HB 2389 — business personal property; exemption.

-10-2389 Housepreviously Amendmentsexisting toschool H.B.districts and compliance with the consolidation and unification plan.

2389 Sec.

4.- 11 - H.B.

2389 4.

If the override is for a period of more than one year, a statement indicating the number of years the proposed increase in the budget would be in effect and the percentage of the school district's -11-revenue Housecontrol Amendmentslimit tothat H.B.the district is requesting for the future years.

2389 revenue control limit that the district is requesting for the future years.

Persons signing the argument shall identify themselves by giving their residence address and telephone number, which may not appear in the informational pamphlet,- except12 that- theH.B. person's city or town and state of residence shall appear in the pamphlet.

2389 pamphlet, except that the person's city or town and state of residence shall appear in the pamphlet.

The superintendent shall not review and correct any portion of the written arguments that are identified as statements of the author's -12-opinion. House Amendments to H.B.

2389 opinion.

(c)- The13 tax- rateH.B. associated with each of the proposed capital improvements and the estimated cost of each capital improvement for the owner of a single family home that is valued at $80,000.

2389 (c) The tax rate associated with each of the proposed capital improvements and the estimated cost of each capital improvement for the owner of a single family home that is valued at $80,000.

Any written information provided by the -13-district Housepertaining Amendments to H.B.the override election shall include financial information showing the estimated first year tax rate for the proposed budget override amount.

2389 district pertaining to the override election shall include financial information showing the estimated first year tax rate for the proposed budget override amount.

Based on the current net assessed valuation- used14 for- secondaryH.B. property tax purposes, to fund the proposed increase in the school district's budget would require an estimated tax rate of $_____________ per $100 of net assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will be levied to fund the school district's revenue control limit allowed by law.

2389 valuation used for secondary property tax purposes, to fund the proposed increase in the school district's budget would require an estimated tax rate of $_____________ per $100 of net assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will be levied to fund the school district's revenue control limit allowed by law.

-14-1. House Amendments to H.B.

2389 1.

1.- 15 - H.B.

2389 1.

(i) Small School Support Level Weight Phase Down Student Student for Small Isolated Reduction Count Count Limit School Districts Base Level Factor — 125 x 1.358 + (0.0005 x x $ = $ (500 — Student Count)) Small Isolated Phase Down Phase Down School District Base Reduction Factor Elementary Limit $150,000 - $ = $ -15-(ii) HouseSmall AmendmentsSchool toSupport H.B.Level Weight Phase Down Student Student for Small Reduction Count Count Limit School Districts Base Level Factor — 125 x 1.278 + (0.0003 x x $ = $ (500 - Student Count)) Small Phase Down Phase Down School District Base Reduction Factor Elementary Limit $150,000 — $ = $ (b) For unified or union high school districts with a student count of less than one hundred seventy-six in grades nine through twelve, the limit computed as prescribed in item (i) or (ii) of this subdivision, whichever is appropriate:

2389(i) (ii) Small School Support Level Weight Phase Down Student Student for Small Isolated Reduction Count Count Limit School Districts Base Level Factor — 125100 x 1.2781.468 + (0.0003(0.0005 x x $ = $ __ (500 -— Student Count)) Small Isolated Phase Down Phase Down School District Base Reduction Factor ElementarySecondary Limit $150,000$350,000 — $ = $ (b)- For16 unified- orH.B. union high school districts with a student count of less than one hundred seventy-six in grades nine through twelve, the limit computed as prescribed in item (i) or (ii) of this subdivision, whichever is appropriate:

(i)2389 Small School Support Level Weight Phase Down Student Student for Small Isolated Reduction Count Count Limit School Districts Base Level Factor — 100 x 1.468 + (0.0005 x x $ = $ __ (500 — Student Count)) Small Isolated Phase Down Phase Down District Base Reduction Factor Secondary Limit $350,000 — $ = $ (ii) Small School Support Level Weight Phase Down Student Student for Small Reduction Count Count Limit School Districts Base Level_ Factor — 100 x 1.398 + (0.0004 x x $ = $ (500 - Student Count)) Small Phase Down Phase Down School District Base Reduction Factor Secondary Limit $350,000 — $ = $ (c) If both subdivisions (a) and (b) of this paragraph apply to a unified school district, its limit for the purposes of this paragraph is the combination of its elementary limit and its secondary limit.

For the -16-purposes Houseof Amendmentsthis tosubdivision, H.B.the revenue control limit is separated into elementary and secondary components based on the weighted student count as provided in section 15-971, subsection B, paragraph 2, subdivision (a).

2389 purposes of this subdivision, the revenue control limit is separated into elementary and secondary components based on the weighted student count as provided in section 15-971, subsection B, paragraph 2, subdivision (a).

