17B-1-511 - Continuation of tax levy after withdrawal to pay for proportionate share of district bonds. - Utah Statutes

17B-1-511. Continuation of tax levy after withdrawal to pay for proportionateshare of district bonds.
(1) Other than as provided in Subsection (2), and unless an escrow trust fund isestablished and funded pursuant to Subsection 17B-1-510(5)(j), property within the withdrawnarea shall continue after withdrawal to be subject to a tax by the local district:
(a) for the purpose of paying the withdrawn area's just proportion of the local district'sgeneral obligation bonds, other than those bonds treated as revenue bonds under Subsection17B-1-510(5)(i), until the bonded indebtedness has been satisfied; and
(b) to the extent and for the years necessary to generate sufficient revenue that, whencombined with the revenues from the district remaining after withdrawal, is sufficient to providefor the payment of principal and interest on the district's general obligation bonds that are treatedas revenue bonds under Subsection 17B-1-510(5)(i).
(2) For a local district funded predominately by revenues other than property taxes,service charges, or assessments based upon an allotment of acre-feet of water, taxes within thewithdrawn area shall continue to be collected for purposes of paying the withdrawn area'sproportionate share of bonded indebtedness or judgments against the local district incurred priorto the date the petition was filed.
(3) Except as provided in Subsections (1) and (2), upon withdrawal, the withdrawingarea is relieved of all other taxes, assessments, and charges levied by the district, including taxesand charges for the payment of revenue bonds and maintenance and operation cost of the localdistrict.

Renumbered and Amended by Chapter 329, 2007 General Session