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7 LONG TITLE
8 General Description:
9 This bill amends Title 17C, Limited Purpose Local Government Entities - Community
10 Reinvestment Agency Act.
11 Highlighted Provisions:
12 This bill:
13 ▸ defines terms;
14 ▸ provides an option for an agency and certain taxing entities to enter into an
15 interlocal agreement for the purpose of dissolving the agency's project area and
16 transferring project area incremental revenue;
17 ▸ for an agency that chooses to enter into an interlocal agreement:
18 • authorizes the agency to levy a property tax on property within the agency's
19 boundaries;
20 • prohibits the agency from extending the scope of certain project area plans or
21 project area budgets;
22 • allows the agency to use property tax revenue for agency-wide project
23 development;
24 • requires the agency to adopt an implementation plan to guide agency-wide
25 project development;
26 • requires the agency to allocate a certain amount of property tax revenue for
27 affordable housing;
28 • prohibits the agency from creating a new community reinvestment project area
29 unless the purpose is for a cooperative development project or an economic
30 development project;
31 • describes the method by which an agency's certified tax rate is calculated;
32 • prohibits the agency from using eminent domain for agency-wide project
33 development; and
34 • describes how the agency accounts for property tax revenue; and
35 ▸ makes technical and conforming changes.
36 Money Appropriated in this Bill:
37 None
38 Other Special Clauses:
39 None
40 Utah Code Sections Affected:
41 AMENDS:
42 17C-1-102, as last amended by Laws of Utah 2020, Chapter 241
43 17C-1-202, as last amended by Laws of Utah 2018, Chapters 364 and 366
44 17C-1-402, as last amended by Laws of Utah 2019, Chapter 376
45 17C-1-409, as last amended by Laws of Utah 2019, Chapter 376
46 17C-1-502, as last amended by Laws of Utah 2016, Chapter 350
47 17C-1-605, as last amended by Laws of Utah 2016, Chapter 350
48 17C-2-110, as last amended by Laws of Utah 2019, Chapter 376
49 17C-2-206, as last amended by Laws of Utah 2016, Chapter 350
50 17C-2-207, as last amended by Laws of Utah 2020, Chapter 385
51 17C-3-109, as last amended by Laws of Utah 2018, Chapter 364
52 17C-3-205, as last amended by Laws of Utah 2016, Chapter 350
53 17C-3-206, as last amended by Laws of Utah 2016, Chapter 350
54 17C-4-108, as last amended by Laws of Utah 2018, Chapter 364
55 17C-5-102, as enacted by Laws of Utah 2016, Chapter 350
56 17C-5-112, as last amended by Laws of Utah 2019, Chapter 376
57 17C-5-306, as last amended by Laws of Utah 2017, Chapter 456
58 53G-7-306, as last amended by Laws of Utah 2020, Chapters 354 and 408
59 59-2-924, as last amended by Laws of Utah 2020, Chapters 305 and 354
60 ENACTS:
61 17C-1-1001, Utah Code Annotated 1953
62 17C-1-1002, Utah Code Annotated 1953
63 17C-1-1003, Utah Code Annotated 1953
64 17C-1-1004, Utah Code Annotated 1953
65 17C-1-1005, Utah Code Annotated 1953
66
67 Be it enacted by the Legislature of the state of Utah:
68 Section 1. Section 17C-1-102 is amended to read:
69 17C-1-102. Definitions.
70 As used in this title:
71 (1) "Active project area" means a project area that has not been dissolved in accordance
72 with Section 17C-1-702.
73 (2) "Adjusted tax increment" means the percentage of tax increment, if less than 100%,
74 that an agency is authorized to receive :
75 (a) for a pre-July 1, 1993, project area plan, under Section 17C-1-403, excluding tax
76 increment under Subsection 17C-1-403(3);
77 (b) for a post-June 30, 1993, project area plan, under Section 17C-1-404, excluding tax
78 increment under Section 17C-1-406;
79 (c) under a project area budget approved by a taxing entity committee; or
80 (d) under an interlocal agreement that authorizes the agency to receive a taxing entity's
81 tax increment.
82 (3) "Affordable housing" means housing owned or occupied by a low or moderate
83 income family, as determined by resolution of the agency.
84 (4) "Agency" or "community reinvestment agency" means a separate body corporate
85 and politic, created under Section 17C-1-201.5 or as a redevelopment agency or community
86 development and renewal agency under previous law:
87 (a) that is a political subdivision of the state;
88 (b) that is created to undertake or promote project area development as provided in this
89 title; and
90 (c) whose geographic boundaries are coterminous with:
91 (i) for an agency created by a county, the unincorporated area of the county; and
92 (ii) for an agency created by a municipality, the boundaries of the municipality.
93 (5) "Agency funds" means money that an agency collects or receives for agency
94 operations, implementing a project area plan or an implementation plan as defined in Section
95 17C-1-1001, or other agency purposes, including:
96 (a) project area funds;
97 (b) income, proceeds, revenue, or property derived from or held in connection with the
98 agency's undertaking and implementation of project area development or agency-wide project
99 development as defined in Section 17C-1-1001; [
100 (c) a contribution, loan, grant, or other financial assistance from any public or private
101 source[
102 (d) project area incremental revenue as defined in Section 17C-1-1001; or
103 (e) property tax revenue as defined in Section 17C-1-1001.
104 (6) "Annual income" means the same as that term is defined in regulations of the
105 United States Department of Housing and Urban Development, 24 C.F.R. Sec. 5.609, as
106 amended or as superseded by replacement regulations.
107 (7) "Assessment roll" means the same as that term is defined in Section 59-2-102.
108 (8) "Base taxable value" means, unless otherwise adjusted in accordance with
109 provisions of this title, a property's taxable value as shown upon the assessment roll last
110 equalized during the base year.
111 (9) "Base year" means, except as provided in Subsection 17C-1-402(4)(c), the year
112 during which the assessment roll is last equalized:
113 (a) for a pre-July 1, 1993, urban renewal or economic development project area plan,
114 before the project area plan's effective date;
115 (b) for a post-June 30, 1993, urban renewal or economic development project area
116 plan, or a community reinvestment project area plan that is subject to a taxing entity
117 committee:
118 (i) before the date on which the taxing entity committee approves the project area
119 budget; or
120 (ii) if taxing entity committee approval is not required for the project area budget,
121 before the date on which the community legislative body adopts the project area plan;
122 (c) for a project on an inactive airport site, after the later of:
123 (i) the date on which the inactive airport site is sold for remediation and development;
124 or
125 (ii) the date on which the airport that operated on the inactive airport site ceased
126 operations; or
127 (d) for a community development project area plan or a community reinvestment
128 project area plan that is subject to an interlocal agreement, as described in the interlocal
129 agreement.
130 (10) "Basic levy" means the portion of a school district's tax levy constituting the
131 minimum basic levy under Section 59-2-902.
132 (11) "Board" means the governing body of an agency, as described in Section
133 17C-1-203.
134 (12) "Budget hearing" means the public hearing on a proposed project area budget
135 required under Subsection 17C-2-201(2)(d) for an urban renewal project area budget,
136 Subsection 17C-3-201(2)(d) for an economic development project area budget, or Subsection
137 17C-5-302(2)(e) for a community reinvestment project area budget.
138 (13) "Closed military base" means land within a former military base that the Defense
139 Base Closure and Realignment Commission has voted to close or realign when that action has
140 been sustained by the president of the United States and Congress.
141 (14) "Combined incremental value" means the combined total of all incremental values
142 from all project areas, except project areas that contain some or all of a military installation or
143 inactive industrial site, within the agency's boundaries under project area plans and project area
144 budgets at the time that a project area budget for a new project area is being considered.
145 (15) "Community" means a county or municipality.
146 (16) "Community development project area plan" means a project area plan adopted
147 under Chapter 4, Part 1, Community Development Project Area Plan.
148 (17) "Community legislative body" means the legislative body of the community that
149 created the agency.
150 (18) "Community reinvestment project area plan" means a project area plan adopted
151 under Chapter 5, Part 1, Community Reinvestment Project Area Plan.
152 (19) "Contest" means to file a written complaint in the district court of the county in
153 which the agency is located.
154 (20) "Development impediment" means a condition of an area that meets the
155 requirements described in Section 17C-2-303 for an urban renewal project area or Section
156 17C-5-405 for a community reinvestment project area.
157 (21) "Development impediment hearing" means a public hearing regarding whether a
158 development impediment exists within a proposed:
159 (a) urban renewal project area under Subsection 17C-2-102(1)(a)(i)(C) and Section
160 17C-2-302; or
161 (b) community reinvestment project area under Section 17C-5-404.
162 (22) "Development impediment study" means a study to determine whether a
163 development impediment exists within a survey area as described in Section 17C-2-301 for an
164 urban renewal project area or Section 17C-5-403 for a community reinvestment project area.
165 (23) "Economic development project area plan" means a project area plan adopted
166 under Chapter 3, Part 1, Economic Development Project Area Plan.
167 (24) "Fair share ratio" means the ratio derived by:
168 (a) for a municipality, comparing the percentage of all housing units within the
169 municipality that are publicly subsidized income targeted housing units to the percentage of all
170 housing units within the county in which the municipality is located that are publicly
171 subsidized income targeted housing units; or
172 (b) for the unincorporated part of a county, comparing the percentage of all housing
173 units within the unincorporated county that are publicly subsidized income targeted housing
174 units to the percentage of all housing units within the whole county that are publicly subsidized
175 income targeted housing units.
176 (25) "Family" means the same as that term is defined in regulations of the United
177 States Department of Housing and Urban Development, 24 C.F.R. Section 5.403, as amended
178 or as superseded by replacement regulations.
179 (26) "Greenfield" means land not developed beyond agricultural, range, or forestry use.
180 (27) "Hazardous waste" means any substance defined, regulated, or listed as a
181 hazardous substance, hazardous material, hazardous waste, toxic waste, pollutant, contaminant,
182 or toxic substance, or identified as hazardous to human health or the environment, under state
183 or federal law or regulation.
184 (28) "Housing allocation" means project area funds allocated for housing under Section
185 17C-2-203, 17C-3-202, or 17C-5-307 for the purposes described in Section 17C-1-412.
186 (29) "Housing fund" means a fund created by an agency for purposes described in
187 Section 17C-1-411 or 17C-1-412 that is comprised of:
188 (a) project area funds, project area incremental revenue as defined in Section
189 17C-1-1001, or property tax revenue as defined in Section 17C-1-1001 allocated for the
190 purposes described in Section 17C-1-411; or
191 (b) an agency's housing allocation.
192 (30) (a) "Inactive airport site" means land that:
193 (i) consists of at least 100 acres;
194 (ii) is occupied by an airport:
195 (A) (I) that is no longer in operation as an airport; or
196 (II) (Aa) that is scheduled to be decommissioned; and
197 (Bb) for which a replacement commercial service airport is under construction; and
198 (B) that is owned or was formerly owned and operated by a public entity; and
199 (iii) requires remediation because:
200 (A) of the presence of hazardous waste or solid waste; or
201 (B) the site lacks sufficient public infrastructure and facilities, including public roads,
202 electric service, water system, and sewer system, needed to support development of the site.
203 (b) "Inactive airport site" includes a perimeter of up to 2,500 feet around the land
204 described in Subsection (30)(a).
