SB 65 — Minimum Basic Tax Rate Amendments

(i) the project entity shall pay to the [school district] state an annual fee for the state minimum school program at the rate imposed by the school district and authorized by the Legislature under Section 53F-2-301;

and (ii) for all other local property tax levies authorized to be imposed by a school district, the project entity shall pay to the school district either:

(A) an annual fee;

or (B) impact alleviation payments under contracts or determination orders provided for in Sections 11-13-305 and 11-13-306.

(3)(a) An annual fee due a taxing jurisdiction for a particular year shall be calculated by multiplying the tax rate or rates of the jurisdiction for that year by the product obtained by multiplying the fee base or value determined in accordance with Subsection (4) for that year of the portion of the project located within the jurisdiction by the percentage of the project which is used to produce the capacity, service, or other benefit sold to the energy supplier or suppliers.

(b) As used in this section, "tax rate," when applied in respect to a school district, includes any assessment to be made by the school district under Subsection (2) or Section 63M-5-302.

(c) There is to be credited against the annual fee due a taxing jurisdiction for each year, an amount equal to the debt service, if any, payable in that year by the project entity on bonds, the proceeds of which were used to provide public facilities and services for impact alleviation in the taxing jurisdiction in accordance with Sections 11-13-305 and 11-13-306.

(d) The tax rate for the taxing jurisdiction for that year shall be computed so as to:

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65 02-18 11:37 (i) take into account the fee base or value of the percentage of the project located within the taxing jurisdiction determined in accordance with Subsection (4) used to produce the capacity, service, or other benefit sold to the supplier or suppliers;

and (ii) reflect any credit to be given in that year.

(4)(a) Except as otherwise provided in this section, the annual fees required by this section shall be paid, collected, and distributed to the taxing jurisdiction as if:

(i) the annual fees were ad valorem property taxes;

and (ii) the project were assessed at the same rate and upon the same measure of value as taxable property in the state.

(b)(i) Notwithstanding Subsection (4)(a), for purposes of an annual fee required by this section, the fee base of a project may be determined in accordance with an agreement among:

(A) the project entity;

and (B) any county that:

(I) is due an annual fee from the project entity;

and (II) agrees to have the fee base of the project determined in accordance with the agreement described in this Subsection (4).

(ii) The agreement described in Subsection (4)(b)(i):

(A) shall specify each year for which the fee base determined by the agreement shall be used for purposes of an annual fee;

and (B) may not modify any provision of this chapter except the method by which the fee base of a project is determined for purposes of an annual fee.

(iii) For purposes of an annual fee imposed by a taxing jurisdiction within a county described in Subsection (4)(b)(i)(B), the fee base determined by the agreement described in Subsection (4)(b)(i) shall be used for purposes of an annual fee imposed by that taxing jurisdiction.

(iv)(A) If there is not agreement as to the fee base of a portion of a project for any year, for purposes of an annual fee, the State Tax Commission shall determine the value of that portion of the project for which there is not an agreement:

(I) for that year;

and (II) using the same measure of value as is used for taxable property in the state.

(B) The valuation required by Subsection (4)(b)(iv)(A) shall be made by the State Tax Commission in accordance with rules made by the State Tax Commission.

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65 (c) Payments of the annual fees shall be made from:

(i) the proceeds of bonds issued for the project;

and (ii) revenues derived by the project entity from the project.

(d)(i) The contracts of the project entity with the purchasers of the capacity, service, or other benefits of the project whose tangible property is not exempted by Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax shall require each purchaser, whether or not located in the state, to pay, to the extent not otherwise provided for, its share, determined in accordance with the terms of the contract, of these fees.

(ii) It is the responsibility of the project entity to enforce the obligations of the purchasers.

(5)(a) The responsibility of the project entity to make payment of the annual fees is limited to the extent that there is legally available to the project entity, from bond proceeds or revenues, money to make these payments, and the obligation to make payments of the annual fees is not otherwise a general obligation or liability of the project entity.

(b) No tax lien may attach upon any property or money of the project entity by virtue of any failure to pay all or any part of an annual fee.

(c) The project entity or any purchaser may contest the validity of an annual fee to the same extent as if the payment was a payment of the ad valorem property tax itself.

