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7 LONG TITLE
8 Committee Note:
9 The Economic Development and Workforce Services Interim Committee recommended
10 this bill.
11 Legislative Vote: 14 voting for 0 voting against 3 absent
12 General Description:
13 This bill modifies provisions related to public infrastructure districts.
14 Highlighted Provisions:
15 This bill:
16 ▸ renumbers provisions related to public infrastructure districts; and
17 ▸ makes technical and conforming changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 11-42-102, as last amended by Laws of Utah 2020, Chapter 282
25 11-42-106, as last amended by Laws of Utah 2020, Chapter 282
26 11-42-201, as last amended by Laws of Utah 2019, Chapter 490
27 11-42-411, as last amended by Laws of Utah 2020, Chapter 282
28 17B-1-102, as last amended by Laws of Utah 2019, Chapter 490
29 17B-1-1102, as last amended by Laws of Utah 2019, Chapter 490
30 59-2-1317, as last amended by Laws of Utah 2019, Chapters 207 and 490
31 63H-1-102, as last amended by Laws of Utah 2020, Chapter 282
32 RENUMBERS AND AMENDS:
33 17D-4-101, (Renumbered from 17B-2a-1201, as enacted by Laws of Utah 2019,
34 Chapter 490)
35 17D-4-102, (Renumbered from 17B-2a-1202, as last amended by Laws of Utah 2020,
36 Chapters 282 and 397)
37 17D-4-103, (Renumbered from 17B-2a-1203, as enacted by Laws of Utah 2019,
38 Chapter 490)
39 17D-4-201, (Renumbered from 17B-2a-1204, as last amended by Laws of Utah 2020,
40 Chapters 282 and 397)
41 17D-4-202, (Renumbered from 17B-2a-1205, as last amended by Laws of Utah 2020,
42 Chapters 282 and 397)
43 17D-4-203, (Renumbered from 17B-2a-1206, as last amended by Laws of Utah 2020,
44 Chapter 282)
45 17D-4-204, (Renumbered from 17B-2a-1211, as enacted by Laws of Utah 2019,
46 Chapter 490)
47 17D-4-205, (Renumbered from 17B-2a-1212, as enacted by Laws of Utah 2019,
48 Chapter 490)
49 17D-4-301, (Renumbered from 17B-2a-1207, as last amended by Laws of Utah 2020,
50 Chapters 354 and 397)
51 17D-4-302, (Renumbered from 17B-2a-1208, as enacted by Laws of Utah 2019,
52 Chapter 490)
53 17D-4-303, (Renumbered from 17B-2a-1209, as enacted by Laws of Utah 2019,
54 Chapter 490)
55 17D-4-304, (Renumbered from 17B-2a-1210, as enacted by Laws of Utah 2019,
56 Chapter 490)
57 17D-4-305, (Renumbered from 17B-2a-1213, as enacted by Laws of Utah 2019,
58 Chapter 490)
59
60 Be it enacted by the Legislature of the state of Utah:
61 Section 1. Section 11-42-102 is amended to read:
62 11-42-102. Definitions.
63 (1) As used in this chapter:
64 (a) "Adequate protests" means, for all proposed assessment areas except sewer
65 assessment areas, timely filed, written protests under Section 11-42-203 that represent at least
66 40% of the frontage, area, taxable value, fair market value, lots, number of connections, or
67 equivalent residential units of the property proposed to be assessed, according to the same
68 assessment method by which the assessment is proposed to be levied, after eliminating:
69 (i) protests relating to:
70 (A) property that has been deleted from a proposed assessment area; or
71 (B) an improvement that has been deleted from the proposed improvements to be
72 provided to property within the proposed assessment area; and
73 (ii) protests that have been withdrawn under Subsection 11-42-203(3).
74 (b) "Adequate protests" means, for a proposed sewer assessment area, timely filed,
75 written protests under Section 11-42-203 that represent at least 70% of the frontage, area,
76 taxable value, fair market value, lots, number of connections, or equivalent residential units of
77 the property proposed to be assessed, according to the same assessment method by which the
78 assessment is proposed to be levied, after eliminating adequate protests under Subsection
79 (1)(a).
80 (2) "Assessment area" means an area, or, if more than one area is designated, the
81 aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a
82 local entity under Part 2, Designating an Assessment Area, for the purpose of financing the
83 costs of improvements, operation and maintenance, or economic promotion activities that
84 benefit property within the area.
85 (3) "Assessment bonds" means bonds that are:
86 (a) issued under Section 11-42-605; and
87 (b) payable in part or in whole from assessments levied in an assessment area,
88 improvement revenues, and a guaranty fund or reserve fund.
89 (4) "Assessment fund" means a special fund that a local entity establishes under
90 Section 11-42-412.
91 (5) "Assessment lien" means a lien on property within an assessment area that arises
92 from the levy of an assessment, as provided in Section 11-42-501.
93 (6) "Assessment method" means the method:
94 (a) by which an assessment is levied against benefitted property, whether by frontage,
95 area, taxable value, fair market value, lot, parcel, number of connections, equivalent residential
96 unit, any combination of these methods, or any other method; and
97 (b) that, when applied to a benefitted property, accounts for an assessment that meets
98 the requirements of Section 11-42-409.
99 (7) "Assessment ordinance" means an ordinance adopted by a local entity under
100 Section 11-42-404 that levies an assessment on benefitted property within an assessment area.
101 (8) "Assessment resolution" means a resolution adopted by a local entity under Section
102 11-42-404 that levies an assessment on benefitted property within an assessment area.
103 (9) "Benefitted property" means property within an assessment area that directly or
104 indirectly benefits from improvements, operation and maintenance, or economic promotion
105 activities.
106 (10) "Bond anticipation notes" means notes issued under Section 11-42-602 in
107 anticipation of the issuance of assessment bonds.
108 (11) "Bonds" means assessment bonds and refunding assessment bonds.
109 (12) "Commercial area" means an area in which at least 75% of the property is devoted
110 to the interchange of goods or commodities.
111 (13) (a) "Commercial or industrial real property" means real property used directly or
112 indirectly or held for one of the following purposes or activities, regardless of whether the
113 purpose or activity is for profit:
114 (i) commercial;
115 (ii) mining;
116 (iii) industrial;
117 (iv) manufacturing;
118 (v) governmental;
119 (vi) trade;
120 (vii) professional;
121 (viii) a private or public club;
122 (ix) a lodge;
123 (x) a business; or
124 (xi) a similar purpose.
125 (b) "Commercial or industrial real property" includes real property that:
126 (i) is used as or held for dwelling purposes; and
127 (ii) contains more than four rental units.
128 (14) "Connection fee" means a fee charged by a local entity to pay for the costs of
129 connecting property to a publicly owned sewer, storm drainage, water, gas, communications, or
130 electrical system, whether or not improvements are installed on the property.
131 (15) "Contract price" means:
132 (a) the cost of acquiring an improvement, if the improvement is acquired; or
133 (b) the amount payable to one or more contractors for the design, engineering,
134 inspection, and construction of an improvement.
135 (16) "Designation ordinance" means an ordinance adopted by a local entity under
136 Section 11-42-206 designating an assessment area.
137 (17) "Designation resolution" means a resolution adopted by a local entity under
138 Section 11-42-206 designating an assessment area.
139 (18) "Economic promotion activities" means activities that promote economic growth
140 in a commercial area of a local entity, including:
141 (a) sponsoring festivals and markets;
142 (b) promoting business investment or activities;
143 (c) helping to coordinate public and private actions; and
144 (d) developing and issuing publications designed to improve the economic well-being
145 of the commercial area.
146 (19) "Environmental remediation activity" means a surface or subsurface enhancement,
147 effort, cost, initial or ongoing maintenance expense, facility, installation, system, earth
148 movement, or change to grade or elevation that improves the use, function, aesthetics, or
149 environmental condition of publicly owned property.
150 (20) "Equivalent residential unit" means a dwelling, unit, or development that is equal
151 to a single-family residence in terms of the nature of its use or impact on an improvement to be
152 provided in the assessment area.
153 (21) "Governing body" means:
154 (a) for a county, city, or town, the legislative body of the county, city, or town;
155 (b) for a local district, the board of trustees of the local district;
156 (c) for a special service district:
157 (i) the legislative body of the county, city, or town that established the special service
158 district, if no administrative control board has been appointed under Section 17D-1-301; or
159 (ii) the administrative control board of the special service district, if an administrative
160 control board has been appointed under Section 17D-1-301;
161 (d) for the military installation development authority created in Section 63H-1-201,
162 the board, as defined in Section 63H-1-102; and
163 (e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as
164 defined in Section 11-58-102.
165 (22) "Guaranty fund" means the fund established by a local entity under Section
166 11-42-701.
167 (23) "Improved property" means property upon which a residential, commercial, or
168 other building has been built.
169 (24) "Improvement":
170 (a) (i) means a publicly owned infrastructure, facility, system, or environmental
171 remediation activity that:
172 (A) a local entity is authorized to provide;
173 (B) the governing body of a local entity determines is necessary or convenient to
174 enable the local entity to provide a service that the local entity is authorized to provide; or
175 (C) a local entity is requested to provide through an interlocal agreement in accordance
176 with Chapter 13, Interlocal Cooperation Act; and
177 (ii) includes facilities in an assessment area, including a private driveway, an irrigation
178 ditch, and a water turnout, that:
179 (A) can be conveniently installed at the same time as an infrastructure, system, or other
180 facility described in Subsection (24)(a)(i); and
181 (B) are requested by a property owner on whose property or for whose benefit the
182 infrastructure, system, or other facility is being installed; or
183 (b) for a local district created to assess groundwater rights in accordance with Section
184 17B-1-202, means a system or plan to regulate groundwater withdrawals within a specific
185 groundwater basin in accordance with Sections 17B-1-202 and 73-5-15.