205 (31) (a) "Inactive industrial site" means land that:
206 (i) consists of at least 1,000 acres;
207 (ii) is occupied by an inactive or abandoned factory, smelter, or other heavy industrial
208 facility; and
209 (iii) requires remediation because of the presence of hazardous waste or solid waste.
210 (b) "Inactive industrial site" includes a perimeter of up to 1,500 feet around the land
211 described in Subsection (31)(a).
212 (32) "Income targeted housing" means housing that is owned or occupied by a family
213 whose annual income is at or below 80% of the median annual income for a family within the
214 county in which the housing is located.
215 (33) "Incremental value" means a figure derived by multiplying the marginal value of
216 the property located within a project area on which tax increment is collected by a number that
217 represents the adjusted tax increment from that project area that is paid to the agency.
218 (34) "Loan fund board" means the Olene Walker Housing Loan Fund Board,
219 established under Title 35A, Chapter 8, Part 5, Olene Walker Housing Loan Fund.
220 (35) (a) " Local government building" means a building owned and operated by a
221 community for the primary purpose of providing one or more primary community functions,
222 including:
223 (i) a fire station;
224 (ii) a police station;
225 (iii) a city hall; or
226 (iv) a court or other judicial building.
227 (b) " Local government building" does not include a building the primary purpose of
228 which is cultural or recreational in nature.
229 (36) "Major transit investment corridor" means the same as that term is defined in
230 Section 10-9a-103.
231 (37) "Marginal value" means the difference between actual taxable value and base
232 taxable value.
233 (38) "Military installation project area" means a project area or a portion of a project
234 area located within a federal military installation ordered closed by the federal Defense Base
235 Realignment and Closure Commission.
236 (39) "Municipality" means a city, town, or metro township as defined in Section
237 10-2a-403.
238 (40) "Participant" means one or more persons that enter into a participation agreement
239 with an agency.
240 (41) "Participation agreement" means a written agreement between a person and an
241 agency that:
242 (a) includes a description of:
243 (i) the project area development that the person will undertake;
244 (ii) the amount of project area funds the person may receive; and
245 (iii) the terms and conditions under which the person may receive project area funds;
246 and
247 (b) is approved by resolution of the board.
248 (42) "Plan hearing" means the public hearing on a proposed project area plan required
249 under Subsection 17C-2-102(1)(a)(vi) for an urban renewal project area plan, Subsection
250 17C-3-102(1)(d) for an economic development project area plan, Subsection 17C-4-102(1)(d)
251 for a community development project area plan, or Subsection 17C-5-104(3)(e) for a
252 community reinvestment project area plan.
253 (43) "Post-June 30, 1993, project area plan" means a project area plan adopted on or
254 after July 1, 1993, and before May 10, 2016, whether or not amended subsequent to the project
255 area plan's adoption.
256 (44) "Pre-July 1, 1993, project area plan" means a project area plan adopted before July
257 1, 1993, whether or not amended subsequent to the project area plan's adoption.
258 (45) "Private," with respect to real property, means property not owned by a public
259 entity or any other governmental entity.
260 (46) "Project area" means the geographic area described in a project area plan within
261 which the project area development described in the project area plan takes place or is
262 proposed to take place.
263 (47) "Project area budget" means a multiyear projection of annual or cumulative
264 revenues and expenses and other fiscal matters pertaining to a project area prepared in
265 accordance with:
266 (a) for an urban renewal project area, Section 17C-2-201;
267 (b) for an economic development project area, Section 17C-3-201;
268 (c) for a community development project area, Section 17C-4-204; or
269 (d) for a community reinvestment project area, Section 17C-5-302.
270 (48) "Project area development" means activity within a project area that, as
271 determined by the board, encourages, promotes, or provides development or redevelopment for
272 the purpose of implementing a project area plan, including:
273 (a) promoting, creating, or retaining public or private jobs within the state or a
274 community;
275 (b) providing office, manufacturing, warehousing, distribution, parking, or other
276 facilities or improvements;
277 (c) planning, designing, demolishing, clearing, constructing, rehabilitating, or
278 remediating environmental issues;
279 (d) providing residential, commercial, industrial, public, or other structures or spaces,
280 including recreational and other facilities incidental or appurtenant to the structures or spaces;
281 (e) altering, improving, modernizing, demolishing, reconstructing, or rehabilitating
282 existing structures;
283 (f) providing open space, including streets or other public grounds or space around
284 buildings;
285 (g) providing public or private buildings, infrastructure, structures, or improvements;
286 (h) relocating a business;
287 (i) improving public or private recreation areas or other public grounds;
288 (j) eliminating a development impediment or the causes of a development impediment;
289 (k) redevelopment as defined under the law in effect before May 1, 2006; or
290 (l) any activity described in this Subsection (48) outside of a project area that the board
291 determines to be a benefit to the project area.
292 (49) "Project area funds" means tax increment or sales and use tax revenue that an
293 agency receives under a project area budget adopted by a taxing entity committee or an
294 interlocal agreement.
295 (50) "Project area funds collection period" means the period of time that:
296 (a) begins the day on which the first payment of project area funds is distributed to an
297 agency under a project area budget approved by a taxing entity committee or an interlocal
298 agreement; and
299 (b) ends the day on which the last payment of project area funds is distributed to an
300 agency under a project area budget approved by a taxing entity committee or an interlocal
301 agreement.
302 (51) "Project area plan" means an urban renewal project area plan, an economic
303 development project area plan, a community development project area plan, or a community
304 reinvestment project area plan that, after the project area plan's effective date, guides and
305 controls the project area development.
306 (52) (a) "Property tax" means each levy on an ad valorem basis on tangible or
307 intangible personal or real property.
308 (b) "Property tax" includes a privilege tax imposed under Title 59, Chapter 4, Privilege
309 Tax.
310 (53) "Public entity" means:
311 (a) the United States, including an agency of the United States;
312 (b) the state, including any of the state's departments or agencies; or
313 (c) a political subdivision of the state, including a county, municipality, school district,
314 local district, special service district, community reinvestment agency, or interlocal cooperation
315 entity.
316 (54) "Publicly owned infrastructure and improvements" means water, sewer, storm
317 drainage, electrical, natural gas, telecommunication, or other similar systems and lines, streets,
318 roads, curb, gutter, sidewalk, walkways, parking facilities, public transportation facilities, or
319 other facilities, infrastructure, and improvements benefitting the public and to be publicly
320 owned or publicly maintained or operated.
321 (55) "Record property owner" or "record owner of property" means the owner of real
322 property, as shown on the records of the county in which the property is located, to whom the
323 property's tax notice is sent.
324 (56) "Sales and use tax revenue" means revenue that is:
325 (a) generated from a tax imposed under Title 59, Chapter 12, Sales and Use Tax Act;
326 and
327 (b) distributed to a taxing entity in accordance with Sections 59-12-204 and 59-12-205.
328 (57) "Superfund site":
329 (a) means an area included in the National Priorities List under the Comprehensive
330 Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. Sec. 9605; and
331 (b) includes an area formerly included in the National Priorities List, as described in
332 Subsection (57)(a), but removed from the list following remediation that leaves on site the
333 waste that caused the area to be included in the National Priorities List.
334 (58) "Survey area" means a geographic area designated for study by a survey area
335 resolution to determine whether:
336 (a) one or more project areas within the survey area are feasible; or
337 (b) a development impediment exists within the survey area.
338 (59) "Survey area resolution" means a resolution adopted by a board that designates a
339 survey area.
340 (60) "Taxable value" means:
341 (a) the taxable value of all real property a county assessor assesses in accordance with
342 Title 59, Chapter 2, Part 3, County Assessment, for the current year;
343 (b) the taxable value of all real and personal property the commission assesses in
344 accordance with Title 59, Chapter 2, Part 2, Assessment of Property, for the current year; and
345 (c) the year end taxable value of all personal property a county assessor assesses in
346 accordance with Title 59, Chapter 2, Part 3, County Assessment, contained on the prior year's
347 tax rolls of the taxing entity.
348 (61) (a) "Tax increment" means the difference between:
349 (i) the amount of property tax revenue generated each tax year by a taxing entity from
350 the area within a project area designated in the project area plan as the area from which tax
351 increment is to be collected, using the current assessed value of the property and each taxing
352 entity's current certified tax rate as defined in Section 59-2-924; and
353 (ii) the amount of property tax revenue that would be generated from that same area
354 using the base taxable value of the property and each taxing entity's current certified tax rate as
355 defined in Section 59-2-924.
356 (b) "Tax increment" does not include taxes levied and collected under Section
357 59-2-1602 on or after January 1, 1994, upon the taxable property in the project area unless:
358 (i) the project area plan was adopted before May 4, 1993, whether or not the project
359 area plan was subsequently amended; and
360 (ii) the taxes were pledged to support bond indebtedness or other contractual
361 obligations of the agency.
362 (62) "Taxing entity" means a public entity that:
363 (a) levies a tax on property located within a project area; or
364 (b) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act.
365 (63) "Taxing entity committee" means a committee representing the interests of taxing
366 entities, created in accordance with Section 17C-1-402.
367 (64) "Unincorporated" means not within a municipality.
368 (65) "Urban renewal project area plan" means a project area plan adopted under
369 Chapter 2, Part 1, Urban Renewal Project Area Plan.
370 Section 2. Section 17C-1-202 is amended to read:
371 17C-1-202. Agency powers.
372 (1) An agency may:
373 (a) sue and be sued;
374 (b) enter into contracts generally;
375 (c) buy, obtain an option upon, acquire by gift, or otherwise acquire any interest in real
376 or personal property;
377 (d) hold, sell, convey, grant, gift, or otherwise dispose of any interest in real or personal
378 property;
379 (e) own, hold, maintain, utilize, manage, or operate real or personal property, which
380 may include the use of agency funds or the collection of revenue;
381 (f) enter into a lease agreement on real or personal property, either as lessee or lessor;
382 (g) provide for project area development as provided in this title;
383 (h) receive and use agency funds as provided in this title;
384 (i) if disposing of or leasing land, retain controls or establish restrictions and covenants
385 running with the land consistent with the project area plan;
386 (j) accept financial or other assistance from any public or private source for the
387 agency's activities, powers, and duties, and expend any funds the agency receives for any
388 purpose described in this title;
389 (k) borrow money or accept financial or other assistance from a public entity or any
390 other source for any of the purposes of this title and comply with any conditions of any loan or
391 assistance;
392 (l) issue bonds to finance the undertaking of any project area development or for any of
393 the agency's other purposes, including:
394 (i) reimbursing an advance made by the agency or by a public entity to the agency;
395 (ii) refunding bonds to pay or retire bonds previously issued by the agency; and
396 (iii) refunding bonds to pay or retire bonds previously issued by the community that
397 created the agency for expenses associated with project area development;
398 (m) pay an impact fee, exaction, or other fee imposed by a community in connection
399 with land development; [
400 (n) subject to Part 10, Agency Taxing Authority, levy a property tax; or
401 [
402 (2) The establishment of controls or restrictions and covenants under Subsection (1)(i)
403 is a public purpose.
404 (3) An agency may acquire real property under Subsection (1)(c) that is outside a
405 project area only if the board determines that the property will benefit a project area.
406 (4) An agency is not subject to Section 10-8-2 or 17-50-312.
407 Section 3. Section 17C-1-402 is amended to read:
408 17C-1-402. Taxing entity committee.