The ballot shall also contain the amount of the proposed increase of the budget over the alternate budget, a statement that the amount of the proposed increase will be based on a percentage of the school district's- revenue17 control- limitH.B. in future years, if applicable, as provided in subsection Q of this section, and the following statement:

2389 district's revenue control limit in future years, if applicable, as provided in subsection Q of this section, and the following statement:

The ballot shall also contain the amount of the proposed increase of the proposed budget over the alternate budget, a statement that the amount of the proposed increase will be based on a percentage of the school district's revenue control limit in future years, -17-if Houseapplicable, Amendmentsas toprovided H.B.in subsection Q of this section and the following statement:

2389 if applicable, as provided in subsection Q of this section and the following statement:

For a unified school district,- five18 percent- ofH.B. the revenue control limit means five percent of the revenue control limit attributable to the weighted student count in preschool programs for children with disabilities, kindergarten programs and grades one through twelve.

2389 district, five percent of the revenue control limit means five percent of the revenue control limit attributable to the weighted student count in preschool programs for children with disabilities, kindergarten programs and grades one through twelve.

Based on the current net assessed valuation used for secondary property tax purposes, to fund the proposed increase in the school district's budget would require an estimated tax rate of $____________ per $100 of net assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will -18-be Houselevied Amendments to H.B.fund the school district's district additional assistance allowed by law.

2389 be levied to fund the school district's district additional assistance allowed by law.

N.- 19 - H.B.

2389 N.

If a budget increase was previously authorized and will be in effect for -19-the Housebudget Amendmentsyear toor H.B.budget year and subsequent years, as provided in subsection E or F of this section, the governing board may request a new budget increase as provided in the same subsection under which the prior budget increase was adopted, which shall not exceed the maximum amount allowed under subsection G of this section.

2389 the budget year or budget year and subsequent years, as provided in subsection E or F of this section, the governing board may request a new budget increase as provided in the same subsection under which the prior budget increase was adopted, which shall not exceed the maximum amount allowed under subsection G of this section.

1.- 20 - H.B.

2389 1.

The maximum additional increase authorized as provided in subsection I or J of this section and the additional increase that is included in the aggregate budget limit is -20-based Houseon Amendmentsa topercentage H.B.of a school district's revenue control limit in future years, if the budget increase is authorized for more than one year.

2389 based on a percentage of a school district's revenue control limit in future years, if the budget increase is authorized for more than one year.

R.- 21 - H.B.

2389 R.

-21-V. House Amendments to H.B.

2389 V.

1.- 22 - H.B.

2389 1.

If the increase is pursuant to subsection L or M of this section, at a minimum, the update shall include the progress of capital improvements financed through the override, a comparison of the current status and the original projections on the construction of capital -22-improvements, Housethe Amendmentscosts toof H.B.capital improvements and the costs of capital improvements in progress or completed since the prior meeting and the future capital plans of the school district.

2389 improvements, the costs of capital improvements and the costs of capital improvements in progress or completed since the prior meeting and the future capital plans of the school district.

2.- 23 - H.B.

2389 2.

Based on the current net assessed valuation used for secondary property tax purposes, to fund the proposed continuation of the increase in the school district's budget would require an estimated continuation of a tax rate of $______________ per $100 of assessed valuation used for secondary property tax purposes and is in addition to the school district's tax rate that will -23-be Houselevied Amendments to H.B.fund the school district's revenue control limit allowed by law.

2389 be levied to fund the school district's revenue control limit allowed by law.

If the election is to continue to exceed the revenue control limit as provided in section 15-482 and if the proposed override will be fully funded by a continuation of a levy of taxes on the taxable property in- the24 school- district,H.B. the ballot shall contain the words "budget override continuation, yes" and "budget override continuation, no", and the voter shall signify the voter's desired choice.

2389 in the school district, the ballot shall contain the words "budget override continuation, yes" and "budget override continuation, no", and the voter shall signify the voter's desired choice.

-24-2. House Amendments to H.B.

2389 2.

3.- 25 - H.B.

2389 3.

-25-(d) HousePumping Amendmentsand treatment or in situ treatment of contaminated groundwater or surface water to H.B.reduce the concentration or toxicity of a contaminant.

2389- (d)26 Pumping- andH.B. treatment or in situ treatment of contaminated groundwater or surface water to reduce the concentration or toxicity of a contaminant.

2389 (e) The installation of structures, such as cutoff walls or caps, to contain contaminants present in groundwater or soil and prevent them from reaching a location where they could threaten human health or welfare or the environment.

-26-(i) HouseAssembling Amendmentsthe tomachinery, H.B.equipment or other tangible personal property.

2389- (i)27 Assembling- theH.B. machinery, equipment or other tangible personal property.

2389 (ii) Connecting items of machinery, equipment or other tangible personal property to each other.

By registering, the contractor acknowledges that it -27-- House28 Amendments- to H.B.