(d) The payments of an annual fee shall be reduced to the extent that any contest is successful.

(6)(a) The annual fee described in Subsection (1):

(i) shall be paid by a public agency that:

(A) is not a project entity;

and (B) owns an interest in a facility providing additional project capacity if the interest is otherwise exempt from taxation pursuant to Utah Constitution, Article XIII, Section 3;

and (ii) for a public agency described in Subsection (6)(a)(i), shall be calculated in accordance with Subsection (6)(b).

(b) The annual fee required under Subsection (6)(a) shall be an amount equal to the tax rate or rates of the applicable taxing jurisdiction multiplied by the product of the following:

(i) the fee base or value of the facility providing additional project capacity located - 5 - S.B.

65 02-18 11:37 within the jurisdiction;

(ii) the percentage of the ownership interest of the public agency in the facility;

and (iii) the portion, expressed as a percentage, of the public agency's ownership interest that is attributable to the capacity, service, or other benefit from the facility that is sold, including any subsequent sale, resale, or layoff, by the public agency to an energy supplier or suppliers whose tangible property is not exempted by Utah Constitution, Article XIII, Section 3, from the payment of ad valorem property tax.

(c) A public agency paying the annual fee pursuant to Subsection (6)(a) shall have the obligations, credits, rights, and protections set forth in Subsections (1) through (5) with respect to its ownership interest as though it were a project entity.

(d) On or before March 1 of each year, a project entity that owns a project and that provides any capacity, service, or other benefit to an energy supplier or a public agency shall file an electronic report with the State Tax Commission that identifies:

(i) each energy supplier and public agency to which the project entity delivers capacity, service, or other benefit;

and (ii) the amount of capacity, service, or other benefit delivered to each energy supplier and public agency.

Section 2.

Section 51-9-1001 is enacted to read:

51-9-1001 (Effective 05/06/26).

Minimum Basic Tax Special Revenue Fund.

(1) As used in this section, "fund" means the Minimum Basic Tax Special Revenue Fund that this section creates.

(2) There is created a special revenue fund known as the "Minimum Basic Tax Special Revenue Fund" that consists of:

(a) money deposited by the state treasurer in accordance with Section 53F-2-301;

and (b) interest earned on the money in the fund.

(3) Money in the fund may be used for statewide purposes consistent with the General Fund.

Section 3.

Section 53F-2-205 is amended to read:

53F-2-205 (Effective 05/06/26).

Powers and duties of state board to adjust Minimum School Program allocations -- Use of remaining funds at the end of a fiscal year.

(1) As used in this section:

(a) "ESEA" means the Elementary and Secondary Education Act of 1965, 20 U.S.C.

Sec.

6301 et seq.

(b) "Program" means a program or allocation funded by a line item appropriation or - 6 - 02-18 11:37 S.B.

65 other appropriation designated as:

(i) Basic Program;

(ii) Related to Basic Programs;

(iii) Voted and Board Levy Programs;

or (iv) Minimum School Program.

(2) Except as provided in Subsection (3)[ or (5)], if the number of weighted pupil units in a program is underestimated, the state board shall reduce the value of the weighted pupil unit in that program so that the total amount paid for the program does not exceed the amount appropriated for the program.

(3) If the number of weighted pupil units in a program is overestimated, the state board shall spend excess money appropriated for the following purposes giving priority to the purpose described in Subsection (3)(a):

(a) to support the value of the weighted pupil unit in a program within the basic state-supported school program in which the number of weighted pupil units is underestimated;

(b) to support the state guaranteed local levy increments as defined in Section 53F-2-601, if:

(i) local contributions to the voted local levy program or board local levy program are overestimated;

or (ii) the number of weighted pupil units within school districts qualifying for a guarantee is underestimated;

(c) to support the state supplement to local property taxes allocated to charter schools, if the state supplement is less than the amount prescribed by Section 53F-2-704;

(d) to fund the cost of the salary supplements described in Section 53F-2-504;

or (e) to support a school district with a loss in student enrollment as provided in Section 53F-2-207.

