Utah Code § 59-2-919 — Notice and public hearing requirements for certain tax increases -- Exceptions -- Audit

(1) As used in this section:
(a) "Additional ad valorem tax revenue" means ad valorem property tax revenue generated by the portion of the tax rate that exceeds the taxing entity's certified tax rate.
(b) "Ad valorem tax revenue" means ad valorem property tax revenue not including revenue from:
(i) eligible new growth; or
(ii) personal property that is:
(A) assessed by a county assessor in accordance with Part 3, County Assessment; and
(B) semiconductor manufacturing equipment.
(c) "Base year" means a taxing entity's fiscal year that immediately precedes the fiscal year in which the taxing entity first adopted a budget below last year's property tax budgeted revenue.
(d) "Base year budgeted revenue" means the property tax budgeted revenue, excluding eligible new growth, for the base year.
(e) "Calendar year taxing entity" means a taxing entity that operates under a fiscal year that begins on January 1 and ends on December 31.
(f) "County executive calendar year taxing entity" means a calendar year taxing entity that operates under the county executive-council form of government described in Section 17-62-203.
(g) "Current calendar year" means the calendar year immediately preceding the calendar year for which a calendar year taxing entity seeks to levy a tax rate that exceeds the calendar year taxing entity's certified tax rate.
(h) "Eligible new growth" means the same as that term is defined in Section 59-2-924.
(i) "Fiscal year taxing entity" means a taxing entity that operates under a fiscal year that begins on July 1 and ends on June 30.
(j) "Last year's property tax budgeted revenue" does not include:
(i) revenue received by a taxing entity from a debt service levy voted on by the public;
(ii) revenue generated by the minimum basic tax rate as defined in Section 53F-2-301; or
(iii) revenue generated by the charter school levy described in Section 53F-2-703.
(k) "Meeting" means the same as that term is defined in Section 52-4-103.
(l) "Truth-in-taxation exemption period" means a six-year period that begins with the base year.
(2) Except as provided in Subsection (11), a taxing entity may not levy a tax rate that exceeds the taxing entity's certified tax rate unless the taxing entity meets:
(a) the requirements of this section that apply to the taxing entity; and
(b) all other requirements as may be required by law.
(3)
(a) Subject to Subsection (3)(b) and except as provided in Subsection (5), a calendar 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:
(i) 14 or more days before the date of the regular general election or municipal general election held in the current calendar year, states at a public meeting:
(A) that the calendar year taxing entity intends to levy a tax rate that exceeds the calendar year taxing entity's certified tax rate;
(B) the dollar amount of and purpose for additional ad valorem tax revenue that would be generated by the proposed increase in the certified tax rate; and
(C) the approximate percentage increase in ad valorem tax revenue for the taxing entity based on the proposed increase described in Subsection (3)(a)(i)(B);
(ii) provides notice for the public meeting described in Subsection (3)(a)(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 calendar year taxing entity intends to make the statement described in Subsection (3)(a)(i);
(iii) meets the advertisement requirements of Subsections (6) and (7) before the calendar year taxing entity conducts the public hearing required by Subsection (3)(a)(v);
(iv) provides notice by mail:
(A) seven or more days before the regular general election or municipal general election held in the current calendar year; and
(B) as provided in Subsection (3)(c); and
(v) conducts a public hearing that is held in accordance with Subsections (8) and (9).
(b)
(i) For a county executive calendar year taxing entity, the statement described in Subsection (3)(a)(i) shall be made by the:
(A) county council;
(B) county executive; or
(C) both the county council and county executive.
(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 county executive in accordance with Subsection (3)(a)(i), the county executive calendar year taxing entity shall:
(A) make the statement described in Subsection (3)(a)(i) 14 or more days before the county executive calendar year taxing entity conducts the public hearing under Subsection (3)(a)(v); and
(B) provide the notice required by Subsection (3)(a)(iv) 14 or more days before the county executive calendar year taxing entity conducts the public hearing required by Subsection (3)(a)(v).
