UT
Utah Senate Bill SB0037

Utah 2025 Regular Session

Utah Senate Bill SB0037 Compare Versions

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1-Enrolled Copy S.B. 37
1+02-13 11:11 S.B. 37
22 1
33 Minimum Basic Tax Rate Amendments
44 2025 GENERAL SESSION
55 STATE OF UTAH
66 Chief Sponsor: Lincoln Fillmore
77 House Sponsor: Val L. Peterson
88 2
99
1010 3
1111 LONG TITLE
12+ Ŝ→ [Committee Note:
1213 4
14+
15+5
16+The Revenue and Taxation Interim Committee recommended this bill.
17+6 Legislative Vote:12 voting for2 voting against4 absent] ←Ŝ
18+7
1319 General Description:
14-5
20+8
1521 This bill amends provisions related to the minimum basic tax that school districts impose.
16-6
22+9
1723 Highlighted Provisions:
18-7
24+10
1925 This bill:
20-8
26+11
2127 ▸ ensures state funding in an amount that covers the total cost of the basic school program
22-9
28+12
2329 for a school district that imposes the combined minimum basic tax rate;
24-10
30+13
2531 ▸ requires school districts that impose the combined minimum basic tax to remit to the state
26-11
32+14
2733 the revenue the tax generates;
28-12
34+15
2935 ▸ repeals provisions regarding state and local contributions toward the basic school
30-13
36+16
3137 program; and
32-14
38+17
3339 ▸ makes technical and conforming changes.
34-15
40+18
3541 Money Appropriated in this Bill:
36-16
42+19
3743 None
38-17
44+20
3945 Other Special Clauses:
40-18
46+21
4147 None
42-19
48+22
4349 Utah Code Sections Affected:
44-20
50+23
4551 AMENDS:
46-21
52+24
4753 11-13-302, as last amended by Laws of Utah 2023, Chapter 7
48-22
54+25
4955 53F-2-205, as last amended by Laws of Utah 2023, Chapter 7
50-23
56+26
5157 53F-2-301, as last amended by Laws of Utah 2024, Chapters 124, 460
52-24
58+27
5359 53F-2-515, as last amended by Laws of Utah 2023, Chapter 7
54-25
60+28
5561 59-2-902, as last amended by Laws of Utah 1993, Chapters 4, 227
56-26
62+29
5763
58-27
59-Be it enacted by the Legislature of the state of Utah: S.B. 37 Enrolled Copy
60-28
64+30
65+Be it enacted by the Legislature of the state of Utah:
66+ S.B. 37 S.B. 37 02-13 11:11
67+31
6168 Section 1. Section 11-13-302 is amended to read:
62-29
69+32
6370 11-13-302 . Payment of fee in lieu of ad valorem property tax by certain energy
64-30
71+33
6572 suppliers -- Method of calculating -- Collection -- Extent of tax lien.
66-31
67-(1)(a) Each project entity created under this chapter that owns a project and that sells any
68-32
69-capacity, service, or other benefit from it to an energy supplier or suppliers whose
70-33
71-tangible property is not exempted by Utah Constitution Article XIII, Section 3, from
7273 34
73-the payment of ad valorem property tax, shall pay an annual fee in lieu of ad valorem
74+(1)(a) Each project entity created under this chapter that owns a project and that sells
7475 35
75-property tax as provided in this section to each taxing jurisdiction within which the
76+any capacity, service, or other benefit from it to an energy supplier or suppliers
7677 36
77-project or any part of it is located.
78+whose tangible property is not exempted by Utah Constitution Article XIII, Section
7879 37
80+3, from the payment of ad valorem property tax, shall pay an annual fee in lieu of ad
81+38
82+valorem property tax as provided in this section to each taxing jurisdiction within
83+39
84+which the project or any part of it is located.
85+40
7986 (b) For purposes of this section, "annual fee" means the annual fee described in
80-38
87+41
8188 Subsection (1)(a) that is in lieu of ad valorem property tax.
82-39
89+42
8390 (c) The requirement to pay an annual fee shall commence:
84-40
91+43
8592 (i) with respect to each taxing jurisdiction that is a candidate receiving the benefit of
86-41
93+44
8794 impact alleviation payments under contracts or determination orders provided for
88-42
95+45
8996 in Sections 11-13-305 and 11-13-306, with the fiscal year of the candidate
90-43
97+46
9198 following the fiscal year of the candidate in which the date of commercial
92-44
99+47
93100 operation of the last generating unit, other than any generating unit providing
94-45
101+48
95102 additional project capacity, of the project occurs, or, in the case of any facilities
96-46
103+49
97104 providing additional project capacity, with the fiscal year of the candidate
98-47
105+50
99106 following the fiscal year of the candidate in which the date of commercial
100-48
107+51
101108 operation of the generating unit providing the additional project capacity occurs;
102-49
109+52
103110 and
104-50
111+53
105112 (ii) with respect to any taxing jurisdiction other than a taxing jurisdiction described in
106-51
113+54
107114 Subsection (1)(c)(i), with the fiscal year of the taxing jurisdiction in which
108-52
115+55
109116 construction of the project commences, or, in the case of facilities providing
110-53
117+56
111118 additional project capacity, with the fiscal year of the taxing jurisdiction in which
112-54
119+57
113120 construction of those facilities commences.