[(4) If local contributions from the minimum basic tax rate imposed under Section 53F-2-301 are overestimated, the state board shall reduce the value of the weighted pupil unit for all programs within the basic state-supported school program so the total state contribution to the basic state-supported school program does not exceed the amount of state funds appropriated.] [(5) If local contributions from the minimum basic tax rate imposed under Section 53F-2-301 are underestimated, the state board shall:] [(a) spend the excess local contributions for the purposes specified in Subsection (3), - 7 - S.B.

65 02-18 11:37 giving priority to supporting the value of the weighted pupil unit in programs within the basic state-supported school program in which the number of weighted pupil units is underestimated;

and] [(b) reduce the state contribution to the basic state-supported school program so the total cost of the basic state-supported school program does not exceed the total state and local funds appropriated to the basic state-supported school program plus the local contributions necessary to support the value of the weighted pupil unit in programs within the basic state-supported school program in which the number of weighted pupil units is underestimated.] [(6)] (4) Except as provided in Subsection (3)[ or (5)], the state board shall reduce the state guarantee per weighted pupil unit provided under the local levy state guarantee program described in Section 53F-2-601, if:

(a) local contributions to the voted local levy program or board local levy program are overestimated;

or (b) the number of weighted pupil units within school districts qualifying for a guarantee is underestimated.

[(7)] (5) Money appropriated to the state board is nonlapsing, including appropriations to the Minimum School Program and all agencies, line items, and programs under the jurisdiction of the state board.

[(8)] (6) The state board shall report actions taken by the state board under this section to the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and Budget.

Section 4.

Section 53F-2-301 is amended to read:

53F-2-301 (Effective 05/06/26) (Superseded 07/01/26).

Minimum basic tax rate for a fiscal year that begins after July 1, 2022.

(1) As used in this section:

(a) "Basic levy increment rate" means a tax rate that will generate an amount of revenue equal to $75,000,000.

(b) "Combined basic rate" means a rate that is the sum of:

(i) the minimum basic tax rate;

and (ii) the WPU value rate.

(c) "Commission" means the State Tax Commission.

(d) "Minimum basic local amount" means an amount that is:

(i) equal to the sum of:

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65 (A) the [school districts' contribution to the basic school program] minimum basic tax rate revenue from within the school district in the previous fiscal year;

(B) the amount generated by the basic levy increment rate;

and (C) the eligible new growth, as defined in Section 59-2-924 and rules of the State Tax Commission multiplied by the minimum basic rate;

and (ii) set annually by the Legislature in Subsection (2)(a).

(e) "Minimum basic tax rate" means a tax rate certified by consensus between the commission, the Governor's Office of Planning and Budget, and the Office of the Legislative Fiscal Analyst that will generate an amount of revenue equal to the minimum basic local amount described in Subsection (2)(a).

(f) "Weighted pupil unit value" or "WPU value" means the amount established each year in the enacted public education budget that is multiplied by the number of weighted pupil units to yield the funding level for the basic school program.

(g) "WPU value amount" means an amount:

(i) that is equal to the product of:

(A) the WPU value increase limit;

and (B) the percentage share of local revenue to the cost of the basic school program in the immediately preceding fiscal year;

and (ii) set annually by the Legislature in Subsection (3)(a).

(h) "WPU value increase limit" means the lesser of:

(i) the total cost to the basic school program to increase the WPU value over the WPU value in the prior fiscal year;

or (ii) the total cost to the basic school program to increase the WPU value by 4% over the WPU value in the prior fiscal year.

(i) "WPU value rate" means a tax rate certified by the commission that will generate an amount of revenue equal to the WPU value amount described in Subsection (3)(a).

(2)(a) The minimum basic local amount for the fiscal year that begins on July 1, 2025, is $810,593,200 in revenue statewide.

(b) The preliminary estimate of the minimum basic tax rate for a fiscal year that begins on July 1, 2025, is .001408.

(3)(a) The WPU value amount for the fiscal year that begins on July 1, 2025, is $31,508,600 in revenue statewide.

(b) The preliminary estimate of the WPU value rate for the fiscal year that begins on July 1, 2025, is .000055.

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65 02-18 11:37 (4)(a) On or before June 22, the commission, the Governor's Office of Planning and Budget, and the Office of the Legislative Fiscal Analyst shall by consensus certify for the year:

(i) the minimum basic tax rate;

and (ii) the WPU value rate.

