R884. Tax Commission, Property Tax.
R884-24P. Property Tax.
R884-24P-24.
Form for Notice of Property Valuation and Tax Changes Pursuant to Utah Code
Ann. Sections 59-2-918 through 59-2-924.
(1)
The county auditor must notify all real property owners of property valuation
and tax changes on the Notice of Property Valuation and Tax Changes form.
(a)
If a county desires to use a modified version of the Notice of Property
Valuation and Tax Changes, a copy of the proposed modification must be
submitted for approval to the Property Tax Division of the Tax Commission no
later than March 1.
(i)
Within 15 days of receipt, the Property Tax Division will issue a written
decision, including justifications, on the use of the modified Notice of
Property Valuation and Tax changes.
(ii)
If a county is not satisfied with the decision, it may petition for a hearing
before the Tax Commission as provided in R861-1A-22.
(b)
The Notice of Property Valuation and Tax Changes, however modified, must
contain the same information as the unmodified version. A property description
may be included at the option of the county.
(2)
The Notice of Property Valuation and Tax Changes must be completed by the
county auditor in its entirety, except in the following circumstances:
(a)
New property is created by a new legal description; or
(b)
The status of the improvements on the property has changed.
(c)
In instances where partial completion is allowed, the term nonapplicable will
be entered in the appropriate sections of the Notice of Property Valuation and
Tax Changes.
(d)
If the county auditor determines that conditions other than those outlined in
this section merit deletion, the auditor may enter the term
"nonapplicable" in appropriate sections of the Notice of Property
Valuation and Tax Changes only after receiving approval from the Property Tax
Division in the manner described in Subsection (1).
(3)
Real estate assessed under the Farmland Assessment Act of 1969 must be reported
at full market value, with the value based upon Farmland Assessment Act rates
shown parenthetically.
(4)
(a) All completion dates specified for the disclosure of property tax
information must be strictly observed.
(b)
Requests for deviation from the statutory completion dates must be submitted in
writing on or before June 1, and receive the approval of the Property Tax
Division in the manner described in Subsection (1).
(5)
If the proposed rate exceeds the certified rate, jurisdictions in which the
fiscal year is the calendar year are required to hold public hearings even if
budget hearings have already been held for that fiscal year.
(6)
If the cost of public notice required under Sections 59-2-918 and 59-2-919 is
greater than one percent of the property tax revenues to be received, an entity
may combine its advertisement with other entities, or use direct mail
notification.
(7)
Calculation of the amount and percentage increase in property tax revenues
required by Sections 59-2-918 and 59-2-919, shall be computed by comparing
property taxes levied for the current year with property taxes collected the
prior year, without adjusting for revenues attributable to new growth.
(8)
If a taxing district has not completed the tax rate setting process as
prescribed in Sections 59-2-919 and 59-2-920 by August 17, the county auditor
must seek approval from the Tax Commission to use the certified rate in
calculating taxes levied.
(9)
The value of property subject to the uniform fee under Section 59-2-405 is
excluded from taxable value for purposes of calculating new growth, the
certified tax rate, and the proposed tax rate.
(10)
The value and taxes of property subject to the uniform fee under Section
59-2-405, as well as tax increment distributions and related taxable values of
redevelopment agencies, are excluded when calculating the percentage of
property taxes collected as provided in Section 59-2-913.
(11)
The following formulas and definitions shall be used in determining new growth:
(a)
Actual new growth shall be computed as follows:
(i)
the taxable value for the current year adjusted for redevelopment minus
year-end taxable value for the previous year adjusted for redevelopment; then
(ii)
plus or minus changes in value as a result of factoring; then
(iii)
plus or minus changes in value as a result of reappraisal; then
(iv)
plus or minus any change in value resulting from a legislative mandate or court
order.
(b)
Net annexation value is the taxable value for the current year adjusted for
redevelopment of all properties annexed into an entity during the previous
calendar year minus the taxable value for the previous year adjusted for
redevelopment for all properties annexed out of the entity during the previous
calendar year.
(c)
New growth is equal to zero for an entity with:
(i)
an actual new growth value less than zero; and
(ii)
a net annexation value greater than or equal to zero.
(d)
New growth is equal to actual new growth for:
(ii)
an entity with:
(A)
an actual new growth value less than zero; and
(B)
the actual new growth value is greater than or equal to the net annexation
value.
(e)
New growth is equal to the net annexation value for an entity with:
(ii)
the actual new growth value is less than the net annexation value.
(f)
Adjusted new growth equals new growth multiplied by the mean collection rate
for the previous five years.
(12)(a) For purposes of determining the
certified tax rate, ad valorem property tax revenues budgeted by a taxing
entity for the prior year are calculated by:
(i)
increasing or decreasing the adjustable taxable value from the prior year
Report 697 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; and
(ii)
multiplying the result obtained in Subsection (12)(a)(i) by:
(A)
the percentage of property taxes collected for the five calendar years
immediately preceding the current calendar year; and
(B)
the prior year approved tax rate.
(b)
If a taxing entity levied the prior year approved tax rate, the budgeted
revenues determined under Subsection (12)(a) are reflected in the budgeted
revenue column of the prior year Report 693.
(13)
Entities required to set levies for more than one fund must compute an
aggregate certified rate. The aggregate certified rate is the sum of the
certified rates for individual funds for which separate levies are required by
law. The aggregate certified rate computation applies where:
(a)
the valuation bases for the funds are contained within identical geographic
boundaries; and
(b)
the funds are under the levy and budget setting authority of the same
governmental entity.
(14)
For purposes of determining the certified tax rate of a municipality
incorporated on or after July 1, 1996, the levy imposed for municipal-type
services or general county purposes shall be the certified tax rate for
municipal-type services or general county purposes, as applicable.
(15) No new
entity, including a new city, may have a certified tax rate or levy a tax for
any particular year unless that entity existed on the first day of that
calendar year.
KEY:
taxation, personal property, property tax, appraisal
Effective:
12/15/06