(c) The notice described in Subsection (3)(a)(iv):
(i) shall be mailed to each owner of property:
(A) within the calendar year taxing entity; and
(B) listed on the assessment roll;
(ii) shall be printed on a separate form that:
(A) is developed by the commission;
(B) states at the top of the form, in bold upper-case type no smaller than 18 point "NOTICE OF PROPOSED TAX INCREASE"; and
(C) may be mailed with the notice required by Section 59-2-1317;
(iii) shall contain for each property described in Subsection (3)(c)(i):
(A) the value of the property for the current calendar year;
(B) the tax on the property for the current calendar year; and
(C) subject to Subsection (3)(d), for the calendar year for which the calendar year taxing entity seeks to levy a tax rate that exceeds the calendar year taxing entity's certified tax rate, the estimated tax on the property;
(iv) shall contain the following statement:
"[Insert name of taxing entity] is proposing a tax increase for [insert applicable calendar year]. This notice contains estimates of the tax on your property and the proposed tax increase on your property as a result of this tax increase. These estimates are calculated on the basis of [insert previous applicable calendar year] data. The actual tax on your property and proposed tax increase on your property may vary from this estimate.";
(v) shall state the dollar amount of additional ad valorem tax revenue that would be generated each year by the proposed increase in the certified tax rate;
(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) shall state the date, time, and place of the public hearing described in Subsection (3)(a)(v);
(viii) shall state the internet address for the taxing entity's public website;
(ix) may contain other information approved by the commission; and
(x) if sent in calendar year 2024, 2025, or 2026, shall contain:
(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 Subsection 17-71-302(1)(m).
(d) For purposes of Subsection (3)(c)(iii)(C), a calendar year taxing entity shall calculate the estimated tax on property on the basis of:
(i) data for the current calendar year; and
(ii) the amount of additional ad valorem tax revenue stated in accordance with this section.
(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, before the fiscal year taxing entity conducts the public meeting at which the fiscal year taxing entity's budget is adopted:
(a)
(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; and
(ii) the fiscal year taxing entity includes, on the agenda for the public meeting described in Subsection (4)(a)(i), a separate item notifying the public that an executive officer or budget officer of the taxing entity intends to state in the public meeting that the tentative budget includes a proposed tax rate increase;
(b)
(i) on or after May 1 but on or before June 13, the fiscal year taxing entity states at a public meeting:
(A) that the fiscal year taxing entity is considering levying a tax rate that exceeds the fiscal year taxing entity's certified tax rate;
(B) the approximate dollar amount of and purpose for additional ad valorem tax revenue that would be generated by the proposed tax rate increase described in Subsection (4)(b)(i)(A);
(C) the approximate percentage increase in ad valorem tax revenue for the fiscal year taxing entity based on the proposed tax rate increase described in Subsection (4)(b)(i)(A); and
(D) that if the fiscal year taxing entity proceeds with the proposed tax rate increase, the fiscal year taxing entity will provide notice of and conduct a public hearing, as required by Subsection (4)(c), at which members of the public will have an opportunity to provide comments on the proposed tax rate increase; 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);
(c) the fiscal year taxing entity conducts a public hearing in accordance with Subsections (8) and (9); and
(d) the fiscal year taxing entity provides notice for the public hearing described in Subsection (4)(c) by meeting the advertisement requirements of Subsections (6) and (7).
(5)
(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.
(b) A taxing entity is not required to meet the notice requirements of Subsection (3) or (4) if:
(i) Section 53F-8-301 allows the taxing entity to levy a tax rate that exceeds that certified tax rate without having to comply with the notice provisions of this section; or
(ii) the taxing entity:
(A) budgeted less than $20,000 in ad valorem tax revenue for the previous fiscal year; and
(B) sets a budget during the current fiscal year of less than $20,000 of ad valorem tax revenue.
(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.
(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:
(i) electronically in accordance with Section 45-1-101; and
(ii) as a class A notice under Section 63G-30-102.