114-55
121+58
115122 (d) The requirement to pay an annual fee shall continue for the period of the useful life
116-56
123+59
117124 of the project or facilities.
118-57
125+60
119126 (2)(a) The annual fees due a school district shall be as provided in Subsection (2)(b)
120-58
127+61
121128 because the ad valorem property tax imposed by a school district and authorized by
122-59
129+62
123130 the Legislature represents both:
124-60
131+63
125132 (i) a levy [mandated by ]the state mandates as a condition of receiving state funding
126-61
133+64
127134 for the state minimum school program under Section 53F-2-301; and
128-- 2 - Enrolled Copy S.B. 37
129-62
135+- 2 - 02-13 11:11 S.B. 37
136+65
130137 (ii) local levies for capital outlay and other purposes under Sections 53F-8-303,
131-63
138+66
132139 53F-8-301, and 53F-8-302.
133-64
140+67
134141 (b) The annual fees due a school district shall be as follows:
135-65
142+68
136143 (i) the project entity shall pay to the [school district] state an annual fee for the state
137-66
144+69
138145 minimum school program at the rate imposed by the school district and authorized
139-67
146+70
140147 by the Legislature under Section 53F-2-301; and
141-68
148+71
142149 (ii) for all other local property tax levies authorized to be imposed by a school
143-69
150+72
144151 district, the project entity shall pay to the school district either:
145-70
152+73
146153 (A) an annual fee; or
147-71
154+74
148155 (B) impact alleviation payments under contracts or determination orders provided
149-72
156+75
150157 for in Sections 11-13-305 and 11-13-306.
151-73
158+76
152159 (3)(a) An annual fee due a taxing jurisdiction for a particular year shall be calculated by
153-74
160+77
154161 multiplying the tax rate or rates of the jurisdiction for that year by the product
155-75
162+78
156163 obtained by multiplying the fee base or value determined in accordance with
157-76
164+79
158165 Subsection (4) for that year of the portion of the project located within the
159-77
166+80
160167 jurisdiction by the percentage of the project which is used to produce the capacity,
161-78
168+81
162169 service, or other benefit sold to the energy supplier or suppliers.
163-79
170+82
164171 (b) As used in this section, "tax rate," when applied in respect to a school district,
165-80
172+83
166173 includes any assessment to be made by the school district under Subsection (2) or
167-81
174+84
168175 Section 63M-5-302.
169-82
176+85
170177 (c) There is to be credited against the annual fee due a taxing jurisdiction for each year,
171-83
178+86
172179 an amount equal to the debt service, if any, payable in that year by the project entity
173-84
180+87
174181 on bonds, the proceeds of which were used to provide public facilities and services
175-85
182+88
176183 for impact alleviation in the taxing jurisdiction in accordance with Sections 11-13-305
177-86
184+89
178185 and 11-13-306.
179-87
186+90
180187 (d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:
181-88
188+91
182189 (i) take into account the fee base or value of the percentage of the project located
183-89
190+92
184191 within the taxing jurisdiction determined in accordance with Subsection (4) used
185-90
192+93
186193 to produce the capacity, service, or other benefit sold to the supplier or suppliers;
187-91
194+94
188195 and
189-92
196+95
190197 (ii) reflect any credit to be given in that year.
191-93
198+96
192199 (4)(a) Except as otherwise provided in this section, the annual fees required by this
193-94
200+97
194201 section shall be paid, collected, and distributed to the taxing jurisdiction as if:
195-95
202+98
196203 (i) the annual fees were ad valorem property taxes; and
197-- 3 - S.B. 37 Enrolled Copy
198-96
204+- 3 - S.B. 37 02-13 11:11
205+99
199206 (ii) the project were assessed at the same rate and upon the same measure of value as
200-97
207+100
201208 taxable property in the state.
202-98
209+101
203210 (b)(i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by
204-99
211+102
205212 this section, the fee base of a project may be determined in accordance with an
206-100
213+103
207214 agreement among:
208-101
215+104
209216 (A) the project entity; and
210-102
217+105
211218 (B) any county that:
212-103
219+106
213220 (I) is due an annual fee from the project entity; and
214-104
221+107
215222 (II) agrees to have the fee base of the project determined in accordance with the
216-105
223+108
217224 agreement described in this Subsection (4).
218-106
225+109
219226 (ii) The agreement described in Subsection (4)(b)(i):
220-107
227+110
221228 (A) shall specify each year for which the fee base determined by the agreement
222-108
229+111
223230 shall be used for purposes of an annual fee; and
224-109
231+112
225232 (B) may not modify any provision of this chapter except the method by which the
226-110
233+113
227234 fee base of a project is determined for purposes of an annual fee.
228-111
235+114
229236 (iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county
230-112
237+115
231238 described in Subsection (4)(b)(i)(B), the fee base determined by the agreement
232-113
239+116
233240 described in Subsection (4)(b)(i) shall be used for purposes of an annual fee
234-114
241+117
235242 imposed by that taxing jurisdiction.
