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SALT LAKE CITY — Some school districts may be required to contribute more than $500,000 in additional property tax revenues to support capital funding for schools.
The Senate on Tuesday passed HB119, which lawmakers say corrects a "drafting error" in current statute that determines how school districts contribute funds to the statewide school capital fund. As charter schools don't have taxing authority, they don't contribute.
The current statute allows districts to pay the lesser of two options: Paying one-fourth of per-pupil local revenues, or paying one-fourth of charter schools students' average local revenues. This creates inequity among districts, putting a higher tax burden on rural districts with fewer financial resources, according to floor sponsor Sen. Howard Stephenson, R-Draper.
HB119 would equalize the tax burden by requiring all districts to pay 25 percent of per-pupil local revenues, which would cause some districts with greater financial resources to contribute additional funds.
If the bill is signed by the governor, seven districts would have to divert more than $100,000 to the capital fund. The Canyons and Salt Lake City school districts would have to contribute more than $500,000 in additional funds.
Stephenson said the bill does not enact a property tax increase on taxpayers, though some school districts could choose to raise their tax rate in light of the change.
"I don't consider it a tax increase. I consider it an equity issue," Stephenson said.
The bill passed in a 21-7 vote and awaits the governor's signature.
