Section 301 – Minimum basic tax rate for a fiscal year that begins after July 1, 2022.

Affected by 63I-2-253 on 7/1/2023

Effective 5/5/2021
53F-2-301. Minimum basic tax rate for a fiscal year that begins after July 1, 2022.

• (1) The provisions of this section are not in effect for a fiscal year that begins on July 1, 2018, 2019, 2020, 2021, or 2022.

• (2) 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) “Equity pupil tax rate” means the tax rate that will generate an amount of revenue equal to the amount generated by the equity pupil tax rate as defined in Section 53F-2-301.5 in the fiscal year that begins July 1, 2022.
  • (e) “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 the previous fiscal year;
      • (B) the amount generated by the basic levy increment rate;
      • (C) the amount generated by the equity pupil tax rate; and
      • (D) 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 (3)(a).
  • (f) “Minimum basic tax rate” means a tax rate certified by the commission that will generate an amount of revenue equal to the minimum basic local amount described in Subsection (3)(a).
  • (g) “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.
  • (h) “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 (4)(a).
  • (i) “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.
  • (j) “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 (4)(a).

• (3)
  • (a) The minimum basic local amount for the fiscal year that begins on July 1, 2018, is $408,073,800 in revenue statewide.
  • (b) The preliminary estimate of the minimum basic tax rate for a fiscal year that begins on July 1, 2018, is .001498.

• (4)
  • (a) The WPU value amount for the fiscal year that begins on July 1, 2018, is $18,650,000 in revenue statewide.
  • (b) The preliminary estimate of the WPU value rate for the fiscal year that begins on July 1, 2018, is .000069.

• (5)
  • (a) On or before June 22, the commission shall 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 (3)(b) and the estimate of the WPU value rate provided in Subsection (4)(b) are based on a forecast for property values for the next calendar year.
  • (c) The certified minimum basic tax rate described in Subsection (5)(a)(i) and the certified WPU value rate described in Subsection (5)(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.

• (6)
  • (a) To qualify for receipt of the state contribution toward the basic school program and as a school district’s contribution toward the cost of the basic school program for the school district, each local school board shall impose the combined basic rate.
  • (b)
    • (i) The state is not subject to the notice requirements of Section 59-2-926 before imposing the tax rates described in this Subsection (6).
    • (ii)
      • (A) Except as provided in Subsection (6)(b)(ii)(B), 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 (6).
      • (B) For a calendar year that begins on January 1, 2018, the state is not subject to the notice and public hearing requirements of Section 59-2-926 if the state authorizes a combined basic rate that exceeds the tax rates authorized in this section.

• (7)
  • (a) The state shall contribute to each school district toward 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;
    • (ii) the basic levy increment rate; and
    • (iii) the equity pupil tax rate.
  • (b)
    • (i) If the difference described in Subsection (7)(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 (7)(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.

• (8) 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;
  • (b) by the equity pupil tax rate into the Local Levy Growth Account created in Section 53F-9-305; and
  • (c) by the WPU value rate into the Teacher and Student Success Account created in Section 53F-9-306.

• (9) After July 1, 2021, but before November 30, 2022, the Public Education Appropriations Subcommittee:
  • (a) shall review the WPU value rate, the impact of revenues generated by the WPU value rate on public education funding, and whether local school boards should continue to levy the WPU value rate; and
  • (b) may recommend an increase, repeal, or continuance of the WPU value rate.

Amended by Chapter 319, 2021 General Session