59-2-924.  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:

Terms Used In Utah Code 59-2-924

  • 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. See Utah Code 59-2-102
  • Land: includes :Utah Code 68-3-12.5
  • Personal property: All property that is not real property.
  • Personal property: includes :
    (a) every class of property as defined in Subsection (29) that is the subject of ownership and is not real estate or an improvement;
    (b) any 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;
    (d) livestock; and
    (e) outdoor advertising structures as defined in Section 72-7-502. See Utah Code 59-2-102
  • Property: means property that is subject to assessment and taxation according to its value. See Utah Code 59-2-102
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • 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. See Utah Code 59-2-102
  • 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
  • Taxable value: means fair market value less any applicable reduction allowed for residential property under Section 59-2-103. See Utah Code 59-2-102
  • Taxing entity: means any county, city, town, school district, special taxing district, special district under Title 17B, Limited Purpose Local Government Entities - Special Districts, or other political subdivision of the state with the authority to levy a tax on property. See Utah Code 59-2-102
    • (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 3.

    (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 3, for the current year;

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

    (C)  the aggregate 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.

    (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 3; 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;

    (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 host local government, the same as that term is defined in Section 63N-2-502; or

    (vi)  for a housing and transit reinvestment zone created under 6, 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-3-602.

    (e)  “Centrally assessed benchmark value” means an amount equal to the highest year end taxable value of real and personal property the commission assesses in accordance with 2, for a previous calendar year that begins on or after January 1, 2015, 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 2; 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) 

    (i)  “Centrally assessed new growth” means the greater of:

    (A)  zero; or

    (B)  the amount calculated by subtracting the centrally assessed benchmark value adjusted for prior year end incremental value from the taxable value of real and personal property the commission assesses in accordance with 2, for the current year, adjusted for current year incremental value.

    (ii)  “Centrally assessed new growth” does not include 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.

    (g)  “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.

    (h)  “Community reinvestment agency” means the same as that term is defined in Section 17C-1-102.

    (i)  “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.

    (j)  “Host local government” means the same as that term is defined in Section 63N-2-502.

    (k)  “Hotel property” means the same as that term is defined in Section 63N-2-502.

    (l)  “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.

    (m)  “Incremental property tax revenue” means the same as that term is defined in Section 63N-2-502.

    (n)  “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 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;

    (iv)  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;

    (v)  for a housing and transit reinvestment zone created pursuant to 6, 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 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;

    (vi)  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; or

    (vii)  for the State Fair Park Authority created in Section 11-68-201, the taxable value of:

    (A)  fair park land, as defined in Section 11-68-101, that is subject to a privilege tax under Section 11-68-402; or

    (B)  personal property located on property that is subject to the privilege tax described in Subsection (1)(n)(vii)(A).

    (o) 

    (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 3, 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 3, 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 5; or

    (D)  assessed value based on whether a property is assessed under 17.

    (p)  “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 an agency created under Section 17C-1-201.5, the same as that term is defined in Section 17C-1-102; or

    (iii)  for an authority created under Section 63H-1-201, the same as that term is defined in Section 63H-1-102.

    (q)  “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;

    (iii)  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;

    (iv)  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; or

    (v)  for a housing and transit reinvestment zone created under 6, an amount equal to the incremental value that is no longer provided to a housing and transit reinvestment zone as tax increment.

    (r)  “Project area incremental revenue” means the same as that term is defined in Section 17C-1-1001.

    (s)  “Property tax allocation” means the same as that term is defined in Section 63H-1-102.

    (t)  “Property tax differential” means the same as that term is defined in Section 11-58-102.

    (u)  “Qualifying exempt revenue” means revenue received:

    (i)  for the previous calendar year;

    (ii)  by a taxing entity;

    (iii)  from tangible personal property contained on the prior year’s tax rolls that is exempt from property tax under Subsection 59-2-1115(2)(b) for a calendar year beginning on January 1, 2022; and

    (iv)  on the aggregate 2021 year end taxable value of the tangible personal property that exceeds $15,300.

    (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; or

    (ii)  for a housing and transit reinvestment zone created under 6, the same as that term is defined in Section 63N-3-602.

    • (2)  Before June 1 of each year, the county assessor of each county 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 3, for each taxing entity; and

    (b)  a statement containing the taxable value of all personal property a county assessor assesses in accordance with 3, from the prior year end values.

    (3)  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);

    (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 minus the qualifying exempt revenue 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 new growth; 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, the levy imposed for municipal-type services under Sections 17-34-1 and 17-36-9; and

    (ii)  in a county of the fourth, fifth, or sixth class, the levy imposed for general county purposes and such other levies imposed solely for the municipal-type services identified in Section 17-34-1 and Subsection 17-36-3(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 10, 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 judgment levy imposed under Section 59-2-1328 or 59-2-1330 may be imposed 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 3; and

    (B)  contained on the assessment roll;

    (ii)  the year end taxable value of personal property:

    (A)  a county assessor assesses in accordance with 3; 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 2.

    (b)  For purposes of Subsection (7)(a), taxable value does not include eligible new growth.

    (8) 

    (a)  On or before June 30, a taxing entity shall annually 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 2, 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 2, 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 2, 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 2, 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 2, 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 2, 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).

    Amended by Chapter 502, 2023 General Session

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