Second Substitute S.B. 45
8 LONG TITLE
9 General Description:
10 This bill modifies Title 19, Chapter 6, Part 5, Solid Waste Management Act, and Title
11 63H, Chapter 1, Military Installation Development Authority Act.
12 Highlighted Provisions:
13 This bill:
14 . modifies the definition of "solid waste management facility" to include an auxiliary
15 energy facility that is connected to an existing resource recovery facility;
16 . repeals Section 19-6-504 , which discusses certain requirements for a public entity
17 that issues bonds to finance a solid waste management facility;
18 . defines the term "development" to include certain activities within a project area;
19 . modifies the definition of "property tax" to not include a privilege tax on a portion
20 of a facility on military land leased back to the military under certain circumstances;
21 . describes certain exemptions from the Condominium Ownership Act;
22 . modifies the definition of "publicly owned infrastructure and improvements";
23 . repeals the MIDA energy tax; and
24 . provides that the issuance of a certificate of occupancy by the authority, or an entity
25 designated by the authority, determines when improvements on a parcel within a
26 project area become subject to property tax.
27 Money Appropriated in this Bill:
29 Other Special Clauses:
31 Utah Code Sections Affected:
33 19-6-502 , as last amended by Laws of Utah 2008, Chapters 89 and 360
34 63H-1-102 , as last amended by Laws of Utah 2013, Chapter 362
35 63H-1-202 , as last amended by Laws of Utah 2010, Chapter 9
36 63H-1-203 , as last amended by Laws of Utah 2013, Chapter 362
37 63H-1-501 , as last amended by Laws of Utah 2013, Chapter 362
38 63H-1-502 , as last amended by Laws of Utah 2013, Chapter 362
40 19-6-504 , as renumbered and amended by Laws of Utah 1991, Chapter 112
41 63H-1-204 , as enacted by Laws of Utah 2013, Chapter 362
43 Be it enacted by the Legislature of the state of Utah:
44 Section 1. Section 19-6-502 is amended to read:
45 19-6-502. Definitions.
46 As used in this part:
47 (1) "Governing body" means the governing board, commission, or council of a public
49 (2) "Jurisdiction" means the area within the incorporated limits of:
50 (a) a municipality;
51 (b) a special service district;
52 (c) a municipal-type service district;
53 (d) a service area; or
54 (e) the territorial area of a county not lying within a municipality.
55 (3) "Long-term agreement" means an agreement or contract having a term of more than
56 five years but less than 50 years.
57 (4) "Municipal residential waste" means solid waste that is:
58 (a) discarded or rejected at a residence within the public entity's jurisdiction; and
59 (b) collected at or near the residence by:
60 (i) a public entity; or
61 (ii) a person with whom the public entity has as an agreement to provide solid waste
63 (5) "Public entity" means:
64 (a) a county;
65 (b) a municipality;
66 (c) a special service district under Title 17D, Chapter 1, Special Service District Act;
67 (d) a service area under Title 17B, Chapter 2a, Part 9, Service Area Act; or
68 (e) a municipal-type service district created under Title 17, Chapter 34,
69 Municipal-Type Services to Unincorporated Areas.
70 (6) "Requirement" means an ordinance, policy, rule, mandate, or other directive that
71 imposes a legal duty on a person.
72 (7) "Residence" means an improvement to real property used or occupied as a primary
73 or secondary detached single-family dwelling.
74 (8) "Resource recovery" means the separation, extraction, recycling, or recovery of
75 usable material, energy, fuel, or heat from solid waste and the disposition of it.
76 (9) "Short-term agreement" means a contract or agreement having a term of five years
77 or less.
78 (10) (a) "Solid waste" means a putrescible or nonputrescible material or substance
79 discarded or rejected as being spent, useless, worthless, or in excess of the owner's needs at the
80 time of discard or rejection, including:
81 (i) garbage;
82 (ii) refuse;
83 (iii) industrial and commercial waste;
84 (iv) sludge from an air or water control facility;
85 (v) rubbish;
86 (vi) ash;
87 (vii) contained gaseous material;
88 (viii) incinerator residue;
89 (ix) demolition and construction debris;
90 (x) a discarded automobile; and
91 (xi) offal.
92 (b) "Solid waste" does not include sewage or another highly diluted water carried
93 material or substance and those in gaseous form.
94 (11) "Solid waste management" means the purposeful and systematic collection,
95 transportation, storage, processing, recovery, or disposal of solid waste.
