S.B. 70 Enrolled

REDEVELOPMENT AGENCY TAX
INCREMENT FROM SCHOOL DISTRICTS
2001 GENERAL SESSION
STATE OF UTAH
Sponsor: Howard A. Stephenson
Michael G. Waddoups

This act modifies Special Districts provisions relating to redevelopment agencies to require
school district representatives on the taxing agency committee to report their votes in
support of tax increment. This act requires county assessors to report on the value of
property within a project area to the taxing agency committee. This act also provides an
effective date and contains a coordination clause.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
17A-2-1247.5, as last amended by Chapters 178, 348 and 349, Laws of Utah 2000
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 17A-2-1247.5 is amended to read:
17A-2-1247.5. Tax increment financing -- Project area budget approval -- Payment
of additional tax increment.
(1) This section applies to projects for which a preliminary plan has been adopted on or
after July 1, 1993.
(2) (a) (i) A taxing agency committee shall be created for each redevelopment, education
housing development, or economic development project. The committee membership shall be
selected as follows:
(A) unless a school district board votes not to appoint representatives under Subsection
(2)(a)(ii)(A), two representatives appointed by the school district in the project area;
(B) two representatives appointed by resolution of the county commission or county
council for the county in which the project area is located;
(C) two representatives appointed by resolution of the city or town's legislative body in
which the project area is located if the project is located within a city or town;

(D) unless a school district board votes not to appoint representatives under Subsection
(2)(a)(ii)(A), a representative approved by the State School Board; and
(E) one representative who shall represent all of the remaining governing bodies of the other
local taxing agencies that levy taxes upon the property within the proposed project area. The
representative shall be selected by resolution of each of the governing bodies of those taxing
agencies within 30 days after the notice provided in Subsection 17A-2-1256 (3).
(ii) (A) A school district that levies a tax on property located within a project area may
choose not to appoint representatives to the taxing agency committee under Subsection (2)(a)(i)(A)
if:
(I) the project area is established under an education housing development project; and
(II) the project area budget of the project area under Subsection (2)(a)(ii)(A)(I) is adopted
on or after May 1, 2000.
(B) If a school district board votes not to appoint representatives to the taxing agency
committee under Subsection (2)(a)(ii)(A), the State School Board may not appoint a representative
to the taxing agency committee.
(b) (i) If the project is located within a city or town, a quorum of a taxing agency committee
consists of:
(A) if a school district board votes not to appoint representatives to the taxing agency
committee under Subsection (2)(a)(ii)(A), three members; or
(B) in all other cases, five members.
(ii) If the project is not located within a city or town, a quorum consists of:
(A) if a school district board votes not to appoint representatives to the taxing agency
committee under Subsection (2)(a)(ii)(A), two members; or
(B) in all other cases, four members.
(c) A taxing agency committee formed in accordance with this section has the authority to:
(i) (A) represent all taxing entities in a project area, except a school district whose board has
voted under Subsection (2)(a)(ii)(A) not to appoint representatives to the taxing agency committee;
and

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(B) cast votes that will be binding on the governing boards of all taxing entities in a project
area that the taxing agency committee represents under Subsection (2)(c)(i)(A);
(ii) negotiate with the agency concerning the redevelopment plan;
(iii) approve or disapprove project area budgets under Subsection (3); and
(iv) approve an exception to the limits on the value and size of project areas imposed by
Section 17A-2-1210 , or the time and amount of tax increment financing under this section.
(d) Each time a school district representative or a State School Board representative votes
as a member of a taxing agency committee to allow an agency to be paid tax increment or to increase
the amount or length of time that an agency may be paid tax increment, that representative shall,
within 45 days after the vote, provide to the representative's respective school board an explanation
in writing of the representative's vote and the reasons for the vote.
(e) (i) The assessor of each county in which the agency is located shall provide a written
report to the taxing agency committee stating, with respect to property within each project area:
(A) the taxable value for the base year, reflecting any adjustments under Sections
17A-2-1250.5, 17A-2-1251, 17A-2-1252, and 17A-2-1253; and
(B) the assessed value.
(ii) With respect to the information required under Subsection (2)(e)(i), the county assessor
shall provide:
(A) actual amounts for each year from the adoption of the project area plan to the time of
the report; and
(B) estimated amounts for each year beginning the year after the time of the report and
ending the time that the agency expects no longer to be paid tax increment from property within the
project area.
(iii) The assessor of the county in which the agency is located shall provide a report under
this Subsection (3)(e):
(A) at least annually; and
(B) upon request of the taxing agency committee, before a taxing agency committee meeting
at which the committee will consider whether to allow the agency to be paid tax increment or to

