HB 236 — Truth in Taxation Amendments

-(3)(a) 3 - HB0236 compared with HB0236S03 (3) (a) Subject to Subsection (3)(b) and except as provided in Subsection (5), a calendar year- taxing3 entity- mayH.B. levy a tax rate that exceeds the calendar year taxing entity's certified tax rate if the calendar year taxing entity:

236 Enrolled Copy year taxing entity may levy a tax rate that exceeds the calendar year taxing entity's certified tax rate if the calendar year taxing entity:

(b)(b)(i) (i) For a county executive calendar year taxing entity, the statement described in Subsection (3)(a)(i) shall be made by the:

- 4 - HB0236 compared with HB0236S03 (ii) If the county council makes the statement described in Subsection (3)(a)(i) or the county council states a dollar amount of additional ad valorem tax revenue that is greater than the amount of additional ad valorem tax revenue previously stated by the- county4 executive- inEnrolled accordanceCopy withH.B. Subsection (3)(a)(i), the county executive calendar year taxing entity shall:

236 the county executive in accordance with Subsection (3)(a)(i), the county executive calendar year taxing entity shall:

- 5 - HB0236 compared with HB0236S03 (vi) shall include a brief statement of the primary purpose for the proposed tax increase, including the taxing entity's intended use of additional ad valorem tax revenue described in Subsection (3)(c)(v);

(vii)- shall5 state- theH.B. date, time, and place of the public hearing described in Subsection (3)(a)(v);

236 Enrolled Copy (vii) shall state the date, time, and place of the public hearing described in Subsection (3)(a)(v);

(4) Except as provided in Subsection (5), a fiscal year taxing entity may levy a tax rate that exceeds the fiscal year taxing entity's certified tax rate if{,if[ before the fiscal year taxing entity conducts the public meeting at which the fiscal year taxing entity's annual budget is adopted,}[ the fiscal year taxing entity] , before the fiscal year taxing entity conducts the public meeting at which the fiscal year taxing entity's budget is adopted:

and] (a)(a)(i) (i) in the public meeting at which the taxing entity's tentative budget is first presented to the governing body of the taxing entity, an executive officer or budget officer of the taxing entity states that the tentative budget includes a proposed tax rate increase and presents a property tax impact schedule as defined in Section 59-2-924;

(b)(b)(i) - 6 - HB0236 compared with HB0236S03 (i) on or after May 1 but on or before June {8, } 13, the fiscal year taxing entity states at a public meeting:

(B)- the6 approximate- dollarEnrolled amountCopy ofH.B. and purpose for additional ad valorem tax revenue that would be generated by the proposed tax rate increase described in Subsection {(4)(a)(i)(A)} (4)(b)(i) (A);

(C)236 (B) the approximate percentagedollar increaseamount inof and purpose for additional ad valorem tax revenue forthat thewould fiscalbe yeargenerated taxingby entity based on the proposed tax rate increase described in Subsection {(4)(a)(i)(A)} (4)(b)(i)(A);

and(C) (D) that if the fiscalapproximate yearpercentage taxingincrease entityin proceedsad withvalorem the proposed tax raterevenue increase,for the fiscal year taxing entity willbased provide notice of and conduct a public hearing, as required by Subsection (4)(b), at which members of the public will have an opportunity to provide comments on the proposed tax rate increase;increase described in Subsection (4)(b)(i)(A);

and (ii)(D) that if the fiscal year taxing entity providesproceeds noticewith for the publicproposed meetingtax describedrate inincrease, Subsectionthe {(4)fiscal (a)(i)year }taxing (4)(b)(i)entity inwill accordanceprovide withnotice Titleof 52, Chapter 4, Open and Publicconduct Meetingsa Act,public includinghearing, providingas arequired separateby itemSubsection on(4)(c), theat meetingwhich agendamembers thatof notifies the public thatwill thehave fiscalan yearopportunity taxingto entityprovide intendscomments toon make the statementproposed describedtax inrate Subsectionincrease; {(4)(a)(i)} (4)(b)(i);

and (ii) the fiscal year taxing entity provides notice for the public meeting described in Subsection (4)(b)(i) in accordance with Title 52, Chapter 4, Open and Public Meetings Act, including providing a separate item on the meeting agenda that notifies the public that the fiscal year taxing entity intends to make the statement described in Subsection (4)(b)(i);

and (c){(d)}(d) the fiscal year taxing entity provides notice for the public hearing described in Subsection {(4) (b) } (4)(c) by meeting the advertisement requirements of Subsections (6) and (7).