96 (12) "Solid waste management facility" means a facility employed for solid waste
97 management, including:
98 (a) a transfer station;
99 (b) a transport system;
100 (c) a baling facility;
101 (d) a landfill; and
102 (e) a processing system, including:
103 (i) a resource recovery facility;
104 (ii) a facility for reducing solid waste volume;
105 (iii) a plant or facility for compacting, composting, or pyrolization of solid waste;
106 (iv) an incinerator;
107 (v) a solid waste disposal, reduction, or conversion facility; [
108 (vi) a facility for resource recovery of energy consisting of:
109 (A) a facility for the production, transmission, distribution, and sale of heat and steam;
110 (B) a facility for the generation and sale of electric energy to a public utility,
111 municipality, or other public entity that owns and operates an electric power system on March
112 15, 1982; and
113 (C) a facility for the generation, sale, and transmission of electric energy on an
114 emergency basis only to a military installation of the United States[
115 (vii) an auxiliary energy facility that is connected to a facility for resource recovery of
116 energy as described in Subsection (12)(e)(vi), that:
117 (A) is fueled by natural gas, landfill gas, or both;
118 (B) consists of a facility for the production, transmission, distribution, and sale of
119 supplemental heat and steam to meet all or a portion of the heat and steam requirements of a
120 military installation of the United States; and
121 (C) consists of a facility for the generation, transmission, distribution, and sale of
122 electric energy to a public utility, a municipality described in Subsection (12)(e)(vi)(B), or a
123 political subdivision created under Title 11, Chapter 13, Interlocal Cooperation Act.
124 Section 2. Section 63H-1-102 is amended to read:
125 63H-1-102. Definitions.
126 As used in this chapter:
127 (1) "Authority" means the Military Installation Development Authority, created under
128 Section 63H-1-201 .
129 (2) "Base taxable value" means:
130 (a) for military land or other land that was exempt from a property tax at the time that a
131 project area was created that included the military land or other land, a taxable value of zero; or
132 (b) for private property that is included in a project area, the taxable value of the
133 property within any portion of the project area, as designated by board resolution, from which
134 tax increment will be collected, as shown upon the assessment roll last equalized before the
135 year in which the authority issues a building permit for a building within that portion of the
136 project area.
137 (3) "Board" means the governing body of the authority created under Section
138 63H-1-301 .
139 (4) (a) "Dedicated tax collections" means the property tax that remains after the
140 authority is paid the tax increment it is entitled to receive under Subsection 63H-1-501 (1), for a
141 property tax levied by:
142 (i) a county, including a district the county has established under Subsection 17-34-3 (2)
143 to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
144 Areas; or
145 (ii) an included municipality.
146 (b) "Dedicated tax collections" does not include a property tax levied by a county to
147 assess and collect property taxes under Subsections 59-2-1602 (1) and (4).
148 (5) (a) "Development" means an activity occurring on land within a project area that is
149 owned or operated by the military, the authority, another public entity, or a private entity.
150 (b) "Development" includes the demolition, construction, reconstruction, modification,
151 expansion, or improvement of a building, facility, utility, landscape, parking lot, park, trail, or
152 recreational amenity.
155 (a) is a mayor or member of a legislative body appointed under Subsection
156 63H-1-302 (2)(b); or
157 (b) (i) is appointed to the authority board under Subsection 63H-1-302 (2)(a) or (3); and
158 (ii) concurrently serves in an elected state, county, or municipal office.
160 included within a project area.
163 (9) "Military land" means land or a facility, including leased land or a leased facility,
164 that is part of or affiliated with a base, camp, post, station, yard, center, or installation under the
165 jurisdiction of the U.S. Department of Defense or the Utah National Guard.
166 (10) "Municipal energy tax" means a municipal energy sales and use tax under Title
167 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
168 (11) "Municipal services revenue" means revenue that the authority:
169 (a) collects from the authority's:
170 (i) levy of a municipal energy tax;
171 (ii) levy of a MIDA energy tax;
172 (iii) levy of a telecommunications tax;
173 (iv) imposition of a transient room tax; and
174 (v) imposition of a resort communities tax;
175 (b) receives under Subsection 59-12-205 (2)(b)(ii); and
176 (c) receives as dedicated tax collections.
177 (12) "Municipal tax" means a municipal energy tax, [
178 telecommunications tax, transient room tax, or resort communities tax.
179 (13) "Project area" means the land, including military land, whether consisting of a
180 single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
181 project area plan, where the development project set forth in the project area plan or draft
182 project area plan takes place or is proposed to take place.