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increase the amount or length of time that the agency may be paid tax increment.
(3) (a) (i) An agency may not collect any tax increment for a project area until after the
agency obtains the majority consent of a quorum of the taxing agency committee for the project area
budget if:
(A) the project area budget was adopted from July 1, 1993 to June 30, 1998 or after May 1,
2000; or
(B) the project area budget:
(I) was adopted from July 1, 1998 to May 1, 2000; and
(II) does not allocate 20% of the tax increment for housing as provided in Subsection
17A-2-1264 (2)(a).
(ii) For a project area budget adopted from July 1, 1998 to May 1, 2000 that allocates 20%
of the tax increment for housing as provided in Subsection 17A-2-1264 (2)(a), an agency may not
collect tax increment from all or part of a project area until after:
(A) the Olene Walker Housing Trust Fund Board, established under Title 9, Chapter 4, Part
7, Olene Walker Housing Trust Fund, has certified the project area budget as complying with the
requirements of Section 17A-2-1264 ; and
(B) the agency's governing body has approved and adopted the project area budget by a
two-thirds vote.
(iii) (A) (I) Except as provided in Subsection (3)(a)(iii)(A)(II), each project area budget
adopted after May 1, 2000 that provides for more than $100,000 of annual tax increment to be
collected by the agency shall allocate at least 20% of tax increment for housing as provided in
Subsection 17A-2-1264 (3)(a).
(II) The 20% requirement of Subsection (3)(a)(iii)(A)(I) may be waived in whole or in part
by the mutual consent of the Olene Walker Housing Trust Fund Board, established under Title 9,
Chapter 4, Part 7, Olene Walker Housing Trust Fund, and the taxing agency committee upon their
determination that 20% of tax increment is more than is needed to address the community's need for
affordable housing, as defined in Section 17A-2-1264 .
(B) Before the taxing agency committee may give its consent to a project area budget

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adopted after May 1, 2000 that is required under Subsection (3)(a)(iii) to allocate tax increment for
housing, the agency shall comply with Subsection 17A-2-1264 (2)(b).
(b) With the majority consent of a quorum of the taxing agency committee, an agency may
amend a project area budget that was adopted under Subsection (3)(a).
(c) (i) Within 30 days after the approval and adoption of a project area budget, each agency
shall file a copy of the budget with the county auditor, the State Tax Commission, the state auditor,
and each property taxing entity affected by the agency's collection of tax increment under the project
area budget.
(ii) Each agency whose project area budget allocates tax increment for housing as provided
in Subsection 17A-2-1264 (3)(a) shall file a copy of the budget with the Olene Walker Housing Trust
Fund established under Title 9, Chapter 4, Part 7, Olene Walker Housing Trust Fund.
(d) (i) Beginning on January 1, 1997, before a project area budget or amendment to a project
area budget is approved, the agency shall advertise and hold one public hearing on the proposed
change in the project area budget.
(ii) The public hearing under Subsection (3)(d)(i) shall be conducted according to the
procedures and requirements of Subsection 17A-2-1222 (2), except that if the amended budget
allocates a greater proportion of tax increment to a project area than was allocated to the project area
under the previous budget, the advertisement shall state the percentage allocated under the previous
budget and the percentage allocated under the amended budget.
(e) If an amendment under Subsection (3)(b) is not approved, the agency shall continue to
operate under the previously approved, unamended project area budget.
(4) (a) Except as provided in Subsections (6) and (8), an agency may collect tax increment
from all or a part of a project area. The tax increment shall be paid to the agency in the same manner
and at the same time as payments of taxes to other taxing agencies to pay the principal of and interest
on loans, moneys advanced to, or indebtedness, whether funded, refunded, assumed, or otherwise,
to finance or refinance, in whole or in part, the redevelopment, education housing development, or
economic development project and the housing projects and programs under Sections 17A-2-1263
and 17A-2-1264 .