186 (25) "Improvement revenues":
187 (a) means charges, fees, impact fees, or other revenues that a local entity receives from
188 improvements; and
189 (b) does not include revenue from assessments.
190 (26) "Incidental refunding costs" means any costs of issuing refunding assessment
191 bonds and calling, retiring, or paying prior bonds, including:
192 (a) legal and accounting fees;
193 (b) charges of financial advisors, escrow agents, certified public accountant verification
194 entities, and trustees;
195 (c) underwriting discount costs, printing costs, the costs of giving notice;
196 (d) any premium necessary in the calling or retiring of prior bonds;
197 (e) fees to be paid to the local entity to issue the refunding assessment bonds and to
198 refund the outstanding prior bonds;
199 (f) any other costs that the governing body determines are necessary and proper to incur
200 in connection with the issuance of refunding assessment bonds; and
201 (g) any interest on the prior bonds that is required to be paid in connection with the
202 issuance of the refunding assessment bonds.
203 (27) "Installment payment date" means the date on which an installment payment of an
204 assessment is payable.
205 (28) "Interim warrant" means a warrant issued by a local entity under Section
206 11-42-601.
207 (29) "Jurisdictional boundaries" means:
208 (a) for a county, the boundaries of the unincorporated area of the county; and
209 (b) for each other local entity, the boundaries of the local entity.
210 (30) "Local district" means a local district under Title 17B, Limited Purpose Local
211 Government Entities - Local Districts.
212 (31) "Local entity" means:
213 (a) a county, city, town, special service district, or local district;
214 (b) an interlocal entity as defined in Section 11-13-103;
215 (c) the military installation development authority, created in Section 63H-1-201;
216 (d) a public infrastructure district created by the military installation development
217 authority under [
218 District Act;
219 (e) the Utah Inland Port Authority, created in Section 11-58-201; or
220 (f) any other political subdivision of the state.
221 (32) "Local entity obligations" means assessment bonds, refunding assessment bonds,
222 interim warrants, and bond anticipation notes issued by a local entity.
223 (33) "Mailing address" means:
224 (a) a property owner's last-known address using the name and address appearing on the
225 last completed real property assessment roll of the county in which the property is located; and
226 (b) if the property is improved property:
227 (i) the property's street number; or
228 (ii) the post office box, rural route number, or other mailing address of the property, if
229 a street number has not been assigned.
230 (34) "Net improvement revenues" means all improvement revenues that a local entity
231 has received since the last installment payment date, less all amounts payable by the local entity
232 from those improvement revenues for operation and maintenance costs.
233 (35) "Operation and maintenance costs":
234 (a) means the costs that a local entity incurs in operating and maintaining
235 improvements in an assessment area, whether or not those improvements have been financed
236 under this chapter; and
237 (b) includes service charges, administrative costs, ongoing maintenance charges, and
238 tariffs or other charges for electrical, water, gas, or other utility usage.
239 (36) "Overhead costs" means the actual costs incurred or the estimated costs to be
240 incurred by a local entity in connection with an assessment area for appraisals, legal fees, filing
241 fees, financial advisory charges, underwriting fees, placement fees, escrow, trustee, and paying
242 agent fees, publishing and mailing costs, costs of levying an assessment, recording costs, and
243 all other incidental costs.
244 (37) "Prior assessment ordinance" means the ordinance levying the assessments from
245 which the prior bonds are payable.
246 (38) "Prior assessment resolution" means the resolution levying the assessments from
247 which the prior bonds are payable.
248 (39) "Prior bonds" means the assessment bonds that are refunded in part or in whole by
249 refunding assessment bonds.
250 (40) "Project engineer" means the surveyor or engineer employed by or the private
251 consulting engineer engaged by a local entity to perform the necessary engineering services for
252 and to supervise the construction or installation of the improvements.
253 (41) "Property" includes real property and any interest in real property, including water
254 rights and leasehold rights.
255 (42) "Property price" means the price at which a local entity purchases or acquires by
256 eminent domain property to make improvements in an assessment area.
257 (43) "Provide" or "providing," with reference to an improvement, includes the
258 acquisition, construction, reconstruction, renovation, maintenance, repair, operation, and
259 expansion of an improvement.
260 (44) "Public agency" means:
261 (a) the state or any agency, department, or division of the state; and
262 (b) a political subdivision of the state.
263 (45) "Reduced payment obligation" means the full obligation of an owner of property
264 within an assessment area to pay an assessment levied on the property after the assessment has
265 been reduced because of the issuance of refunding assessment bonds, as provided in Section
266 11-42-608.
267 (46) "Refunding assessment bonds" means assessment bonds that a local entity issues
268 under Section 11-42-607 to refund, in part or in whole, assessment bonds.
269 (47) "Reserve fund" means a fund established by a local entity under Section
270 11-42-702.
271 (48) "Service" means:
272 (a) water, sewer, storm drainage, garbage collection, library, recreation,
273 communications, or electric service;
274 (b) economic promotion activities; or
275 (c) any other service that a local entity is required or authorized to provide.
276 (49) (a) "Sewer assessment area" means an assessment area that has as the assessment
277 area's primary purpose the financing and funding of public improvements to provide sewer
278 service where there is, in the opinion of the local board of health, substantial evidence of septic
279 system failure in the defined area due to inadequate soils, high water table, or other factors
280 proven to cause failure.
281 (b) "Sewer assessment area" does not include property otherwise located within the
282 assessment area:
283 (i) on which an approved conventional or advanced wastewater system has been
284 installed during the previous five calendar years;
285 (ii) for which the local health department has inspected the system described in
286 Subsection (49)(b)(i) to ensure that the system is functioning properly; and
287 (iii) for which the property owner opts out of the proposed assessment area for the
288 earlier of a period of 10 calendar years or until failure of the system described in Subsection
289 (49)(b)(i).
290 (50) "Special service district" means the same as that term is defined in Section
291 17D-1-102.
292 (51) "Unassessed benefitted government property" means property that a local entity
293 may not assess in accordance with Section 11-42-408 but is benefitted by an improvement,
294 operation and maintenance, or economic promotion activities.
295 (52) "Unimproved property" means property upon which no residential, commercial, or
296 other building has been built.
297 (53) "Voluntary assessment area" means an assessment area that contains only property
298 whose owners have voluntarily consented to an assessment.
299 Section 2. Section 11-42-106 is amended to read:
300 11-42-106. Action to contest assessment or proceeding -- Requirements --
301 Exclusive remedy -- Bonds and assessment incontestable.
302 (1) A person who contests an assessment or any proceeding to designate an assessment
303 area or levy an assessment may commence a civil action against the local entity to:
304 (a) set aside a proceeding to designate an assessment area; or
305 (b) enjoin the levy or collection of an assessment.
306 (2) (a) Each action under Subsection (1) shall be commenced in the district court with
307 jurisdiction in the county in which the assessment area is located.
308 (b) (i) Except as provided in Subsection (2)(b)(ii), an action under Subsection (1) may
309 not be commenced against and a summons relating to the action may not be served on the local
310 entity more than 60 days after the effective date of the:
311 (A) designation resolution or designation ordinance, if the challenge is to the
312 designation of an assessment area;
313 (B) assessment resolution or ordinance, if the challenge is to an assessment; or
314 (C) amended resolution or ordinance, if the challenge is to an amendment.
315 (ii) The period for commencing an action and serving a summons under Subsection
316 (2)(b)(i) is 30 days if the designation resolution, assessment resolution, or amended resolution
317 was:
318 (A) adopted by the military installation development authority, created in Section
319 63H-1-201, or a public infrastructure district created by the military installation development
320 authority under [
321 District Act; and
322 (B) all owners of property within the assessment area or proposed assessment area
323 consent in writing to the designation resolution, assessment resolution, or amended resolution.
324 (3) (a) An action under Subsection (1) is the exclusive remedy of a person who:
325 (i) claims an error or irregularity in an assessment or in any proceeding to designate an
326 assessment area or levy an assessment; or
327 (ii) challenges a bondholder's right to repayment.
328 (b) A court may not hear any complaint under Subsection (1) that a person was
329 authorized to make but did not make in a protest under Section 11-42-203 or at a hearing under
330 Section 11-42-204.
331 (c) (i) If a person has not brought a claim for which the person was previously
332 authorized to bring but is otherwise barred from making under Subsection (2)(b), the claim
333 may not be brought later because of an amendment to the resolution or ordinance unless the
334 claim arises from the amendment itself.
335 (ii) In an action brought pursuant to Subsection (1), a person may not contest a
336 previous decision, proceeding, or determination for which the service deadline described in
337 Subsection (2)(b) has expired by challenging a subsequent decision, proceeding, or
338 determination.
339 (4) An assessment or a proceeding to designate an assessment area or to levy an
340 assessment may not be declared invalid or set aside in part or in whole because of an error or
341 irregularity that does not go to the equity or justice of the proceeding or the assessment meeting
342 the requirements of Section 11-42-409.
343 (5) After the expiration of the period referred to in Subsection (2)(b):
344 (a) assessment bonds and refunding assessment bonds issued or to be issued with
345 respect to an assessment area and assessments levied on property in the assessment area
346 become at that time incontestable against all persons who have not commenced an action and
347 served a summons as provided in this section; and
348 (b) a suit to enjoin the issuance or payment of assessment bonds or refunding
349 assessment bonds, the levy, collection, or enforcement of an assessment, or to attack or
350 question in any way the legality of assessment bonds, refunding assessment bonds, or an
351 assessment may not be commenced, and a court may not inquire into those matters.
352 (6) (a) This section may not be interpreted to insulate a local entity from a claim of
353 misuse of assessment funds after the expiration of the period described in Subsection (2)(b).
354 (b) (i) Except as provided in Subsection (6)(b)(ii), an action in the nature of mandamus
355 is the sole form of relief available to a party challenging the misuse of assessment funds.
