2nd Sub.
S.B.
72
PRISON RELOCATION AND DEVELOPMENT AMENDMENTS
Senate Floor
Amendments
Amendment 6 March 4, 2013 9:47 AM
Senator Mark B. Madsen
proposes the following amendments:
1. Page
1, Line 24 through Page 2, Line 27
:
24
development project;
and
25
{
. provides for a property tax increment to be paid to the authority to be applied to
26
specified costs;
27
. modifies the distribution of some local option sales tax revenues; and
}
2. Page
2, Line 36
:
36
{
59-12-205, as last amended by Laws of Utah 2012, Chapter 9
}
3. Page
2, Line 49
:
49
{
63H-7-205, Utah Code Annotated 1953
}
4. Page
3, Lines 63 through 64
:
63
{
63H-7-505, Utah Code Annotated 1953
64
63H-7-506, Utah Code Annotated 1953
}
5. Page
3, Line 77 through Page 7, Line 187
:
77
{
Section 1.
Section
59-12-205
is amended to read:
78
59-12-205. Ordinances to conform with statutory amendments -- Distribution of
79
tax revenues -- Determination of population.
80
(1) A county, city, or town, in order to maintain in effect sales and use tax ordinances
81
adopted pursuant to Section
59-12-204
, shall, within 30 days of an amendment to an applicable
82
provision of Part 1, Tax Collection, adopt amendments to the county's, city's, or town's sales
83
and use tax ordinances as required to conform to the amendments to Part 1, Tax Collection.
84
(2) Except as provided in Subsections (3) through (5) and subject to Subsection (6):
85
(a) 50% of each dollar collected from the sales and use tax authorized by this part shall
86
be distributed to each county, city, and town on the basis of the percentage that the population
87
of the county, city, or town bears to the total population of all counties, cities, and towns in the
88
state; and
89
(b) (i) except as provided in [Subsection] Subsections (2)(b)(ii) and (iii), 50% of each
90
dollar collected from the sales and use tax authorized by this part shall be distributed to each
91
county, city, and town on the basis of the location of the transaction as determined under
92
Sections
59-12-211
through
59-12-215
; [and]
93
(ii) 50% of each dollar collected from the sales and use tax authorized by this part
94
within a project area described in a project area plan adopted by the military installation
95
development authority under Title 63H, Chapter 1, Military Installation Development
96
Authority Act, shall be distributed to the military installation development authority created in
97
Section
63H-1-201
[.]; and
98
(iii) beginning the first day of the calendar quarter that is at least 90 days after the
99
Prison Land Management Authority, created in Section
63H-7-201
, gives notice to the tax
100
commission of the Authority's intent to receive sales and use tax revenue under this Subsection
101
(2)(b)(iii), 50% of each dollar collected from the sales and use tax authorized by this part on
102
former prison land, as defined in Section S. [
63H-67-102] 63H-7-102 .S
, shall be distributed to
102a
the Prison Land
103
Management Authority.
104
(3) (a) Beginning on July 1, 2011, and ending on June 30, 2016, the commission shall
105
each year distribute to a county, city, or town the distribution required by this Subsection (3) if:
106
(i) the county, city, or town is a:
107
(A) county of the third, fourth, fifth, or sixth class;
108
(B) city of the fifth class; or
109
(C) town;
110
(ii) the county, city, or town received a distribution under this section for the calendar
111
year beginning on January 1, 2008, that was less than the distribution under this section that the
112
1county, city, or town received for the calendar year beginning on January 1, 2007;
113
(iii) (A) for a county described in Subsection (3)(a)(i)(A), the county had located
114
within the unincorporated area of the county for one or more days during the calendar year
115
beginning on January 1, 2008, an establishment described in NAICS Industry Group 2121,
116
Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the 2002 North
117
American Industry Classification System of the federal Executive Office of the President,
118
Office of Management and Budget; or
119
(B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
120
(3)(a)(i)(C), the city or town had located within the city or town for one or more days during
121
the calendar year beginning on January 1, 2008, an establishment described in NAICS Industry
122
Group 2121, Coal Mining, or NAICS Code 213113, Support Activities for Coal Mining, of the
123
2002 North American Industry Classification System of the federal Executive Office of the
124
President, Office of Management and Budget; and
125
(iv) (A) for a county described in Subsection (3)(a)(i)(A), at least one establishment
126
described in Subsection (3)(a)(iii)(A) located within the unincorporated area of the county for
127
one more days during the calendar year beginning on January 1, 2008, was not the holder of a
128
direct payment permit under Section
59-12-107.1
; or
129
(B) for a city described in Subsection (3)(a)(i)(B) or a town described in Subsection
130
(3)(a)(i)(C), at least one establishment described in Subsection (3)(a)(iii)(B) located within a
131
city or town for one or more days during the calendar year beginning on January 1, 2008, was
132
not the holder of a direct payment permit under Section
59-12-107.1
.
