§ 26-80-101 — Uniform rate of tax - Definitions

(a) There is established a uniform rate of ad valorem property tax of twenty-five (25) mills to be levied on the assessed value of all taxable real property, personal property, and utility property in the state to be used solely by school districts to which it may be distributed according to law for maintenance and operation of the schools. (b) (1) (A) The uniform rate of tax shall be assessed and collected in the same manner as other school property taxes, but the net revenues from the uniform rate of tax shall be remitted to the Treasurer of State and distributed by the state to the county treasurer of each county for distribution to the school districts in that county as provided by subsection (c) of this section. (B) No portion of the revenues from the uniform rate of tax shall be retained by the state but shall be distributed back to the school district from which the revenues were received or to other school districts pursuant to subsection (c) of this section. (C) No additional fees or charges shall be assessed at the local level for transmission and redistribution of these funds. (D) The revenues so distributed shall be used by the school districts solely for maintenance and operation of schools. (2) (A) The Treasurer of State shall establish procedures, forms, and documentation requirements for the certification of net revenues produced by the uniform rate of tax to be deposited with the Treasurer of State and redistributed as provided by law. (B) Further, the Treasurer of State shall establish procedures, forms, and documentation requirements for the actual deposit and redistribution of the net revenues produced by the uniform rate of tax. (3) Each county treasurer shall execute an electronic funds transfer agreement with the Treasurer of State to effectuate the contemporaneous transmittal of funds to the Treasurer of State and the redistribution as provided by law of the net revenues produced by the uniform rate of tax. (4) (A) (i) The Treasurer of State shall process the necessary documentation to certify the amount to be receipted and redistributed to each county treasurer no more than six (6) times each month, with no interim distributions. (ii) By January 31, 2012, and by January 31 of each year thereafter, each county treasurer shall provide an annual summary report of all proceeds generated from ad valorem tax and distributed by the county to a school district for the period beginning January 1 and ending on December 31 of the preceding calendar year to the: (a) Treasurer of State; (b) Division of Elementary and Secondary Education; and (c) Superintendent of the school district to which the proceeds from the uniform rate of tax are distributed by the county. (iii) Failure to report the annual summary required under subdivision (b)(4)(A)(ii) of this section by the county treasurer by the January 31 deadline shall result in the withholding of all reappraisal funding provided under § 26-26-1907 until the county treasurer complies with subdivision (b)(4)(A)(ii) of this section. (iv) Funds withheld under subdivision (b)(4)(A)(iii) of this section are forfeited as follows: (a) Twenty percent (20%) of withheld reappraisal funds are forfeited every two (2) months of noncompliance; and (b) After ten (10) months of noncompliance, the total amount of withheld reappraisal funds is forfeited. (v) A county is not relieved of the requirement to reappraise property, and funding for reappraisal shall be by local taxing unit sources until the county complies with this subdivision (b)(4)(A). (vi) The Division of Elementary and Secondary Education shall notify the Assessment Coordination Division if a county treasurer violates subdivision (b)(4)(A)(ii) of this section and withholding of reappraisal funding under this subdivision (b)(4)(A) is authorized. (B) Documentation received and certified on the first, second, third, or fourth Tuesday, or second or third Thursday of each month by the time deadlines established by the Treasurer of State shall be processed for execution of the electronic funds transfer of deposit and redistribution, as provided by law, of the net revenues produced by the uniform rate of tax on the following day. (C) When a banking holiday occurs, the Treasurer of State shall notify the county treasurers of the revised deadline, which shall minimize delay in the receipt and redistribution, as provided by law, of the net revenues of the uniform rate of tax. (5) Each county official involved in the process established by the Treasurer of State for receipt and redistribution of the net revenues of the uniform rate of tax shall take all actions and do all things necessary to ensure that the process established is carried out in an efficient and prudent manner. (6) (A) (i) It is the intent of the General Assembly to have the collection and distribution of tax revenues modified as little as possible by the process under this section. (ii) The General Assembly specifically acknowledges that under other law county treasurers distribute revenues monthly on a pro rata basis to the various taxing units with a reconciliation of actual revenues produced by each levy of each taxing unit in the county taking place only in the final settlement produced for each tax year. (B) The process under this section is not intended to affect the monthly distribution or final settlement process except for the process set out in subdivision (b)(4) of this section. (c) For each school year, each county treasurer shall remit the net revenues from the uniform rate of tax to each local school district from which the revenues were derived. (d) As used in this section: (1) "Millage rate" means the millage rate listed in the most recent tax ordinance approved by the county quorum court under the authority of § 14-14-904 for the tax year used in a calculation under this subchapter; (2) "Net revenues" means the revenues generated from ad valorem taxes collected on behalf of a school district multiplied by the ratio derived from dividing the uniform rate of tax by the total millage rate of the school district; and (3) "Revenues" means the proceeds generated from ad valorem taxes, including: (A) Current calendar year collections of ad valorem taxes; (B) (i) Delinquent ad valorem taxes paid to the county in the current calendar year. (ii) Delinquent ad valorem taxes include the penalties and interest that are distributable to a school district under existing law; (C) The actual amount of homestead tax credit paid to the county in the current calendar year; (D) Excess commissions that will be distributed to a school district in the current calendar year; (E) Interest earned in the current calendar year on any tax funds held in trust and distributed to a school district in the current calendar year; (F) Ad valorem tax proceeds from land redemptions received by the county in the current calendar year; and (G) A subtraction of all costs and commissions authorized by law relating to the collection of ad valorem taxes that the county deducts from distributions to a school district in the current calendar year.

Legislative History

Amended by Act 2019, No. 910,§ 2404, eff. 7/1/2019. Amended by Act 2019, No. 910,§ 2403, eff. 7/1/2019. Acts 1931, No. 169, § 130; Pope's Dig., § 11572; A.S.A. 1947, § 80-601; Acts 1997, No. 1300, § 6; 1999, No. 787, § 1; 2003 (2nd Ex. Sess.), No. 28, § 6; 2003 (2nd Ex. Sess.), No. 105, § 8; 2007, No. 343, § 1; 2009, No. 1397, § 6; 2011, No. 633, § 3.