183 (14) "Project area budget" means a multiyear projection of annual or cumulative
184 revenues and expenses and other fiscal matters pertaining to a project area that includes:
185 (a) the base taxable value of property in the project area;
186 (b) the projected tax increment expected to be generated within the project area;
187 (c) the amount of the tax increment expected to be shared with other taxing entities;
188 (d) the amount of the tax increment expected to be used to implement the project area
189 plan, including the estimated amount of the tax increment to be used for land acquisition,
190 public improvements, infrastructure improvements, and loans, grants, or other incentives to
191 private and public entities;
192 (e) the tax increment expected to be used to cover the cost of administering the project
193 area plan;
194 (f) if the tax increment is to be collected at different times or from different portions of
195 the project area, or both:
196 (i) (A) the tax identification numbers of the parcels from which the tax increment will
197 be collected; or
198 (B) a legal description of the portion of the project area from which the tax increment
199 will be collected; and
200 (ii) an estimate of when other portions of the project area will become subject to
201 collection of the tax increment; and
202 (g) for property that the authority owns or leases and expects to sell or sublease, the
203 expected total cost of the property to the authority and the expected selling price or lease
205 (15) "Project area plan" means a written plan that, after its effective date, guides and
206 controls the development within a project area.
207 (16) (a) "Property tax" includes a privilege tax, except as described in Subsection
208 (16)(b), and each levy on an ad valorem basis on tangible or intangible personal or real
210 (b) "Property tax" does not include a privilege tax on the taxable value attributable to a
211 portion of a facility leased to the military for a calendar year when:
212 (i) a lessee of military land has constructed a facility on the military land that is part of
213 a project area;
214 (ii) the lessee leases space in the facility to the military for the entire calendar year; and
215 (iii) the lease rate paid by the military for the space is $1 or less for the entire calendar
216 year, not including any common charges that are reimbursements for actual expenses.
217 (17) "Public entity" means:
218 (a) the state, including each department or agency of the state; or
219 (b) a political subdivision of the state, including a county, city, town, school district,
220 local district, special service district, or interlocal cooperation entity.
229 (18) (a) "Publicly owned infrastructure and improvements" means infrastructure,
230 improvements, facilities, or buildings that benefit the public and are:
231 (i) publicly owned by the military, the authority, or another public entity;
232 (ii) owned by a utility; or
233 (iii) publicly maintained or operated by the military, the authority, or another public
235 (b) "Publicly owned infrastructure and improvements" includes:
236 (i) facilities, lines, or systems that provide water, chilled water, steam, sewer, storm
237 drainage, natural gas, electricity, or telecommunications; and
238 (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
239 facilities, and public transportation facilities.
240 (19) "Remaining municipal services revenue" means municipal services revenue that
241 the authority has not spent during its fiscal year for municipal services as provided in
242 Subsection 63H-1-503 (1).
243 (20) "Resort communities tax" means a sales and use tax imposed under Section
244 59-12-401 .
245 (21) "Taxable value" means the value of property as shown on the last equalized
246 assessment roll as certified by the county assessor.
247 (22) "Tax increment" means the difference between:
248 (a) the amount of property tax revenues generated each tax year by all taxing entities
249 from the area within a project area designated in the project area plan as the area from which
250 the tax increment is to be collected, using the current assessed value of the property; and
251 (b) the amount of property tax revenues that would be generated from that same area
252 using the base taxable value of the property.
253 (23) "Taxing entity" means a public entity that levies a tax on property within a project
255 (24) "Telecommunications tax" means a telecommunications license tax under Title
256 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
257 (25) "Transient room tax" means a tax under Section 59-12-352 .
258 Section 3. Section 63H-1-202 is amended to read:
259 63H-1-202. Applicability of other law.
260 (1) The authority or land within a project area is not subject to:
261 (a) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act;
262 (b) Title 17, Chapter 27a, County Land Use, Development, and Management Act;
263 (c) [
264 to land use, health, business license, or franchise; or
265 (d) the jurisdiction of [
266 Government Entities - Local Districts, or a special service district under Title 17D, Chapter 1,
267 Special Service District Act.
268 (2) The authority is subject to and governed by Sections 63E-2-106 , 63E-2-107 ,
269 63E-2-108 , 63E-2-109 , 63E-2-110 , and 63E-2-111 , but is not otherwise subject to or governed
270 by Title 63E, Independent Entities Code.
271 (3) (a) The definitions in Section 57-8-3 apply to this Subsection (3).
