53G-3-307. Tax to pay for indebtedness of divided school district.

418 words·~2 min read·/ut/title-53g/chapter-3/53g-3-307

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 3/17/2025

(1)As used in this section, "outstanding bonded indebtedness" means, except for a lease revenue bond or a general obligation bond described in Subsection 53G-3-302(5) , debt owed for a general obligation bond or lease revenue bond that the divided school district issues:

(a)before the creation of the new school district; or

(b)in accordance with a mutual agreement of the local school boards of the reorganized new school district and the new school district under Subsection

(4).

(2)If the creation date of a new school district occurs on or after May 10, 2011, property within the new school district and the reorganized new school district is subject to the levy of a tax to pay the divided school district's outstanding bonded indebtedness as provided in Subsection

(3).

(a)Except as provided in Subsection (3)(b) , the local school board of the new school district and the local school board of the reorganized new school district shall impose a tax levy at a rate that:

(i)generates from the combined districts the amount of revenue required each year to meet the outstanding bonded indebtedness of the divided school district; and

(ii)is based on the adjusted assessed value of the new school district and reorganized new school district as of the creation date, as the State Tax Commission determines.

(b)A local school board of a new school district may abate a property tax that Subsection (3)(a) requires the board to impose to the extent the new school district has money available to pay to the reorganized new school district the amount of revenue that the tax rate described in Subsection (3)(a) would generate within the new school district.

(a)The local school boards of the new school district and the reorganized new school district shall determine, by mutual agreement, the disposition of bonds the divided school district approved but did not issue before the creation of the new school district and reorganized new school district based primarily on the representation made to the voters at the time of the bond election.

(b)Before the local school boards make a determination under Subsection (4)(a) , a reorganized new school district may not issue the approved and unissued bonds described in Subsection (4)(a) if property in the new school district would be subject to the levy of a tax to pay the bonds.

Amended by Chapter 33 , 2025 General Session