356 (ii) The limitation in Subsection (6)(b)(i) does not prohibit the filing of criminal
357 charges against or the prosecution of a party for the misuse of assessment funds.
358 Section 3. Section 11-42-201 is amended to read:
359 11-42-201. Resolution or ordinance designating an assessment area --
360 Classifications within an assessment area -- Preconditions to adoption of a resolution or
361 ordinance.
362 (1) (a) Subject to the requirements of this part, a governing body of a local entity
363 intending to levy an assessment on property to pay some or all of the cost of providing
364 improvements benefitting the property, performing operation and maintenance benefitting the
365 property, or conducting economic promotion activities benefitting the property shall adopt a
366 resolution or ordinance designating an assessment area.
367 (b) A designation resolution or designation ordinance described in Subsection (1)(a)
368 may divide the assessment area into multiple classifications to allow the governing body to:
369 (i) levy a different level of assessment; or
370 (ii) use a different assessment method in each classification to reflect more fairly the
371 benefits that property within the different classifications is expected to receive because of the
372 proposed improvement, operation and maintenance, or economic promotion activities.
373 (c) The boundaries of a proposed assessment area:
374 (i) may include property that is not intended to be assessed; and
375 (ii) except for an assessment area within a public infrastructure district as defined in
376 Section 17B-1-102 and created under Title 17D, Chapter 4, Public Infrastructure District Act,
377 may not be coextensive or substantially coterminous with the boundaries of the local entity.
378 (2) Before adopting a designation resolution or designation ordinance described in
379 Subsection (1)(a), the governing body of the local entity shall:
380 (a) give notice as provided in Section 11-42-202;
381 (b) receive and consider all protests filed under Section 11-42-203; and
382 (c) hold a public hearing as provided in Section 11-42-204.
383 Section 4. Section 11-42-411 is amended to read:
384 11-42-411. Installment payment of assessments.
385 (1) (a) In an assessment resolution or ordinance, the governing body may, subject to
386 Subsection (1)(b), provide that some or all of the assessment be paid in installments over a
387 period:
388 (i) not to exceed 20 years from the effective date of the resolution or ordinance, except
389 as provided in Subsection (1)(a)(ii); or
390 (ii) not to exceed 30 years from the effective date of the resolution, for a resolution
391 adopted by:
392 (A) the military installation development authority, created in Section 63H-1-201; or
393 (B) a public infrastructure district created by the military installation development
394 authority under [
395 District Act.
396 (b) If an assessment resolution or ordinance provides that some or all of the assessment
397 be paid in installments for a period exceeding 10 years from the effective date of the resolution
398 or ordinance, the governing body:
399 (i) shall make a determination that:
400 (A) the improvement for which the assessment is made has a reasonable useful life for
401 the full period during which installments are to be paid; or
402 (B) it would be in the best interests of the local entity and the property owners for
403 installments to be paid for more than 10 years; and
404 (ii) may provide in the resolution or ordinance that no assessment is payable during
405 some or all of the period ending three years after the effective date of the resolution or
406 ordinance.
407 (2) An assessment resolution or ordinance that provides for the assessment to be paid
408 in installments may provide that the unpaid balance be paid over the period of time that
409 installments are payable:
410 (a) in substantially equal installments of principal; or
411 (b) in substantially equal installments of principal and interest.
412 (3) (a) Each assessment resolution or ordinance that provides for the assessment to be
413 paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance
414 of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and
415 variable rates, as determined by the governing body, from the effective date of the resolution or
416 ordinance or another date specified in the resolution or ordinance.
417 (b) If the assessment is for operation and maintenance costs or for the costs of
418 economic promotion activities:
419 (i) a local entity may charge interest only from the date each installment is due; and
420 (ii) the first installment of an assessment shall be due 15 days after the effective date of
421 the assessment resolution or ordinance.
422 (c) If an assessment resolution or ordinance provides for the unpaid balance of the
423 assessment to bear interest at a variable rate, the assessment resolution or ordinance shall
424 specify:
425 (i) the basis upon which the rate is to be determined from time to time;
426 (ii) the manner in which and schedule upon which the rate is to be adjusted; and
427 (iii) a maximum rate that the assessment may bear.
428 (4) Interest payable on assessments may include:
429 (a) interest on assessment bonds;
430 (b) ongoing local entity costs incurred for administration of the assessment area; and
431 (c) any costs incurred with respect to:
432 (i) securing a letter of credit or other instrument to secure payment or repurchase of
433 bonds; or
434 (ii) retaining a marketing agent or an indexing agent.
435 (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition
436 to the amount of each installment annually or at more frequent intervals as provided in the
437 assessment resolution or ordinance.
438 (6) (a) Except for an assessment for operation and maintenance costs or for the costs of
439 economic promotion activities, a property owner may pay some or all of the entire assessment
440 without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
441 (b) After the 25-day period stated in Subsection (6)(a), a property owner may at any
442 time prepay some or all of the assessment levied against the owner's property.
443 (c) A local entity may require a prepayment of an installment to include:
444 (i) an amount equal to the interest that would accrue on the assessment to the next date
445 on which interest is payable on bonds issued in anticipation of the collection of the assessment;
446 and
447 (ii) the amount necessary, in the governing body's opinion or the opinion of the officer
448 designated by the governing body, to assure the availability of money to pay:
449 (A) interest that becomes due and payable on those bonds; and
450 (B) any premiums that become payable on bonds that are called in order to use the
451 money from the prepaid assessment installment.
452 Section 5. Section 17B-1-102 is amended to read:
453 17B-1-102. Definitions.
454 As used in this title:
455 (1) "Appointing authority" means the person or body authorized to make an
456 appointment to the board of trustees.
457 (2) "Basic local district":
458 (a) means a local district that is not a specialized local district; and
459 (b) includes an entity that was, under the law in effect before April 30, 2007, created
460 and operated as a local district, as defined under the law in effect before April 30, 2007.
461 (3) "Bond" means:
462 (a) a written obligation to repay borrowed money, whether denominated a bond, note,
463 warrant, certificate of indebtedness, or otherwise; and
464 (b) a lease agreement, installment purchase agreement, or other agreement that:
465 (i) includes an obligation by the district to pay money; and
466 (ii) the district's board of trustees, in its discretion, treats as a bond for purposes of Title
467 11, Chapter 14, Local Government Bonding Act, or Title 11, Chapter 27, Utah Refunding Bond
468 Act.
469 (4) "Cemetery maintenance district" means a local district that operates under and is
470 subject to the provisions of this chapter and Chapter 2a, Part 1, Cemetery Maintenance District
471 Act, including an entity that was created and operated as a cemetery maintenance district under
472 the law in effect before April 30, 2007.
473 (5) "Drainage district" means a local district that operates under and is subject to the
474 provisions of this chapter and Chapter 2a, Part 2, Drainage District Act, including an entity that
475 was created and operated as a drainage district under the law in effect before April 30, 2007.
476 (6) "Facility" or "facilities" includes any structure, building, system, land, water right,
477 water, or other real or personal property required to provide a service that a local district is
478 authorized to provide, including any related or appurtenant easement or right-of-way,
479 improvement, utility, landscaping, sidewalk, road, curb, gutter, equipment, or furnishing.
480 (7) "Fire protection district" means a local district that operates under and is subject to
481 the provisions of this chapter and Chapter 2a, Part 3, Fire Protection District Act, including an
482 entity that was created and operated as a fire protection district under the law in effect before
483 April 30, 2007.
484 (8) "General obligation bond":
485 (a) means a bond that is directly payable from and secured by ad valorem property
486 taxes that are:
487 (i) levied:
488 (A) by the district that issues the bond; and
489 (B) on taxable property within the district; and
490 (ii) in excess of the ad valorem property taxes of the district for the current fiscal year;
491 and
492 (b) does not include:
493 (i) a short-term bond;
494 (ii) a tax and revenue anticipation bond; or
495 (iii) a special assessment bond.
496 (9) "Improvement assurance" means a surety bond, letter of credit, cash, or other
497 security:
498 (a) to guarantee the proper completion of an improvement;
499 (b) that is required before a local district may provide a service requested by a service
500 applicant; and
501 (c) that is offered to a local district to induce the local district before construction of an
502 improvement begins to:
503 (i) provide the requested service; or
504 (ii) commit to provide the requested service.
505 (10) "Improvement assurance warranty" means a promise that the materials and
506 workmanship of an improvement:
507 (a) comply with standards adopted by a local district; and
508 (b) will not fail in any material respect within an agreed warranty period.
509 (11) "Improvement district" means a local district that operates under and is subject to
510 the provisions of this chapter and Chapter 2a, Part 4, Improvement District Act, including an
511 entity that was created and operated as a county improvement district under the law in effect
512 before April 30, 2007.
513 (12) "Irrigation district" means a local district that operates under and is subject to the
514 provisions of this chapter and Chapter 2a, Part 5, Irrigation District Act, including an entity that
515 was created and operated as an irrigation district under the law in effect before April 30, 2007.
516 (13) "Local district" means a limited purpose local government entity, as described in
517 Section 17B-1-103, that operates under, is subject to, and has the powers set forth in:
518 (a) this chapter; or
519 (b) (i) this chapter; and
520 (ii) (A) Chapter 2a, Part 1, Cemetery Maintenance District Act;
521 (B) Chapter 2a, Part 2, Drainage District Act;
522 (C) Chapter 2a, Part 3, Fire Protection District Act;
523 (D) Chapter 2a, Part 4, Improvement District Act;
524 (E) Chapter 2a, Part 5, Irrigation District Act;
525 (F) Chapter 2a, Part 6, Metropolitan Water District Act;
526 (G) Chapter 2a, Part 7, Mosquito Abatement District Act;
527 (H) Chapter 2a, Part 8, Public Transit District Act;
528 (I) Chapter 2a, Part 9, Service Area Act;
529 (J) Chapter 2a, Part 10, Water Conservancy District Act;
530 (K) Chapter 2a, Part 11, Municipal Services District Act; or
531 (L) [
532 (14) "Metropolitan water district" means a local district that operates under and is
533 subject to the provisions of this chapter and Chapter 2a, Part 6, Metropolitan Water District
534 Act, including an entity that was created and operated as a metropolitan water district under the
535 law in effect before April 30, 2007.