(b) The estimate of the minimum basic tax rate provided in Subsection (2)(b) and the estimate of the WPU value rate provided in Subsection (3)(b) are based on a forecast for property values for the next calendar year.

(c) The certified minimum basic tax rate described in Subsection (4)(a)(i) and the certified WPU value rate described in Subsection (4)(a)(ii) are based on property values as of January 1 of the current calendar year, except personal property, which is based on values from the previous calendar year.

(5)(a) To qualify for receipt of [the ]state [contribution toward] funding of the basic school program [and as a school district's contribution toward the cost of the basic school program ]for the school district, [each] a local school board shall impose the combined basic rate.

(b) For each local school board imposing the combined basic rate:

(i) the county treasurer for the county in which the school district is located shall:

(A) collect the combined basic rate revenue within the portion of the county within which the school district is located;

and (B) remit the revenue to the state treasurer each month;

and (ii) the state treasurer shall:

Ŝ→ [ {and] and} ] ←Ŝ (B) communicate the amount of the deposit to the state board Ŝ→ [[.] {.}; ];

(i) Ŝ→ (A) ←Ŝ except as provided in Subsection (5)(c)(ii), the amount the 331a state treasurer communicates- under10 Subsection- (5)(b)(ii);02-18 11:37 S.B.

or65 Ŝ→ [ {(ii)} ](B) ←Ŝ if the remaining unfunded cost of the school district's basic 333a school program does not exceed the amount the state treasurer communicates under Subsection 334a(5)(b)(ii); (5)(b)(ii), the remaining unfunded cost of the school district's basic school program Ŝ→ [ {.} ] 335a ;

or Ŝ→ [(ii)] (B) ←Ŝ if the remaining unfunded cost of the school district's basic 333a school program does not exceed the amount the state treasurer communicates under Subsection 334a (5)(b)(ii), the remaining unfunded cost of the school district's basic school program Ŝ→ [.] 335a ;

←Ŝ [(b)](d)[(b)] (i)(d)(i) The state is not subject to the notice requirements of Section 59-2-926 before imposing the tax rates described in this Subsection (5).

(ii) The state is subject to the notice requirements of Section 59-2-926 if the state -authorizes 1a -tax Senaterate 2ndthat Readingexceeds Amendmentsthe tax rates described in this Subsection (5).

(6)[(a)] The state shall [contribute to] ensure that, for each school district [toward] described in Subsection (5), the aggregate allocations from state funds under Subsection (5)(c) are equivalent to the cost of the basic school program in the school district[ an amount of money that is the difference between the cost of the school district's basic school program and the sum of revenue generated by the school district by the following:] .

[(i) the combined basic rate;

and] [(ii) the basic levy increment rate.] [(b)(i) If the difference described in Subsection (6)(a) equals or exceeds the cost of the basic school program in a school district, no state contribution shall be made to the basic school program for the school district.] [(ii) The proceeds of the difference described in Subsection (6)(a) that exceed the cost of the basic school program shall be paid into the Uniform School Fund as provided by law and by the close of the fiscal year in which the proceeds were calculated.] (7) Upon appropriation by the Legislature, the Division of Finance shall deposit an amount equal to the proceeds generated statewide:

(a) by the basic levy increment rate into the Minimum Basic Growth Account created in Section 53F-9-302;

and (b) by the WPU value rate into the Teacher and Student Success Account created in Section 53F-9-306.

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65 02-18 11:37 Section 5.

Section 53F-2-301 is amended to read:

53F-2-301 (Effective 07/01/26).

Minimum basic tax rate for a fiscal year that begins after July 1, 2022.

(1) As used in this section:

(a) "Basic levy increment rate" means a tax rate that will generate an amount of revenue equal to $75,000,000.

(b) "Commission" means the State Tax Commission.

(c) "Minimum basic local amount" means an amount that is:

(i) equal to the sum of:

(A) the [school districts' contribution to the basic school program] minimum basic tax rate revenue from within the school district in the previous fiscal year;

(B) the amount generated by the basic levy increment rate;

and (C) the eligible new growth, as defined in Section 59-2-924 and rules of the State Tax Commission multiplied by the minimum basic rate;

and (ii) set annually by the Legislature in Subsection (2)(a).