(c) "Development fees" means fees imposed to offset capital costs of providing public infrastructure, public safety or other public services to a development and authorized pursuant to section 9-463.05, section 11-1102- or29 title- 48H.B. regardless of the jurisdiction to which the fees are paid.

-28-2389 House11-1102 Amendmentsor title 48 regardless of the jurisdiction to H.B.which the fees are paid.

2389 20.

The certificate may be disregarded if the prime contractor has reason- to30 believe- thatH.B. the information contained in the certificate is not accurate or complete.

-29-2389 Housereason Amendments to H.B.believe that the information contained in the certificate is not accurate or complete.

2389 2.

If the person who provides the certificate is not liable for the tax as a prime contractor, that person is nevertheless deemed to be the prime contractor in lieu of the contractor and- is31 subject- toH.B. the tax under this section on the gross receipts or gross proceeds received by the contractor.

2389 and is subject to the tax under this section on the gross receipts or gross proceeds received by the contractor.

Every person engaging or continuing in this state in the business of prime contracting or dealership of manufactured buildings -30-shall Housepresent Amendmentsto the purchaser of such prime contracting or manufactured building a written receipt of the gross income or gross proceeds of sales from such activity and shall separately state the taxes to H.B.be paid pursuant to this section.

2389 shall present to the purchaser of such prime contracting or manufactured building a written receipt of the gross income or gross proceeds of sales from such activity and shall separately state the taxes to be paid pursuant to this section.

L.- 32 - H.B.

2389 L.

-31-M. House Amendments to H.B.

2389 M.

(ii)- The33 amount- ofH.B. an adjustment, if any, to the guaranteed maximum price as set in the contract for modification work.

2389 (ii) The amount of an adjustment, if any, to the guaranteed maximum price as set in the contract for modification work.

-32-(d) HouseAdministration Amendmentsor supervision of any modification performed pursuant to H.B.change directives.

2389 (d) Administration or supervision of any modification performed pursuant to change directives.

(b)- Evaluating34 any- criteriaH.B. or programming objectives for the project to ascertain requirements for the project, such as physical requirements affecting cost or projected utilization of the project.

2389 (b) Evaluating any criteria or programming objectives for the project to ascertain requirements for the project, such as physical requirements affecting cost or projected utilization of the project.

-33-(e) HousePreparing Amendmentspreliminary toestimates H.B.of costs of modification work before completion of the final design of the project, including an estimate or schedule of values for any of the following:

2389 (e) Preparing preliminary estimates of costs of modification work before completion of the final design of the project, including an estimate or schedule of values for any of the following:

O.- 35 - H.B.

2389 O.

-34-2. House Amendments to H.B.

2389 2.

Notwithstanding subsection R, paragraph 10 of this section, a person owning real property who enters into a contract for sale of the real property, who is responsible to the new owner of the property for modifications made to the property in the period subsequent to the transfer of title and who receives a consideration for the modifications is- considered36 a- primeH.B. contractor solely for purposes of taxing the gross proceeds of sale or gross income received for the modifications made subsequent to the transfer of title.

2389 is considered a prime contractor solely for purposes of taxing the gross proceeds of sale or gross income received for the modifications made subsequent to the transfer of title.

-35-2. House Amendments to H.B.

2389 2.

The department has- the37 burden- ofH.B. proof that project elements have been artificially separated from a contract.

2389 has the burden of proof that project elements have been artificially separated from a contract.

-36-3. House Amendments to H.B.

2389 3.

7.- 38 - H.B.

2389 7.

"Prime contractor" means a contractor who supervises, performs or coordinates the modification of any building, highway, road, railroad, excavation, manufactured building or other structure, project, development or improvement, including the contracting, if any, with any subcontractors or specialty contractors and who is responsible for the completion of the -37-contract. House Amendments to H.B.

2389 contract.

B.- 39 - H.B.

2389 B.

Solar energy devices, as defined in section 44-1761, grid-tied photovoltaic systems and any other device or system designed to produce -38-solar Houseenergy Amendmentsprimarily for on-site consumption are considered to H.B.add no value to the property on which such a device or system is installed.

2389 solar energy primarily for on-site consumption are considered to add no value to the property on which such a device or system is installed.

(b) "Energy efficient building components" means high performance sustainable building components installed so that the buildings or building components meet or exceed the energy efficiencies prescribed by the- United40 States- environmentalH.B. protection agency energy star program or by a leadership in energy and environmental design green building rating standard developed by the United States green building council, or an equivalent green building standard, or that are at least fifteen percent more energy efficient than the international energy conservation code in effect at the time of building permit issuance.

2389 the United States environmental protection agency energy star program or by a leadership in energy and environmental design green building rating standard developed by the United States green building council, or an equivalent green building standard, or that are at least fifteen percent more energy efficient than the international energy conservation code in effect at the time of building permit issuance.