(5)(5)(a) (a) A taxing entity is not required to meet the notice or public hearing requirements of Subsection (3) or (4) if the taxing entity is expressly exempted by law from complying with the requirements of this section.

and (B) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax- revenue.7 - H.B.

-236 7Enrolled -Copy HB0236 compared with HB0236S03 (c) The requirements of Subsection (4)(a) do not apply if the tentative budget presented during or prior to the first meeting in May does not include a proposed tax increase.revenue.

(6)(c) (a)The Beforerequirements holdingof theSubsection public(4)(a) hearingdo describednot inapply Subsectionif (3)(a)(v)the ortentative (4)(b),budget apresented taxingduring entityor proposingprior ato taxthe ratefirst increasemeeting underin thisMay sectiondoes shallnot publishinclude ana advertisement regarding the proposed tax increase:increase.

(6)(a) Before holding the public hearing described in Subsection (3)(a)(v) or (4)(b), a taxing entity proposing a tax rate increase under this section shall publish an advertisement regarding the proposed tax increase:

PUBLIC HEARING - 8 - HB0236 compared with HB0236S03 Date/Time:

(Internet address for remote participation and live streaming options)- To8 obtain- moreEnrolled informationCopy regardingH.B. the tax increase, citizens may contact the (name of the taxing entity) at (phone number of taxing entity) or visit (Internet address for the taxing entity's public website)." (c) (i) This Subsection (6)(c) applies to a fiscal year taxing entity that:

236 options) To obtain more information regarding the tax increase, citizens may contact the (name of the taxing entity) at (phone number of taxing entity) or visit (Internet address for the taxing entity's public website)." (c)(i) This Subsection (6)(c) applies to a fiscal year taxing entity that:

-(8)(a)(i) 9 - HB0236 compared with HB0236S03 (8) (a) (i) On or before June 1, a fiscal year taxing entity shall notify the commission and the county auditor of the date, time, and place of the public hearing described in- Subsection9 (4)(b).- H.B.

236 Enrolled Copy in Subsection (4)(b).

(b)(b)(i) (i) A public hearing described in Subsection (3)(a)(v) or (4)(b) shall be:

(c)(c)(i) (i) Except as provided in Subsection (8)(c)(ii), a taxing entity may not schedule a public hearing described in Subsection (3)(a)(v) or (4)(b) at the same time as the public hearing of another overlapping taxing entity in the same county.

- 10 - HB0236 compared with HB0236S03 (ii) The taxing entities in which the power to set tax levies is vested in the same governing board or authority may consolidate the public hearings described in Subsection (3)(a)(v) or (4)(b) into one public hearing.

(e)- (i)10 A- taxingEnrolled entityCopy shallH.B. hold a public hearing described in Subsection (3)(a)(v) or (4)(b) beginning at or after 6 p.m.

236 (e)(i) A taxing entity shall hold a public hearing described in Subsection (3)(a)(v) or (4)(b) beginning at or after 6 p.m.

(f)(f)(i) (i) Except as provided in Subsection (8)(f)(ii), a taxing entity may not hold the public hearing described in Subsection (3)(a)(v) or (4)(b) on the same date as another public hearing of the taxing entity.

(9)(9)(a) (a) If a taxing entity does not make a final decision on budgeting additional ad valorem tax revenue at a public hearing described in Subsection (3)(a)(v) or (4)(b), the taxing entity shall:

- 11 - HB0236 compared with HB0236S03 (b) A calendar year taxing entity may not adopt a final budget that budgets an amount of additional ad valorem tax revenue that exceeds the largest amount of additional ad valorem tax revenue stated at a public meeting under Subsection (3)(a)(i).