(d) "Minimum basic tax rate" means a tax rate certified by consensus between the commission, the Governor's Office of Planning and Budget, and the Office of the Legislative Fiscal Analyst that will generate an amount of revenue equal to the minimum basic local amount described in Subsection (2)(a).

(2)(a) The minimum basic local amount for the fiscal year that begins on July 1, 2025, is $810,593,200 in revenue statewide.

(b) The preliminary estimate of the minimum basic tax rate for a fiscal year that begins on July 1, 2025, is .001408.

(3)(a) On or before June 22, the commission, the Governor's Office of Planning and Budget, and the Office of the Legislative Fiscal Analyst shall by consensus certify the minimum basic tax rate for the year.

(b) The estimate of the minimum basic tax rate provided in Subsection (2)(b) is based on a forecast for property values for the next calendar year.

(c) The certified minimum basic tax rate described in Subsection (3)(a) is based on property values as of January 1 of the current calendar year, except personal property, which is based on values from the previous calendar year.

(4)(a) To qualify for receipt of [the ]state [contribution toward] funding of the basic school program [and as a school district's contribution toward the cost of the basic school program ]for the school district, [each] a local school board shall impose the - 12 - 02-18 11:37 S.B.

65 minimum basic tax rate.

(b) For a local school board that imposes the minimum basic tax rate:

(i) the relevant county treasurer for the county in which the school district is located shall:

(A) collect the minimum basic tax rate revenue within the portion of the county within which the school district is located;

and (B) remit the revenue to the state treasurer each month;

and (ii) the state treasurer shall:

(A) deposit the minimum basic tax rate revenue the state treasurer receives from a county treasurer into the Minimum Basic Tax Special Revenue Fund described in Section 51-9-1001;

and (B) communicate the amount of the deposit to the state board.

(c) The state board shall distribute to the relevant school district, within 35 days after the date of the deposit described in Subsection (4)(b)(ii), an amount equal to:

(i) except as provided in Subsection (4)(c)(ii), the amount the state treasurer communicates under Subsection (4)(b)(ii);

or (ii) if the remaining unfunded cost of the school district's basic school program does not exceed the amount the state treasurer communicates under Subsection (4)(b)(ii), the remaining unfunded cost of the school district's basic school program.

[(b)] (d)(i) The state is not subject to the notice requirements of Section 59-2-926 before imposing the tax rates described in this Subsection (4).

(ii) The state is subject to the notice requirements of Section 59-2-926 if the state authorizes a tax rate that exceeds the tax rates described in this Subsection (4).

(5)(a) The state shall [contribute to] ensure that, for each school district [toward] described in Subsection (4), the aggregate allocations from state funds under Subsection (4)(c) are equivalent to the cost of the basic school program in the school district[ an amount of money that is the difference between the cost of the school district's basic school program and the sum of revenue generated by the school district by the following:] .

[(i) the minimum basic tax rate;

and] [(ii) the basic levy increment rate.] [(b)(i) If the difference described in Subsection (5)(a) equals or exceeds the cost of the basic school program in a school district, no state contribution shall be made to the basic school program for the school district.] - 13 - S.B.

65 02-18 11:37 [(ii) The proceeds of the difference described in Subsection (5)(a) that exceed the cost of the basic school program shall be paid into the Uniform School Fund as provided by law and by the close of the fiscal year in which the proceeds were calculated.] (6) Upon appropriation by the Legislature, the Division of Finance shall deposit an amount equal to the proceeds generated statewide by the basic levy increment rate into the Minimum Basic Growth Account created in Section 53F-9-302.

(7) Nothing in the repeal of the tax rate indexed to the increase in the value of the WPU affects the ongoing appropriations to the Teacher and Student Success Account created in Section 53F-9-306.

Section 6.

Section 53F-2-515 is amended to read:

53F-2-515 (Effective 05/06/26).

Federal Impact Aid Program -- Offset for underestimated allocations from the Federal Impact Aid Program.