-39-Sec. House Amendments to H.B.

2389 Sec.

Sec.- 41 - H.B.

2389 Sec.

-40-8. House Amendments to H.B.

2389 8.

Personal property that is devoted to any other commercial or industrial use, other than property that is specifically included in another- class42 described- inH.B. this article, and that is valued at full cash value.

2389 another class described in this article, and that is valued at full cash value.

-41-(d) HouseReal Amendmentsproperty of golf courses that is valued at full cash value or pursuant to H.B.chapter 13, article 4 of this title.

2389 (d) Real property of golf courses that is valued at full cash value or pursuant to chapter 13, article 4 of this title.

(b) Personal property that is primarily used for agricultural purposes to produce trees other than standing timber, vines, rosebushes, ornamental plants or other horticultural crops, regardless of whether the crop is grown in containers, soil or any other medium, that is not included in class one, three, four, six, seven or eight and that is valued at- full43 cash- valueH.B. or pursuant to chapter 13, article 3 of this title, as applicable.

2389 at full cash value or pursuant to chapter 13, article 3 of this title, as applicable.

Real and personal property and improvements to the property that are used for residential purposes, including residential property that is owned in foreclosure by a financial institution, that is not otherwise -42-included Housein Amendmentsanother toclassification H.B.and that is valued at full cash value.

2389 included in another classification and that is valued at full cash value.

4.- 44 - H.B.

2389 4.

-43-(a) HouseProperty Amendmentsoccupied toby H.B.the owner of the property as the owner's primary residence and included in class three.

2389 (a) Property occupied by the owner of the property as the owner's primary residence and included in class three.

Sec.- 45 - H.B.

2389 Sec.

Real [andand personal]personal property and improvements or a portion of such property comprising an environmental technology manufacturing, -44-producing Houseor Amendmentsprocessing facility that qualified under section 41-1514.02, valued at full cash value and subject to H.B.the following terms and conditions:

2389 producing or processing facility that qualified under section 41-1514.02, valued at full cash value and subject to the following terms and conditions:

(d)- Property46 that- isH.B. classified under this paragraph shall not thereafter be classified under paragraph 6 of this section.

2389 (d) Property that is classified under this paragraph shall not thereafter be classified under paragraph 6 of this section.

-45-(c) HouseAny Amendmentsnew addition or improvement, constructed or installed from and after December 31, 2004 through December 31, 2024, to H.B.property already classified under this paragraph qualifies separately for classification and assessment under this paragraph for not more than five years.

2389 (c) Any new addition or improvement, constructed or installed from and after December 31, 2004 through December 31, 2024, to property already classified under this paragraph qualifies separately for classification and assessment under this paragraph for not more than five years.

This paragraph applies- only47 to- theH.B. portion of property that is used specifically for manufacturing and processing one hundred percent biodiesel fuel, or its related by-products, or motor vehicle biofuel, or its related by-products, from raw feedstock obtained from off-site sources, including necessary on-site storage facilities that are intrinsically associated with the manufacturing process.

2389 applies only to the portion of property that is used specifically for manufacturing and processing one hundred percent biodiesel fuel, or its related by-products, or motor vehicle biofuel, or its related by-products, from raw feedstock obtained from off-site sources, including necessary on-site storage facilities that are intrinsically associated with the manufacturing process.

-46-Sec. House Amendments to H.B.

2389 Sec.

If a person purchases or converts property that is listed as class one pursuant to section 42-12001, paragraph 12 or 13, class two or class four pursuant to article 1 of this chapter and occupies the property as the person's primary residence, the person may have the classification reviewed for change to class three from the date of conversion and occupancy- as48 a- primaryH.B. residence and may appeal from the decision resulting from the review in the same manner as provided by law for review of a valuation for ad valorem property taxes and appeal from that review.

2389 occupancy as a primary residence and may appeal from the decision resulting from the review in the same manner as provided by law for review of a valuation for ad valorem property taxes and appeal from that review.

-47-G. House Amendments to H.B.

2389 G.

Sec.- 49 - H.B.

2389 Sec.

-48-2. House Amendments to H.B.

2389 2.

Sec.- 50 - H.B.

2389 Sec.

-49-Sec. House Amendments to H.B.

2389 Sec.

On or before February 1 of each year, the assessor shall mail a form, notice or demand to each person that owns or has charge or control of- taxable51 personal- propertyH.B. in this state.

2389 of taxable personal property in this state.

-50-Sec. House Amendments to H.B.

2389 Sec.

ApplicabilityEffective date This act appliesis toeffective tax years beginning from and after December 31, 2025.2031.

5- Enroll52 and- engross to conform Amend title to conform And, as so amended, it do pass JUSTIN OLSON CHAIRMAN 2389WAYS MEANS.docx 02/12/2025 10:41 AM C:

ED -51-