(b) The advertisement described in Subsection (6)(a) shall:
(i) be published for at least 14 days before the day on which the taxing entity conducts the public hearing described in Subsection (3)(a)(v) or (4)(b); and
(ii) substantially be in the following form and content:
"NOTICE OF PROPOSED TAX INCREASE
(NAME OF TAXING ENTITY)
The (name of the taxing entity) is proposing to increase its property tax revenue.
The (name of the taxing entity) tax on a (insert the average value of a residence in the taxing entity rounded to the nearest thousand dollars) residence would increase from $______ to $________, which is $_______ per year.
The (name of the taxing entity) tax on a (insert the value of a business having the same value as the average value of a residence in the taxing entity) business would increase from $________ to $_______, which is $______ per year.
If the proposed budget is approved, (name of the taxing entity) would receive an additional $______ in property tax revenue per year as a result of the tax increase.
If the proposed budget is approved, (name of the taxing entity) would increase its property tax budgeted revenue by ___% above last year's property tax budgeted revenue excluding eligible new growth.
The (name of the taxing entity) invites all concerned citizens to a public hearing for the purpose of hearing comments regarding the proposed tax increase and to explain the reasons for the proposed tax increase. You have the option to participate in the public hearing in person or virtually.
PUBLIC HEARING
Date/Time: (date) (time)
Location: (name of meeting place and address of meeting place)
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). Instructions for virtual participation in the public hearing will be available at (internet address for the taxing entity's public website) no later than 24 hours before the public hearing is scheduled to begin."
(c)
(i) This Subsection (6)(c) applies to a fiscal year taxing entity that:
(A) is a municipality classified by population as a town under Section 10-2-301; and
(B) does not have a public website as of May 1 of the calendar year in which the taxing entity proposes a tax rate increase.
(ii) Notwithstanding the other provisions of this section:
(A) if a provision of this section requires a fiscal year taxing entity to state the internet address for the taxing entity's public website, a fiscal year taxing entity described in Subsection (6)(c)(i) shall instead state the physical address of the fiscal year taxing entity's town hall or principal place of business; and
(B) if a provision of this section requires a fiscal year taxing entity to post information on the taxing entity's public website within a specific time frame, a fiscal year taxing entity described in Subsection (6)(c)(i) shall instead post that information at the fiscal year taxing entity's town hall or principal place of business within that specific time frame.
(iii) A fiscal year taxing entity described in Subsection (6)(c)(i) shall provide to the commission evidence of compliance with the requirements of Subsection (6)(c)(ii), as required by the commission.
(7) The commission:
(a) shall adopt rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, governing the joint use of one advertisement described in Subsection (6) by two or more taxing entities; and
(b) subject to Section 45-1-101, may authorize a taxing entity's use of a commission-approved direct notice to each taxpayer if:
(i) the direct notice is different and separate from the notice required under Section 59-2-919.1; and
(ii) the taxing entity petitions the commission for the use of a commission-approved direct notice.
(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 Subsection (4)(b).
(ii) On or before October 1 of the current calendar year, a calendar year taxing entity shall notify the commission and the county auditor of the date, time, and place of the public hearing described in Subsection (3)(a)(v).
(b)
(i) A public hearing described in Subsection (3)(a)(v) or (4)(b) shall be:
(A) open to the public;
(B) held at a meeting of the taxing entity with no items on the agenda other than discussion and action on the taxing entity's intent to levy a tax rate that exceeds the taxing entity's certified tax rate, the taxing entity's budget, a special district's or special service district's fee implementation or increase, or a combination of these items; and
(C) available for individuals to participate either in person or virtually, subject to Subsection (8)(g).
