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House adopts 5% rule for city-initiated school-district splits; floor amendments fail
Utah House of Representatives · February 27, 2014
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Summary
Lawmakers passed First Substitute HB84 to apply the long-standing 5% revenue/cost rule to school-district splits initiated by cities or interlocal agreements; proposed amendments to exempt newly incorporated cities and to raise the 5% threshold to 10% were rejected.
Representative Katy Hall presented first substitute House Bill 84 to extend Utah's existing 5% feasibility rule—used to prevent a new city from "cherry‑picking" tax base—to school districts split by interlocal agreements. Hall said the 5% test requires a feasibility study showing that projected five‑year average…
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