(1) In addition to [the revenues received from the levy imposed by a local school board and authorized by the Legislature under Section 53F-2-301] funds the Legislature appropriates to the basic school program, the Legislature shall provide an amount equal to the difference between the school district's anticipated receipts under the entitlement for the fiscal year from the Federal Impact Aid Program and the amount the school district actually received from this source for the next preceding fiscal year.

(2) If at the end of a fiscal year the sum of the receipts of a school district from a distribution from the Legislature pursuant to Subsection (1) plus the school district's allocations from the Federal Impact Aid Program for that fiscal year exceeds the amount allocated to the school district from the Federal Impact Aid Program for the next preceding fiscal year, the excess funds are carried into the next succeeding fiscal year and become in that year a part of the [school district's contribution to] state's funding of the cost of the school district's basic program for operation and maintenance under [the state minimum school finance law] Section 53F-2-301.

(3) During the next succeeding fiscal year described in Subsection (2), the school district's required tax rate for the basic program shall be reduced so that the yield from the reduced tax rate plus the carryover funds equal the school district's required contribution [ to] toward the cost of the school district's basic program.

(4) For the school district of a local school board that is required to reduce the school district's basic tax rate under this section, the school district shall receive state minimum school program funds as though the reduction in the tax rate had not been made.

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65 Section 7.

Section 59-2-902 is amended to read:

59-2-902 (Effective 05/06/26).

Minimum basic tax levy for school districts.

(1) If any county fails to comply with Section 59-2-704, then this section determines the adjustment of the basic school levy for school districts within the county.[ ] (2)(a) Before June 15, the commission shall ascertain from the State Board of Education the number of weighted pupil units in each school district in the state for the school year commencing July 1 of the current calendar year, estimated according to [the] Title 53F, Chapter 2, State Funding -- Minimum School Program[ Act], and the money necessary for the cost of the operation and maintenance of the minimum school program of the state for the school fiscal year beginning July 1 of the current calendar year.[ ] (b) The commission shall then estimate the amounts of all surpluses in the Uniform School Fund, as of July 1 of the current calendar year, available for the operation and maintenance of the program, and shall estimate the anticipated income to the fund available for those purposes for the current school year from all sources, including revenues from taxes on income or from taxes on intangible property pursuant to Utah Constitution, Article XIII, [Sec.

12, Utah Constitution] Section 12.

[(2)] (3)(a) The commission shall then determine for each school district the amount to be raised by the minimum basic tax levy [as its contribution toward the cost] for the school district to access state funding of the basic [state-supported] school program, as required by [the] Title 53F, Chapter 2, State Funding -- Minimum School Program[ Act].

[(3)] (4) Each county auditor shall be notified by the commission that the minimum basic tax levy shall be imposed by the school district, to which shall be added an additional amount, if any, due to local undervaluation as provided in this section.[ ] (a) The auditor shall inform the county legislative body as to the amount of the levy.[ ] (b) The county legislative body shall at the time and in the manner provided by law make the levy upon the taxable property in the school district together with further levies for school purposes as may be required by each school district to pay the costs of programs in excess of the basic state-supported school program.

[(4)] (5) [If the levy applied under this section raises an amount in excess of the total basic state-supported school program for a school district, the excess amount shall be remitted by the school district to the State Board of Education to be credited to the Uniform School Fund for allocation to school districts to support the basic state-supported school - 15 - S.B.

65 02-18 11:37 program.

]The availability of money shall be considered by the commission in fixing the state property levy as provided in [the] Title 53F, Chapter 2, State Funding -- Minimum School Program[ Act].

[(5)] (6)(a) If the levy does not raise an amount in excess of an amount equal to the cost of the total basic state-supported school program for a district, then the difference between the amount which the local levy will raise within the district, and the total cost of the basic state-supported school program within the district shall be computed.[ This difference, if any, shall be apportioned from the Uniform School Fund to each school district as the contribution of the state to the basic state-supported school program for the district, subject to the following conditions:] [(a)] (b)(i) [Before the apportionment is made, the] The commission shall determine if the local taxable valuation of any school district is undervalued according to law and if so, the dollar amount of the undervaluation.[ ] (ii) The dollar amount of the undervaluation shall be multiplied by the district basic uniform school levy at 98%.[ ] (iii) The resulting dollar amount shall be divided by the current year estimated yield of .0002 per dollar of taxable value at 98% based on the district's taxable valuation prior to adjusting for undervaluation.