236-115
243+118
237244 (iv)(A) If there is not agreement as to the fee base of a portion of a project for any
238-116
245+119
239246 year, for purposes of an annual fee, the State Tax Commission shall determine
240-117
247+120
241248 the value of that portion of the project for which there is not an agreement:
242-118
249+121
243250 (I) for that year; and
244-119
251+122
245252 (II) using the same measure of value as is used for taxable property in the state.
246-120
253+123
247254 (B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State
248-121
255+124
249256 Tax Commission in accordance with rules made by the State Tax Commission.
250-122
257+125
251258 (c) Payments of the annual fees shall be made from:
252-123
259+126
253260 (i) the proceeds of bonds issued for the project; and
254-124
261+127
255262 (ii) revenues derived by the project entity from the project.
256-125
263+128
257264 (d)(i) The contracts of the project entity with the purchasers of the capacity, service,
258-126
265+129
259266 or other benefits of the project whose tangible property is not exempted by Utah
260-127
267+130
261268 Constitution Article XIII, Section 3, from the payment of ad valorem property tax
262-128
269+131
263270 shall require each purchaser, whether or not located in the state, to pay, to the
264-129
271+132
265272 extent not otherwise provided for, its share, determined in accordance with the
266-- 4 - Enrolled Copy S.B. 37
267-130
273+- 4 - 02-13 11:11 S.B. 37
274+133
268275 terms of the contract, of these fees.
269-131
276+134
270277 (ii) It is the responsibility of the project entity to enforce the obligations of the
271-132
278+135
272279 purchasers.
273-133
280+136
274281 (5)(a) The responsibility of the project entity to make payment of the annual fees is
275-134
282+137
276283 limited to the extent that there is legally available to the project entity, from bond
277-135
284+138
278285 proceeds or revenues, money to make these payments, and the obligation to make
279-136
286+139
280287 payments of the annual fees is not otherwise a general obligation or liability of the
281-137
288+140
282289 project entity.
283-138
290+141
284291 (b) No tax lien may attach upon any property or money of the project entity by virtue of
285-139
292+142
286293 any failure to pay all or any part of an annual fee.
287-140
294+143
288295 (c) The project entity or any purchaser may contest the validity of an annual fee to the
289-141
296+144
290297 same extent as if the payment was a payment of the ad valorem property tax itself.
291-142
298+145
292299 (d) The payments of an annual fee shall be reduced to the extent that any contest is
293-143
300+146
294301 successful.
295-144
302+147
296303 (6)(a) The annual fee described in Subsection (1):
297-145
304+148
298305 (i) shall be paid by a public agency that:
299-146
306+149
300307 (A) is not a project entity; and
301-147
308+150
302309 (B) owns an interest in a facility providing additional project capacity if the
303-148
310+151
304311 interest is otherwise exempt from taxation pursuant to Utah Constitution,
305-149
312+152
306313 Article XIII, Section 3; and
307-150
314+153
308315 (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in
309-151
316+154
310317 accordance with Subsection (6)(b).
311-152
318+155
312319 (b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax
313-153
320+156
314321 rate or rates of the applicable taxing jurisdiction multiplied by the product of the
315-154
322+157
316323 following:
317-155
324+158
318325 (i) the fee base or value of the facility providing additional project capacity located
319-156
326+159
320327 within the jurisdiction;
321-157
328+160
322329 (ii) the percentage of the ownership interest of the public agency in the facility; and
323-158
330+161
324331 (iii) the portion, expressed as a percentage, of the public agency's ownership interest
325-159
332+162
326333 that is attributable to the capacity, service, or other benefit from the facility that is
327-160
334+163
328335 sold, including any subsequent sale, resale, or layoff, by the public agency to an
329-161
336+164
330337 energy supplier or suppliers whose tangible property is not exempted by Utah
331-162
338+165
332339 Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.
333-163
340+166
334341 (c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the
335-- 5 - S.B. 37 Enrolled Copy
336-164
342+- 5 - S.B. 37 02-13 11:11
343+167
337344 obligations, credits, rights, and protections set forth in Subsections (1) through (5)
338-165
345+168
339346 with respect to its ownership interest as though it were a project entity.
340-166
347+169
341348 (d) On or before March 1 of each year, a project entity that owns a project and that
342-167
349+170
343350 provides any capacity, service, or other benefit to an energy supplier or a public
344-168
351+171
345352 agency shall file an electronic report with the State Tax Commission that identifies:
346-169
353+172
347354 (i) each energy supplier and public agency to which the project entity delivers
348-170
355+173
349356 capacity, service, or other benefit; and
350-171
357+174
351358 (ii) the amount of capacity, service, or other benefit delivered to each energy supplier
352-172
359+175
353360 and public agency.
354-173
361+176
355362 Section 2. Section 53F-2-205 is amended to read:
356-174
363+177
357364 53F-2-205 . Powers and duties of state board to adjust Minimum School
358-175
365+178
359366 Program allocations -- Use of remaining funds at the end of a fiscal year.
360-176
367+179
361368 (1) As used in this section:
362-177
369+180
363370 (a) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.
364-178
371+181
365372 Sec. 6301 et seq.
366-179
373+182
367374 (b) "Program" means a program or allocation funded by a line item appropriation or
368-180
375+183
369376 other appropriation designated as:
370-181
377+184
371378 (i) Basic Program;
372-182
379+185
373380 (ii) Related to Basic Programs;
374-183
381+186
375382 (iii) Voted and Board Levy Programs; or
376-184
383+187
377384 (iv) Minimum School Program.