(10)(10)(a) (a) A county auditor may conduct an audit to verify a taxing entity's compliance with- Subsection11 (8).- H.B.

236 Enrolled Copy with Subsection (8).

(c) The commission may not certify a tax rate that exceeds a taxing entity's certified tax rate if, on or before September 15 of the year in which the taxing entity is required to hold the public hearing described in Subsection (3)(a)(v) or (4)(b), the commission determines that the taxing entity has failed to meet{:}meet {(i)} the requirements of [Subsection (8)] this section{[.{]}section. ;

and} {(ii) for a fiscal year taxing entity, the requirements of Subsection (4)(a).} (11) For a fiscal year within a truth-in-taxation exemption period, a taxing entity may adopt a budget that is equal to or less than the base year budgeted revenue without complying with this section.

59-2-923.59-2-923 .

- 12 - HB0236 compared with HB0236S03 [A] Except as provided in Subsection 59-2-924(8), a taxing entity may, before the taxing entity adopts a final annual budget or a tax rate, expend money on the basis of the taxing entity's:

59-2-924.59-2-924 .

Definitions -- Report of valuation of property to county auditor and commission- --12 Transmittal- byEnrolled auditorCopy toH.B. governing bodies -- Calculation of certified tax rate -- Rulemaking authority -- {Tentative budget } Budgeting requirements -- Notice provided by the commission.

236 commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax rate -- Rulemaking authority -- Budgeting requirements -- Notice provided by the commission.

[(a)] (b)(b)(i) (i) "Ad valorem property tax revenue" means revenue collected in accordance with this chapter.

[(c)] (d)(d)(i) (i) "Aggregate taxable value of all property taxed" means:

- 13 - HB0236 compared with HB0236S03 (ii) "Aggregate taxable value of all property taxed" does not include the aggregate year end taxable value of personal property that is:

(ii)- for13 the- PointH.B. of the Mountain State Land Authority created in Section 11-59-201, the same as that term is defined in Section 11-59-207;

236 Enrolled Copy (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;

or - 14 - HB0236 compared with HB0236S03 (xi) for an electrical energy development zone created under Section 79-6-1104, the value of the property within an electrical energy development zone, as shown on the assessment roll last equalized before the creation of the electrical development zone, as that term is defined in Section 79-6-1104.

(i)- an14 annexation- toEnrolled aCopy taxingH.B. entity;

236 (i) an annexation to a taxing entity;

and - 15 - HB0236 compared with HB0236S03 (xviii) uranium.

[(g)] (h)(h)(i) (i) "Centrally assessed new growth" means the greater of:

(ii)- "Centrally15 assessed- newH.B. growth" does not include a change in value for a centrally assessed industry 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.

236 Enrolled Copy (ii) "Centrally assessed new growth" does not include a change in value for a centrally assessed industry 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.

[(j)] (k){(l)}(l) "Eligible new growth" means the greater of:

(m) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that begins on July 1 and ends on June 30.

[(k)] (l){(n)}(n) "Host local government" means the same as that term is defined in Section 63N-2-502.

[(l)] (m){(o)}(o) "Hotel property" means the same as that term is defined in Section 63N-2-502.

[(m)] (n){(p)}(p) "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.

- 16 - HB0236 compared with HB0236S03 [(n)] (o){(q)}(q) "Incremental property tax revenue" means the same as that term is defined in Section 63N-2-502.

[(o)] (p){(r)}(r) "Incremental value" means:

and (B) the number that represents the percentage of the property tax differential that is- paid16 to- theEnrolled authority;Copy H.B.

236 is paid to the authority;

- 17 - HB0236 compared with HB0236S03 (vi) for a housing and transit reinvestment zone or convention center reinvestment zone created in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, an amount calculated by multiplying:

and- (B)17 the- numberH.B. that represents the percentage of the tax increment that is paid to the housing and transit reinvestment zone or convention center reinvestment zone;

236 Enrolled Copy and (B) the number that represents the percentage of the tax increment that is paid to the housing and transit reinvestment zone or convention center reinvestment zone;

and - 18 - HB0236 compared with HB0236S03 (B) the number that represents the percentage of tax increment that is paid to the major sporting event venue zone, as approved by a major sporting event venue zone committee described in Section 63N-1a-1706;

or (xi) for an electrical energy development zone created under Section 79-6-1104, the amount- calculated18 by- multiplying:Enrolled Copy H.B.