[(b)] (c)(i) The resulting levy amount shall be added to the required district basic uniform levy to determine the combined district basic school levy adjusted for undervaluation.[ ] (ii) The combined rate of levy shall be certified to the county auditor and employed by the auditor and the county legislative body in lieu of the required basic school local levy.

Section 8.

Section 59-2-904 is amended to read:

59-2-904 (Effective 05/06/26).

Participation by district in state's contributions to state-supported levy program.

(1) In addition to the funding of the basic [state contribution] school program provided in Section 59-2-902, a school district may participate in the state's contributions to the state-supported levy program by conforming to the requirements of [the] Title 53F, Chapter 2, State Funding -- Minimum School Program[ Act] , and by making the required additional levy.

(2) A school district that participates in the state-supported levy program shall certify to the State Board of Education the results of its determination and the amount of the board or - 16 - 02-18 11:37 S.B.

65 voted local levy that the district will impose.

Section 9.

Section 59-2-1317 is amended to read:

59-2-1317 (Effective 05/06/26).

Tax notice -- Contents of notice -- Procedures and requirements for providing notice.

(1) As used in this section, "political subdivision lien" means the same as that term is defined in Section 11-60-102.

(2) Subject to the other provisions of this section, the county treasurer shall:

(a) collect the taxes and tax notice charges;

and (b) provide a notice to each taxpayer that contains the following:

(i) the kind and value of property assessed to the taxpayer;

(ii) the street address of the property, if available to the county;

(iii) that the property may be subject to a detailed review in the next year under Section 59-2-303.1;

(iv) the amount of taxes levied;

(v) regarding the minimum basic tax described in Section 53F-2-301, the following statement:

"The minimum basic tax generates an amount that the district remits to the state.

The state remits an equivalent amount of state funds to the school district and any additional state funds to ensure the full cost of the district's basic school program.";

[(v)] (vi) a separate statement of the taxes levied only on a certain kind or class of property for a special purpose;

[(vi)] (vii) instructions for payment of the taxes and tax notice charges applicable to the property, including the taxpayer's payment options and collection procedures;

[(vii)] (viii) any tax notice charges applicable to the property, including:

(A) if applicable, a political subdivision lien for road damage that a railroad company causes, as described in Section 10-7-30;

(B) if applicable, a political subdivision lien for municipal water distribution, as described in Section 10-8-17, or a political subdivision lien for an increase in supply from a municipal water distribution, as described in Section 10-8-19;

(C) if applicable, a political subdivision lien for unpaid abatement fees as described in Section 10-11-4;

(D) if applicable, a political subdivision lien for the unpaid portion of an assessment assessed in accordance with Title 11, Chapter 42, Assessment Area - 17 - S.B.

65 02-18 11:37 Act, or Title 11, Chapter 42a, Commercial Property Assessed Clean Energy Act, including unpaid costs, charges, and interest as of the date the local entity certifies the unpaid amount to the county treasurer;

(E) if applicable, for a special district in accordance with Section 17B-1-902, a political subdivision lien for an unpaid fee, administrative cost, or interest;

(F) if applicable, a political subdivision lien for an unpaid irrigation district use charge as described in Section 17B-2a-506;

(G) if applicable, a political subdivision lien for a contract assessment under a water contract, as described in Section 17B-2a-1007;

(H) if applicable, a property tax penalty that a public infrastructure district imposes, as described in Section 17D-4-304;

and (I) if applicable, an annual payment to the Military Installation Development Authority or an entity designated by the authority in accordance with Section 63H-1-501;

[(viii)] (ix) if a county's tax notice includes an assessment area charge, a statement that, due to potentially ongoing assessment area charges, costs, penalties, and interest, payment of a tax notice charge may not:

(A) pay off the full amount the property owner owes to the tax notice entity;

or (B) cause a release of the lien underlying the tax notice charge;

[(ix)] (x) if applicable, the annual payment described in Subsection 63H-1-501(4)(a);

[(x)] (xi) the date the taxes and tax notice charges are due;