378-185
385+188
379386 (2) Except as provided in Subsection (3)[ or (5)], if the number of weighted pupil units in
380-186
387+189
381388 a program is underestimated, the state board shall reduce the value of the weighted pupil
382-187
389+190
383390 unit in that program so that the total amount paid for the program does not exceed the
384-188
391+191
385392 amount appropriated for the program.
386-189
393+192
387394 (3) If the number of weighted pupil units in a program is overestimated, the state board
388-190
395+193
389396 shall spend excess money appropriated for the following purposes giving priority to the
390-191
397+194
391398 purpose described in Subsection (3)(a):
392-192
399+195
393400 (a) to support the value of the weighted pupil unit in a program within the basic
394-193
401+196
395402 state-supported school program in which the number of weighted pupil units is
396-194
403+197
397404 underestimated;
398-195
405+198
399406 (b) to support the state guaranteed local levy increments as defined in Section 53F-2-601,
400-196
407+199
401408 if:
402-197
409+200
403410 (i) local contributions to the voted local levy program or board local levy program are
404-- 6 - Enrolled Copy S.B. 37
405-198
411+- 6 - 02-13 11:11 S.B. 37
412+201
406413 overestimated; or
407-199
414+202
408415 (ii) the number of weighted pupil units within school districts qualifying for a
409-200
416+203
410417 guarantee is underestimated;
411-201
418+204
412419 (c) to support the state supplement to local property taxes allocated to charter schools, if
413-202
420+205
414421 the state supplement is less than the amount prescribed by Section 53F-2-704;
415-203
422+206
416423 (d) to fund the cost of the salary supplements described in Section 53F-2-504; or
417-204
424+207
418425 (e) to support a school district with a loss in student enrollment as provided in Section
419-205
426+208
420427 53F-2-207.
421-206
428+209
422429 [(4) If local contributions from the minimum basic tax rate imposed under Section
423-207
430+210
424431 53F-2-301 are overestimated, the state board shall reduce the value of the weighted pupil
425-208
432+211
426433 unit for all programs within the basic state-supported school program so the total state
427-209
434+212
428435 contribution to the basic state-supported school program does not exceed the amount of
429-210
436+213
430437 state funds appropriated.]
431-211
438+214
432439 [(5) If local contributions from the minimum basic tax rate imposed under Section
433-212
440+215
434441 53F-2-301 are underestimated, the state board shall:]
435-213
442+216
436443 [(a) spend the excess local contributions for the purposes specified in Subsection (3),
437-214
438-giving priority to supporting the value of the weighted pupil unit in programs within
439-215
440-the basic state-supported school program in which the number of weighted pupil
441-216
442-units is underestimated; and]
443444 217
445+giving priority to supporting the value of the weighted pupil unit in programs within the
446+218
447+basic state-supported school program in which the number of weighted pupil units is
448+219
449+underestimated; and]
450+220
444451 [(b) reduce the state contribution to the basic state-supported school program so the total
445-218
446-cost of the basic state-supported school program does not exceed the total state and
447-219
448-local funds appropriated to the basic state-supported school program plus the local
449-220
452+221
453+cost of the basic state-supported school program does not exceed the total state and local
454+222
455+funds appropriated to the basic state-supported school program plus the local
456+223
450457 contributions necessary to support the value of the weighted pupil unit in programs
451-221
452-within the basic state-supported school program in which the number of weighted
453-222
454-pupil units is underestimated.]
455-223
458+224
459+within the basic state-supported school program in which the number of weighted pupil
460+225
461+units is underestimated.]
462+226
456463 [(6)] (4) Except as provided in Subsection (3)[ or (5)], the state board shall reduce the state
457-224
464+227
458465 guarantee per weighted pupil unit provided under the local levy state guarantee program
459-225
466+228
460467 described in Section 53F-2-601, if:
461-226
468+229
462469 (a) local contributions to the voted local levy program or board local levy program are
463-227
470+230
464471 overestimated; or
465-228
472+231
466473 (b) the number of weighted pupil units within school districts qualifying for a guarantee
467-229
474+232
468475 is underestimated.
469-230
476+233
470477 [(7)] (5) Money appropriated to the state board is nonlapsing, including appropriations to the
471-231
478+234
472479 Minimum School Program and all agencies, line items, and programs under the
473-- 7 - S.B. 37 Enrolled Copy
474-232
480+- 7 - S.B. 37 02-13 11:11
481+235
475482 jurisdiction of the state board.
476-233
483+236
477484 [(8)] (6) The state board shall report actions taken by the state board under this section to the
478-234
485+237
479486 Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and
480-235
487+238
481488 Budget.
482-236
489+239
483490 Section 3. Section 53F-2-301 is amended to read:
484-237
491+240
485492 53F-2-301 . Minimum basic tax rate for a fiscal year that begins after July 1,
486-238
493+241
487494 2022.
488-239
495+242
489496 (1) As used in this section:
490-240
497+243
491498 (a) "Basic levy increment rate" means a tax rate that will generate an amount of revenue
492-241
499+244
493500 equal to $75,000,000.
