Senate OKs school tax-equalization measure

A bill essentially requiring a property tax hike in Salt Lake County school districts to help pay for buildings in the new west-side Jordan District passed the Senate 19-9 Wednesday and was sent to the House for debate.

Meanwhile, another bill to set up a district split building fund with mining severance tax money had a rough go in committee.

SB48, which the Senate approved Wednesday, was substituted a third time to clarify that the $28.7 million it seeks to double state aid for school buildings in 25 districts indeed requires school districts to reduce property taxes by the amount they receive. But those districts can take tax rates right back up if they have a special hearing first. It also clarifies that school districts paying off debt don't necessarily have to hold a hearing if they want to keep their tax rates as is.

There was no change to the controversial provision requiring Salt Lake County school districts — Granite, Murray, Jordan east, Jordan west and Salt Lake City — to pool part of their property tax revenues to send $12 million to the growing Jordan west, which lost more than half its tax base when the east side seceded last November. Those contributing school districts — Salt Lake District could lose $6 million — likely would have to raise property taxes to recoup the loss.

Supporters say building equalization for tax-poor districts is an issue long overdue, brought to the fore by the Jordan District split. Sen. Carlene Walker, who carried the law paving the way for the split last session, said she someday would like to see statewide property tax equalization.

"I think it's the fair thing to do," said Walker, R-Cottonwood Heights, adding the east district would lose money in the proposal.

Meanwhile, Sen. Mike Waddoups proposes a separate idea supported by at least some west-side cities. SB219 would set up a building help fund for newly split school districts by redirecting $6.7 million in annual severance-tax revenues into a School District Division Capital Equalization Fund. Kennecott, which happens to be in the new Jordan west school district that needs all the help, would be the biggest contributor, sponsoring Sen. Michael Waddoups, R-Taylorsville, said.

"The fact is, the west side of the Jordan District are kind of victims as a result of the (district split) election and how this issue has proceeded," said Lynn Crane, mayor of Herriman, whose lawsuit contesting the November election in which the west side was not allowed to participate is pending in U.S. District Court. "There (has to) be an amount of fairness ... This is one (bill) that seems to me to make very good sense for the children of the west side."