272 (b) Notwithstanding the provisions of Title 57, Chapter 8, Condominium Ownership
274 (i) if the military is the owner of land on which a condominium project is constructed,
275 it is not required to sign, execute, or record a declaration of a condominium project; and
276 (ii) if a condominium unit is owned by the authority and leased to the military for $1 or
277 less per calendar year, not including any common charges that are reimbursements for actual
279 (A) the condominium unit is not subject to any liens under Title 57, Chapter 8,
280 Condominium Ownership Act; and
281 (B) condominium unit owners within the same building or commercial condominium
282 project may agree on any method of allocation and payment of common area expenses,
283 regardless of the size or par value of each unit.
284 Section 4. Section 63H-1-203 is amended to read:
285 63H-1-203. Levy of a municipal tax -- Direct tax payment to MIDA.
286 (1) A levy of a municipal energy tax, [
287 transient room tax, or resort communities tax, including an increase in the applicable tax rate,
288 requires the affirmative vote of:
289 (a) the authority board; and
290 (b) a majority of all elected members of the authority board.
291 (2) If the authority board levies a municipal energy tax, a consumer who acquires
292 taxable energy shall pay the tax directly to the authority on a monthly basis if the consumer's
293 energy supplier is not required under federal law to collect the tax in the manner described in
294 Section 10-1-307 .
295 Section 5. Section 63H-1-501 is amended to read:
296 63H-1-501. Authority receipt and use of tax increment -- Distribution of tax
298 (1) (a) The authority may:
299 (i) subject to Subsection (1)(b), receive up to 75% of the tax increment for up to 25
300 years, as provided in this part; and
301 (ii) use the tax increment during and after the period described in Subsection (1)(a)(i).
302 (b) With respect to a parcel located within a project area, the 25-year period described
303 in Subsection (1)(a)(i) shall begin on the day on which the authority receives the first tax
304 increment from that parcel.
305 (2) Improvements on a parcel within a project area become subject to property tax on
306 January 1 immediately following the day on which the authority or an entity designated by the
307 authority issues a certificate of occupancy with respect to those improvements.
308 (3) Each county that collects property tax on property within a project area shall pay
309 and distribute to the authority the tax increment and dedicated tax collections that the authority
310 is entitled to collect under this title, in the manner and at the time provided in Section
311 59-2-1365 .
312 (4) (a) The board shall determine by resolution when the entire project area or an
313 individual parcel within a project area is subject to tax increment.
314 (b) The board shall amend the project area budget to reflect whether a parcel within a
315 project area is subject to tax increment.
316 Section 6. Section 63H-1-502 is amended to read:
317 63H-1-502. Allowable uses of tax increment and other funds.
318 (1) Other than municipal services revenue, the authority may use tax increment and
319 other funds available to the authority:
320 (a) for any purpose authorized under this chapter;
321 (b) for administrative, overhead, legal, and other operating expenses of the authority;
322 (c) to pay for, including financing or refinancing, all or part of the development of land
323 within the project area from which the tax increment or other funds were collected, including
324 assisting the ongoing operation of a development or facility within the project area;
325 (d) to pay the cost of the installation and construction of publicly owned infrastructure
326 and improvements within the project area from which the tax increment funds were collected;
327 (e) to pay the cost of the installation of publicly owned infrastructure and
328 improvements, including a passenger ropeway, as defined in Section 72-11-102 , outside the
329 project area if:
330 (i) the authority board determines by resolution that the infrastructure and
331 improvements are of benefit to the project area; and
332 (ii) for a passenger ropeway, at least one end of the ropeway is located within the
333 project area; and
334 (f) to pay the principal and interest on bonds issued by the authority.
335 (2) The authority may use revenue generated from the operation of publicly owned
336 infrastructure operated by the authority or improvements operated by the authority to:
337 (a) operate and maintain the infrastructure or improvements; and
338 (b) pay for authority operating expenses, including administrative, overhead, and legal
340 (3) For purposes of Subsection (1), the authority may use:
341 (a) tax revenues received under Subsection 59-12-205 (2)(b)(ii); and
342 (b) resort communities tax revenues generated from a project area that contains private
346 (4) The determination of the authority board under Subsection (1)(e) regarding benefit
347 to the project area is final.
348 Section 7. Repealer.
349 This bill repeals:
350 Section 19-6-504 , Assurance of sufficient revenue to pay bonds.
351 Section 63H-1-204 , MIDA energy tax.
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