494-242
501+245
495502 (b) "Combined basic rate" means a rate that is the sum of:
496-243
503+246
497504 (i) the minimum basic tax rate; and
498-244
505+247
499506 (ii) the WPU value rate.
500-245
507+248
501508 (c) "Commission" means the State Tax Commission.
502-246
509+249
503510 (d) "Minimum basic local amount" means an amount that is:
504-247
511+250
505512 (i) equal to the sum of:
506-248
513+251
507514 (A) the school districts' contribution to the basic school program the previous
508-249
515+252
509516 fiscal year;
510-250
517+253
511518 (B) the amount generated by the basic levy increment rate; and
512-251
519+254
513520 (C) the eligible new growth, as defined in Section 59-2-924 and rules of the State
514-252
521+255
515522 Tax Commission multiplied by the minimum basic rate; and
516-253
523+256
517524 (ii) set annually by the Legislature in Subsection (2)(a).
518-254
525+257
519526 (e) "Minimum basic tax rate" means a tax rate certified by the commission that will
520-255
527+258
521528 generate an amount of revenue equal to the minimum basic local amount described in
522-256
529+259
523530 Subsection (2)(a).
524-257
531+260
525532 (f) "Weighted pupil unit value" or "WPU value" means the amount established each year
526-258
533+261
527534 in the enacted public education budget that is multiplied by the number of weighted
528-259
535+262
529536 pupil units to yield the funding level for the basic school program.
530-260
537+263
531538 (g) "WPU value amount" means an amount:
532-261
539+264
533540 (i) that is equal to the product of:
534-262
541+265
535542 (A) the WPU value increase limit; and
536-263
543+266
537544 (B) the percentage share of local revenue to the cost of the basic school program
538-264
545+267
539546 in the immediately preceding fiscal year; and
540-265
547+268
541548 (ii) set annually by the Legislature in Subsection (3)(a).
542-- 8 - Enrolled Copy S.B. 37
543-266
549+- 8 - 02-13 11:11 S.B. 37
550+269
544551 (h) "WPU value increase limit" means the lesser of:
545-267
552+270
546553 (i) the total cost to the basic school program to increase the WPU value over the
547-268
554+271
548555 WPU value in the prior fiscal year; or
549-269
556+272
550557 (ii) the total cost to the basic school program to increase the WPU value by 4% over
551-270
558+273
552559 the WPU value in the prior fiscal year.
553-271
560+274
554561 (i) "WPU value rate" means a tax rate certified by the commission that will generate an
555-272
562+275
556563 amount of revenue equal to the WPU value amount described in Subsection (3)(a).
557-273
558-(2)(a) The minimum basic local amount for the fiscal year that begins on July 1, 2024, is
559-274
560-$759,529,000 in revenue statewide.
561-275
564+276
565+(2)(a) The minimum basic local amount for the fiscal year that begins on July 1, 2024,
566+277
567+is $759,529,000 in revenue statewide.
568+278
562569 (b) The preliminary estimate of the minimum basic tax rate for a fiscal year that begins
563-276
570+279
564571 on July 1, 2024, is .001429.
565-277
572+280
566573 (3)(a) The WPU value amount for the fiscal year that begins on July 1, 2024, is
567-278
574+281
568575 $29,240,600 in revenue statewide.
569-279
576+282
570577 (b) The preliminary estimate of the WPU value rate for the fiscal year that begins on
571-280
578+283
572579 July 1, 2024, is .000055.
573-281
580+284
574581 (4)(a) On or before June 22, the commission shall certify for the year:
575-282
582+285
576583 (i) the minimum basic tax rate; and
577-283
584+286
578585 (ii) the WPU value rate.
579-284
586+287
580587 (b) The estimate of the minimum basic tax rate provided in Subsection (2)(b) and the
581-285
588+288
582589 estimate of the WPU value rate provided in Subsection (3)(b) are based on a forecast
583-286
590+289
584591 for property values for the next calendar year.
585-287
592+290
586593 (c) The certified minimum basic tax rate described in Subsection (4)(a)(i) and the
587-288
594+291
588595 certified WPU value rate described in Subsection (4)(a)(ii) are based on property
589-289
596+292
590597 values as of January 1 of the current calendar year, except personal property, which is
591-290
598+293
592599 based on values from the previous calendar year.
593-291
600+294
594601 (5)(a) To qualify for receipt of [the ]state [contribution toward] funding of the basic
595-292
602+295
596603 school program and as a school district's contribution toward the cost of the basic
597-293
604+296
598605 school program for the school district, [each] a local school board shall impose the
599-294
606+297
600607 combined basic rate.
601-295
608+298
602609 (b) For a local school board that imposes the combined basic rate:
603-296
610+299
604611 (i) the relevant county treasurer shall:
605-297
612+300
606613 (A) collect the combined basic rate revenue for all school districts located within
607-298
614+301
608615 the county treasurer's county; and
609-299
616+302
610617 (B) remit the revenue monthly to the state treasurer; and
611-- 9 - S.B. 37 Enrolled Copy
612-300
613-(ii) the state treasurer shall:
614-301
615-(A) deposit the combined basic rate revenue the state treasurer receives from a
616-302
617-county treasurer into the General Fund; and
618+- 9 - S.B. 37 02-13 11:11
618619 303
620+(ii) the state treasurer shall Ĥ→ [ ] :
621+303a
622+(A) ←Ĥ deposit the combined basic rate revenue the state treasurer
623+304
624+receives from a county treasurer into Ŝ→ [state funds] the General Fund ←Ŝ Ĥ→ [.] ;
625+and
626+304a
619627 (B) communicate the amount of the deposit to the state board.