536 (15) "Mosquito abatement district" means a local district that operates under and is
537 subject to the provisions of this chapter and Chapter 2a, Part 7, Mosquito Abatement District
538 Act, including an entity that was created and operated as a mosquito abatement district under
539 the law in effect before April 30, 2007.
540 (16) "Municipal" means of or relating to a municipality.
541 (17) "Municipality" means a city, town, or metro township.
542 (18) "Municipal services district" means a local district that operates under and is
543 subject to the provisions of this chapter and Chapter 2a, Part 11, Municipal Services District
544 Act.
545 (19) "Person" means an individual, corporation, partnership, organization, association,
546 trust, governmental agency, or other legal entity.
547 (20) "Political subdivision" means a county, city, town, metro township, local district
548 under this title, special service district under Title 17D, Chapter 1, Special Service District Act,
549 an entity created by interlocal cooperation agreement under Title 11, Chapter 13, Interlocal
550 Cooperation Act, or any other governmental entity designated in statute as a political
551 subdivision of the state.
552 (21) "Private," with respect to real property, means not owned by the United States or
553 any agency of the federal government, the state, a county, or a political subdivision.
554 (22) "Public entity" means:
555 (a) the United States or an agency of the United States;
556 (b) the state or an agency of the state;
557 (c) a political subdivision of the state or an agency of a political subdivision of the
558 state;
559 (d) another state or an agency of that state; or
560 (e) a political subdivision of another state or an agency of that political subdivision.
561 (23) "Public infrastructure district" means a local district that operates under and is
562 subject to the provisions of this chapter and [
563 Infrastructure District Act.
564 (24) "Public transit district" means a local district that operates under and is subject to
565 the provisions of this chapter and Chapter 2a, Part 8, Public Transit District Act, including an
566 entity that was created and operated as a public transit district under the law in effect before
567 April 30, 2007.
568 (25) "Revenue bond":
569 (a) means a bond payable from designated taxes or other revenues other than the local
570 district's ad valorem property taxes; and
571 (b) does not include:
572 (i) an obligation constituting an indebtedness within the meaning of an applicable
573 constitutional or statutory debt limit;
574 (ii) a tax and revenue anticipation bond; or
575 (iii) a special assessment bond.
576 (26) "Rules of order and procedure" means a set of rules that govern and prescribe in a
577 public meeting:
578 (a) parliamentary order and procedure;
579 (b) ethical behavior; and
580 (c) civil discourse.
581 (27) "Service applicant" means a person who requests that a local district provide a
582 service that the local district is authorized to provide.
583 (28) "Service area" means a local district that operates under and is subject to the
584 provisions of this chapter and Chapter 2a, Part 9, Service Area Act, including an entity that was
585 created and operated as a county service area or a regional service area under the law in effect
586 before April 30, 2007.
587 (29) "Short-term bond" means a bond that is required to be repaid during the fiscal year
588 in which the bond is issued.
589 (30) "Special assessment" means an assessment levied against property to pay all or a
590 portion of the costs of making improvements that benefit the property.
591 (31) "Special assessment bond" means a bond payable from special assessments.
592 (32) "Specialized local district" means a local district that is a cemetery maintenance
593 district, a drainage district, a fire protection district, an improvement district, an irrigation
594 district, a metropolitan water district, a mosquito abatement district, a public transit district, a
595 service area, a water conservancy district, a municipal services district, or a public
596 infrastructure district.
597 (33) "Taxable value" means the taxable value of property as computed from the most
598 recent equalized assessment roll for county purposes.
599 (34) "Tax and revenue anticipation bond" means a bond:
600 (a) issued in anticipation of the collection of taxes or other revenues or a combination
601 of taxes and other revenues; and
602 (b) that matures within the same fiscal year as the fiscal year in which the bond is
603 issued.
604 (35) "Unincorporated" means not included within a municipality.
605 (36) "Water conservancy district" means a local district that operates under and is
606 subject to the provisions of this chapter and Chapter 2a, Part 10, Water Conservancy District
607 Act, including an entity that was created and operated as a water conservancy district under the
608 law in effect before April 30, 2007.
609 (37) "Works" includes a dam, reservoir, well, canal, conduit, pipeline, drain, tunnel,
610 power plant, and any facility, improvement, or property necessary or convenient for supplying
611 or treating water for any beneficial use, and for otherwise accomplishing the purposes of a local
612 district.
613 Section 6. Section 17B-1-1102 is amended to read:
614 17B-1-1102. General obligation bonds.
615 (1) Except as provided in Subsection (3), if a district intends to issue general obligation
616 bonds, the district shall first obtain the approval of district voters for issuance of the bonds at
617 an election held for that purpose as provided in Title 11, Chapter 14, Local Government
618 Bonding Act.
619 (2) General obligation bonds shall be secured by a pledge of the full faith and credit of
620 the district, subject to:
621 (a) for a water conservancy district, the property tax levy limits of Section
622 17B-2a-1006; and
623 (b) for a limited tax bond as defined in Section [
624 infrastructure district issues, the property tax levy limits of Section [
625 (3) A district may issue refunding general obligation bonds, as provided in Title 11,
626 Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
627 (4) (a) A local district may not issue general obligation bonds if the issuance of the
628 bonds will cause the outstanding principal amount of all of the district's general obligation
629 bonds to exceed the amount that results from multiplying the fair market value of the taxable
630 property within the district, as determined under Subsection 11-14-301(3)(b), by a number that
631 is:
632 (i) .05, for a basic local district;
633 (ii) .004, for a cemetery maintenance district;
634 (iii) .002, for a drainage district;
635 (iv) .004, for a fire protection district;
636 (v) .024, for an improvement district;
637 (vi) .1, for an irrigation district;
638 (vii) .1, for a metropolitan water district;
639 (viii) .0004, for a mosquito abatement district;
640 (ix) .03, for a public transit district;
641 (x) .12, for a service area;
642 (xi) .05 for a municipal services district; or
643 (xii) except for a limited tax bond as defined in Section [
644 for a public infrastructure district.
645 (b) Bonds or other obligations of a local district that are not general obligation bonds
646 are not included in the limit stated in Subsection (4)(a).
647 (5) A district may not be considered to be a municipal corporation for purposes of the
648 debt limitation of the Utah Constitution, Article XIV, Section 4.
649 (6) Bonds issued by an administrative or legal entity created under Title 11, Chapter
650 13, Interlocal Cooperation Act, may not be considered to be bonds of a local district that
651 participates in the agreement creating the administrative or legal entity.
652 Section 7. Section 17D-4-101, which is renumbered from Section 17B-2a-1201 is
653 renumbered and amended to read:
654
655
656 [
657 This [
658 Section 8. Section 17D-4-102, which is renumbered from Section 17B-2a-1202 is
659 renumbered and amended to read:
660 [
661 As used in this [
662 (1) "Board" means the board of trustees of a public infrastructure district.
663 (2) "Creating entity" means the county, municipality, or development authority that
664 approves the creation of [
665 (3) "Development authority" means the military installation development authority
666 created in Section 63H-1-201.
667 (4) "District applicant" means the person proposing the creation of [
668 infrastructure district.
669 (5) "Division" means a division of a public infrastructure district:
670 (a) that is relatively equal in number of eligible voters or potential eligible voters to all
671 other divisions within the public infrastructure district, taking into account existing or potential
672 developments which, when completed, would increase or decrease the population within the
673 public infrastructure district; and
674 (b) which a member of the board represents.
675 (6) "Governing document" means the document governing [
676 district to which the creating entity agrees before the creation of the public infrastructure
677 district, as amended from time to time, and subject to the limitations of Title 17B, Chapter 1,
678 Provisions Applicable to All Local Districts, and this [
679 (7) (a) "Limited tax bond" means a bond:
680 (i) that is directly payable from and secured by ad valorem property taxes that are
681 levied:
682 (A) by [
683 (B) on taxable property within the district;
684 (ii) that is a general obligation of the public infrastructure district; and
685 (iii) for which the ad valorem property tax levy for repayment of the bond does not
686 exceed the property tax levy rate limit established under Section [
687 any fiscal year, except as provided in Subsection [
688 (b) "Limited tax bond" does not include:
689 (i) a short-term bond;
690 (ii) a tax and revenue anticipation bond; or
691 (iii) a special assessment bond.
692 Section 9. Section 17D-4-103, which is renumbered from Section 17B-2a-1203 is
693 renumbered and amended to read:
694 [
695 districts.
696 (1) Each public infrastructure district is governed by and has the powers stated in:
697 (a) this [
698 (b) Title 17B, Chapter 1, Provisions Applicable to All Local Districts.
699 (2) This [
700 [
701
702 [
703 Applicable to All Local Districts, and a provision in this [
704 [
705 Applicable to All Local Districts.
706 Section 10. Section 17D-4-201, which is renumbered from Section 17B-2a-1204 is
707 renumbered and amended to read:
708
709 [
710 property.
711 (1) (a) Except as provided in Subsection (1)(b), Subsection (2), and in addition to the
712 provisions regarding creation of a local district in Title 17B, Chapter 1, Provisions Applicable
713 to All Local Districts, a public infrastructure district may not be created unless:
714 (i) if there are any registered voters within the applicable area, a petition is filed with
715 the creating entity that contains the signatures of 100% of registered voters within the
716 applicable area approving the creation of the public infrastructure district; and
717 (ii) a petition is filed with the creating entity that contains the signatures of 100% of
718 surface property owners within the applicable area consenting to the creation of the public
719 infrastructure district.