409 (1) The provisions of this section apply to a taxing entity committee that is created by
410 an agency for:
411 (a) a post-June 30, 1993, urban renewal project area plan or economic development
412 project area plan;
413 (b) any other project area plan adopted before May 10, 2016, for which the agency
414 created a taxing entity committee; and
415 (c) a community reinvestment project area plan adopted before May 14, 2019, that is
416 subject to a taxing entity committee.
417 (2) (a) (i) Each taxing entity committee shall be composed of:
418 (A) two school district representatives appointed in accordance with Subsection
419 (2)(a)(ii);
420 (B) (I) in a county of the second, third, fourth, fifth, or sixth class, two representatives
421 appointed by resolution of the legislative body of the county in which the agency is located; or
422 (II) in a county of the first class, one representative appointed by the county executive
423 and one representative appointed by the legislative body of the county in which the agency is
424 located;
425 (C) if the agency is created by a municipality, two representatives appointed by
426 resolution of the legislative body of the municipality;
427 (D) one representative appointed by the State Board of Education; and
428 (E) one representative selected by majority vote of the legislative bodies or governing
429 boards of all other taxing entities that levy a tax on property within the agency's boundaries, to
430 represent the interests of those taxing entities on the taxing entity committee.
431 (ii) (A) If the agency boundaries include only one school district, that school district
432 shall appoint the two school district representatives under Subsection (2)(a)(i)(A).
433 (B) If the agency boundaries include more than one school district, those school
434 districts shall jointly appoint the two school district representatives under Subsection
435 (2)(a)(i)(A).
436 (b) (i) Each taxing entity committee representative described in Subsection (2)(a) shall
437 be appointed within 30 days after the day on which the agency provides notice of the creation
438 of the taxing entity committee.
439 (ii) If a representative is not appointed within the time required under Subsection
440 (2)(b)(i), the board may appoint an individual to serve on the taxing entity committee in the
441 place of the missing representative until that representative is appointed.
442 (c) (i) A taxing entity committee representative may be appointed for a set term or
443 period of time, as determined by the appointing authority under Subsection (2)(a)(i).
444 (ii) Each taxing entity committee representative shall serve until a successor is
445 appointed and qualified.
446 (d) (i) Upon the appointment of each representative under Subsection (2)(a)(i), whether
447 an initial appointment or an appointment to replace an already serving representative, the
448 appointing authority shall:
449 (A) notify the agency in writing of the name and address of the newly appointed
450 representative; and
451 (B) provide the agency a copy of the resolution making the appointment or, if the
452 appointment is not made by resolution, other evidence of the appointment.
453 (ii) Each appointing authority of a taxing entity committee representative under
454 Subsection (2)(a)(i) shall notify the agency in writing of any change of address of a
455 representative appointed by that appointing authority.
456 (3) At a taxing entity committee's first meeting, the taxing entity committee shall adopt
457 an organizing resolution that:
458 (a) designates a chair and a secretary of the taxing entity committee; and
459 (b) if the taxing entity committee considers it appropriate, governs the use of electronic
460 meetings under Section 52-4-207.
461 (4) (a) A taxing entity committee represents all taxing entities regarding:
462 (i) an urban renewal project area plan;
463 (ii) an economic development project area plan; or
464 (iii) a community reinvestment project area plan that is subject to a taxing entity
465 committee.
466 (b) A taxing entity committee may:
467 (i) cast votes that are binding on all taxing entities;
468 (ii) negotiate with the agency concerning a proposed project area plan;
469 (iii) approve or disapprove:
470 (A) an urban renewal project area budget as described in Section 17C-2-204;
471 (B) an economic development project area budget as described in Section 17C-3-203;
472 or
473 (C) for a community reinvestment project area plan that is subject to a taxing entity
474 committee, a community reinvestment project area budget as described in Section 17C-5-302;
475 (iv) approve or disapprove an amendment to a project area budget as described in
476 Section 17C-2-206, 17C-3-205, or 17C-5-306;
477 (v) approve an exception to the limits on the value and size of a project area imposed
478 under this title;
479 (vi) approve:
480 (A) an exception to the percentage of tax increment to be paid to the agency;
481 (B) except for a project area funds collection period that is approved by an interlocal
482 agreement, each project area funds collection period; and
483 (C) an exception to the requirement for an urban renewal project area budget, an
484 economic development project area budget, or a community reinvestment project area budget
485 to include a maximum cumulative dollar amount of tax increment that the agency may receive;
486 (vii) approve the use of tax increment for publicly owned infrastructure and
487 improvements outside of a project area that the agency and community legislative body
488 determine to be of benefit to the project area, as described in Subsection
489 17C-1-409(1)(a)(iii)[
490 (viii) waive the restrictions described in Subsection 17C-2-202(1);
491 (ix) subject to Subsection (4)(c), designate the base taxable value for a project area
492 budget; and
493 (x) give other taxing entity committee approval or consent required or allowed under
494 this title.
495 (c) (i) Except as provided in Subsection (4)(c)(ii), the base year may not be a year that
496 is earlier than five years before the beginning of a project area funds collection period.
497 (ii) The taxing entity committee may approve a base year that is earlier than the year
498 described in Subsection (4)(c)(i).
499 (5) A quorum of a taxing entity committee consists of:
500 (a) if the project area is located within a municipality, five members; or
501 (b) if the project area is not located within a municipality, four members.
502 (6) Taxing entity committee approval, consent, or other action requires:
503 (a) the affirmative vote of a majority of all members present at a taxing entity
504 committee meeting:
505 (i) at which a quorum is present; and
506 (ii) considering an action relating to a project area budget for, or approval of a
507 development impediment determination within, a project area or proposed project area that
508 contains:
509 (A) an inactive industrial site;
510 (B) an inactive airport site; or
511 (C) a closed military base; or
512 (b) for any other action not described in Subsection (6)(a)(ii), the affirmative vote of
513 two-thirds of all members present at a taxing entity committee meeting at which a quorum is
514 present.
515 (7) (a) An agency may call a meeting of the taxing entity committee by sending written
516 notice to the members of the taxing entity committee at least 10 days before the date of the
517 meeting.
518 (b) Each notice under Subsection (7)(a) shall be accompanied by:
519 (i) the proposed agenda for the taxing entity committee meeting; and
520 (ii) if not previously provided and if the documents exist and are to be considered at
521 the meeting:
522 (A) the project area plan or proposed project area plan;
523 (B) the project area budget or proposed project area budget;
524 (C) the analysis required under Subsection 17C-2-103(2), 17C-3-103(2), or
525 17C-5-105(12);
526 (D) the development impediment study;
527 (E) the agency's resolution making a development impediment determination under
528 Subsection 17C-2-102(1)(a)(ii)(B) or 17C-5-402(2)(c)(ii); and
529 (F) other documents to be considered by the taxing entity committee at the meeting.
530 (c) (i) An agency may not schedule a taxing entity committee meeting on a day on
531 which the Legislature is in session.
532 (ii) Notwithstanding Subsection (7)(c)(i), a taxing entity committee may, by unanimous
533 consent, waive the scheduling restriction described in Subsection (7)(c)(i).
534 (8) (a) A taxing entity committee may not vote on a proposed project area budget or
535 proposed amendment to a project area budget at the first meeting at which the proposed project
536 area budget or amendment is considered unless all members of the taxing entity committee
537 present at the meeting consent.
538 (b) A second taxing entity committee meeting to consider a proposed project area
539 budget or a proposed amendment to a project area budget may not be held within 14 days after
540 the first meeting unless all members of the taxing entity committee present at the first meeting
541 consent.
542 (9) Each taxing entity committee shall be governed by Title 52, Chapter 4, Open and
543 Public Meetings Act.
544 (10) A taxing entity committee's records shall be:
545 (a) considered the records of the agency that created the taxing entity committee; and
546 (b) maintained by the agency in accordance with Section 17C-1-209.
547 (11) Each time a school district representative or a representative of the State Board of
548 Education votes as a member of a taxing entity committee to allow an agency to receive tax
549 increment, to increase the amount of tax increment the agency receives, or to extend a project
550 area funds collection period, that representative shall, within 45 days after the vote, provide to
551 the representative's respective school board an explanation in writing of the representative's
552 vote and the reasons for the vote.
553 (12) (a) The auditor of each county in which an agency is located shall provide a
554 written report to the taxing entity committee stating, with respect to property within each
555 project area:
556 (i) the base taxable value, as adjusted by any adjustments under Section 17C-1-408;
557 and
558 (ii) the assessed value.
559 (b) With respect to the information required under Subsection (12)(a), the auditor shall
560 provide:
561 (i) actual amounts for each year from the adoption of the project area plan to the time
562 of the report; and
563 (ii) estimated amounts for each year beginning the year after the time of the report and
564 ending the time that each project area funds collection period ends.
565 (c) The auditor of the county in which the agency is located shall provide a report
566 under this Subsection (12):
567 (i) at least annually; and
568 (ii) upon request of the taxing entity committee, before a taxing entity committee
569 meeting at which the committee considers whether to allow the agency to receive tax
570 increment, to increase the amount of tax increment that the agency receives, or to extend a
571 project area funds collection period.
572 (13) This section does not apply to:
573 (a) a community development project area plan; or
574 (b) a community reinvestment project area plan that is subject to an interlocal
575 agreement.
576 (14) (a) A taxing entity committee resolution approving a development impediment
577 determination, approving a project area budget, or approving an amendment to a project area
578 budget:
579 (i) is final; and
580 (ii) is not subject to repeal, amendment, or reconsideration unless the agency first
581 consents by resolution to the proposed repeal, amendment, or reconsideration.
582 (b) The provisions of Subsection (14)(a) apply regardless of when the resolution is
583 adopted.
584 Section 4. Section 17C-1-409 is amended to read:
585 17C-1-409. Allowable uses of agency funds.
586 (1) (a) An agency may use agency funds:
587 (i) for any purpose authorized under this title;
588 (ii) for administrative, overhead, legal, or other operating expenses of the agency,
589 including consultant fees and expenses under Subsection 17C-2-102(1)(b)(ii)(B) or funding for
590 a business resource center;
591 (iii) to pay for, including financing or refinancing, all or part of:
592 (A) project area development in a project area, including environmental remediation
593 activities occurring before or after adoption of the project area plan;
594 (B) housing-related expenditures, projects, or programs as described in Section
595 17C-1-411 or 17C-1-412;
596 (C) an incentive or other consideration paid to a participant under a participation
597 agreement;
598 (D) subject to Subsections (1)(c) and (4), the value of the land for and the cost of the
599 installation and construction of any publicly owned building, facility, structure, landscaping, or
600 other improvement within the project area from which the project area funds are collected; or
601 (E) the cost of the installation of publicly owned infrastructure and improvements
602 outside the project area from which the project area funds are collected if the board and the
603 community legislative body determine by resolution that the publicly owned infrastructure and
604 improvements benefit the project area;
605 (iv) in an urban renewal project area that includes some or all of an inactive industrial
606 site and subject to Subsection (1)(e), to reimburse the Department of Transportation created
607 under Section 72-1-201, or a public transit district created under Title 17B, Chapter 2a, Part 8,
608 Public Transit District Act, for the cost of:
609 (A) construction of a public road, bridge, or overpass;
610 (B) relocation of a railroad track within the urban renewal project area; or
611 (C) relocation of a railroad facility within the urban renewal project area; [
612 (v) subject to Subsection (5), to transfer funds to a community that created the agency;
613 or
614 (vi) subject to Subsection (1)(f), for agency-wide project development under Part 10,
615 Agency Taxing Authority.
616 (b) The determination of the board and the community legislative body under
617 Subsection (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
618 (c) An agency may not use project area funds received from a taxing entity for the
619 purposes stated in Subsection (1)(a)(iii)(D) under an urban renewal project area plan, an
620 economic development project area plan, or a community reinvestment project area plan
621 without the community legislative body's consent.