620-304
628+304b
621629 (c) The state board shall remit an amount equivalent to the amount described in
630+304c
631+Subsection (5)(b)(ii) to the relevant school district within 35 days after the date of the
632+304d
633+deposit described in Subsection (5)(b)(ii). ←Ĥ
622634 305
623-Subsection (5)(b)(ii) to the relevant school district within 35 days after the date of the
635+[(b) Ĥ→ (c)] (d) ←Ĥ (i) The state is not subject to the notice requirements of
636+305a
637+Section 59-2-926
624638 306
625-deposit described in Subsection (5)(b)(ii).
639+before imposing the tax rates described in this Subsection (5).
626640 307
627-[(b)] (d)(i) The state is not subject to the notice requirements of Section 59-2-926
641+(ii) The state is subject to the notice requirements of Section 59-2-926 if the state
628642 308
629-before imposing the tax rates described in this Subsection (5).
643+authorizes a tax rate that exceeds the tax rates described in this Subsection (5).
630644 309
631-(ii) The state is subject to the notice requirements of Section 59-2-926 if the state
645+(6)[(a)] The state shall [contribute to] ensure that, for each school district [toward]
632646 310
633-authorizes a tax rate that exceeds the tax rates described in this Subsection (5).
647+described in Subsection (5), an allocation from state funds is at least equivalent to the
634648 311
635-(6)[(a)] The state shall [contribute to] ensure that, for each school district [toward]
649+cost of the basic school program in the school district[ an amount of money that is the
636650 312
637-described in Subsection (5), an allocation from state funds is at least equivalent to the
651+difference between the cost of the school district's basic school program and the sum
638652 313
639-cost of the basic school program in the school district[ an amount of money that is the
653+of revenue generated by the school district by the following:] .
640654 314
641-difference between the cost of the school district's basic school program and the sum
655+[(i) the combined basic rate; and]
642656 315
643-of revenue generated by the school district by the following:] .
657+[(ii) the basic levy increment rate.]
644658 316
645-[(i) the combined basic rate; and]
659+[(b)(i) If the difference described in Subsection (6)(a) equals or exceeds the cost of the
646660 317
647-[(ii) the basic levy increment rate.]
661+basic school program in a school district, no state contribution shall be made to the
648662 318
649-[(b)(i) If the difference described in Subsection (6)(a) equals or exceeds the cost of
663+basic school program for the school district.]
650664 319
651-the basic school program in a school district, no state contribution shall be made
665+[(ii) The proceeds of the difference described in Subsection (6)(a) that exceed the cost
652666 320
653-to the basic school program for the school district.]
667+of the basic school program shall be paid into the Uniform School Fund as provided
654668 321
655-[(ii) The proceeds of the difference described in Subsection (6)(a) that exceed the
669+by law and by the close of the fiscal year in which the proceeds were calculated.]
656670 322
657-cost of the basic school program shall be paid into the Uniform School Fund as
671+(7) Upon appropriation by the Legislature, the Division of Finance shall deposit an amount
658672 323
659-provided by law and by the close of the fiscal year in which the proceeds were
673+equal to the proceeds generated statewide:
660674 324
661-calculated.]
675+(a) by the basic levy increment rate into the Minimum Basic Growth Account created in
662676 325
663-(7) Upon appropriation by the Legislature, the Division of Finance shall deposit an amount
677+Section 53F-9-302; and
664678 326
665-equal to the proceeds generated statewide:
679+(b) by the WPU value rate into the Teacher and Student Success Account created in
666680 327
667-(a) by the basic levy increment rate into the Minimum Basic Growth Account created in
681+Section 53F-9-306.
668682 328
669-Section 53F-9-302; and
683+Section 4. Section 53F-2-515 is amended to read:
670684 329
671-(b) by the WPU value rate into the Teacher and Student Success Account created in
685+53F-2-515 . Federal Impact Aid Program -- Offset for underestimated allocations
686+- 10 - 02-13 11:11 S.B. 37
672687 330
673-Section 53F-9-306.
688+from the Federal Impact Aid Program.
674689 331
675-Section 4. Section 53F-2-515 is amended to read:
690+(1) In addition to [the revenues received from the levy imposed by a local school board and
676691 332
677-53F-2-515 . Federal Impact Aid Program -- Offset for underestimated allocations
692+authorized by the Legislature under Section 53F-2-301] funds the Legislature
678693 333
679-from the Federal Impact Aid Program.
680-- 10 - Enrolled Copy S.B. 37
694+appropriates to the basic school program, the Legislature shall provide an amount equal
681695 334
682-(1) In addition to [the revenues received from the levy imposed by a local school board and
696+to the difference between the school district's anticipated receipts under the entitlement
683697 335
684-authorized by the Legislature under Section 53F-2-301] funds the Legislature
698+for the fiscal year from the Federal Impact Aid Program and the amount the school
685699 336
686-appropriates to the basic school program, the Legislature shall provide an amount equal
700+district actually received from this source for the next preceding fiscal year.