720 (b) Notwithstanding Title 17B, Chapter 1, Part 2, Creation of a Local District, and any
721 other provision of this [
722 creating a public infrastructure district as a subsidiary of the development authority if all
723 owners of surface property proposed to be included within the public infrastructure district
724 consent in writing to the creation of the public infrastructure district.
725 (2) (a) The following do not apply to the creation of a public infrastructure district:
726 (i) Section 17B-1-203;
727 (ii) Section 17B-1-204;
728 (iii) Subsection 17B-1-208(2);
729 (iv) Section 17B-1-212; or
730 (v) Section 17B-1-214.
731 (b) The protest period described in Section 17B-1-213 may be waived in whole or in
732 part with the consent of:
733 (i) 100% of registered voters within the applicable area approving the creation of the
734 public infrastructure district; and
735 (ii) 100% of the surface property owners within the applicable area approving the
736 creation of the public infrastructure district.
737 (c) If the protest period is waived under Subsection (2)(b), a resolution approving the
738 creation of the public infrastructure district may be adopted in accordance with Subsection
739 17B-1-213(5).
740 (d) A petition meeting the requirements of Subsection (1):
741 (i) may be certified under Section 17B-1-209; and
742 (ii) shall be filed with the lieutenant governor in accordance with Subsection
743 17B-1-215(1)(b)(iii).
744 (3) (a) Notwithstanding Title 17B, Chapter 1, Part 4, Annexation, an area outside of the
745 boundaries of a public infrastructure district may be annexed into the public infrastructure
746 district after:
747 (i) (A) adoption of resolutions of the board and the creating entity, each approving of
748 the annexation; or
749 (B) adoption of a governing document that authorizes the board to annex an area
750 outside of the boundaries of the public infrastructure district without the consent of the creating
751 entity;
752 (ii) if there are any registered voters within the area proposed to be annexed, a petition
753 is filed with the creating entity that contains the signatures of 100% of registered voters within
754 the area [
755 into the public infrastructure district; and
756 (iii) a petition is filed with the creating entity that contains the signatures of 100% of
757 surface property owners within the area proposed to be annexed [
758 the surface property owners consent to the annexation into the public infrastructure district.
759 (b) Upon meeting the requirements of Subsection (3)(a), the board shall comply with
760 the resolution and filing requirements of Subsections 17B-1-414(1) and (2).
761 (4) (a) Notwithstanding Title 17B, Chapter 1, Part 5, Withdrawal, property may be
762 withdrawn from a public infrastructure district after:
763 (i) (A) adoption of resolutions of the board and the creating entity, each approving of
764 the withdrawal; or
765 (B) adoption of a governing document that authorizes the board to withdraw property
766 from the public infrastructure district without the consent of the creating entity;
767 (ii) if there are any registered voters within the area proposed to be withdrawn, a
768 petition is filed with the creating entity that contains the signatures of 100% of registered voters
769 within the area [
770 withdrawal from the public infrastructure district; and
771 (iii) a petition is filed with the creating entity that contains the signatures of 100% of
772 surface property owners within the area proposed to be withdrawn [
773 demonstrating that the surface property owners consent to the withdrawal from the public
774 infrastructure district.
775 (b) If any bonds that the public infrastructure district issues are allocable to the area to
776 be withdrawn remain unpaid at the time of the proposed withdrawal, the property remains
777 subject to any taxes, fees, or assessments that the public infrastructure district imposes until the
778 bonds or any associated refunding bonds are paid.
779 (c) Upon meeting the requirements of Subsections (4)(a) and (b), the board shall
780 comply with the requirements of Section 17B-1-512.
781 (5) [
782 infrastructure district through the governing document.
783 (6) (a) A public infrastructure district is separate and distinct from the creating entity.
784 (b) (i) Except as provided in Subsection (6)(b)(ii), any financial burden of a public
785 infrastructure district:
786 (A) is borne solely by the public infrastructure district; and
787 (B) is not borne by the creating entity, by the state, or by any municipality, county, or
788 other political subdivision.
789 (ii) Notwithstanding Subsection (6)(b)(i) and Section 17B-1-216, the governing
790 document may require:
791 (A) the district applicant to bear the initial costs of the public infrastructure district;
792 and
793 (B) the public infrastructure district to reimburse the district applicant for the initial
794 costs the creating entity bears.
795 (c) Any liability, judgment, or claim against a public infrastructure district:
796 (i) is the sole responsibility of the public infrastructure district; and
797 (ii) does not constitute a liability, judgment, or claim against the creating entity, the
798 state, or any municipality, county, or other political subdivision.
799 (d) (i) (A) The public infrastructure district solely bears the responsibility of any
800 collection, enforcement, or foreclosure proceeding with regard to any tax, fee, or assessment
801 the public infrastructure district imposes.
802 (B) The creating entity does not bear the responsibility described in Subsection
803 (6)(d)(i)(A).
804 (ii) A public infrastructure district, and not the creating entity, shall undertake the
805 enforcement responsibility described in, as applicable, Subsection (6)(d)(i) in accordance with
806 Title 59, Chapter 2, Property Tax Act, or Title 11, Chapter 42, Assessment Area Act.
807 (7) [
808 disapprove of the creation of a public infrastructure district, including:
809 (a) historical performance of the district applicant;
810 (b) compliance with the creating entity's master plan;
811 (c) credit worthiness of the district applicant;
812 (d) plan of finance of the public infrastructure district; and
813 (e) proposed development within the public infrastructure district.
814 (8) (a) The creation of a public infrastructure district is subject to the sole discretion of
815 the creating entity responsible for approving or rejecting the creation of the public
816 infrastructure district.
817 (b) The proposed creating entity bears no liability for rejecting the proposed creation of
818 a public infrastructure district.
819 Section 11. Section 17D-4-202, which is renumbered from Section 17B-2a-1205 is
820 renumbered and amended to read:
821 [
822 document.
823 (1) The legislative body or board of the creating entity shall appoint the members of the
824 board of a public infrastructure district, in accordance with the governing document.
825 (2) (a) Unless otherwise limited in the governing document and except as provided in
826 Subsection (2)(b), the initial term of each member of the board is four years.
827 (b) Notwithstanding Subsection (2)(a), approximately half of the members of the initial
828 board shall serve a six-year term so that, after the expiration of the initial term, the term of
829 approximately half the board members expires every two years.
830 (c) A board may elect that a majority of the board serve an initial term of six years.
831 (d) After the initial term, the term of each member of the board is four years.
832 (3) (a) Notwithstanding Subsection 17B-1-302(1)(b), a board member is not required
833 to be a resident within the boundaries of the public infrastructure district if:
834 (i) all of the surface property owners consent to the waiver of the residency
835 requirement;
836 (ii) there are no residents within the boundaries of the public infrastructure district;
837 (iii) no qualified candidate timely files to be considered for appointment to the board;
838 or
839 (iv) no qualified individual files a declaration of candidacy for a board position in
840 accordance with Subsection 17B-1-306(4).
841 (b) Except under the circumstances described in Subsection (3)(a)(iii) or (iv), the
842 residency requirement in Subsection 17B-1-302(1)(b) is applicable to any board member
843 elected for a division or board position that has transitioned from an appointed to an elected
844 board member in accordance with this section.
845 (c) An individual who is not a resident within the boundaries of the public
846 infrastructure district may not serve as a board member unless the individual is:
847 (i) an owner of land or an agent or officer of the owner of land within the boundaries of
848 the public infrastructure district; and
849 (ii) a registered voter at the individual's primary residence.
850 (4) (a) A governing document may provide for a transition from legislative body
851 appointment under Subsection (1) to a method of election by registered voters based upon
852 milestones or events that the governing document identifies, including a milestone for each
853 division or individual board position providing that when the milestone is reached:
854 (i) for a division, the registered voters of the division elect a member of the board in
855 place of an appointed member at the next municipal general election for the board position; or
856 (ii) for an at large board position established in the governing document, the registered
857 voters of the public infrastructure district elect a member of the board in place of an appointed
858 member at the next municipal general election for the board position.
859 (b) Regardless of whether a board member is elected under Subsection (4)(a), the
860 position of each remaining board member shall continue to be appointed under Subsection (1)
861 until the member's respective division or board position surpasses the density milestone
862 described in the governing document.
863 (5) (a) Subject to Subsection (5)(c), the board may, in the board's discretion but no
864 more frequently than every four years, reestablish the boundaries of each division so that each
865 division that has reached a milestone specified in the governing document, as described in
866 Subsection (4)(a), has, as nearly as possible, the same number of eligible voters.
867 (b) In reestablishing division boundaries under Subsection (5)(a), the board shall
868 consider existing or potential developments within the divisions [
869 would increase or decrease the number of eligible voters within the division.
870 (c) The governing document may prohibit the board from reestablishing, without the
871 consent of the creating entity, the division boundaries as described in Subsection (5)(a).
872 (6) [
873 member's service on the board under Section 17B-1-307 unless the board member is a resident
874 within the boundaries of the public infrastructure district.
875 (7) [
876 (a) include a boundary description and a map of the public infrastructure district;
877 (b) state the number of board members;
878 (c) describe any divisions of the public infrastructure district;
879 (d) establish any applicable property tax levy rate limit for the public infrastructure
880 district;
881 (e) establish any applicable limitation on the principal amount of indebtedness for the
882 public infrastructure district; and
883 (f) include other information that the public infrastructure district or the creating entity
884 determines to be necessary or advisable.
885 (8) (a) Except as provided in Subsection (8)(b), the board and the governing body of
886 the creating entity may amend a governing document by each adopting a resolution that
887 approves the amended governing document.