622 (d) (i) Subject to Subsection (1)(d)(ii), an agency may loan project area funds from a
623 project area fund to another project area fund if:
624 (A) the board approves; and
625 (B) the community legislative body approves.
626 (ii) An agency may not loan project area funds under Subsection (1)(d)(i) unless the
627 projections for agency funds are sufficient to repay the loan amount.
628 (iii) A loan described in Subsection (1)(d) is not subject to Title 10, Chapter 5,
629 Uniform Fiscal Procedures Act for Utah Towns, Title 10, Chapter 6, Uniform Fiscal
630 Procedures Act for Utah Cities, Title 17, Chapter 36, Uniform Fiscal Procedures Act for
631 Counties, or Title 17B, Chapter 1, Part 6, Fiscal Procedures for Local Districts.
632 (e) Before an agency may pay any tax increment or sales tax revenue under Subsection
633 (1)(a)(iv), the agency shall enter into an interlocal agreement defining the terms of the
634 reimbursement with:
635 (i) the Department of Transportation; or
636 (ii) a public transit district.
637 (f) Before an agency may use project area funds for agency-wide project development,
638 as defined in Section 17C-1-1001, the agency shall obtain the consent of the taxing entity
639 committee or each taxing entity party to an interlocal agreement with the agency.
640 (2) (a) Sales and use tax revenue that an agency receives from a taxing entity is not
641 subject to the prohibition or limitations of Title 11, Chapter 41, Prohibition on Sales and Use
642 Tax Incentive Payments Act.
643 (b) An agency may use sales and use tax revenue that the agency receives under an
644 interlocal agreement under Section 17C-4-201 or 17C-5-204 for the uses authorized in the
645 interlocal agreement.
646 (3) (a) An agency may contract with the community that created the agency or another
647 public entity to use agency funds to reimburse the cost of items authorized by this title to be
648 paid by the agency that are paid by the community or other public entity.
649 (b) If land is acquired or the cost of an improvement is paid by another public entity
650 and the land or improvement is leased to the community, an agency may contract with and
651 make reimbursement from agency funds to the community.
652 (4) Notwithstanding any other provision of this title, an agency may not use project
653 area funds, project area incremental revenue as defined in Section 17C-1-1001, or property tax
654 revenue as defined in Section 17C-1-1001, to construct a local government building unless the
655 taxing entity committee or each taxing entity party to an interlocal agreement with the agency
656 consents.
657 (5) For the purpose of offsetting the community's annual local contribution to the
658 Homeless Shelter Cities Mitigation Restricted Account, the total amount an agency transfers in
659 a calendar year to a community under Subsections (1)(a)(v), 17C-1-411(1)(d), and
660 17C-1-412[
661 in Section 35A-8-606.
662 Section 5. Section 17C-1-502 is amended to read:
663 17C-1-502. Sources from which bonds may be made payable -- Agency powers
664 regarding bonds.
665 [
666 (1) An agency may pay the principal and interest on a bond issued by the agency from:
667 (a) the income and revenues of the project area development financed with the
668 proceeds of the bond;
669 (b) the income and revenue of certain designated project area development regardless
670 of whether the project area development is financed in whole or in part with the proceeds of the
671 bond;
672 (c) the income, proceeds, revenue, property, or agency funds derived from or held in
673 connection with the agency's undertaking and implementation of project area development;
674 (d) project area funds;
675 (e) agency revenues generally;
676 (f) a contribution, loan, grant, or other financial assistance from a public entity in aid of
677 project area development, including the assignment of revenue or taxes in support of an agency
678 bond; [
679 (g) project area incremental revenue or property tax revenue as those terms are defined
680 in Section 17C-1-1001; or
681 (h) funds derived from any combination of the methods listed in Subsections (1)(a)
682 through [
683 (2) In connection with the issuance of an agency bond, an agency may:
684 (a) pledge all or any part of the agency's gross or net rents, fees, or revenues to which
685 the agency's right then exists or may thereafter come into existence;
686 (b) encumber by mortgage, deed of trust, or otherwise all or any part of the agency's
687 real or personal property, then owned or thereafter acquired; and
688 (c) make the covenants and take the action that:
689 (i) may be necessary, convenient, or desirable to secure the bond; or
690 (ii) except as otherwise provided in this chapter, will tend to make the bond more
691 marketable, even though such covenants or actions are not specifically enumerated in this
692 chapter.
693 Section 6. Section 17C-1-605 is amended to read:
694 17C-1-605. Audit report.
695 (1) Each agency required to be audited under Section 17C-1-604 shall, within 180 days
696 after the end of the agency's fiscal year, file a copy of the audit report with the county auditor,
697 the State Tax Commission, the State Board of Education, and each taxing entity from which
698 the agency receives tax increment.
699 (2) Each audit report under Subsection (1) shall include:
700 (a) the tax increment collected by the agency for each project area;
701 (b) the amount of tax increment paid to each taxing entity under Section 17C-1-410;
702 (c) the outstanding principal amount of bonds issued or other loans incurred to finance
703 the costs associated with the agency's project areas; [
704 (d) the amount of property tax revenue generated under Part 10, Agency Taxing
705 Authority; and
706 (e) the actual amount expended for:
707 (i) acquisition of property;
708 (ii) site improvements or site preparation costs;
709 (iii) installation of public utilities or other public improvements; and
710 (iv) administrative costs of the agency.
711 Section 7. Section 17C-1-1001 is enacted to read:
712
713 17C-1-1001. Definitions.
714 As used in this part:
715 (1) (a) "Agency-wide project development" means activity within the agency's
716 boundaries that, as determined by the board, encourages, promotes, or provides development or
717 redevelopment for the purpose of achieving the results described in an implementation plan,
718 including affordable housing.
719 (b) "Agency-wide project development" does not include project area development
720 under a project area plan.
721 (2) "Certified tax rate" means the same as that term is defined in Section 59-2-924.
722 (3) "Cooperative development project" means project area development with impacts
723 that extend beyond an agency's geographic boundaries to the benefit of two or more
724 communities.
725 (4) "Economic development project" means project area development for the purpose
726 of:
727 (a) creating, developing, attracting, and retaining business;
728 (b) creating or preserving jobs;
729 (c) stimulating business and economic activity; or
730 (d) providing a local incentive as required by the Governor's Office of Economic
731 Development under Title 63N, Governor's Office of Economic Development.
732 (5) "Eligible taxing entity" means a taxing entity that:
733 (a) is a municipality, a county, or a school district; and
734 (b) contains an agency partially or completely within the taxing entity's geographic
735 boundaries.
736 (6) "Implementation plan" means a plan adopted in accordance with Section
737 17C-1-1004 that:
738 (a) describes how the agency uses property tax revenue; and
739 (b) guides and controls agency-wide project development.
740 (7) "Project area incremental revenue" means the amount of revenue generated by the
741 incremental value that a taxing entity receives after a project area funds collection period ends.
742 (8) "Property tax revenue" means the amount of revenue generated by an agency from
743 the property within the agency using the current taxable value of the property and the agency's
744 certified tax rate.
745 Section 8. Section 17C-1-1002 is enacted to read:
746 17C-1-1002. Transferring project area incremental revenue -- Agency may levy a
747 property tax.
748 (1) An agency and an eligible taxing entity may enter into an interlocal agreement for
749 the purpose of transferring all or a portion of the eligible taxing entity's project area
750 incremental revenue.
751 (2) An agency shall ensure that an interlocal agreement described in Subsection (1):
752 (a) identifies each project area that is subject to the interlocal agreement;
753 (b) is adopted by the board and the taxing entity in accordance with Section
754 17C-1-1003;
755 (c) for each project area:
756 (i) states the amount of project area incremental revenue that the eligible taxing entity
757 agrees to transfer to the agency;
758 (ii) states the year in which the eligible taxing entity will transfer the amount described
759 in Subsection (2)(c)(i); and
760 (iii) for the year described in Subsection (2)(c)(ii), requires the agency to add the
761 project area incremental revenue transferred in the agency's budget;
762 (d) includes a copy of the implementation plan described in Section 17C-1-1004;
763 (e) requires the agency to dissolve, in accordance with Section 17C-1-702, any project
764 area:
765 (i) that is subject to the interlocal agreement; and
766 (ii) for which the project area funds collection period will expire; and
767 (f) is filed with the county auditor, the State Tax Commission, and the eligible taxing
768 entity.
769 (3) If an agency and an eligible taxing entity enter into an interlocal agreement under
770 this section:
771 (a) subject to Subsection (4) and Section 17C-1-1004, the agency may levy a property
772 tax on taxable property within the agency's geographic boundaries; and
773 (b) except as provided in Subsection (5), the agency may not:
774 (i) create a new community reinvestment project area within the taxing entity's
775 geographic boundaries; or
776 (ii) amend a project area plan or budget if the amendment:
777 (A) enlarges the project area from which tax increment is collected;
778 (B) permits the agency to receive a greater amount of tax increment; or
779 (C) extends the project area funds collection period.
780 (4) (a) An agency may levy a property tax for a fiscal year that:
781 (i) is after the year in which the agency receives project area incremental revenue; and
782 (ii) begins on or after the January 1 on which the agency has authority to impose a
783 property tax under this section.
784 (b) An agency board shall calculate the agency's certified tax rate in accordance with
785 Section 59-2-924.
786 (c) An agency may levy a property tax rate that exceeds the agency's certified rate only
787 if the agency complies with Sections 59-2-919 through 59-2-923.
788 (5) For a cooperative development project or an economic development project, an
789 agency may, in accordance with Chapter 5, Community Reinvestment:
790 (a) create a new community reinvestment project area; or
791 (b) amend a community reinvestment project area plan or budget.
792 Section 9. Section 17C-1-1003 is enacted to read:
793 17C-1-1003. Interlocal agreement -- Notice requirements -- Effective date.
794 (1) An agency that enters into an interlocal agreement under Section 17C-1-1002 shall:
795 (a) adopt the interlocal agreement at an open and public meeting; and
796 (b) provide a notice, in accordance with Subsections (2) and (3), titled "Authorization
797 to Levy a Property Tax."
798 (2) Upon the execution of an interlocal agreement, the agency shall provide, subject to
799 Subsection (3), notice of the execution by:
800 (a) (i) publishing the notice in a newspaper of general circulation within the agency's
801 geographic boundaries; or
802 (ii) if there is no newspaper of general circulation within the agency's geographic
803 boundaries, posting the notice in at least three public places within the agency's geographic
804 boundaries; and
805 (b) posting the notice on the Utah Public Notice Website created in Section 63F-1-701.
806 (3) A notice described in Subsection (2) shall include:
807 (a) a summary of the interlocal agreement; and
808 (b) a statement that the interlocal agreement:
809 (i) is available for public inspection and the place and the hours for inspection; and
810 (ii) authorizes the agency to:
811 (A) receive all or a portion of a taxing entity's project area incremental revenue; and
812 (B) levy a property tax on taxable property within the agency's boundaries.