236 amount calculated by multiplying:

[(p)] (q){(t)}(t)(i) (i) "Locally assessed new growth" means the greater of:

[(q)] (r){(u)}(u) "Project area" means:

- 19 - HB0236 compared with HB0236S03 (i) for an authority created under Section 11-58-201, the same as that term is defined in Section 11-58-102;

(iv)- for19 an- authorityH.B. created under Section 63H-1-201, the same as that term is defined in Section 63H-1-102;

236 Enrolled Copy (iv) for an authority created under Section 63H-1-201, the same as that term is defined in Section 63H-1-102;

[(r)] (s){(v)}(v) "Project area new growth" means:

- 20 - HB0236 compared with HB0236S03 (vi) for a housing and transit reinvestment zone or convention center reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, an amount equal to the incremental value that is no longer- provided20 to- aEnrolled housingCopy andH.B. transit reinvestment zone or convention center reinvestment zone as tax increment;

236 longer provided to a housing and transit reinvestment zone or convention center reinvestment zone as tax increment;

[(s)] (t){(w)}(w) "Project area incremental revenue" means the same as that term is defined in Section 17C-1-1001.

[(t)] (u){(x)}(x) "Property tax allocation" means the same as that term is defined in Section 63H-1-102.

[(u)] (v){(y)}(y) "Property tax differential" means the same as that term is defined in Sections 11-58-102 and 79-6-1104.

[(v)] (w){(aa)}(aa) "Tax increment" means:

- 21 - HB0236 compared with HB0236S03 (iv) for a first home investment zone created under Title 63N, Chapter 3, Part 16, First- Home21 Investment- ZoneH.B. Act, the same as that term is defined in Section 63N-3-1601;

236 Enrolled Copy First Home Investment Zone Act, the same as that term is defined in Section 63N-3-1601;

(4)(4)(a) (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 by the amount calculated under Subsection (4)(b).

(A)- the22 amount- calculatedEnrolled underCopy SubsectionH.B. (4)(b)(ii);

and236 -(A) 22 - HB0236 compared with HB0236S03 (B) the percentageamount ofcalculated propertyunder taxesSubsection collected(4)(b)(ii); for the five calendar years immediately preceding the current calendar year;

and (B) the percentage of property taxes collected for the five calendar years immediately preceding the current calendar year;

(6)(6)(a) (a) A taxing entity may impose a judgment levy under Section 59-2-1328 or 59-2-1330- at23 a- rateH.B. that is sufficient to generate only the revenue required to satisfy one or more eligible judgments.

236 Enrolled Copy 59-2-1330 at a rate that is sufficient to generate only the revenue required to satisfy one or more eligible judgments.

-(7)(a) 23 - HB0236 compared with HB0236S03 (7) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:

(8)(8)(a) {[(a)]} On or before June 30[ of each year], a fiscal year taxing entity that proposes an increase to the certified tax rate for the ensuing fiscal year period shall{:}[shall[ (a) adopt a tentative budget{[}budget.] .]: {, if the taxing entity does not intend to exceed the certified tax rate;

or}(i) :prepare and adopt an interim budget that:

(b){(i)}(A) {ifis based on the taxing entityentity's intendsproposed to exceed the certified tax rate}rate prepareincrease; and adopt an interim budget that:

(i){(A)}(B) {adoptincludes a tentativeproperty operatingtax budget:}impact isschedule, basedsubject onto the taxingrequirements entity'sof proposedSubsection tax(8)(b); rate increase;