133
(b) The commission shall make the distribution required by this Subsection (3) to a
134
county, city, or town described in Subsection (3)(a):
135
(i) from the distribution required by Subsection (2)(a); and
136
(ii) before making any other distribution required by this section.
137
(c) (i) For purposes of this Subsection (3), the distribution is the amount calculated by
138
multiplying the fraction calculated under Subsection (3)(c)(ii) by $333,583.
139
(ii) For purposes of Subsection (3)(c)(i):
140
(A) the numerator of the fraction is the difference calculated by subtracting the
141
distribution a county, city, or town described in Subsection (3)(a) received under this section
142
for the calendar year beginning on January 1, 2008, from the distribution under this section that
143
the county, city, or town received for the calendar year beginning on January 1, 2007; and
144
(B) the denominator of the fraction is $333,583.
145
(d) A distribution required by this Subsection (3) is in addition to any other distribution
146
required by this section.
147
(4) (a) For fiscal years beginning with fiscal year 1983-84 and ending with fiscal year
148
2005-06, a county, city, or town may not receive a tax revenue distribution less than .75% of
149
the taxable sales within the boundaries of the county, city, or town.
150
(b) The commission shall proportionally reduce monthly distributions to any county,
151
city, or town that, but for the reduction, would receive a distribution in excess of 1% of the
152
sales and use tax revenue collected within the boundaries of the county, city, or town.
153
(5) (a) As used in this Subsection (5):
154
(i) "Eligible county, city, or town" means a county, city, or town that receives $2,000 or
155
more in tax revenue distributions in accordance with Subsection (4) for each of the following
156
fiscal years:
157
(A) fiscal year 2002-03;
158
(B) fiscal year 2003-04; and
159
(C) fiscal year 2004-05.
160
(ii) "Minimum tax revenue distribution" means the greater of:
161
(A) the total amount of tax revenue distributions an eligible county, city, or town
162
receives from a tax imposed in accordance with this part for fiscal year 2000-01; or
163
(B) the total amount of tax revenue distributions an eligible county, city, or town
164
receives from a tax imposed in accordance with this part for fiscal year 2004-05.
165
(b) (i) Except as provided in Subsection (5)(b)(ii), beginning with fiscal year 2006-07
166
and ending with fiscal year 2012-13, an eligible county, city, or town shall receive a tax
167
revenue distribution for a tax imposed in accordance with this part equal to the greater of:
168
(A) the payment required by Subsection (2); or
169
(B) the minimum tax revenue distribution.
170
(ii) If the tax revenue distribution required by Subsection (5)(b)(i) for an eligible
171
county, city, or town is equal to the amount described in Subsection (5)(b)(i)(A) for three
172
consecutive fiscal years, for fiscal years beginning with the fiscal year immediately following
173
that three consecutive fiscal year period, the eligible county, city, or town shall receive the tax
174
revenue distribution equal to the payment required by Subsection (2).
175
(c) For a fiscal year beginning with fiscal year 2013-14 and ending with fiscal year
176
2015-16, an eligible county, city, or town shall receive the minimum tax revenue distribution
177
for that fiscal year if for fiscal year 2012-13 the payment required by Subsection (2) to that
178
eligible county, city, or town is less than or equal to the product of:
179
(i) the minimum tax revenue distribution; and
180
(ii) .90.
181
(6) (a) Population figures for purposes of this section shall be based on the most recent
182
official census or census estimate of the United States Census Bureau.
183
(b) If a needed population estimate is not available from the United States Census
184
Bureau, population figures shall be derived from the estimate from the Utah Population
185
Estimates Committee created by executive order of the governor.
186
(c) The population of a county for purposes of this section shall be determined only
187
from the unincorporated area of the county.