687701 337
688-to the difference between the school district's anticipated receipts under the entitlement
702+(2) If at the end of a fiscal year the sum of the receipts of a school district from a
689703 338
690-for the fiscal year from the Federal Impact Aid Program and the amount the school
704+distribution from the Legislature pursuant to Subsection (1) plus the school district's
691705 339
692-district actually received from this source for the next preceding fiscal year.
706+allocations from the Federal Impact Aid Program for that fiscal year exceeds the amount
693707 340
694-(2) If at the end of a fiscal year the sum of the receipts of a school district from a
708+allocated to the school district from the Federal Impact Aid Program for the next
695709 341
696-distribution from the Legislature pursuant to Subsection (1) plus the school district's
710+preceding fiscal year, the excess funds are carried into the next succeeding fiscal year
697711 342
698-allocations from the Federal Impact Aid Program for that fiscal year exceeds the amount
712+and become in that year a part of the school district's contribution [to] toward the cost of
699713 343
700-allocated to the school district from the Federal Impact Aid Program for the next
714+the school district's basic program for operation and maintenance under the state
701715 344
702-preceding fiscal year, the excess funds are carried into the next succeeding fiscal year
716+minimum school finance law.
703717 345
704-and become in that year a part of the school district's contribution [to] toward the cost of
718+(3) During the next succeeding fiscal year described in Subsection (2), the school district's
705719 346
706-the school district's basic program for operation and maintenance under the state
720+required tax rate for the basic program shall be reduced so that the yield from the
707721 347
708-minimum school finance law.
722+reduced tax rate plus the carryover funds equal the school district's required contribution [
709723 348
710-(3) During the next succeeding fiscal year described in Subsection (2), the school district's
724+to] toward the cost of the school district's basic program.
711725 349
712-required tax rate for the basic program shall be reduced so that the yield from the
726+(4) For the school district of a local school board that is required to reduce the school
713727 350
714-reduced tax rate plus the carryover funds equal the school district's required contribution [
728+district's basic tax rate under this section, the school district shall receive state minimum
715729 351
716-to] toward the cost of the school district's basic program.
730+school program funds as though the reduction in the tax rate had not been made.
717731 352
718-(4) For the school district of a local school board that is required to reduce the school
732+Section 5. Section 59-2-902 is amended to read:
719733 353
720-district's basic tax rate under this section, the school district shall receive state minimum
734+59-2-902 . Minimum basic tax levy for school districts.
721735 354
722-school program funds as though the reduction in the tax rate had not been made.
736+(1) If any county fails to comply with Section 59-2-704, then this section determines the
723737 355
724-Section 5. Section 59-2-902 is amended to read:
738+adjustment of the basic school levy for school districts within the county.[ ]
725739 356
726-59-2-902 . Minimum basic tax levy for school districts.
740+(2)(a) Before June 15, the commission shall ascertain from the State Board of Education
727741 357
728-(1) If any county fails to comply with Section 59-2-704, then this section determines the
742+the number of weighted pupil units in each school district in the state for the school
729743 358
730-adjustment of the basic school levy for school districts within the county.[ ]
744+year commencing July 1 of the current calendar year, estimated according to the
731745 359
732-(2)(a) Before June 15, the commission shall ascertain from the State Board of Education
746+Minimum School Program Act, and the money necessary for the cost of the
733747 360
734-the number of weighted pupil units in each school district in the state for the school
748+operation and maintenance of the minimum school program of the state for the school
735749 361
736-year commencing July 1 of the current calendar year, estimated according to the
750+fiscal year beginning July 1 of the current calendar year.[ ]
737751 362
738-Minimum School Program Act, and the money necessary for the cost of the
752+(b) The commission shall then estimate the amounts of all surpluses in the Uniform
739753 363
740-operation and maintenance of the minimum school program of the state for the school
754+School Fund, as of July 1 of the current calendar year, available for the operation and
755+- 11 - S.B. 37 02-13 11:11
741756 364
742-fiscal year beginning July 1 of the current calendar year.[ ]
757+maintenance of the program, and shall estimate the anticipated income to the fund
743758 365
744-(b) The commission shall then estimate the amounts of all surpluses in the Uniform
759+available for those purposes for the current school year from all sources, including
745760 366
746-School Fund, as of July 1 of the current calendar year, available for the operation and
761+revenues from taxes on income or from taxes on intangible property pursuant to
747762 367
748-maintenance of the program, and shall estimate the anticipated income to the fund
749-- 11 - S.B. 37 Enrolled Copy
763+Article XIII, Sec. 12, Utah Constitution.
750764 368
751-available for those purposes for the current school year from all sources, including
765+[(2)] (3)(a) The commission shall then determine for each school district the amount to
752766 369
753-revenues from taxes on income or from taxes on intangible property pursuant to
767+be raised by the minimum basic tax levy as its contribution toward the cost of the
754768 370
755-Article XIII, Sec. 12, Utah Constitution.
769+basic state-supported program, as required by the Minimum School Program Act.
