Section 112.4 – Property taxes levied for specified services — Special revenue fund — Limitations on expenditures.

• (1) A town may account separately for the revenues derived from a property tax, that is lawfully levied for a specific purpose, in accordance with this section.

• (2) To levy a property tax under this section, the legislative body of the town that levies the property tax shall indicate through ordinance:
  • (a) that the town levies the tax under this section; and
  • (b) the specific service for which the town levies the tax.

• (3) A property tax levied under this section is subject to the maximum rate a town may levy for property taxes under Section 10-5-112.

• (4)
  • (a) A town that collects a property tax under this section shall:
    • (i) create a special revenue fund to hold the revenues collected under this section; and
    • (ii) deposit revenues collected from that tax into the special revenue fund described in Subsection (4)(a)(i).
  • (b) A town may only expend revenues from a special revenue fund described in Subsection (4)(a) for a purpose that is solely related to the provision of the service described in Subsection (2)(b) for which the town created the special revenue fund.

• (5) Except as provided in Subsections (2) and (4), a town that levies a property tax under this section shall:
  • (a) levy and collect the tax in accordance with Title 59, Chapter 2, Property Tax Act;
  • (b) account for revenues derived from the tax in accordance with this chapter; and
  • (c) levy and collect and account for revenues derived from the tax in the same general manner as for the town’s other property taxes.

Enacted by Chapter 301, 2019 General Session