H.B. 272 Enrolled

REDEVELOPMENT AGENCIES - TAX
INCREMENT AMENDMENTS
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Greg J. Curtis
This act modifies the Redevelopment Agencies Act to repeal a provision authorizing the
use of specified tax increment funds for the construction of an underpass. The act
provides for the use of specified tax increment funds for cable television and
telecommunications facilities and equipment and clarifies a limitation on the agency's
authority with respect to cable television service and public telecommunications service.
The act extends the date before which construction on certain projects must begin in
order to receive specified tax increment funds. The act extends the authority to use
specified tax increment to agencies established by other than first or second class cities
and cities located in other than a first class county. The act also makes technical changes.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
17B-4-1003, as enacted by Chapter 133, Laws of Utah 2001
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 17B-4-1003 is amended to read:
17B-4-1003. Tax increment under a pre-July 1, 1993 project area plan.
(1) This section applies to tax increment under a pre-July 1, 1993 project area plan
only.
(2) (a) Beginning with the first tax year after April 1, 1983 for which an agency accepts
tax increment, an agency may be paid:
(i) (A) for the first through the fifth tax years, 100% of tax increment;
(B) for the sixth through the tenth tax years, 80% of tax increment;
(C) for the eleventh through the fifteenth tax years, 75% of tax increment;
(D) for the sixteenth through the twentieth tax years, 70% of tax increment; and
(E) for the twenty-first through the twenty-fifth tax years, 60% of tax increment; or

(ii) for an agency that has caused a taxing entity committee to be created under
Subsection 17B-4-1002 (1), any percentage of tax increment up to 100% and for any length of
time that the taxing entity committee approves.
(b) Notwithstanding any other provision of this section:
(i) an agency may be paid 100% of tax increment from a project area for 32 years after
April 1, 1983 to pay principal and interest on agency indebtedness incurred before April 1, 1983,
even though the size of the project area from which tax increment is paid to the agency exceeds
100 acres of privately owned property under a project area plan adopted on or before April 1,
1983; and
(ii) for up to 32 years after April 1, 1983, an agency debt incurred before April 1, 1983
may be refinanced and paid from 100% of tax increment if the principal amount of the debt is not
increased in the refinancing.
(3) (a) For purposes of this Subsection (3), "additional tax increment" means the
difference between 100% of tax increment for a tax year and the amount of tax increment an
agency is paid for that tax year under the percentages and time periods specified in Subsection
(2)(a).
(b) Notwithstanding the tax increment percentages and time periods in Subsection (2)(a)
and Subsection 17B-4-403 (1)(m)(i), an agency [established by the legislative body of a city of the
first or second class or by a city that is located in a county of the first class] may be paid
additional tax increment for a period ending 32 years after the first tax year after April 1, 1983
for which the agency receives tax increment from the project area if:
(i) (A) the additional tax increment is used solely to pay all or part of the value of the
land for and the cost of the installation and construction of a publicly or privately owned
convention center or sports complex or any building, facility, structure, or other improvement
related to the convention center or sports complex, including parking and infrastructure
improvements;
(B) construction of the convention center or sports complex or related building, facility,
structure, or other improvement is commenced on or before June 30, 2002;

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(C) the additional tax increment is pledged to pay all or part of the value of the land for
and the cost of the installation and construction of the convention center or sports complex or
related building, facility, structure, or other improvement; and
(D) the agency board and the community legislative body have determined by resolution
that the convention center or sports complex is:
(I) within and a benefit to a project area;
(II) not within but still a benefit to a project area; or
(III) within a project area in which substantially all of the land is publicly owned and a
benefit to the community[.];
(ii) (A) the additional tax increment is used to pay some or all of the cost of the land for
and installation and construction of a recreational facility, as defined in Section 59-12-702 , or a
cultural facility, including parking and infrastructure improvements related to the recreational or
cultural facility, whether or not the facility is located within a project area;
(B) construction of the recreational or cultural facility is commenced on or before June
30, [2002] 2006; and
(C) the additional tax increment is pledged on or before June 30, [2002] 2006 to pay all
or part of the cost of the land for and the installation and construction of the recreational or
cultural facility, including parking and infrastructure improvements related to the recreational or
cultural facility;
(iii) [(A)] the additional tax increment is used [solely] to pay all or part of the cost of [the
installation and construction of an underpass that has not received funding from the Centennial
Highway Fund under Section 72-2-118 as part of the construction of Interstate 15, whether or not
the underpass is located within a project area] acquiring, constructing, extending, maintaining, or
repairing lines, facilities, and equipment for providing cable television service and public
telecommunications service, as defined in Section 10-18-102 , whether or not the lines, facilities,
and equipment are located within a project area and subject to Subsection (3)(d);
[(B) construction of the underpass is commenced on or before June 30, 2002; and]
[(C) the additional tax increment is pledged on or before June 30, 2002 to pay all or part

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of the cost of the installation and construction of the underpass;]
(iv) (A) the additional tax increment is used solely to pay all or part of the cost of the
installation, construction, or reconstruction of the [10000 South underpass or the] 11400 South or
12300 South interchange on I-15 in Salt Lake County, whether or not the [underpass] interchange
is located within a project area;
(B) construction on the [underpass or] interchange is commenced on or before June 30,
[2002] 2006; and
(C) the additional tax increment is pledged on or before June 30, [2002] 2006 to pay all
or part of the cost of the installation, construction, or reconstruction of the [underpass or]
interchange; or
(v) (A) the additional tax increment is used solely to pay part of the cost of relocating an
agriculture related business, except a relocation resulting from the agency's exercise of eminent
domain, from a city of the first class to another location within a county of the third, fourth, fifth,
or sixth class, whether or not the agriculture related business is located within or is being
relocated to a project area;
(B) the process of relocating the agriculture related business is commenced on or before
December 31, 2002; and
(C) the additional tax increment is pledged on or before December 31, 2002 to pay part
of the cost of relocating the agriculture related business.
(c) Notwithstanding Subsection (3)(b), a school district may not, without its consent, be
paid less tax increment because of application of Subsection (3)(b) than it would have been paid
without that subsection.
(d) (i) Notwithstanding Title 10, Chapter 18, Municipal Cable Television and Public
Telecommunications Services, an agency whose tax increment is used under Subsection
(3)(b)(iii) may not provide cable television service or public telecommunications service, as
defined in Section 10-18-102 .
(ii) Each agency that uses tax increment under Subsection (3)(b)(iii) shall provide the
services it provides using that tax increment in a nonpreferential and nondiscriminatory manner.

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(4) Notwithstanding any other provision of this section, an agency may use tax increment
received under Subsection (2) for any of the uses indicated in Subsection (3).

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