756770 371
757-[(2)] (3) The commission shall then determine for each school district the amount to be
771+[(3)] (4) Each county auditor shall be notified by the commission that the minimum basic
758772 372
759-raised by the minimum basic tax levy as its contribution toward the cost of the basic
773+tax levy shall be imposed by the school district, to which shall be added an additional
760774 373
761-state-supported program, as required by the Minimum School Program Act.
775+amount, if any, due to local undervaluation as provided in this section.[ ]
762776 374
763-[(3)] (4) Each county auditor shall be notified by the commission that the minimum basic
777+(a) The auditor shall inform the county legislative body as to the amount of the levy.[ ]
764778 375
765-tax levy shall be imposed by the school district, to which shall be added an additional
779+(b) The county legislative body shall at the time and in the manner provided by law
766780 376
767-amount, if any, due to local undervaluation as provided in this section.[ ]
781+make the levy upon the taxable property in the school district together with further
768782 377
769-(a) The auditor shall inform the county legislative body as to the amount of the levy.[ ]
783+levies for school purposes as may be required by each school district to pay the costs
770784 378
771-(b) The county legislative body shall at the time and in the manner provided by law
785+of programs in excess of the basic state-supported school program.
772786 379
773-make the levy upon the taxable property in the school district together with further
787+[(4)] (5) [If the levy applied under this section raises an amount in excess of the total basic
774788 380
775-levies for school purposes as may be required by each school district to pay the costs
789+state-supported school program for a school district, the excess amount shall be remitted
776790 381
777-of programs in excess of the basic state-supported school program.
791+by the school district to the State Board of Education to be credited to the Uniform
778792 382
779-[(4)] (5) [If the levy applied under this section raises an amount in excess of the total basic
793+School Fund for allocation to school districts to support the basic state-supported school
780794 383
781-state-supported school program for a school district, the excess amount shall be remitted
795+program. ]The availability of money shall be considered by the commission in fixing
782796 384
783-by the school district to the State Board of Education to be credited to the Uniform
797+the state property levy as provided in the Minimum School Program Act.
784798 385
785-School Fund for allocation to school districts to support the basic state-supported school
799+[(5)] (6)(a) If the levy does not raise an amount in excess of an amount equal to the cost
786800 386
787-program. ]The availability of money shall be considered by the commission in fixing
801+of the total basic state-supported school program for a district, then the difference
788802 387
789-the state property levy as provided in the Minimum School Program Act.
803+between the amount which the local levy will raise within the district, and the total
790804 388
791-[(5)] (6)(a) If the levy does not raise an amount in excess of an amount equal to the cost
805+cost of the basic state-supported school program within the district shall be computed.[
792806 389
793-of the total basic state-supported school program for a district, then the difference
807+This difference, if any, shall be apportioned from the Uniform School Fund to each
794808 390
795-between the amount which the local levy will raise within the district, and the total
809+school district as the contribution of the state to the basic state-supported school
796810 391
797-cost of the basic state-supported school program within the district shall be computed.[
811+program for the district, subject to the following conditions:]
798812 392
799-This difference, if any, shall be apportioned from the Uniform School Fund to each
813+[(a)] (b)(i) [Before the apportionment is made, the] The commission shall determine if
800814 393
801-school district as the contribution of the state to the basic state-supported school
815+the local taxable valuation of any school district is undervalued according to law
802816 394
803-program for the district, subject to the following conditions:]
817+and if so, the dollar amount of the undervaluation.[ ]
804818 395
805-[(a)] (b)(i) [Before the apportionment is made, the] The commission shall determine if
819+(ii) The dollar amount of the undervaluation shall be multiplied by the district basic
806820 396
807-the local taxable valuation of any school district is undervalued according to law
821+uniform school levy at 98%.[ ]
808822 397
809-and if so, the dollar amount of the undervaluation.[ ]
823+(iii) The resulting dollar amount shall be divided by the current year estimated yield
824+- 12 - 02-13 11:11 S.B. 37
810825 398
811-(ii) The dollar amount of the undervaluation shall be multiplied by the district basic
826+of .0002 per dollar of taxable value at 98% based on the district's taxable valuation
812827 399
813-uniform school levy at 98%.[ ]
828+prior to adjusting for undervaluation.
814829 400
815-(iii) The resulting dollar amount shall be divided by the current year estimated yield
830+[(b)] (c)(i) The resulting levy amount shall be added to the required district basic
816831 401
817-of .0002 per dollar of taxable value at 98% based on the district's taxable valuation
818-- 12 - Enrolled Copy S.B. 37
832+uniform levy to determine the combined district basic school levy adjusted for
819833 402
820-prior to adjusting for undervaluation.
834+undervaluation.[ ]
821835 403
822-[(b)] (c)(i) The resulting levy amount shall be added to the required district basic
836+(ii) The combined rate of levy shall be certified to the county auditor and employed
823837 404
824-uniform levy to determine the combined district basic school levy adjusted for
838+by the auditor and the county legislative body in lieu of the required basic school
825839 405
826-undervaluation.[ ]
840+local levy.
827841 406
828-(ii) The combined rate of levy shall be certified to the county auditor and employed
842+Section 6. Effective Date.
829843 407
830-by the auditor and the county legislative body in lieu of the required basic school
831-408
832-local levy.
833-409
834-Section 6. Effective Date.
835-410
836844 This bill takes effect on May 7, 2025.
837845 - 13 -