(A){(B)}and {that(C) is basedin solelyeffect onfor revenue that the taxingperiod entitybeginning estimateson toJuly be1 generated by the certified tax rate, eligible new growth, and anyending otherafter existingthe revenuedate sources;}on includeswhich athe propertytaxing taxentity, impact schedule, subject to the requirements of SubsectionSection (8)(b);59-2-919, adopts a budget;

and(ii) (B){(C)}present {thatand doesmake notavailable includeto } is in effect for the {additionalpublic ad valorem tax revenue that would be generated by } period beginning on July 1 and ending after the dateproperty on which the taxing {entity's proposed tax rateimpact increase}schedule entity,described subjectin toSubsection the(8)(a)(i)(B): requirements of Section 59-2-919, adopts a budget;

(C){(ii)}(A) {thatat ensureseach public hearing held prior to June 30 at which the taxing entity isdiscusses ablethe totaxing functionentity's atproposed thegeneral beginningfund ofbudget for the nextensuing fiscal year;year period;

and} present and make(B) availableas toa theseparate publicdocument thefrom propertyall taxother impactbudget scheduledocuments; described in Subsection (8)(a)(i)(B):

(D){(A)}and {from(iii) }subject at each public hearing held prior to JuneSubsection 30(8)(c), atset whichaside, thein taxing {entity's expenditures are based before } entity discusses the taxing {entity approves a taxrestricted ratebudget increaseaccount, afteran meetingamount the - 24 - HB0236Enrolled comparedCopy withH.B. HB0236S03 notice and public hearing requirements of Section 59-2-919} entity's proposed general fund budget for the ensuing fiscal year period;

and236 (ii){(B)}of {presentthe antaxing alternativeentity's tentativegeneral }fund asrevenue athat separateis documentno fromless allthan otherthe budget{:}amount documents;of additional ad valorem tax revenue that would be generated by the taxing entity's proposed tax rate increase.

and(b) (A){(iii)}The {that,property intax additionimpact }schedule subject to {budgeting for revenue described in Subsection (8)(b)(i)(A),(8)(a)(i)(B) outlinesshall: } Subsection (8)(c), set aside, in a restricted budget account, an amount of the taxing entity's {anticipated expenditures and funding priorities for } general fund revenue that is no less than the amount of additional ad valorem tax revenue that would be generated by the taxing entity's proposed tax rate increase{;} .

(B){(b)}(i) {thatspecify: the taxing entity's governing body prepares in good faith and makes available to the public;

and}(A) Thethe propertyapproximate dollar amount of additional ad valorem tax impactrevenue schedulethat describedwould inbe Subsectiongenerated (8)(a)(i)(B)by shall:the proposed tax rate increase;

(C){(i)} {from which the taxing entity's final adopted budget can be derived only if, after meeting the notice and public hearing requirements of Section 59-2-919, the taxing entity approves a tax rate increase.} specify:

{[(b)] (9)} (a){(A)} the approximate dollar amount of additional ad valorem tax revenue that would be generated by the proposed tax rate increase;

(c) A taxing entity subject to this Subsection (8) may not expend or otherwise obligate the revenue that the taxing entity sets aside in a restricted budget account, as required by Subsection (8)(a)(iii), for - 25 - HB0236 compared with HB0236S03 the period beginning on July 1 and ending after the date on which the taxing entity, subject to the requirements of Section 59-2-919, adopts a budget.

[(c)] (b){(f)}(f) 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.- 25 - H.B.

236 Enrolled Copy 59-2-919.1.

[(9)] (10)(10)(a) (a) Subject to Subsection [(9)(d)] (10)(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:

(c) For purposes of Subsection [(9)(a)(ii)] (10)(a)(ii), the commission shall calculate an amount by subtracting the total taxable value of real and personal property of a taxpayer the commission - 26 - HB0236 compared with HB0236S03 assesses in accordance with Part 2, Assessment of Property, 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 Part 2, Assessment of Property, for the previous year.

Effective date.

238, Property Tax Adjustments, both pass and become law, the Legislature intends that, on May 6, 2026, Subsection 59-2-919(12),- enacted26 in- Enrolled Copy H.B.

236 59-2-919(12), enacted in H.B.

3-6-26 5:47 PM - 27 -