813 (4) An interlocal agreement described in Section 17C-1-1002 is effective the day on
814 which the notice is published or posted in accordance with Subsections (2) and (3).
815 (5) An eligible taxing entity that enters into an interlocal agreement under Section
816 17C-1-1002 shall make a copy of the interlocal agreement available to the public for inspecting
817 and copying at the eligible taxing entity's office during normal business hours.
818 Section 10. Section 17C-1-1004 is enacted to read:
819 17C-1-1004. Plan hearing -- Implementation plan -- Use of an agency's property
820 tax revenue -- Eminent domain.
821 (1) Before an agency may levy a property tax, an agency board shall hold a plan
822 hearing in accordance with Chapter 1, Part 8, Hearing and Notice Requirements, to:
823 (a) adopt an implementation plan that:
824 (i) contains a boundary description and a map of the geographic area within which the
825 agency will use the agency's property tax revenue;
826 (ii) contains a general description of the existing land uses, zoning, infrastructure
827 conditions, population densities, and demographics of the area described in Subsection
828 (1)(b)(i);
829 (iii) describes the physical, social, and economic conditions that exist in the area
830 described in Subsection (1)(b)(i);
831 (iv) describes the goals and strategies that will guide the agency's use of property tax
832 revenue;
833 (v) shows how agency-wide project development will further the purposes of this title;
834 (vi) is consistent with the general plan of the community that created the agency and
835 shows that agency-wide project development will conform to the community's general plan;
836 (vii) generally describes the type of financial assistance and tools that the agency
837 anticipates providing to participants;
838 (viii) includes an analysis or description of the anticipated public benefits resulting
839 from agency-wide project development, including benefits to economic activity and taxing
840 entities' tax bases;
841 (ix) includes any identified geographic target areas within which the agency will focus
842 investment; and
843 (x) includes other information that the agency determines to be necessary or advisable;
844 (b) inform the public about:
845 (i) the amount of revenue that the agency will receive as property tax revenue that a
846 participating taxing entity would have otherwise received;
847 (ii) the property tax rate that the agency will levy;
848 (iii) any changes to the use of revenue; and
849 (iv) how the agency will be using property tax revenue under the implementation plan;
850 and
851 (c) allow individuals present at the plan hearing to comment on the proposed property
852 tax.
853 (2) An agency that levies a property tax under this part shall allocate an amount of
854 property tax revenue for housing:
855 (a) in an amount that is the same as the agency's housing allocation under Section
856 17C-5-307 before entering into an interlocal agreement under Section 17C-1-1002; and
857 (b) for a period of time that is the same as the agency's project area funds collection
858 period before entering into an interlocal agreement under Section 17C-1-1002.
859 (3) (a) Except as provided in Subsection (3)(b), an agency that levies a property tax
860 under this part may not use eminent domain to acquire property for agency-wide project
861 development.
862 (b) An agency that levies a property tax under this part may use eminent domain for an
863 urban renewal project area or a community reinvestment project area in accordance with Part 9,
864 Eminent Domain.
865 Section 11. Section 17C-1-1005 is enacted to read:
866 17C-1-1005. Agency property tax levy -- Budget -- Accounting for property tax
867 revenue.
868 (1) (a) Each agency that levies and collects property tax under this part shall levy and
869 collect the property tax in accordance with Title 59, Chapter 2, Property Tax Act.
870 (b) Except as provided in Subsection (1)(c), an agency, at a regular meeting or special
871 meeting called for that purpose, shall, by resolution, set the property tax rate by the date
872 described in Section 59-2-912.
873 (c) An agency may set the rate described in Subsection (1)(b) at an appropriate later
874 date in accordance with Sections 59-2-919 through 59-2-923.
875 (2) (a) An agency shall include in the agency's budget any project area incremental
876 revenue transferred by an eligible taxing entity under this part.
877 (b) The amount of project area incremental revenue described in Subsection (2)(a) plus
878 the ad valorem property tax revenue that the agency budgeted for the prior year shall constitute
879 the basis for determining the property tax levy that the agency sets for the corresponding tax
880 year.
881 (3) (a) An agency shall create a property tax revenue fund and separately account for
882 property tax revenue generated under this part.
883 (b) An agency shall include revenue and expenditures of the property tax revenue fund
884 described in Subsection (3)(a) in the annual budget adopted in accordance with Section
885 17C-1-601.5.
886 Section 12. Section 17C-2-110 is amended to read:
887 17C-2-110. Amending an urban renewal project area plan.
888 [
889 urban renewal project area plan as provided in this section.
890 (2) If an agency proposes to amend an urban renewal project area plan to enlarge the
891 project area:
892 (a) subject to Subsection (2)(e), the requirements under this part that apply to adopting
893 a project area plan apply equally to the proposed amendment as if it were a proposed project
894 area plan;
895 (b) for a pre-July 1, 1993, project area plan, the base year for the new area added to the
896 project area shall be determined under Subsection 17C-1-102(9) using the effective date of the
897 amended project area plan;
898 (c) for a post-June 30, 1993, project area plan:
899 (i) the base year for the new area added to the project area shall be determined under
900 Subsection 17C-1-102(9) using the date of the taxing entity committee's consent referred to in
901 Subsection (2)(c)(ii); and
902 (ii) the agency shall obtain the consent of the taxing entity committee before the agency
903 may collect tax increment from the area added to the project area by the amendment;
904 (d) the agency shall make a determination regarding the existence of a development
905 impediment in the area proposed to be added to the project area by following the procedure set
906 forth in Chapter 2, Part 3, Development Impediment Determination in Urban Renewal Project
907 Areas; and
908 (e) the agency need not make a development impediment determination in the project
909 area as described in the original project area plan, if the agency made a development
910 impediment determination regarding that project area in connection with adoption of the
911 original project area plan.
912 (3) If a proposed amendment does not propose to enlarge an urban renewal project
913 area, a board may adopt a resolution approving an amendment to a project area plan after:
914 (a) the agency gives notice, as provided in Section 17C-1-806, of the proposed
915 amendment and of the public hearing required by Subsection (3)(b);
916 (b) the board holds a public hearing on the proposed amendment that meets the
917 requirements of a plan hearing;
918 (c) the agency obtains the taxing entity committee's consent to the amendment, if the
919 amendment proposes:
920 (i) to enlarge the area within the project area from which tax increment is collected;
921 (ii) to permit the agency to receive a greater percentage of tax increment or to extend
922 the project area funds collection period, or both, than allowed under the adopted project area
923 plan; or
924 (iii) for an amendment to a project area plan that was adopted before April 1, 1983, to
925 expand the area from which tax increment is collected to exceed 100 acres of private property;
926 and
927 (d) the agency obtains the consent of the legislative body or governing board of each
928 taxing entity affected, if the amendment proposes to permit the agency to receive, from less
929 than all taxing entities, a greater percentage of tax increment or to extend the project area funds
930 collection period, or both, than allowed under the adopted project area plan.
931 (4) (a) An agency may amend an urban renewal project area plan without complying
932 with the notice and public hearing requirements of Subsections [
933 without obtaining taxing entity committee approval under Subsection (3)(c) if the amendment:
934 (i) makes a minor adjustment in the boundary description of a project area boundary
935 requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
936 or
937 (ii) subject to Subsection (4)(b), removes one or more parcels from a project area
938 because the agency determines that each parcel removed is:
939 (A) tax exempt;
940 (B) without a development impediment; or
941 (C) no longer necessary or desirable to the project area.
942 (b) An agency may make an amendment removing one or more parcels from a project
943 area under Subsection (4)(a)(ii) without the consent of the record property owner of each parcel
944 being removed.
945 (5) (a) An amendment approved by board resolution under this section may not take
946 effect until adopted by ordinance of the legislative body of the community in which the project
947 area that is the subject of the project area plan being amended is located.
948 (b) Upon a community legislative body passing an ordinance adopting an amendment
949 to a project area plan, the agency whose project area plan was amended shall comply with the
950 requirements of Sections 17C-2-108 and 17C-2-109 to the same extent as if the amendment
951 were a project area plan.
952 (6) (a) Within 30 days after the day on which an amendment to a project area plan
953 becomes effective, a person may contest the amendment to the project area plan or the
954 procedure used to adopt the amendment to the project area plan if the amendment or procedure
955 fails to comply with a provision of this title.
956 (b) After the 30-day period described in Subsection (6)(a) expires, a person may not
957 contest the amendment to the project area plan or procedure used to adopt the amendment to
958 the project area plan for any cause.
959 Section 13. Section 17C-2-206 is amended to read:
960 17C-2-206. Amending an urban renewal project area budget.
961 [
962 amend an urban renewal project area budget as provided in this section.
963 (2) To amend an adopted urban renewal project area budget, the agency shall:
964 (a) advertise and hold one public hearing on the proposed amendment as provided in
965 Subsection (3);
966 (b) if approval of the taxing entity committee was required for adoption of the original
967 project area budget, obtain the approval of the taxing entity committee to the same extent that
968 the agency was required to obtain the consent of the taxing entity committee for the project
969 area budget as originally adopted;
970 (c) if approval of the taxing entity committee is required under Subsection (2)(b),
971 obtain a written certification, signed by an attorney licensed to practice law in this state, stating
972 that the taxing entity committee followed the appropriate procedures to approve the project
973 area budget; and
974 (d) adopt a resolution amending the project area budget.
975 (3) The public hearing required under Subsection (2)(a) shall be conducted according
976 to the procedures and requirements of Subsections 17C-2-201(2)(c) and (d), except that if the
977 amended project area budget proposes that the agency be paid a greater proportion of tax
978 increment from a project area than was to be paid under the previous project area budget, the
979 notice shall state the percentage paid under the previous project area budget and the percentage
980 proposed under the amended project area budget.
981 (4) If the removal of a parcel under Subsection 17C-2-110(4)(a)(ii) reduces the base
982 taxable value of the project area, an agency may amend the project area budget to conform with
983 the new base taxable value without:
984 (a) complying with Subsections (2)(a) and (3); and
985 (b) if applicable, obtaining taxing entity committee approval described in Subsection
986 (2)(b).
987 (5) If a proposed amendment is not adopted, the agency shall continue to operate under
988 the previously adopted project area budget without the proposed amendment.
989 (6) (a) A person may contest the agency's adoption of a budget amendment within 30
990 days after the day on which the agency adopts the amendment.
991 (b) A person who fails to contest a budget amendment under Subsection (6)(a):
992 (i) forfeits any claim against an agency's adoption of the amendment; and
993 (ii) may not contest:
994 (A) a distribution of tax increment to the agency under the budget amendment; or
995 (B) an agency's use of a tax increment under the budget amendment.
996 Section 14. Section 17C-2-207 is amended to read:
997 17C-2-207. Extending collection of tax increment in an urban renewal project
998 area budget.
999 (1) An extension approved by a taxing entity or taxing entity committee before May
1000 10, 2011, is not subject to this section.
1001 (2) (a) [
1002 increment under an urban renewal project area budget may be extended by:
1003 (i) following the project area budget amendment procedures outlined in Section
1004 17C-2-206; or
1005 (ii) following the procedures outlined in this section.
1006 (b) The base taxable value for an urban renewal project area budget may not be altered
1007 as a result of an extension under this section unless otherwise expressly provided for in an
1008 interlocal agreement adopted in accordance with Subsection (3)(a).
