Issue: Because school boundaries are not always consistent with municipal boundaries, annexations sometimes involve areas served by a district other than the district serving the annexing city. An affected school district may lose tax base when an annexation is made by a city that has its own school district. The city may or may not want the responsibility of educating children in the annexed area.
Action: The House State and Local Affairs Committee passed out favorably HB108, which would allow the city school district the option of deciding whether it would incorporate the annexed area into its boundaries. If not, the property taxes would continue to go to the district with the responsibility for educating the children. The city would collect the sales taxes generated within its new city boundary.Pros and cons: The bill would resolve a historically sticky issue, primarily in Salt Lake County, where two city districts and two county districts can be affected by annexations. The county districts, however, think they should have input into decisions that affect their boundaries, not just the city district that stands to gain tax base.