}
6. Page
7, Lines 198 through 201
:
198
{
(2) "Base taxable value" means, for former prison land that is exempt from property tax
199
at the time the authority accepts a proposal for a former prison land development project, as
200
provided in this chapter, a taxable value of zero.
}
201
{
(3)
}
(2)
"Board" means the authority's governing body established under Section
7. Page
7, Line 203
:
203
{
(4)
}
(3)
"Conceptual plan" means a plan that provides the conceptual framework for the
8. Page
7, Line 205
:
205
{
(5)
}
(4)
"Division" means the Division of Facilities Construction and Management created
9. Page
7, Line 207
:
207
{
(6)
}
(5)
"Former prison" means the state prison operating as of February 1, 2013 in Salt
10. Page
7, Line 209
:
209
{
(7)
}
(6)
"Former prison land" means all the land owned or controlled by the state on which
11. Page
8, Line 213
:
213
{
(8)
}
(7)
"Former prison land development project" means a project to develop the former
12. Page
8, Lines 217 through 219
:
217
{
(9)
}
(8)
"Host city" means the city in which the former prison land is located.
218
{
(10)
}
(9)
"Host county" means the county in which the former prison land is located.
219
{
(11)
}
(10)
"Master development project" means a former prison land development project
13. Page
8, Lines 221 through 222
:
221
{
(12)
}
(11)
"New prison" means a prison to be built to replace the former prison.
222
{
(13)
}
(12)
"New prison development project":
14. Page
8, Lines 226 through 227
:
226
{
(14)
}
(13)
"New prison land" means land on which a new prison is or is projected to be built.
227
{
(15)
}
(14)
"Prison programming" means a policy, plan, or program that, if implemented by
15. Page
8, Lines 230 through 237
:
230
{
(16) "Property tax" includes privilege tax and each levy on an ad valorem basis on
231
tangible or intangible personal or real property.
232
(17) "Public entity" means:
233
(a) the state, including any department, division, agency, or other instrumentality of the
234
state; or
235
(b) a political subdivision of the state, including a county, city, town, school district,
236
local district, special service district, or interlocal entity.
}
237
{
(18)
}
(15)
"Publicly owned infrastructure and improvements" means water, sewer, storm
16. Page
9, Line 246
:
246
{
(19)
}
(16)
"State ownership" means ownership by the state or any department, division, or
17. Page
9, Lines 248 through 255
:
248
{
(20) "Taxable value" means the value of property as shown on the last equalized
249
assessment roll as certified by the county assessor.
250
(21) "Tax increment" means the difference between:
251
(a) the amount of property tax revenues generated each tax year by all taxing entities
252
from the former prison land, using the current assessed value of the property; and
253
(b) the amount of property tax revenues that would be generated from that same land,
254
using the base taxable value of the property.
255
(22) "Taxing entity" means a public entity that levies a tax on former prison land.
} 18. Page
10, Lines 280 through 281
:
280
{
(f) receive tax increment and other taxes and fees as provided in this chapter;
}
281
{
(g)
}
(f)
accept financial or other assistance from any public or private source for the
19. Page
10, Line 284
:
284
{
(h)
}
(g)
borrow money on a short-term basis, contract with, or accept financial or other
20. Page
10, Lines 287 through 290
:
287
{
(i)
}
(h)
hire employees, including:
288
{
(A)
}
(i)
contract employees; and
289
{
(B)
}
(ii)
a chief administrative officer;
290
{
(j)
}
(i)
transact other business and exercise all other powers provided for in this chapter;
21. Page
10, Line 292
:
292
{
(k)
}
(j)
exercise powers and perform functions that the authority is authorized by statute to
22. Page
11, Line 315
:
315
(1) The authority may use
{
tax increment and other
}
funds available to the authority:
23. Page
11, Lines 319 through 320
:
319
(c) to pay for all or part of the development of the former prison land
{
from which the
320
tax increment funds or other funds were collected
}
, including assisting the ongoing operation of
24. Page
11, Lines 323 through 324
:
323
infrastructure and improvements on the former prison land
{
from which the tax increment funds
324
were collected
}
;
25. Page
11, Line 335 through Page 12, Line 337
:
335
{
(3) For purposes of Subsection (1), the authority may use tax revenues received under
336
Subsection
59-12-205
(2)(b)(iii).