1009 (3) Except as provided in Subsection (4), to extend under this section the project area
1010 funds collection period under a previously approved project area budget, the agency shall:
1011 (a) obtain the approval of the taxing entity through an interlocal agreement;
1012 (b) (i) hold a public hearing on the proposed extension in accordance with Subsection
1013 17C-2-201(2)(d) in the same manner as required for a proposed project area budget; and
1014 (ii) provide notice of the hearing:
1015 (A) as required by Chapter 1, Part 8, Hearing and Notice Requirements; and
1016 (B) including the proposed project area budget's extension period; and
1017 (c) after obtaining the taxing entity's approval in accordance with Subsection (3)(a), at
1018 or after the public hearing, adopt a resolution approving the extension.
1019 (4) (a) Subject to Subsection (4)(b), to extend under this section the project area funds
1020 collection period under a previously approved project area budget for a project area that
1021 includes an inactive industrial site, the agency shall:
1022 (i) hold a public hearing on the proposed extension in accordance with Subsection
1023 17C-2-201(2)(d) in the same manner as required for a proposed project area budget;
1024 (ii) provide notice of the hearing as required by Chapter 1, Part 8, Hearing and Notice
1025 Requirements, including notice of the proposed project area budget's extension period; and
1026 (iii) at or after the public hearing, adopt a resolution approving the extension.
1027 (b) An extension under Subsection (4)(a) may not extend the length of time that tax
1028 increment is collected from any single tax parcel.
1029 (5) After the project area funds collection period expires, an agency may continue to
1030 receive project area funds from those taxing entities that agree to an extension through an
1031 interlocal agreement in accordance with Subsection (3)(a) or through the process described in
1032 Subsection (4).
1033 (6) (a) A person may contest the agency's adoption of an extension within 30 days after
1034 the day on which the agency adopts the resolution providing for the extension.
1035 (b) A person that fails to contest an extension under Subsection (6)(a):
1036 (i) shall forfeit any claim against the agency's adoption of the extension; and
1037 (ii) may not contest:
1038 (A) a distribution of tax increment to the agency under the budget, as extended; or
1039 (B) an agency's use of tax increment under the budget, as extended.
1040 Section 15. Section 17C-3-109 is amended to read:
1041 17C-3-109. Amending an economic development project area plan.
1042 (1) [
1043 economic development project area plan [
1044 (2) If an agency proposes to amend an economic development project area plan to
1045 enlarge the project area:
1046 (a) the requirements under this part that apply to adopting a project area plan apply
1047 equally to the proposed amendment as if it were a proposed project area plan;
1048 (b) the base year for the new area added to the project area shall be determined under
1049 Subsection 17C-1-102(9) using the date of the taxing entity committee's consent referred to in
1050 Subsection (2)(c); and
1051 (c) the agency shall obtain the consent of the taxing entity committee before the agency
1052 may collect tax increment from the area added to the project area by the amendment.
1053 (3) If a proposed amendment does not propose to enlarge an economic development
1054 project area, a board may adopt a resolution approving an amendment to an economic
1055 development project area plan after:
1056 (a) the agency gives notice, as provided in Chapter 1, Part 8, Hearing and Notice
1057 Requirements, of the proposed amendment and of the public hearing required by Subsection
1058 (3)(b);
1059 (b) the board holds a public hearing on the proposed amendment that meets the
1060 requirements of a plan hearing;
1061 (c) the agency obtains the taxing entity committee's consent to the amendment, if the
1062 amendment proposes:
1063 (i) to enlarge the area within the project area from which tax increment is received; or
1064 (ii) to permit the agency to receive a greater percentage of tax increment or to extend
1065 the project area funds collection period under the economic development project area plan; and
1066 (d) the agency obtains the consent of the legislative body or governing board of each
1067 taxing entity affected, if the amendment proposes to permit the agency to receive, from less
1068 than all taxing entities, a greater percentage of tax increment or to extend the project area funds
1069 collection period, or both, than allowed under the economic development project area plan.
1070 (4) (a) An economic development project area plan may be amended without
1071 complying with the notice and public hearing requirements of Subsections (2)(a) and (3)(a) and
1072 (b) and without obtaining taxing entity committee approval under Subsection (3)(c) if the
1073 amendment:
1074 (i) makes a minor adjustment in the boundary description of a project area boundary
1075 requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
1076 or
1077 (ii) subject to Subsection (4)(b), removes one or more parcels from a project area
1078 because the agency determines that each parcel removed is:
1079 (A) tax exempt; or
1080 (B) no longer necessary or desirable to the project area.
1081 (b) An amendment removing one or more parcels from a project area under Subsection
1082 (4)(a) may be made without the consent of the record property owner of each parcel being
1083 removed.
1084 (5) (a) An amendment approved by board resolution under this section may not take
1085 effect until adopted by ordinance of the legislative body of the community in which the project
1086 area that is the subject of the project area plan being amended is located.
1087 (b) Upon a community legislative body passing an ordinance adopting an amendment
1088 to a project area plan, the agency whose project area plan was amended shall comply with the
1089 requirements of Sections 17C-3-107 and 17C-3-108 to the same extent as if the amendment
1090 were a project area plan.
1091 (6) (a) Within 30 days after the day on which an amendment to a project area plan
1092 becomes effective, a person may contest the amendment to the project area plan or the
1093 procedure used to adopt the amendment to the project area plan if the amendment or procedure
1094 fails to comply with a provision of this title.
1095 (b) After the 30-day period described in Subsection (6)(a) expires, a person may not
1096 contest the amendment to the project area plan or procedure used to adopt the amendment to
1097 the project area plan for any cause.
1098 Section 16. Section 17C-3-205 is amended to read:
1099 17C-3-205. Amending an economic development project area budget.
1100 (1) [
1101 amend an economic development project area budget as provided in this section.
1102 (2) To amend an adopted economic development project area budget, the agency shall:
1103 (a) advertise and hold one public hearing on the proposed amendment as provided in
1104 Subsection (3);
1105 (b) if approval of the taxing entity committee was required for adoption of the original
1106 project area budget, obtain the approval of the taxing entity committee to the same extent that
1107 the agency was required to obtain the consent of the taxing entity committee for the project
1108 area budget as originally adopted;
1109 (c) if approval of the taxing entity committee is required under Subsection (2)(b),
1110 obtain a written certification, signed by an attorney licensed to practice law in this state, stating
1111 that the taxing entity committee followed the appropriate procedures to approve the project
1112 area budget; and
1113 (d) adopt a resolution amending the project area budget.
1114 (3) The public hearing required under Subsection (2)(a) shall be conducted according
1115 to the procedures and requirements of Section 17C-3-201, except that if the amended project
1116 area budget proposes that the agency be paid a greater proportion of tax increment from a
1117 project area than was to be paid under the previous project area budget, the notice shall state
1118 the percentage paid under the previous project area budget and the percentage proposed under
1119 the amended project area budget.
1120 (4) If the removal of a parcel under Subsection 17C-3-109(4)(a)(ii) reduces the base
1121 taxable value of the project area, an agency may amend the project area budget to conform with
1122 the new base taxable value without:
1123 (a) complying with Subsections (2)(a) and (3); and
1124 (b) if applicable, obtaining taxing entity committee approval described in Subsection
1125 (2)(b).
1126 (5) If a proposed amendment is not adopted, the agency shall continue to operate under
1127 the previously adopted economic development project area budget without the proposed
1128 amendment.
1129 (6) (a) A person may contest the agency's adoption of a budget amendment within 30
1130 days after the day on which the agency adopts the amendment.
1131 (b) A person [
1132 (i) forfeits any claim against an agency's adoption of the amendment; and
1133 (ii) may not contest:
1134 (A) a distribution of tax increment to the agency under the budget amendment; or
1135 (B) an agency's use of a tax increment under a budget amendment.
1136 Section 17. Section 17C-3-206 is amended to read:
1137 17C-3-206. Extending collection of tax increment under an economic
1138 development project area budget.
1139 (1) An amendment or extension approved by a taxing entity or taxing entity committee
1140 before May 10, 2011, is not subject to this section.
1141 (2) (a) [
1142 increment under an adopted economic development project area budget may be extended by:
1143 (i) following the project area budget amendment procedures outlined in Section
1144 17C-3-205; or
1145 (ii) following the procedures outlined in this section.
1146 (b) The base taxable value for an urban renewal project area budget may not be altered
1147 as a result of an extension under this section unless otherwise expressly provided for in an
1148 interlocal agreement adopted in accordance with Subsection (3)(a).
1149 (3) To extend under this section the agency's collection of tax increment from a taxing
1150 entity under a previously approved project area budget, the agency shall:
1151 (a) obtain the approval of the taxing entity through an interlocal agreement;
1152 (b) (i) hold a public hearing on the proposed extension in accordance with Subsection
1153 17C-2-201(2)(d) in the same manner as required for a proposed project area budget; and
1154 (ii) provide notice of the hearing:
1155 (A) as required by Chapter 1, Part 8, Hearing and Notice Requirements; and
1156 (B) including the proposed period of extension of the project area budget; and
1157 (c) after obtaining the approval of the taxing entity in accordance with Subsection
1158 (3)(a), at or after the public hearing, adopt a resolution approving the extension.
1159 (4) After the expiration of a project area budget, an agency may continue to receive tax
1160 increment from those taxing entities that have agreed to an extension through an interlocal
1161 agreement in accordance with Subsection (3)(a).
1162 (5) (a) A person may contest the agency's adoption of a budget extension within 30
1163 days after the day on which the agency adopts the resolution providing for the extension.
1164 (b) A person [
1165 (i) shall forfeit any claim against the agency's adoption of the extension; and
1166 (ii) may not contest:
1167 (A) a distribution of tax increment to the agency under the budget, as extended; or
1168 (B) an agency's use of tax increment under the budget, as extended.
1169 Section 18. Section 17C-4-108 is amended to read:
1170 17C-4-108. Amending a community development project area plan.
1171 (1) Except as provided in Section 17C-1-1002, an agency may amend a community
1172 development project area plan as provided in this section.
1173 [
1174 requirements under this part that apply to adopting a community development project area plan
1175 apply equally to a proposed amendment of a community development project area plan as
1176 though the amendment were a proposed project area plan.
1177 [
1178 area plan may be amended without complying with the requirements of Chapter 1, Part 8,
1179 Hearing and Notice Requirements, if the proposed amendment:
1180 (i) makes a minor adjustment in the boundary description of a project area boundary
1181 requested by a county assessor or county auditor to avoid inconsistent property boundary lines;
1182 or
1183 (ii) subject to Subsection [
1184 because the agency determines that each parcel removed is:
1185 (A) tax exempt; or
1186 (B) no longer necessary or desirable to the project area.
1187 (b) An amendment removing one or more parcels from a community development
1188 project area under Subsection [
1189 property owner of each parcel being removed.
1190 [
1191 take effect until adopted by ordinance of the legislative body of the community in which the
1192 project area that is the subject of the project area plan being amended is located.
1193 (b) Upon a community legislative body passing an ordinance adopting an amendment
1194 to a community development project area plan, the agency whose project area plan was
1195 amended shall comply with the requirements of Sections 17C-4-106 and 17C-4-107 to the
1196 same extent as if the amendment were a project area plan.
1197 [
1198 becomes effective, a person may contest the amendment to the project area plan or the
1199 procedure used to adopt the amendment to the project area plan if the amendment or procedure
1200 fails to comply with a provision of this title.
