-2-918
and
59-2-919
; and]
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[(ii) in adopting the resolution required under Section
59-2-919
, the municipal legislative
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body obtains approval to impose the tax rate by two-thirds of all members of the municipal
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legislative body.]
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[(f) Notwithstanding Subsection (5)(a), a county or municipality is not required to obtain
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voter approval under this Subsection (5) to impose a tax rate under Section
17A-2-1322
that
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exceeds the certified tax rate calculated for a special service district established under Title 17A,
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Chapter 2, Part 13, Utah Special Service District Act, if the county or municipality obtained voter
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approval to impose a tax on property within the special service district:]
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[(i) under Section
17A-2-1322
; and]
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[(ii) on or after June 1, 1996 .]
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Section 2. Retrospective operation.
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This act has retrospective operation to January 1, 2000.
Legislative Review Note
as of 12-13-99 3:13 PM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.