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(b) (i) An agency may elect to be paid:
(A) if 20% of the project area budget is not allocated for housing as provided in Subsection
17A-2-1264 (2)(a):
(I) 100% of annual tax increment for 12 years; or
(II) 75% of annual tax increment for 20 years; or
(B) if 20% of the project area budget is allocated for housing as provided in Subsection
17A-2-1264 (2)(a):
(I) 100% of annual tax increment for 15 years; or
(II) 75% of annual tax increment for 24 years.
(ii) Tax increment paid to an agency under this Subsection (4)(b) shall be paid for the
applicable length of time beginning the first tax year the agency accepts tax increment from a project
area.
(c) An agency may receive a greater percentage of tax increment or receive tax increment
for a longer period of time than that specified in Subsection (4)(b) if the agency obtains the majority
consent of the taxing agency committee.
(5) (a) The redevelopment plan shall provide that the portion of the taxes, if any, due to an
increase in the tax rate by a taxing agency after the date the project area budget is approved by the
taxing agency committee may not be allocated to and when collected paid into a special fund of the
redevelopment agency according to the provisions of Subsection (4) unless the taxing agency
committee approves the inclusion of the increase in the tax rate at the time the project area budget
is approved. If approval of the inclusion of the increase in the tax rate is not obtained, the portion
of the taxes attributable to the increase in the rate shall be distributed by the county to the taxing
agency imposing the tax rate increase in the same manner as other property taxes.
(b) The amount of the tax rate to be used in determining tax increment shall be increased or
decreased by the amount of an increase or decrease as a result of:
(i) a statute enacted by the Legislature, a judicial decision, or an order from the State Tax
Commission to a county to adjust or factor its assessment rate under Subsection 59-2-704 (2);
(ii) a change in exemption provided in Utah Constitution Article XIII, Section 2, or Section

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59-2-103 ;
(iii) an increase or decrease in the percentage of fair market value, as defined under Section
59-2-102 ; or
(iv) a decrease in the certified tax rate under Subsection 59-2-924 (2)(c) or (2)(d)(i).
(c) (i) Notwithstanding the increase or decrease resulting from Subsection (5)(b), the amount
of money allocated to, and when collected paid to the agency each year for payment of bonds or other
indebtedness may not be less than would have been allocated to and when collected paid to the
agency each year if there had been no increase or decrease under Subsection (5)(b).
(ii) For a decrease resulting from Subsection (5)(b)(iv), the taxable value for the base year
under Subsection 17A-2-1202 (2) or 17A-2-1247 (2)(a), as the case may be, shall be reduced for any
year to the extent necessary, including below zero, to provide an agency with approximately the same
amount of money the agency would have received without a reduction in the county's certified tax
rate if:
(A) in that year there is a decrease in the certified tax rate under Subsection 59-2-924 (2)(c)
or (2)(d)(i);
(B) the amount of the decrease is more than 20% of the county's certified tax rate of the
previous year; and
(C) the decrease results in a reduction of the amount to be paid to the agency under Section
17A-2-1247 or 17A-2-1247.5 .
(6) (a) For redevelopment plans first adopted before May 4, 1993, beginning January 1,
1994, all of the taxes levied and collected upon the taxable property in the redevelopment project
under Section 59-2-906.1 which are not pledged to support bond indebtedness and other contractual
obligations are exempt from the provisions of Subsection (4).
(b) For redevelopment plans first adopted after May 3, 1993, beginning January 1, 1994, all
of the taxes levied and collected upon the taxable property in the redevelopment project under
Section 59-2-906.1 are exempt from the provisions of Subsection (4).
(7) (a) In addition to the amounts and periods that an agency may elect to be paid tax
increment under Subsection (4)(b), an agency may elect to be paid 100% of annual tax increment for