1201 (b) After the 30-day period described in Subsection [
1202 not contest the amendment to the project area plan or procedure used to adopt the amendment
1203 to the project area plan for any cause.
1204 Section 19. Section 17C-5-102 is amended to read:
1205 17C-5-102. Applicability of chapter.
1206 This chapter applies to a community reinvestment project area that:
1207 (1) an agency created on or after May 10, 2016; and
1208 (2) an agency, that has entered into an interlocal agreement and levies a property tax
1209 under Chapter 1, Part 10, Agency Taxing Authority, created for a cooperative development
1210 project or an economic development project as those terms are defined in Section 17C-1-1001.
1211 Section 20. Section 17C-5-112 is amended to read:
1212 17C-5-112. Amending a community reinvestment project area plan.
1213 [
1214 community reinvestment project area plan in accordance with this section.
1215 (2) (a) If an amendment proposes to enlarge a community reinvestment project area's
1216 geographic area, the agency shall:
1217 (i) comply with this part as though the agency were creating a community reinvestment
1218 project area;
1219 (ii) if the agency anticipates receiving project area funds from the area proposed to be
1220 added to the community reinvestment project area, before the agency may collect project area
1221 funds:
1222 (A) for a community reinvestment project area plan that is subject to a taxing entity
1223 committee, obtain approval to receive tax increment from the taxing entity committee; or
1224 (B) for a community reinvestment project area plan that is subject to an interlocal
1225 agreement, obtain the approval of the taxing entity that is a party to the interlocal agreement;
1226 and
1227 (iii) if the agency anticipates acquiring property in the area proposed to be added to the
1228 community reinvestment project area by eminent domain, follow the procedures described in
1229 Section 17C-5-402.
1230 (b) The base year for the area proposed to be added to the community reinvestment
1231 project area shall be determined using the date of:
1232 (i) the taxing entity committee's consent as described in Subsection (2)(a)(ii)(A); or
1233 (ii) the taxing entity's consent as described in Subsection (2)(a)(ii)(B).
1234 (3) If an amendment does not propose to enlarge a community reinvestment project
1235 area's geographic area, the board may adopt a resolution approving the amendment after the
1236 agency:
1237 (a) if the amendment does not propose to allow the agency to receive a greater amount
1238 of project area funds or to extend a project area funds collection period:
1239 (i) gives notice in accordance with Section 17C-1-806; and
1240 (ii) holds a public hearing on the proposed amendment that meets the requirements
1241 described in Subsection 17C-5-104(3); or
1242 (b) if the amendment proposes to also allow the agency to receive a greater amount of
1243 project area funds or to extend a project area funds collection period:
1244 (i) complies with [
1245 (ii) (A) for a community reinvestment project area plan that is subject to a taxing entity
1246 committee, obtains approval from the taxing entity committee; or
1247 (B) for a community reinvestment project area plan that is subject to an interlocal
1248 agreement, obtains approval to receive project area funds from the taxing entity that is a party
1249 to the interlocal agreement.
1250 (4) (a) If a board has not made a determination under Part 4, Development Impediment
1251 Determination in a Community Reinvestment Project Area, but intends to use eminent domain
1252 within a community reinvestment project area, the agency may amend the community
1253 reinvestment project area plan in accordance with this Subsection (4).
1254 (b) To amend a community reinvestment project area plan as described in Subsection
1255 (4)(a), an agency shall:
1256 (i) adopt a survey area resolution that identifies each parcel that the agency intends to
1257 study to determine whether a development impediment exists;
1258 (ii) in accordance with Part 4, Development Impediment Determination in a
1259 Community Reinvestment Project Area, conduct a development impediment study within the
1260 survey area and make a development impediment determination; and
1261 (iii) obtain approval to amend the community reinvestment project area plan from each
1262 taxing entity that is a party to an interlocal agreement.
1263 (c) Amending a community reinvestment project area plan as described in this
1264 Subsection (4) does not affect:
1265 (i) the base year of the parcel or parcels that are the subject of an amendment under this
1266 Subsection (4); and
1267 (ii) any interlocal agreement under which the agency is authorized to receive project
1268 area funds from the community reinvestment project area.
1269 (5) An agency may amend a community reinvestment project area plan without
1270 obtaining the consent of a taxing entity or a taxing entity committee and without providing
1271 notice or holding a public hearing if the amendment:
1272 (a) makes a minor adjustment in the community reinvestment project area boundary
1273 that is requested by a county assessor or county auditor to avoid inconsistent property boundary
1274 lines; or
1275 (b) removes one or more parcels from a community reinvestment project area because
1276 the agency determines that each parcel is:
1277 (i) tax exempt;
1278 (ii) without a development impediment; or
1279 (iii) no longer necessary or desirable to the project area.
1280 (6) (a) An amendment approved by board resolution under this section may not take
1281 effect until the community legislative body adopts an ordinance approving the amendment.
1282 (b) Upon the community legislative body adopting an ordinance approving an
1283 amendment under Subsection (6)(a), the agency shall comply with the requirements described
1284 in Sections 17C-5-110 and 17C-5-111 as if the amendment were a community reinvestment
1285 project area plan.
1286 (7) (a) Within 30 days after the day on which an amendment to a project area plan
1287 becomes effective, a person may contest the amendment to the project area plan or the
1288 procedure used to adopt the amendment to the project area plan if the amendment or procedure
1289 fails to comply with a provision of this title.
1290 (b) After the 30-day period described in Subsection (7)(a) expires, a person may not
1291 contest the amendment to the project area plan or procedure used to adopt the amendment to
1292 the project area plan for any cause.
1293 Section 21. Section 17C-5-306 is amended to read:
1294 17C-5-306. Amending a community reinvestment project area budget.
1295 (1) [
1296 collection period ends, an agency may amend a community reinvestment project area budget in
1297 accordance with this section.
1298 (2) To amend a community reinvestment project area budget, an agency shall:
1299 (a) provide notice and hold a public hearing on the proposed amendment in accordance
1300 with Chapter 1, Part 8, Hearing and Notice Requirements;
1301 (b) (i) if the community reinvestment project area budget required approval from a
1302 taxing entity committee, obtain the taxing entity committee's approval; or
1303 (ii) if the community reinvestment project area budget required an interlocal agreement
1304 with a taxing entity, obtain approval from the taxing entity that is a party to the interlocal
1305 agreement; and
1306 (c) at the public hearing described in Subsection (2)(a) or at a subsequent board
1307 meeting, by resolution, adopt the community reinvestment project area budget amendment.
1308 (3) If an agency proposes a community reinvestment project area budget amendment
1309 under which the agency is paid a greater proportion of tax increment from the community
1310 reinvestment project area than provided under the community reinvestment project area budget,
1311 the notice described in Subsection (2)(a) shall state:
1312 (a) the percentage of tax increment paid under the community reinvestment project
1313 area budget; and
1314 (b) the proposed percentage of tax increment paid under the community reinvestment
1315 project area budget amendment.
1316 (4) (a) If an agency proposes a community reinvestment project area budget
1317 amendment that extends a project area funds collection period, before a taxing entity
1318 committee or taxing entity may provide the taxing entity committee's or taxing entity's approval
1319 described in Subsection (2)(b), the agency shall provide to the taxing entity committee or
1320 taxing entity:
1321 (i) the reasons why the extension is required;
1322 (ii) a description of the project area development for which project area funds received
1323 by the agency under the extension will be used;
1324 (iii) a statement of whether the project area funds received by the agency under the
1325 extension will be used within an active project area or a proposed project area; and
1326 (iv) a revised community reinvestment project area budget that includes:
1327 (A) the annual and total amounts of project area funds that the agency receives under
1328 the extension; and
1329 (B) the number of years that are added to each project area funds collection period
1330 under the extension.
1331 (b) With respect to an amendment described in Subsection (4)(a), a taxing entity
1332 committee or taxing entity may consent to:
1333 (i) allow an agency to use project area funds received under an extension within a
1334 different project area from which the project area funds are generated; or
1335 (ii) alter the base taxable value in connection with a community reinvestment project
1336 area budget extension.
1337 (5) If an agency proposes a community reinvestment project area budget amendment
1338 that reduces the base taxable value of the project area due to the removal of a parcel under
1339 Subsection 17C-5-112(5)(b), an agency may amend a project area budget without:
1340 (a) complying with Subsection (2)(a); and
1341 (b) obtaining taxing entity committee or taxing entity approval described in Subsection
1342 (2)(b).
1343 (6) (a) A person may contest an agency's adoption of a community reinvestment project
1344 area budget amendment within 30 days after the day on which the agency adopts the
1345 community reinvestment project area budget amendment.
1346 (b) After the 30-day period described in Subsection (6)(a), a person may not contest:
1347 (i) the agency's adoption of the community reinvestment project area budget
1348 amendment;
1349 (ii) a payment to the agency under the community reinvestment project area budget
1350 amendment; or
1351 (iii) the agency's use of project area funds received under the community reinvestment
1352 project area budget amendment.
1353 Section 22. Section 53G-7-306 is amended to read:
1354 53G-7-306. School district interfund transfers.
1355 (1) A school district shall spend revenues only within the fund for which they were
1356 originally authorized, levied, collected, or appropriated.
1357 (2) Except as otherwise provided in this section, school district interfund transfers of
1358 residual equity are prohibited.
1359 (3) The state board may authorize school district interfund transfers of residual equity
1360 when a district states its intent to create a new fund or expand, contract, or liquidate an existing
1361 fund.
1362 (4) The state board may also authorize school district interfund transfers of residual
1363 equity for a financially distressed district if the state board determines the following:
1364 (a) the district has a significant deficit in its maintenance and operations fund caused
1365 by circumstances not subject to the administrative decisions of the district;
1366 (b) the deficit cannot be reasonably reduced under Section 53G-7-305; and
1367 (c) without the transfer, the school district will not be capable of meeting statewide
1368 educational standards adopted by the state board.
1369 (5) The state board shall develop by rule made in accordance with Title 63G, Chapter
1370 3, Utah Administrative Rulemaking Act, standards for defining and aiding financially
1371 distressed school districts under this section.
1372 (6) (a) All debt service levies not subject to certified tax rate hearings shall be recorded
1373 and reported in the debt service fund.
1374 (b) Debt service levies under Subsection 59-2-924(5)[
1375 public hearing provisions of Section 59-2-919 may not be used for any purpose other than
1376 retiring general obligation debt.
1377 (c) Amounts from these levies remaining in the debt service fund at the end of a fiscal
1378 year shall be used in subsequent years for general obligation debt retirement.
1379 (d) Any amounts left in the debt service fund after all general obligation debt has been
1380 retired may be transferred to the capital projects fund upon completion of the budgetary hearing
1381 process required under Section 53G-7-303.
1382 Section 23. Section 59-2-924 is amended to read:
1383 59-2-924. Definitions -- Report of valuation of property to county auditor and
1384 commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
1385 rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
1386 commission.
1387 (1) As used in this section:
1388 (a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with
1389 this chapter.
1390 (ii) "Ad valorem property tax revenue" does not include:
1391 (A) interest;
1392 (B) penalties;
1393 (C) collections from redemptions; or
1394 (D) revenue received by a taxing entity from personal property that is semiconductor
1395 manufacturing equipment assessed by a county assessor in accordance with Part 3, County
1396 Assessment.
1397 (b) "Adjusted tax increment" means the same as that term is defined in Section
1398 17C-1-102.