888 (b) Notwithstanding Subsection (8)(a), any amendment to a property tax levy rate
889 limitation requires the consent of:
890 (i) 100% of surface property owners within the boundaries of the public infrastructure
891 district; and
892 (ii) 100% of the registered voters, if any, within the boundaries of the public
893 infrastructure district.
894 (9) A board member is not in violation of Section 67-16-9 if the board member:
895 (a) discloses a business relationship in accordance with Sections 67-16-7 and 67-16-8
896 and files the disclosure with the creating entity:
897 (i) before any appointment or election; and
898 (ii) upon any significant change in the business relationship; and
899 (b) conducts the affairs of the public infrastructure district in accordance with this title
900 and any parameters described in the governing document.
901 (10) Notwithstanding any other provision of this section, the governing document
902 governs the number, appointment, and terms of board members of a public infrastructure
903 district created by the development authority.
904 Section 12. Section 17D-4-203, which is renumbered from Section 17B-2a-1206 is
905 renumbered and amended to read:
906 [
907 In addition to the powers conferred on a public infrastructure district under Section
908 17B-1-103, a public infrastructure district may:
909 (1) issue negotiable bonds to pay:
910 (a) all or part of the costs of acquiring, acquiring an interest in, improving, or extending
911 any of the improvements, facilities, or property allowed under Section 11-14-103;
912 (b) capital costs of improvements in an energy assessment area, as defined in Section
913 11-42a-102, and other related costs, against the funds that the public infrastructure district will
914 receive because of an assessment in an energy assessment area, as defined in Section
915 11-42a-102;
916 (c) public improvements related to the provision of housing;
917 (d) capital costs related to public transportation; and
918 (e) for a public infrastructure district created by the development authority, the cost of
919 acquiring or financing publicly owned infrastructure and improvements;
920 (2) enter into an interlocal agreement in accordance with Title 11, Chapter 13,
921 Interlocal Cooperation Act, provided that the interlocal agreement may not expand the powers
922 of the public infrastructure district, within the limitations of Title 11, Chapter 13, Interlocal
923 Cooperation Act, without the consent of the creating entity;
924 (3) acquire completed or partially completed improvements for fair market value as
925 reasonably determined by:
926 (a) the board;
927 (b) the creating entity, if required in the governing document; or
928 (c) a surveyor or engineer that a public infrastructure district employs or engages to
929 perform the necessary engineering services for and to supervise the construction or installation
930 of the improvements;
931 (4) contract with the creating entity for the creating entity to provide administrative
932 services on behalf of the public infrastructure district, when agreed to by both parties, in order
933 to achieve cost savings and economic efficiencies, at the discretion of the creating entity; and
934 (5) for a public infrastructure district created by a development authority:
935 (a) (i) operate and maintain publicly owned infrastructure and improvements the
936 district acquires or finances; and
937 (ii) use fees, assessments, or taxes to pay for the operation and maintenance of those
938 publicly owned infrastructure and improvements; and
939 (b) issue bonds under Title 11, Chapter 42, Assessment Area Act.
940 Section 13. Section 17D-4-204, which is renumbered from Section 17B-2a-1211 is
941 renumbered and amended to read:
942 [
943 (1) Notwithstanding [
944 entity and any other public entity, as applicable, retains all of the entity's authority over all
945 zoning, planning, design specifications and approvals, and permitting within the public
946 infrastructure district.
947 (2) The inclusion of property within the boundaries of a public infrastructure district
948 does not preclude the inclusion of the property within any other local district.
949 (3) (a) All infrastructure that is connected to another public entity's system:
950 (i) belongs to that public entity, regardless of inclusion within the boundaries of a
951 public infrastructure district, unless the public infrastructure district and the public entity
952 otherwise agree; and
953 (ii) shall comply with the design, inspection requirements, and other standards of the
954 public entity.
955 (b) [
956 described in Subsection (3)(a) free of liens or financial encumbrances to the public entity at no
957 cost to the public entity.
958 Section 14. Section 17D-4-205, which is renumbered from Section 17B-2a-1212 is
959 renumbered and amended to read:
960 [
961 A public infrastructure district shall file annual reports with the creating entity
962 regarding the public infrastructure district's actions as provided in the governing document.
963 Section 15. Section 17D-4-301, which is renumbered from Section 17B-2a-1207 is
964 renumbered and amended to read:
965
966
967 [
968 (1) A public infrastructure district may issue negotiable bonds for the purposes
969 described in Section 17B-2a-1206, as provided in, as applicable:
970 (a) Title 11, Chapter 14, Local Government Bonding Act;
971 (b) Title 11, Chapter 27, Utah Refunding Bond Act;
972 (c) Title 11, Chapter 42, Assessment Area Act; and
973 (d) this section.
974 (2) A public infrastructure district bond:
975 (a) shall mature within 40 years of the date of issuance; and
976 (b) may not be secured by any improvement or facility paid for by the public
977 infrastructure district.
978 (3) (a) A public infrastructure district may issue a limited tax bond, in the same manner
979 as a general obligation bond:
980 (i) with the consent of 100% of surface property owners within the boundaries of the
981 public infrastructure district and 100% of the registered voters, if any, within the boundaries of
982 the proposed public infrastructure district; or
983 (ii) upon approval of a majority of the registered voters within the boundaries of the
984 public infrastructure district voting in an election held for that purpose under Title 11, Chapter
985 14, Local Government Bonding Act.
986 (b) A limited tax bond described in Subsection (3)(a):
987 (i) is not subject to the limitation on a general obligation bond described in Subsection
988 17B-1-1102(4)(a)(xii); and
989 (ii) is subject to a limitation, if any, on the principal amount of indebtedness as
990 described in the governing document.
991 (c) Unless limited tax bonds are initially purchased exclusively by one or more
992 qualified institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, the public
993 infrastructure district may only issue limited tax bonds in denominations of not less than
994 $500,000, and in integral multiples above $500,000 of not less than $1,000 each.
995 (d) (i) Without any further election or consent of property owners or registered voters,
996 a public infrastructure district may convert a limited tax bond described in Subsection (3)(a) to
997 a general obligation bond if the principal amount of the related limited tax bond together with
998 the principal amount of other related outstanding general obligation bonds of the public
999 infrastructure district does not exceed 15% of the fair market value of taxable property in the
1000 public infrastructure district securing the general obligation bonds, determined by:
1001 (A) an appraisal from an appraiser who is a member of the Appraisal Institute that is
1002 addressed to the public infrastructure district or a financial institution; or
1003 (B) the most recent market value of the property from the assessor of the county in
1004 which the property is located.
1005 (ii) The consent to the issuance of a limited tax bond described in Subsection (3)(a) is
1006 sufficient to meet any statutory or constitutional election requirement necessary for the
1007 issuance of the limited tax bond and any general obligation bond to be issued in place of the
1008 limited tax bond upon meeting the requirements of this Subsection (3)(d).
1009 (iii) A general obligation bond resulting from a conversion of a limited tax bond under
1010 this Subsection (3)(d) is not subject to the limitation on general obligation bonds described in
1011 Subsection 17B-1-1102(4)(a)(xii).
1012 (e) A public infrastructure district that levies a property tax for payment of debt service
1013 on a limited tax bond issued under this section is not required to comply with the notice and
1014 hearing requirements of Section 59-2-919 unless the rate exceeds the rate established in:
1015 (i) Section [
1016 (ii) the governing document; or
1017 (iii) the documents relating to the issuance of the limited tax bond.
1018 (4) There is no limitation on the duration of revenues that a public infrastructure
1019 district may receive to cover any shortfall in the payment of principal of and interest on a bond
1020 that the public infrastructure district issues.
1021 (5) A public infrastructure district is not a municipal corporation for purposes of the
1022 debt limitation of Utah Constitution, Article XIV, Section 4.
1023 (6) The board may, by resolution, delegate to one or more officers of the public
1024 infrastructure district the authority to:
1025 (a) in accordance and within the parameters set forth in a resolution adopted in
1026 accordance with Section 11-14-302, approve the final interest rate, price, principal amount,
1027 maturity, redemption features, and other terms of the bond;
1028 (b) approve and execute any document relating to the issuance of a bond; and
1029 (c) approve any contract related to the acquisition and construction of the
1030 improvements, facilities, or property to be financed with a bond.
1031 (7) (a) Any person may contest the legality of the issuance of a public infrastructure
1032 district bond or any provisions for the security and payment of the bond for a period of 30 days
1033 after:
1034 (i) publication of the resolution authorizing the bond; or
1035 (ii) publication of a notice of bond containing substantially the items required under
1036 Subsection 11-14-316(2).
1037 (b) After the 30-day period described in Subsection (7)(a), no person may bring a
1038 lawsuit or other proceeding contesting the regularity, formality, or legality of the bond for any
1039 reason.
1040 (8) (a) In the event of any statutory change in the methodology of assessment or
1041 collection of property taxes in a manner that reduces the amounts which are devoted or pledged
1042 to the repayment of limited tax bonds, a public infrastructure district may charge a rate
1043 sufficient to receive the amount of property taxes or assessment the public infrastructure
1044 district would have received before the statutory change in order to pay the debt service on
1045 outstanding limited tax bonds.
1046 (b) The rate increase described in Subsection (8)(a) may exceed the limit described in
1047 Section 17B-2a-1209.
1048 (c) The public infrastructure district may charge the rate increase described in
1049 Subsection (8)(a) until the bonds, including any associated refunding bonds, or other securities,
1050 together with applicable interest, are fully met and discharged.
1051 Section 16. Section 17D-4-302, which is renumbered from Section 17B-2a-1208 is
1052 renumbered and amended to read:
1053 [
1054 A public infrastructure district may charge a fee or other charge for an administrative
1055 service that the public infrastructure district provides, to pay some or all of the public
1056 infrastructure district's:
1057 (1) costs of acquiring, improving, or extending improvements, facilities, or property; or
1058 (2) costs associated with the enforcement of a legal remedy.