}
337
{
(4)
}
(3)
The determination of the authority board under Subsection (1)(e) regarding benefit
26. Page
12, Lines 339 through 360
:
339
{
(5)
}
(4)
The authority may give to another state or local government entity any of the funds
340
it receives, if the funds are used for a purpose listed in
{
Subsections
}
Subsection
(1)
{
through
(4)
}
or (2)
.
341
{
Section 7.
Section
63H-7-204
is enacted to read:
342
63H-7-204. Authority receipt and use of tax increment -- Distribution of tax
343
increment.
344
(1) (a) The authority may:
345
(i) subject to Subsection (1)(b), receive up to 50% of tax increment for up to 25 years,
346
as provided in this part; and
347
(ii) use tax increment during and after the period described in Subsection (1)(a)(i).
348
(b) With respect to a parcel located on former prison land, the 25-year period described
349
in Subsection (1)(a)(i) begins on the day on which the authority receives the first tax increment
350
from that parcel.
351
(2) Improvements on a parcel on former prison land become subject to property tax on
352
January 1 immediately following the day on which the authority issues a certificate of
353
occupancy with respect to those improvements.
354
(3) A county that collects property tax on former prison land shall pay and distribute to
355
the authority the tax increment that the authority is entitled to collect under this title, in the
356
manner and at the time provided in Section
59-2-1365
.
357
(4) The board shall determine by resolution when the entire former prison land or an
358
individual parcel on former prison land is subject to tax increment.
}
359
Section 8.
Section
63H-7-
{
(i)
}
(h)
financing provided by the developer; and
599
{
(j)
}
(i)
any other source of funds that the offeror proposes to be made available in order to
31. Page
21, Line 640 through Page 22, Line 646
:
640
(6)
{
(a)
}
Within 30 days after adopting an annual budget, the authority board shall file a
641
copy of the annual budget with the auditor of the
host
county
{
in which the authority is located
}
,
the
642
State Tax Commission,
and
the state auditor
{
, the State Board of Education, and each taxing entity
643
that levies a tax on property from which the authority collects tax increment
}
.
644
{
(b) The requirement of Subsection (6)(a) to file a copy of the annual budget with the
645
state as a taxing entity is met if the authority files a copy with the State Tax Commission and
646
the state auditor.
}
32. Page
22, Lines 655 through 669
:
655
{
Section 20.
Section
63H-7-503
is enacted to read:
656
63H-7-503. Authority report.
657
(1) (a) On or before November 1 of each year, the authority shall prepare and file a
658
report with the county auditor, the State Tax Commission, the State Board of Education, and
659
each taxing entity that levies a tax on property from which the authority collects tax increment.
660
(b) The requirement of Subsection (1)(a) to file a copy of the report with the state as a
661
taxing entity is met if the authority files a copy with the State Tax Commission and the state
662
auditor.
663
(2) Each report under Subsection (1) shall contain:
664
(a) an estimate of the tax increment to be paid to the authority for the calendar year
665
ending December 31; and
666
(b) an estimate of the tax increment to be paid to the authority for the calendar year
667
beginning the next January 1.
}
668
Section 21.
Section
63H-7-
{
504
}
503
is enacted to read:
669
63H-7-
{
504
}
503
. Audit requirements.
33. Page
22, Line 673 through Page 23, Line 689
:
673
{
Section 22.
Section
63H-7-505
is enacted to read:
674
63H-7-505. Audit report.
675
(1) The authority shall, within 180 days after the end of the authority's fiscal year, file a
676
copy of the audit report with the county auditor, the State Tax Commission, the State Board of
677
Education, and each taxing entity that levies a tax on property from which the authority collects
678
tax increment.
679
(2) Each audit report under Subsection (1) shall include:
680
(a) the tax increment collected by the authority for each project area;
681
(b) the outstanding principal amount of bonds issued or other loans incurred to finance
682
the costs associated with the authority's project areas; and
683
(c) the actual amount expended for:
684
(i) acquisition of property;
685
(ii) site improvements or site preparation costs;
686
(iii) installation of public utilities or other public improvements; and
687
(iv) administrative costs of the authority.
}
688
Section 23.
Section
63H-7-
{
506
}
504
is enacted to read:
689
63H-7-
{
506
}
504
. Authority chief financial officer is a public treasurer -- Certain