1399 (c) (i) "Aggregate taxable value of all property taxed" means:
1400 (A) the aggregate taxable value of all real property a county assessor assesses in
1401 accordance with Part 3, County Assessment, for the current year;
1402 (B) the aggregate taxable value of all real and personal property the commission
1403 assesses in accordance with Part 2, Assessment of Property, for the current year; and
1404 (C) the aggregate year end taxable value of all personal property a county assessor
1405 assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls
1406 of the taxing entity.
1407 (ii) "Aggregate taxable value of all property taxed" does not include the aggregate year
1408 end taxable value of personal property that is:
1409 (A) semiconductor manufacturing equipment assessed by a county assessor in
1410 accordance with Part 3, County Assessment; and
1411 (B) contained on the prior year's tax rolls of the taxing entity.
1412 (d) "Base taxable value" means:
1413 (i) for an authority created under Section 11-58-201, the same as that term is defined in
1414 Section 11-58-102;
1415 (ii) for an agency created under Section 17C-1-201.5, the same as that term is defined
1416 in Section 17C-1-102;
1417 (iii) for an authority created under Section 63H-1-201, the same as that term is defined
1418 in Section 63H-1-102; or
1419 (iv) for a host local government, the same as that term is defined in Section 63N-2-502.
1420 (e) "Centrally assessed benchmark value" means an amount equal to the highest year
1421 end taxable value of real and personal property the commission assesses in accordance with
1422 Part 2, Assessment of Property, for a previous calendar year that begins on or after January 1,
1423 2015, adjusted for taxable value attributable to:
1424 (i) an annexation to a taxing entity; or
1425 (ii) an incorrect allocation of taxable value of real or personal property the commission
1426 assesses in accordance with Part 2, Assessment of Property.
1427 (f) (i) "Centrally assessed new growth" means the greater of:
1428 (A) zero; or
1429 (B) the amount calculated by subtracting the centrally assessed benchmark value
1430 adjusted for prior year end incremental value from the taxable value of real and personal
1431 property the commission assesses in accordance with Part 2, Assessment of Property, for the
1432 current year, adjusted for current year incremental value.
1433 (ii) "Centrally assessed new growth" does not include a change in value as a result of a
1434 change in the method of apportioning the value prescribed by the Legislature, a court, or the
1435 commission in an administrative rule or administrative order.
1436 (g) "Certified tax rate" means a tax rate that will provide the same ad valorem property
1437 tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
1438 (h) "Community reinvestment agency" means the same as that term is defined in
1439 Section 17C-1-102.
1440 [
1441 (i) zero; or
1442 (ii) the sum of:
1443 (A) locally assessed new growth;
1444 (B) centrally assessed new growth; and
1445 (C) project area new growth or hotel property new growth.
1446 [
1447 63N-2-502.
1448 [
1449 [
1450 that is no longer provided to a host local government as incremental property tax revenue.
1451 [
1452 Section 63N-2-502.
1453 [
1454 (i) for an authority created under Section 11-58-201, the amount calculated by
1455 multiplying:
1456 (A) the difference between the taxable value and the base taxable value of the property
1457 that is located within a project area and on which property tax differential is collected; and
1458 (B) the number that represents the percentage of the property tax differential that is
1459 paid to the authority;
1460 (ii) for an agency created under Section 17C-1-201.5, the amount calculated by
1461 multiplying:
1462 (A) the difference between the taxable value and the base taxable value of the property
1463 located within a project area and on which tax increment is collected; and
1464 (B) the number that represents the adjusted tax increment from that project area that is
1465 paid to the agency;
1466 (iii) for an authority created under Section 63H-1-201, the amount calculated by
1467 multiplying:
1468 (A) the difference between the taxable value and the base taxable value of the property
1469 located within a project area and on which property tax allocation is collected; and
1470 (B) the number that represents the percentage of the property tax allocation from that
1471 project area that is paid to the authority; or
1472 (iv) for a host local government, an amount calculated by multiplying:
1473 (A) the difference between the taxable value and the base taxable value of the hotel
1474 property on which incremental property tax revenue is collected; and
1475 (B) the number that represents the percentage of the incremental property tax revenue
1476 from that hotel property that is paid to the host local government.
1477 [
1478 (A) zero; or
1479 (B) the amount calculated by subtracting the year end taxable value of real property the
1480 county assessor assesses in accordance with Part 3, County Assessment, for the previous year,
1481 adjusted for prior year end incremental value from the taxable value of real property the county
1482 assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted
1483 for current year incremental value.
1484 (ii) "Locally assessed new growth" does not include a change in:
1485 (A) value as a result of factoring in accordance with Section 59-2-704, reappraisal, or
1486 another adjustment;
1487 (B) assessed value based on whether a property is allowed a residential exemption for a
1488 primary residence under Section 59-2-103;
1489 (C) assessed value based on whether a property is assessed under Part 5, Farmland
1490 Assessment Act; or
1491 (D) assessed value based on whether a property is assessed under Part 17, Urban
1492 Farming Assessment Act.
1493 [
1494 (i) for an authority created under Section 11-58-201, the same as that term is defined in
1495 Section 11-58-102;
1496 (ii) for an agency created under Section 17C-1-201.5, the same as that term is defined
1497 in Section 17C-1-102; or
1498 (iii) for an authority created under Section 63H-1-201, the same as that term is defined
1499 in Section 63H-1-102.
1500 [
1501 (i) for an authority created under Section 11-58-201, an amount equal to the
1502 incremental value that is no longer provided to an authority as property tax differential;
1503 (ii) for an agency created under Section 17C-1-201.5, an amount equal to the
1504 incremental value that is no longer provided to an agency as tax increment; or
1505 (iii) for an authority created under Section 63H-1-201, an amount equal to the
1506 incremental value that is no longer provided to an authority as property tax allocation.
1507 (r) "Project area incremental revenue" means the same as that term is defined in
1508 Section 17C-1-1001.
1509 [
1510 63H-1-102.
1511 [
1512 11-58-102.
1513 [
1514 (2) Before June 1 of each year, the county assessor of each county shall deliver to the
1515 county auditor and the commission the following statements:
1516 (a) a statement containing the aggregate valuation of all taxable real property a county
1517 assessor assesses in accordance with Part 3, County Assessment, for each taxing entity; and
1518 (b) a statement containing the taxable value of all personal property a county assessor
1519 assesses in accordance with Part 3, County Assessment, from the prior year end values.
1520 (3) The county auditor shall, on or before June 8, transmit to the governing body of
1521 each taxing entity:
1522 (a) the statements described in Subsections (2)(a) and (b);
1523 (b) an estimate of the revenue from personal property;
1524 (c) the certified tax rate; and
1525 (d) all forms necessary to submit a tax levy request.
1526 (4) (a) Except as otherwise provided in this section, the certified tax rate shall be
1527 calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the
1528 prior year by the amount calculated under Subsection (4)(b).
1529 (b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
1530 calculate an amount as follows:
1531 (i) calculate for the taxing entity the difference between:
1532 (A) the aggregate taxable value of all property taxed; and
1533 (B) any adjustments for current year incremental value;
1534 (ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
1535 determined by increasing or decreasing the amount calculated under Subsection (4)(b)(i) by the
1536 average of the percentage net change in the value of taxable property for the equalization
1537 period for the three calendar years immediately preceding the current calendar year;
1538 (iii) after making the calculation required by Subsection (4)(b)(ii), calculate the product
1539 of:
1540 (A) the amount calculated under Subsection (4)(b)(ii); and
1541 (B) the percentage of property taxes collected for the five calendar years immediately
1542 preceding the current calendar year; and
1543 (iv) after making the calculation required by Subsection (4)(b)(iii), calculate an amount
1544 determined by:
1545 (A) multiplying the percentage of property taxes collected for the five calendar years
1546 immediately preceding the current calendar year by eligible new growth; and
1547 (B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the amount
1548 calculated under Subsection (4)(b)(iii).
1549 (5) A certified tax rate for a taxing entity described in this Subsection (5) shall be
1550 calculated as follows:
1551 (a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified
1552 tax rate is zero;
1553 (b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
1554 (i) in a county of the first, second, or third class, the levy imposed for municipal-type
1555 services under Sections 17-34-1 and 17-36-9; and
1556 (ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
1557 purposes and such other levies imposed solely for the municipal-type services identified in
1558 Section 17-34-1 and Subsection 17-36-3(23); [
1559 (c) for a community reinvestment agency that received all or a portion of a taxing
1560 entity's project area incremental revenue in the prior year under Title 17C, Chapter 1, Part 10,
1561 Agency Taxing Authority, the certified tax rate is calculated as described in Subsection (4)
1562 except that the commission shall treat the total revenue transferred to the community
1563 reinvestment agency as ad valorem property tax revenue that the taxing entity budgeted for the
1564 prior year; and
1565 [
1566 imposed by that section, except that a certified tax rate for the following levies shall be
1567 calculated in accordance with Section 59-2-913 and this section:
1568 (i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and
1569 (ii) a levy to pay for the costs of state legislative mandates or judicial or administrative
1570 orders under Section 59-2-1602.
1571 (6) (a) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 may be
1572 imposed at a rate that is sufficient to generate only the revenue required to satisfy one or more
1573 eligible judgments.
1574 (b) The ad valorem property tax revenue generated by a judgment levy described in
1575 Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate certified tax
1576 rate.
1577 (7) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
1578 (i) the taxable value of real property:
1579 (A) the county assessor assesses in accordance with Part 3, County Assessment; and
1580 (B) contained on the assessment roll;
1581 (ii) the year end taxable value of personal property:
1582 (A) a county assessor assesses in accordance with Part 3, County Assessment; and
1583 (B) contained on the prior year's assessment roll; and
1584 (iii) the taxable value of real and personal property the commission assesses in
1585 accordance with Part 2, Assessment of Property.
1586 (b) For purposes of Subsection (7)(a), taxable value does not include eligible new
1587 growth.
1588 (8) (a) On or before June 30, a taxing entity shall annually adopt a tentative budget.
1589 (b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall
1590 notify the county auditor of:
1591 (i) the taxing entity's intent to exceed the certified tax rate; and
1592 (ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
1593 (c) The county auditor shall notify property owners of any intent to levy a tax rate that
1594 exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
1595 (9) (a) Subject to Subsection (9)(d), the commission shall provide notice, through
1596 electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim
1597 Committee if:
1598 (i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
1599 taxable value of the real and personal property the commission assesses in accordance with
1600 Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental
1601 value; and
1602 (ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year end
1603 taxable value of the real and personal property of a taxpayer the commission assesses in
1604 accordance with Part 2, Assessment of Property, for the previous year.
1605 (b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
1606 subtracting the taxable value of real and personal property the commission assesses in
1607 accordance with Part 2, Assessment of Property, for the current year, adjusted for current year
1608 incremental value, from the year end taxable value of the real and personal property the
1609 commission assesses in accordance with Part 2, Assessment of Property, for the previous year,
1610 adjusted for prior year end incremental value.
1611 (c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
1612 subtracting the total taxable value of real and personal property of a taxpayer the commission
1613 assesses in accordance with Part 2, Assessment of Property, for the current year, from the total
1614 year end taxable value of the real and personal property of a taxpayer the commission assesses
1615 in accordance with Part 2, Assessment of Property, for the previous year.
1616 (d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet
1617 the requirement under Subsection (9)(a)(ii).