(ii) The governing body of a taxing entity conducting a public hearing described in Subsection (3)(a)(v) or (4)(b) shall:
(A) state the dollar amount of additional ad valorem tax revenue that would be generated each year by the proposed increase in the certified tax rate;
(B) explain the reasons for the proposed tax increase, including the taxing entity's intended use of additional ad valorem tax revenue described in Subsection (8)(b)(ii)(A);
(C) if the county auditor compiles the list required by Section 59-2-919.2, make the list available from the main page of the taxing entity's public website for a period that begins at least 14 days before the date on which the public hearing is held and ends on or after the date on which the commission certifies the taxing entity's certified tax rate; and
(D) provide an interested party desiring to be heard an opportunity to present oral testimony within reasonable time limits and without unreasonable restriction on the number of individuals allowed to make public comment.
(c)
(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.
(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.
(d) The county auditor shall resolve any conflict in public hearing dates and times after consultation with each affected taxing entity.
(e) 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)
(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:
(A) a public meeting for the purpose of addressing general business of the taxing entity; or
(B) another public hearing of the taxing entity.
(ii) A taxing entity may hold the following hearings on the same date as a public hearing described in Subsection (3)(a)(v) or (4)(b):
(A) a budget hearing;
(B) if the taxing entity is a special district or a special service district, a fee hearing described in Section 17B-1-643;
(C) if the taxing entity is a town, an enterprise fund hearing described in Section 10-5-107.5; or
(D) if the taxing entity is a city, an enterprise fund hearing described in Section 10-6-135.5.
(g) For purposes of facilitating virtual participation in a public hearing described in Subsection (3)(a)(v) or (4)(b), at least 24 hours before the public hearing is scheduled to begin, a taxing entity shall:
(i) post instructions on the taxing entity's public website as to how individuals can connect to and participate virtually in the public hearing; and
(ii) ensure that individuals participating in the public hearing virtually have the ability to:
(A) access the public hearing electronically through video and audio connection;
(B) provide oral testimony through video, audio, or both video and audio connection; and
(C) submit written comments electronically for inclusion in the public record, both before and during the public hearing.
(h) The county in which a taxing entity is located shall, at the request of the taxing entity, provide assistance to the taxing entity to meet the requirements of Subsection (8)(g).
(9)
(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:
(i) announce at that public hearing the scheduled time and place of the next public meeting at which the taxing entity will consider budgeting the additional ad valorem tax revenue; and
(ii) if the taxing entity is a fiscal year taxing entity, hold the public meeting described in Subsection (9)(a)(i) before September 1.
(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).
(c) A public hearing on levying a tax rate that exceeds a fiscal year taxing entity's certified tax rate may coincide with a public hearing on the fiscal year taxing entity's proposed annual budget.
(10)
(a) A county auditor may conduct an audit to verify a taxing entity's compliance with this section.
(b) If the county auditor, after completing an audit, finds that a taxing entity has failed to meet the requirements of this section, the county auditor shall prepare and submit a report of the auditor's findings to the commission.
(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.
(12)
(a) Subject to Subsection (12)(b), a taxing entity subject to this section shall provide to the commission all evidence of compliance with the requirements of this section within seven days from the date on which the taxing entity adopts a final budget.
(b) A taxing entity shall furnish to the commission any information the commission requires to certify the taxing entity's compliance with the requirements of this section.
(c) The commission may not certify a tax rate that exceeds a taxing entity's certified tax rate if, within 30 days from the date on which the taxing entity provides to the commission evidence of compliance under Subsection (12)(a), the commission determines that the taxing entity has failed to meet the requirements of this section.
(13) Notwithstanding Subsection (12)(c), if the commission determines that a fiscal year taxing entity proposing a tax rate increase for the fiscal year beginning on July 1, 2026, has failed to meet the requirements of Subsection (4)(a) or (b):
(a) Subsection (12)(c) does not apply, unless the commission determines that the taxing entity has failed to meet a requirement in this section other than the requirements of Subsection (4)(a) or (b); and
(b) the commission shall provide notice to the taxing entity:
(i) notifying the taxing entity of the taxing entity's failure to meet the requirements of Subsection (4)(a) or (b); and
(ii) explaining to the taxing entity that failure to meet the requirements of Subsection (4)(a) or (b) for a subsequent fiscal year will result in the commission not certifying the taxing entity's proposed tax rate increase.