[(xi)] (xii) the street address or website at which the taxes and tax notice charges may be paid;

[(xii)] (xiii) the date on which the taxes and tax notice charges are delinquent;

[(xiii)] (xiv) the penalty imposed on delinquent taxes and tax notice charges;

[(xiv)] (xv) a statement that explains the taxpayer's right to direct allocation of a partial payment in accordance with Subsection (9);

[(xv)] (xvi) other information specifically authorized to be included on the notice under this chapter;

[(xvi)] (xvii) other property tax information approved by the commission;

and [(xvii)] (xviii) if sent in calendar year 2024, 2025, or 2026:

(A) notice that the taxpayer may request electronic notice as described in Subsection 17-71-302(1)(m);

and (B) instructions describing how to elect to receive a notice as described in - 18 - 02-18 11:37 S.B.

65 Subsection 17-71-302(1)(m).

(3)(a) Unless expressly allowed under this section or another statutory provision, the treasurer may not add an amount to be collected to the property tax notice.

(b) If the county treasurer adds an amount to be collected to the property tax notice under this section or another statutory provision that expressly authorizes the item's inclusion on the property tax notice:

(i) the amount constitutes a tax notice charge;

and (ii)(A) the tax notice charge has the same priority as property tax;

and (B) a delinquency of the tax notice charge triggers a tax sale, in accordance with Section 59-2-1343.

(4) For any property for which property taxes or tax notice charges are delinquent, the notice described in Subsection (2) shall state, "Prior taxes or tax notice charges are delinquent on this parcel." (5) Except as provided in Subsection (6), the county treasurer shall:

(a) mail the notice required by this section, postage prepaid;

or (b) leave the notice required by this section at the taxpayer's residence or usual place of business, if known.

(6)(a) Subject to the other provisions of this Subsection (6), a county treasurer may, at the county treasurer's discretion, provide the notice required by this section by electronic mail if a taxpayer makes an election, according to procedures determined by the county treasurer, to receive the notice by electronic mail.

(b) A taxpayer may revoke an election to receive the notice required by this section by electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.

(c) A revocation of an election under this section does not relieve a taxpayer of the duty to pay a tax or tax notice charge due under this chapter on or before the due date for paying the tax or tax notice charge.

(d) A county treasurer shall provide the notice required by this section using a method described in Subsection (5), until a taxpayer makes a new election in accordance with this Subsection (6), if:

(i) the taxpayer revokes an election in accordance with Subsection (6)(b) to receive the notice required by this section by electronic mail;

or (ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.

(e) A person is considered to be a taxpayer for purposes of this Subsection (6) regardless - 19 - S.B.

65 02-18 11:37 of whether the property that is the subject of the notice required by this section is exempt from taxation.

(7)(a) The county treasurer shall provide the notice required by this section to a taxpayer on or before November 1.

(b) The county treasurer shall keep on file in the county treasurer's office the information set forth in the notice.

(c) The county treasurer is not required to mail a tax receipt acknowledging payment.

(8) This section does not apply to property taxed under Section 59-2-1302 or 59-2-1307.

(9)(a) A taxpayer who pays less than the full amount due on the taxpayer's property tax notice may, on a form provided by the county treasurer, direct how the county treasurer allocates the partial payment between:

(i) the total amount due for property tax;

(ii) the amount due for assessments, past due special district fees, and other tax notice charges;

and (iii) any other amounts due on the property tax notice.

(b) The county treasurer shall comply with a direction submitted to the county treasurer in accordance with Subsection (9)(a).

(c) The provisions of this Subsection (9) do not:

(i) affect the right or ability of a local entity to pursue any available remedy for non-payment of any item listed on a taxpayer's property tax notice;

or (ii) toll or otherwise change any time period related to a remedy described in Subsection (9)(c)(i).

Section 10.

Repealer.

This bill repeals:

Section 59-2-903, Remittance to credit of Uniform School Fund of money in excess of basic state-supported school program -- Manner.

Section 11.

Effective Date.

(1) Except as provided in Subsection (2), this bill takes effect May 6, 2026.

(2) The actions affecting Section 53F-2-301 (Effective 07/01/26) take effect on July 1, 2026.

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