11-14-310. General obligation bonds — Levy and collection of taxes.
| (1) |
Terms Used In Utah Code 11-14-310- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means :Utah Code 68-3-12.5
- Property: includes both real and personal property. See Utah Code 68-3-12.5
| (a) |
| (i) |
Any bonds issued under this chapter that are not payable solely from revenues other than those derived from ad valorem taxes are full general obligations of the local political subdivision. |
| (ii) |
The local political subdivision’s full faith and credit is pledged for the prompt and punctual payment of principal of and interest on the local political subdivision’s general obligation bonds. |
| (iii) |
A local political subdivision is required, regardless of any limitations that may otherwise exist on the amount of taxes that the local political subdivision may levy, to provide for the annual levy and collection of ad valorem taxes, without limitation as to the rate or amount, on all taxable property in the local political subdivision fully sufficient for the payment of principal and interest on the local political subdivision’s general obligation bonds as the principal and interest become due. |
| (iv) |
If by law ad valorem taxes for the local political subdivision are levied by a board other than its governing body:
| (A) |
the taxes shall be levied by the other board; and |
| (B) |
the local political subdivision shall, each year, provide the levying board with all information necessary to levy the taxes in the required amount. |
|
| (v) |
Taxes levied under Subsection (1)(a)(iv) shall be levied and collected by the same officers, at the same time, and in the same manner as are other taxes levied for the local political subdivision. |
|
| (b) |
The pledge of the taxes levied under this section shall constitute an automatically arising first lien on the taxes as provided in Section 11-14-501. |
| (c) |
| (i) |
A local school board may use revenues remaining from a tax levied under this section for school district technology programs or projects after the principal of and premium and interest on the district’s general obligation bonds have been paid for the applicable period for which the taxes were levied. |
| (ii) |
A lien created pursuant to Section 11-14-501 does not attach to any technology programs or projects paid for from the remaining tax revenues under Subsection (1)(c)(i). |
|
|
| (2) |
| (a) |
If a local political subdivision neglects or fails for any reason to levy or collect or to cause to be levied or collected sufficient taxes for the prompt and punctual payment of such principal and interest, a person in interest may enforce levy and collection of sufficient taxes in a court having jurisdiction of the subject matter. |
| (b) |
A suit, action, or proceeding brought by a person in interest under Subsection (2)(a) shall be a preferred cause and shall be heard and disposed of without delay. |
| (c) |
All provisions of the constitution and laws relating to the collection of county and municipal taxes and tax sales apply to and regulate the collection of the taxes levied pursuant to this section, through the officer whose duty it is to collect the taxes and money due the local political subdivision. |
|
Amended by Chapter 366, 2020 General Session
