Utah Code 17C-1-408. Base taxable value to be adjusted to reflect other changes

17C-1-408. Base taxable value to be adjusted to reflect other changes.

(1)

Terms Used In Utah Code 17C-1-408

Base taxable value: means , unless otherwise adjusted in accordance with provisions of this title, a property's taxable value as shown upon the assessment roll last equalized during the base year. See Utah Code 17C-1-102
Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Statute: A law passed by a legislature.
Tax increment: means the difference between:

(i)

the amount of property tax revenue generated each tax year by a taxing entity from the area within a project area designated in the project area plan as the area from which tax increment is to be collected, using the current assessed value of the property and each taxing entity's current certified tax rate as defined in Section 59-2-924; and

(ii)

the amount of property tax revenue that would be generated from that same area using the base taxable value of the property and each taxing entity's current certified tax rate as defined in Section 59-2-924. See Utah Code 17C-1-102

Taxable value: means :

(a)	the taxable value of all real property a county assessor assesses in accordance with 3, for the current year;

(b)	the taxable value of all real and personal property the commission assesses in accordance with 2, for the current year; and

(c)

the year end taxable value of all personal property a county assessor assesses in accordance with 3, contained on the prior year's tax rolls of the taxing entity. See Utah Code 17C-1-102

(a)

(i)

As used in this Subsection (1), “qualifying decrease” means:

(A)	a decrease of more than 20% from the previous tax year’s levy; or

(B)	a cumulative decrease over a consecutive five-year period of more than 100% from the levy in effect at the beginning of the five-year period.

(ii)	The year in which a qualifying decrease under Subsection (1)(a)(i)(B) occurs is the fifth year of the five-year period.

(b)

If there is a qualifying decrease in the minimum basic school levy under Section 59-2-902 that would result in a reduction of the amount of tax increment to be paid to an agency:

(i)	the base taxable value shall be reduced in the year of the qualifying decrease to the extent necessary, even if below zero, to provide the agency with approximately the same amount of tax increment that would have been paid to the agency each year had the qualifying decrease not occurred; and

(ii)	the amount of tax increment paid to the agency each year for the payment of bonds and indebtedness may not be less than what would have been paid to the agency if there had been no qualifying decrease.

(2)

(a)

The base taxable value to be used in determining tax increment shall be:

(i)

increased or decreased by the amount of an increase or decrease that results from:

(A)	a statute enacted by the Legislature or by the people through an initiative;

(B)	a judicial decision;

(C)	an order from the State Tax Commission to a county to adjust or factor the county’s assessment rate under Subsection 59-2-704(2);

(D)	a change in exemption provided in Utah Constitution Article XIII, Section 2, or Section 59-2-103; or

(E)	an increase or decrease in the percentage of fair market value, as defined under Section 59-2-102; and

(ii)

reduced for any year to the extent necessary, even if below zero, to provide an agency with approximately the same amount of money the agency would have received without a reduction in the county’s certified tax rate if:

(A)	in that year there is a decrease in the county’s certified tax rate under Subsection 59-2-924.2(2) or (3)(a);

(B)	the amount of the decrease is more than 20% of the county’s certified tax rate of the previous year; and

(C)	the decrease would result in a reduction of the amount of tax increment to be paid to the agency.

(b)	Notwithstanding an increase or decrease under Subsection (2)(a), the amount of tax increment paid to an agency each year for payment of bonds or other indebtedness may not be less than would have been paid to the agency each year if there had been no increase or decrease under Subsection (2)(a).

Amended by Chapter 350, 2016 General Session

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