1059 Section 17. Section 17D-4-303, which is renumbered from Section 17B-2a-1209 is
1060 renumbered and amended to read:
1061 [
1062 tax levy -- Notice requirements.
1063 (1) The property tax levy of a public infrastructure district, for all purposes, including
1064 payment of debt service on limited tax bonds, may not exceed .015 per dollar of taxable value
1065 of taxable property in the district.
1066 (2) The limitation described in Subsection (1) does not apply to the levy by the public
1067 infrastructure district to pay principal of and interest on a general obligation bond that the
1068 public infrastructure district issues.
1069 (3) (a) Within 30 days after the day on which the creating entity adopts the resolution
1070 creating the public infrastructure district, the board shall record a notice with the recorder of
1071 the county in which property within the public infrastructure district is located.
1072 (b) The notice described in Subsection (3)(a) shall:
1073 (i) contain a description of the boundaries of the public infrastructure district;
1074 (ii) state that a copy of the governing document is on file at the office of the creating
1075 entity;
1076 (iii) state that the public infrastructure district may finance and repay infrastructure and
1077 other improvements through the levy of a property tax; and
1078 (iv) state the maximum rate that the public infrastructure district may levy.
1079 Section 18. Section 17D-4-304, which is renumbered from Section 17B-2a-1210 is
1080 renumbered and amended to read:
1081 [
1082 In the event of nonpayment of any tax, fee, or charge that a public infrastructure district
1083 imposes, the public infrastructure district may impose a property tax penalty at an annual rate
1084 of .07, in addition to any other lawful penalty for nonpayment of property tax.
1085 Section 19. Section 17D-4-305, which is renumbered from Section 17B-2a-1213 is
1086 renumbered and amended to read:
1087 [
1088 Requirements -- Exclusive remedy -- Bonds, taxes, and fees incontestable.
1089 (1) A person who contests a tax or fee or any proceeding to create a public
1090 infrastructure district, levy a tax, or impose a fee may bring a civil action against the public
1091 infrastructure district or the creating entity to:
1092 (a) set aside the proceeding; or
1093 (b) enjoin the levy, imposition, or collection of a tax or fee.
1094 (2) The person bringing an action described in Subsection (1):
1095 (a) shall bring the action in the district court with jurisdiction in the county in which
1096 the public infrastructure district is located; and
1097 (b) may not bring the action against or serve a summons relating to the action on the
1098 public infrastructure district more than 30 days after the effective date of the:
1099 (i) creation of the public infrastructure district, if the challenge is to the creation of the
1100 public infrastructure district; or
1101 (ii) tax or fee, if the challenge is to a tax or fee.
1102 (3) An action under Subsection (1) is the exclusive remedy of a person who:
1103 (a) claims an error or irregularity in a tax or fee or in any proceeding to create a public
1104 infrastructure district, levy a tax, or impose a fee; or
1105 (b) challenges a bondholder's right to repayment.
1106 (4) After the expiration of the 30-day period described in Subsection (2)(b):
1107 (a) a bond issued or to be issued with respect to a public infrastructure district and any
1108 tax levied or fee imposed becomes incontestable against any person who has not brought an
1109 action and served a summons in accordance with this section;
1110 (b) a person may not bring a suit to:
1111 (i) enjoin the issuance or payment of a bond or the levy, imposition, collection, or
1112 enforcement of a tax or fee; or
1113 (ii) attack or question in any way the legality of a bond, tax, or fee; and
1114 (c) a court may not inquire into the matters described in Subsection (4)(b).
1115 (5) (a) This section does not insulate a public infrastructure district from a claim of
1116 misuse of funds after the expiration of the 30-day period described in Subsection (2)(b).
1117 (b) (i) Except as provided in Subsection (5)(b)(ii), an action in the nature of mandamus
1118 is the sole form of relief available to a party challenging the misuse of funds.
1119 (ii) The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal
1120 charges against or the prosecution of a party for the misuse of funds.
1121 Section 20. Section 59-2-1317 is amended to read:
1122 59-2-1317. Tax notice -- Contents of notice -- Procedures and requirements for
1123 providing notice.
1124 (1) As used in this section, "political subdivision lien" means the same as that term is
1125 defined in Section 11-60-102.
1126 (2) Subject to the other provisions of this section, the county treasurer shall:
1127 (a) collect the taxes and tax notice charges; and
1128 (b) provide a notice to each taxpayer that contains the following:
1129 (i) the kind and value of property assessed to the taxpayer;
1130 (ii) the street address of the property, if available to the county;
1131 (iii) that the property may be subject to a detailed review in the next year under Section
1132 59-2-303.1;
1133 (iv) the amount of taxes levied;
1134 (v) a separate statement of the taxes levied only on a certain kind or class of property
1135 for a special purpose;
1136 (vi) property tax information pertaining to taxpayer relief, options for payment of
1137 taxes, and collection procedures;
1138 (vii) any tax notice charges applicable to the property, including:
1139 (A) if applicable, a political subdivision lien for road damage that a railroad company
1140 causes, as described in Section 10-7-30;
1141 (B) if applicable, a political subdivision lien for municipal water distribution, as
1142 described in Section 10-8-17, or a political subdivision lien for an increase in supply from a
1143 municipal water distribution, as described in Section 10-8-19;
1144 (C) if applicable, a political subdivision lien for unpaid abatement fees as described in
1145 Section 10-11-4;
1146 (D) if applicable, a political subdivision lien for the unpaid portion of an assessment
1147 assessed in accordance with Title 11, Chapter 42, Assessment Area Act, or Title 11, Chapter
1148 42a, Commercial Property Assessed Clean Energy Act, including unpaid costs, charges, and
1149 interest as of the date the local entity certifies the unpaid amount to the county treasurer;
1150 (E) if applicable, for a local district in accordance with Section 17B-1-902, a political
1151 subdivision lien for an unpaid fee, administrative cost, or interest;
1152 (F) if applicable, a political subdivision lien for an unpaid irrigation district use charge
1153 as described in Section 17B-2a-506;
1154 (G) if applicable, a political subdivision lien for a contract assessment under a water
1155 contract, as described in Section 17B-2a-1007; and
1156 (H) if applicable, a property tax penalty that a public infrastructure district imposes, as
1157 described in Section [
1158 (viii) if a county's tax notice includes an assessment area charge, a statement that, due
1159 to potentially ongoing assessment area charges, costs, penalties, and interest, payment of a tax
1160 notice charge may not:
1161 (A) pay off the full amount the property owner owes to the tax notice entity; or
1162 (B) cause a release of the lien underlying the tax notice charge;
1163 (ix) the date the taxes and tax notice charges are due;
1164 (x) the street address at which the taxes and tax notice charges may be paid;
1165 (xi) the date on which the taxes and tax notice charges are delinquent;
1166 (xii) the penalty imposed on delinquent taxes and tax notice charges;
1167 (xiii) a statement that explains the taxpayer's right to direct allocation of a partial
1168 payment in accordance with Subsection (9);
1169 (xiv) other information specifically authorized to be included on the notice under this
1170 chapter; and
1171 (xv) other property tax information approved by the commission.
1172 (3) (a) Unless expressly allowed under this section or another statutory provision, the
1173 treasurer may not add an amount to be collected to the property tax notice.
1174 (b) If the county treasurer adds an amount to be collected to the property tax notice
1175 under this section or another statutory provision that expressly authorizes the item's inclusion
1176 on the property tax notice:
1177 (i) the amount constitutes a tax notice charge; and
1178 (ii) (A) the tax notice charge has the same priority as property tax; and
1179 (B) a delinquency of the tax notice charge triggers a tax sale, in accordance with
1180 Section 59-2-1343.
1181 (4) For any property for which property taxes or tax notice charges are delinquent, the
1182 notice described in Subsection (2) shall state, "Prior taxes or tax notice charges are delinquent
1183 on this parcel."
1184 (5) Except as provided in Subsection (6), the county treasurer shall:
1185 (a) mail the notice required by this section, postage prepaid; or
1186 (b) leave the notice required by this section at the taxpayer's residence or usual place of
1187 business, if known.
1188 (6) (a) Subject to the other provisions of this Subsection (6), a county treasurer may, at
1189 the county treasurer's discretion, provide the notice required by this section by electronic mail if
1190 a taxpayer makes an election, according to procedures determined by the county treasurer, to
1191 receive the notice by electronic mail.
1192 (b) A taxpayer may revoke an election to receive the notice required by this section by
1193 electronic mail if the taxpayer provides written notice to the treasurer on or before October 1.
1194 (c) A revocation of an election under this section does not relieve a taxpayer of the
1195 duty to pay a tax or tax notice charge due under this chapter on or before the due date for
1196 paying the tax or tax notice charge.
1197 (d) A county treasurer shall provide the notice required by this section using a method
1198 described in Subsection (5), until a taxpayer makes a new election in accordance with this
1199 Subsection (6), if:
1200 (i) the taxpayer revokes an election in accordance with Subsection (6)(b) to receive the
1201 notice required by this section by electronic mail; or
1202 (ii) the county treasurer finds that the taxpayer's electronic mail address is invalid.
1203 (e) A person is considered to be a taxpayer for purposes of this Subsection (6)
1204 regardless of whether the property that is the subject of the notice required by this section is
1205 exempt from taxation.
1206 (7) (a) The county treasurer shall provide the notice required by this section to a
1207 taxpayer on or before November 1.
1208 (b) The county treasurer shall keep on file in the county treasurer's office the
1209 information set forth in the notice.
1210 (c) The county treasurer is not required to mail a tax receipt acknowledging payment.
1211 (8) This section does not apply to property taxed under Section 59-2-1302 or
1212 59-2-1307.