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an additional period, as provided in Subsection (7)(b), beyond those periods provided under
Subsection (4)(b), without the approval of the taxing agency committee, if the tax increment funding
for the additional period is used:
(i) for an agency in a city in which is located all or a portion of an interchange on I-15 or that
would directly benefit from an interchange on I-15, to pay some or all of the cost of the installation,
construction, or reconstruction of:
(A) an interchange on I-15; or
(B) frontage and other roads connecting to the interchange, as determined by the Department
of Transportation created under Section 72-1-201 and the Transportation Commission created under
Section 72-1-301 ; or
(ii) for an agency in a city of the first class, to pay some or all of the cost of the land for and
installation and construction of a recreational facility, as defined in Subsection 59-12-702 (3), or a
cultural facility, including parking and infrastructure improvements related to the recreational or
cultural facility.
(b) The additional period for which an agency may be paid 100% of annual tax increment
under Subsection (7)(a) is an additional:
(i) 13 years, for an agency that initially elected to be paid under Subsection (4)(b)(i)(A)(I);
(ii) five years, for an agency that initially elected to be paid under Subsection (4)(b)(i)(A)(II);
(iii) ten years, for an agency that initially elected to be paid under Subsection (4)(b)(i)(B)(I);
and
(iv) one year, for an agency that initially elected to be paid under Subsection (4)(b)(i)(B)(II).
(c) This Subsection (7) applies only to an agency established by a city in which:
(i) for an agency in a city in which is located all or a portion of an interchange on I-15 or that
would directly benefit from an interchange on I-15, the installation, construction, or reconstruction
of an interchange on I-15 or frontage or other roads connecting to the interchange has begun on or
before June 30, 2002; and
(ii) for an agency in a city of the first class, the installation or construction of a recreational
facility, as defined in Subsection 59-12-702 (3), or a cultural facility has begun on or before June 30,

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2002.
(d) Notwithstanding any other provision of this Subsection (7), a school district may not
receive less tax increment because of application of the other provisions of this Subsection (7) than
it would have received without those provisions.
(8) If a school district board votes not to appoint representatives to the taxing agency
committee under Subsection (2)(a)(ii)(A), all of the taxes levied and collected upon taxable property
in the redevelopment project by the school district are exempt from Subsection (4) and the agency
may not collect tax increment from taxes levied by the school district in the project area.
Section 2. Effective date.
This act takes effect on June 1, 2001.
Section 3. Coordination clause.
If this bill and 1st Substitute H.B. 7, Recodification and Amendments of Redevelopment
Agencies Statutes, both pass, it is the intent of the Legislature that the Office of Legislative Research
and General Counsel, in preparing the Utah Code database for publication, add the following as
Subsections (7) and (8) in Section 17B-4-1002 as enacted in 1st Substitute H.B. 7:
"(7) Each time a school district representative or a representative of the State Board of
Education votes as a member of a taxing entity committee to allow an agency to be paid tax
increment or to increase the amount or length of time that an agency may be paid tax increment, that
representative shall, within 45 days after the vote, provide to the representative's respective school
board an explanation in writing of the representative's vote and the reasons for the vote.
(8) (a) The assessor of each county in which the agency is located shall provide a written
report to the taxing entity committee stating, with respect to property within each project area:
(i) the base taxable value, as adjusted by any adjustments under Section 17B-4-1006; and
(ii) the assessed value.
(b) With respect to the information required under Subsection (8)(a), the agency shall
provide:
(i) actual amounts for each year from the adoption of the project area plan to the time of the
report; and

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(ii) estimated amounts for each year beginning the year after the time of the report and
ending the time that the agency expects no longer to be paid tax increment from property within the
project area.
(c) The assessor of the county in which the agency is located shall provide a report under this
Subsection (8):
(i) at least annually; and
(ii) upon request of the taxing entity committee, before a taxing entity committee meeting
at which the committee will consider whether to allow the agency to be paid tax increment or to
increase the amount or length of time that the agency may be paid tax increment."

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