Truth in Taxation

General Information

• Tax Rate Increase
• Truth in Taxation Process
• Tax Rate Increase Advertisement Requirements
• Judgment Levy Increase
• Judgment Levy Increase Advertisement Requirements

Tax Rate Increase

Statutes require that each year a certified tax rate be calculated. The certified tax rate is the rate which will provide the same amount of property tax revenue as was charged in the previous year, excluding the revenue generated by new growth. The Minimum School Program levy is exempt from the calculation of the certified tax rate.

If an entity determines that it needs greater revenues than what the certified tax rate will generate, statutes require that the entity must then go through a process referred to as Truth in Taxation. The Truth in Taxation statutes require an entity to go through a series of steps which include proper notification of the proposed tax increase to the tax payers and a public hearing.

Truth in Taxation Process

For calendar year entities three forms of notice are required. For fiscal year entities two forms of notice are required.

For calendar year entities only, the entity shall advertise the proposed revenue increase in December and give notice of when a public hearing to discuss the tax rate increase will be held. The meeting usually will be held in conjunction with the scheduled budget hearing. [Utah Code Ann 59-2-918]

Both calendar year end and fiscal year end entities shall contact the county auditor by June 22 and inform them of the pending tax rate increase. The county auditor will then place on the Notice of Valuation and Tax Change information showing date, time, and place of any public hearings where the proposed tax increases will be held. [Utah Code Ann 59-2-919 and Tax Commission Rule R884-24P-24]

Calendar year end and fiscal year end entities shall advertise the proposed revenue increase in July / August and hold a public meeting to discuss the tax rate increase before the final rate is adopted, guided by the following conditions: [Utah Code Ann 59-2-919]

Tax Rate Increase Advertisement Requirements

Click here to view sample advertisements

• The advertisement shall be placed in a newspaper or combination of newspapers of general circulation.
• The advertisement shall be no less than ¼ page in size.
• The type used shall be no less than 18 point.
• A ¼ inch border shall surround the advertisement.
• The advertisement may not be placed in that portion of the newspaper where legal notices and classified advertisements appear.
• It is the legislative intent, whenever possible, the advertisement should appear in a newspaper that is published at least one day per week.
• The newspaper or combination of newspapers selected shall be of general interest and readership in the taxing entity, and not of limited subject matter.
• The advertisement shall be run once each week for two weeks preceding the adoption of the final budget.
• The advertisement shall state that the taxing entity will meet on a certain day, time, and place fixed in the advertisement. The exact wording for the December advertisement may be found in Utah Code Ann. 59-2-918 and the exact wording for the July/August advertisement may be found in Utah Code Ann. 59-2-919.
• The scheduled hearing shall not be held less than seven days after the day the first advertisement is published.
• The scheduled hearing shall not be held less than ten days after the mailing of the "Notice of Property Valuation and Tax Change" by the county auditor.
• The scheduled meeting on the proposed increase may coincide with the hearing on the proposed budget.
• The scheduled meeting shall begin at or after 6 p.m.

Judgment Levy Increase

Each year the certified tax rate for the judgment levy is set to "0" consequently, a entity may not impose a judgment levy unless it first advertises its intention to do so and holds a public meeting. To be eligible for consideration the judgment must meet certain conditions as discussed in the criteria below. [Utah Code Ann 59-2-918.5 and Tax Commission Rule R884-24P-57]

For calendar year entities three forms of notice are required. For judgments issued June 1 through December 15, the first notification will be held in December. The content of the advertisement is specified in Utah Code Ann 59-2-918.5. The hearing for this advertisement may coincide with the scheduled budget hearing.

For judgments issued December 16 through May 31 the notification will be held in July/August. The content of the advertisement is specified in Utah Code Ann 59-2-918.5. The hearing for this advertisement may coincide with the scheduled budget hearing. If there are judgments that were issued June 1 through December 15 and December 16 through May 31, both will need to be combined in the July/August notification. [Tax Commission Rule R884-24P-57]

For fiscal year end entities judgments issued from June1 of the previous year through May 31 of the current year, the notification will be held in July/August.

Both calendar year end and fiscal year end entities shall contact the county auditor by June 22 and inform them of the pending judgment levy increases. The county auditor will then place on the Notice of Valuation and Tax Change information showing date, time, and place of any public hearings where the proposed judgment levy increase will be held. [Utah Code Ann 59-2-918.5 and Tax Commission Rule R884-24P-57]

Calendar year end and fiscal year end entities shall advertise the proposed judgment levy increase in July or August and hold a public meeting to discuss the judgment levy increase before the final rate is adopted, guided by the following conditions: [Utah Code Ann 59-2-918.5]

Judgment Levy Increase Advertisement Requirements

Click here to view sample advertisements

• For a judgment to be eligible, the judgment shall be a final and unappealable judgment or order that was issued no more than 14 months prior to the day on which the "Notice of Valuation and Tax Change" is to be mailed (July 22).
• The entity's share of the judgment or order shall be greater than or equal to the lesser of $1,000 or 1% of the total ad valorem property taxes collected by the entity in the previous fiscal year. This test applies to each judgment individually not as an aggregate. The advertisement however, can be an aggregate of several judgments.
• Advertisements for judgment levies shall be at least 1/8 of a page in size.
• The type used shall be no less than 18 point
• The advertisement may not be placed in that portion of the newspaper where legal notices and classified advertisements appear.
• The advertisement shall be run once each week for two weeks preceding the adoption of the final budget
• The advertisement shall state that the taxing entity will meet on a certain day, time, and place fixed in the advertisement.
• The advertisement shall set forth the total judgment amounts and the tax impact on an average residential and business property located within the taxing entity.
• The scheduled hearing shall not be held less than seven days after the day the first advertisement is published.
• The scheduled hearing shall not be held less than ten days after the mailing of the "Notice of Property Valuation and Tax Change" by the county auditor.
• The scheduled meeting on the proposed increase may coincide with the hearing on the proposed budget.
• The scheduled meeting shall begin at or after 6 p.m.

All entities imposing a judgment levy shall file a signed statement to the Tax Commission before final tax rates are approved. The signed statement shall contain the following information for each judgment included in the judgment levy: [Tax Commission Rule R884-24P-57 (F)]

• The name of the taxpayer awarded the judgment.
• The appeal number of the judgment.
• The taxing entity's pro rata share of the judgment.