1213 (9) (a) A taxpayer who pays less than the full amount due on the taxpayer's property tax
1214 notice may, on a form provided by the county treasurer, direct how the county treasurer
1215 allocates the partial payment between:
1216 (i) the total amount due for property tax;
1217 (ii) the amount due for assessments, past due local district fees, and other tax notice
1218 charges; and
1219 (iii) any other amounts due on the property tax notice.
1220 (b) The county treasurer shall comply with a direction submitted to the county treasurer
1221 in accordance with Subsection (9)(a).
1222 (c) The provisions of this Subsection (9) do not:
1223 (i) affect the right or ability of a local entity to pursue any available remedy for
1224 non-payment of any item listed on a taxpayer's property tax notice; or
1225 (ii) toll or otherwise change any time period related to a remedy described in
1226 Subsection (9)(c)(i).
1227 Section 21. Section 63H-1-102 is amended to read:
1228 63H-1-102. Definitions.
1229 As used in this chapter:
1230 (1) "Authority" means the Military Installation Development Authority, created under
1231 Section 63H-1-201.
1232 (2) "Base taxable value" means:
1233 (a) for military land or other land that was exempt from a property tax at the time that a
1234 project area was created that included the military land or other land, a taxable value of zero; or
1235 (b) for private property that is included in a project area, the taxable value of the
1236 property within any portion of the project area, as designated by board resolution, from which
1237 the property tax allocation will be collected, as shown upon the assessment roll last equalized:
1238 (i) before the year in which the authority creates the project area; or
1239 (ii) before the year in which the project area plan is amended, for property added to a
1240 project area by an amendment to a project area plan.
1241 (3) "Board" means the governing body of the authority created under Section
1242 63H-1-301.
1243 (4) (a) "Dedicated tax collections" means the property tax that remains after the
1244 authority is paid the property tax allocation the authority is entitled to receive under Subsection
1245 63H-1-501(1), for a property tax levied by:
1246 (i) a county, including a district the county has established under Subsection 17-34-3(2)
1247 to levy a property tax under Title 17, Chapter 34, Municipal-Type Services to Unincorporated
1248 Areas; or
1249 (ii) an included municipality.
1250 (b) "Dedicated tax collections" does not include a county additional property tax or
1251 multicounty assessing and collecting levy imposed in accordance with Section 59-2-1602.
1252 (5) (a) "Development" means an activity occurring:
1253 (i) on land within a project area that is owned or operated by the military, the authority,
1254 another public entity, or a private entity; or
1255 (ii) on military land associated with a project area.
1256 (b) "Development" includes the demolition, construction, reconstruction, modification,
1257 expansion, or improvement of a building, facility, utility, landscape, parking lot, park, trail, or
1258 recreational amenity.
1259 (6) "Development project" means a project to develop land within a project area.
1260 (7) "Elected member" means a member of the authority board who:
1261 (a) is a mayor or member of a legislative body appointed under Subsection
1262 63H-1-302(2)(b); or
1263 (b) (i) is appointed to the authority board under Subsection 63H-1-302(2)(a) or (3); and
1264 (ii) concurrently serves in an elected state, county, or municipal office.
1265 (8) "Included municipality" means a municipality, some or all of which is included
1266 within a project area.
1267 (9) (a) "Military" means a branch of the armed forces of the United States, including
1268 the Utah National Guard.
1269 (b) "Military" includes, in relation to property, property that is occupied by the military
1270 and is owned by the government of the United States or the state.
1271 (10) "Military Installation Development Authority accommodations tax" or "MIDA
1272 accommodations tax" means the tax imposed under Section 63H-1-205.
1273 (11) "Military Installation Development Authority energy tax" or "MIDA energy tax"
1274 means the tax levied under Section 63H-1-204.
1275 (12) "Military land" means land or a facility, including leased land or a leased facility,
1276 that is part of or affiliated with a base, camp, post, station, yard, center, or installation under the
1277 jurisdiction of the United States Department of Defense, the United States Department of
1278 Veterans Affairs, or the Utah National Guard.
1279 (13) "Municipal energy tax" means a municipal energy sales and use tax under Title
1280 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act.
1281 (14) "Municipal services revenue" means revenue that the authority:
1282 (a) collects from the authority's:
1283 (i) levy of a municipal energy tax;
1284 (ii) levy of a MIDA energy tax;
1285 (iii) levy of a telecommunications tax;
1286 (iv) imposition of a transient room tax; and
1287 (v) imposition of a resort communities tax;
1288 (b) receives under Subsection 59-12-205(2)(b)(ii); and
1289 (c) receives as dedicated tax collections.
1290 (15) "Municipal tax" means a municipal energy tax, MIDA energy tax, MIDA
1291 accommodations tax, telecommunications tax, transient room tax, or resort communities tax.
1292 (16) "Project area" means the land, including military land, whether consisting of a
1293 single contiguous area or multiple noncontiguous areas, described in a project area plan or draft
1294 project area plan, where the development project set forth in the project area plan or draft
1295 project area plan takes place or is proposed to take place.
1296 (17) "Project area budget" means a multiyear projection of annual or cumulative
1297 revenues and expenses and other fiscal matters pertaining to a project area that includes:
1298 (a) the base taxable value of property in the project area;
1299 (b) the projected property tax allocation expected to be generated within the project
1300 area;
1301 (c) the amount of the property tax allocation expected to be shared with other taxing
1302 entities;
1303 (d) the amount of the property tax allocation expected to be used to implement the
1304 project area plan, including the estimated amount of the property tax allocation to be used for
1305 land acquisition, public improvements, infrastructure improvements, and loans, grants, or other
1306 incentives to private and public entities;
1307 (e) the property tax allocation expected to be used to cover the cost of administering
1308 the project area plan;
1309 (f) if the property tax allocation is to be collected at different times or from different
1310 portions of the project area, or both:
1311 (i) (A) the tax identification numbers of the parcels from which the property tax
1312 allocation will be collected; or
1313 (B) a legal description of the portion of the project area from which the property tax
1314 allocation will be collected; and
1315 (ii) an estimate of when other portions of the project area will become subject to
1316 collection of the property tax allocation; and
1317 (g) for property that the authority owns or leases and expects to sell or sublease, the
1318 expected total cost of the property to the authority and the expected selling price or lease
1319 payments.
1320 (18) "Project area plan" means a written plan that, after the plan's effective date, guides
1321 and controls the development within a project area.
1322 (19) (a) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4,
1323 Privilege Tax, except as described in Subsection (19)(b), and each levy on an ad valorem basis
1324 on tangible or intangible personal or real property.
1325 (b) "Property tax" does not include a privilege tax on the taxable value:
1326 (i) attributable to a portion of a facility leased to the military for a calendar year when:
1327 (A) a lessee of military land has constructed a facility on the military land that is part of
1328 a project area;
1329 (B) the lessee leases space in the facility to the military for the entire calendar year; and
1330 (C) the lease rate paid by the military for the space is $1 or less for the entire calendar
1331 year, not including any common charges that are reimbursements for actual expenses; or
1332 (ii) of the following property owned by the authority, regardless of whether the
1333 authority enters into a long-term operating agreement with a privately owned entity under
1334 which the privately owned entity agrees to operate the property:
1335 (A) a hotel;
1336 (B) a hotel condominium unit in a condominium project, as defined in Section 57-8-3;
1337 and
1338 (C) a commercial condominium unit in a condominium project, as defined in Section
1339 57-8-3.
1340 (20) "Property tax allocation" means the difference between:
1341 (a) the amount of property tax revenues generated each tax year by all taxing entities
1342 from the area within a project area designated in the project area plan as the area from which
1343 the property tax allocation is to be collected, using the current assessed value of the property;
1344 and
1345 (b) the amount of property tax revenues that would be generated from that same area
1346 using the base taxable value of the property.
1347 (21) "Public entity" means:
1348 (a) the state, including each department or agency of the state; or
1349 (b) a political subdivision of the state, including a county, city, town, school district,
1350 local district, special service district, or interlocal cooperation entity.
1351 (22) (a) "Publicly owned infrastructure and improvements" means infrastructure,
1352 improvements, facilities, or buildings that benefit the public, the authority, the military, or
1353 military-related entities and are:
1354 (i) publicly owned by the military, the authority, a public infrastructure district under
1355 [
1356 another public entity;
1357 (ii) owned by a utility; or
1358 (iii) publicly maintained or operated by the military, the authority, or another public
1359 entity.
1360 (b) "Publicly owned infrastructure and improvements" includes:
1361 (i) facilities, lines, or systems that harness geothermal energy or provide water, chilled
1362 water, steam, sewer, storm drainage, natural gas, electricity, or telecommunications;
1363 (ii) streets, roads, curb, gutter, sidewalk, walkways, solid waste facilities, parking
1364 facilities, public transportation facilities, and parks, trails, and other recreational facilities;
1365 (iii) snowmaking equipment and related improvements that can also be used for water
1366 storage or fire suppression purposes; and
1367 (iv) a building and related improvements for occupancy by the public, the authority, the
1368 military, or military-related entities.
1369 (23) "Remaining municipal services revenue" means municipal services revenue that
1370 the authority has not:
1371 (a) spent during the authority's fiscal year for municipal services as provided in
1372 Subsection 63H-1-503(1); or
1373 (b) redirected to use in accordance with Subsection 63H-1-502(3).
1374 (24) "Resort communities tax" means a sales and use tax imposed under Section
1375 59-12-401.
1376 (25) "Taxable value" means the value of property as shown on the last equalized
1377 assessment roll.
1378 (26) "Taxing entity":
1379 (a) means a public entity that levies a tax on property within a project area; and
1380 (b) does not include a public infrastructure district that the authority creates under
1381 [
1382 (27) "Telecommunications tax" means a telecommunications license tax under Title
1383 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act.
1384 (28) "Transient room tax" means a tax under Section 59-12-352.