Senator Wayne A. Harper proposes the following substitute bill:


1     
HOUSING AND TRANSIT REINVESTMENT ZONE

2     
AMENDMENTS

3     
2022 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Wayne A. Harper

6     
House Sponsor: Stephen G. Handy

7     

8     LONG TITLE
9     General Description:
10          This bill amends provisions related to housing and transit reinvestment zones.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     allows housing and transit reinvestment zones around light rail and bus rapid transit
15     facilities;
16          ▸     amends provisions related to the size limitations and number of allowed housing
17     and transit reinvestment zones;
18          ▸     requires equal participation by all local taxing entities;
19          ▸     defines the term of each type of housing and transit reinvestment zone;
20          ▸     amends the membership of the housing and transit reinvestment zone committee;
21          ▸     requires relevant zoning changes be made before the housing and transit
22     reinvestment zone may be approved by the committee;
23          ▸     amends provisions related to the efficiency and feasibility analysis of a housing and
24     transit reinvestment zone;
25          ▸     amends provisions related to state participation in a housing and transit

26     reinvestment zone; and
27          ▸     makes technical changes.
28     Money Appropriated in this Bill:
29          None
30     Other Special Clauses:
31          None
32     Utah Code Sections Affected:
33     AMENDS:
34          59-2-924, as last amended by Laws of Utah 2021, Chapters 214 and 388
35          59-12-103, as last amended by Laws of Utah 2021, Chapters 367, 387, and 411
36          63N-3-602, as enacted by Laws of Utah 2021, Chapter 411
37          63N-3-603, as last amended by Laws of Utah 2021, First Special Session, Chapter 3
38          63N-3-604, as enacted by Laws of Utah 2021, Chapter 411
39          63N-3-605, as enacted by Laws of Utah 2021, Chapter 411
40          63N-3-607, as enacted by Laws of Utah 2021, Chapter 411
41          63N-3-610, as enacted by Laws of Utah 2021, Chapter 411
42     

43     Be it enacted by the Legislature of the state of Utah:
44          Section 1. Section 59-2-924 is amended to read:
45          59-2-924. Definitions -- Report of valuation of property to county auditor and
46     commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
47     rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
48     commission.
49          (1) As used in this section:
50          (a) (i) "Ad valorem property tax revenue" means revenue collected in accordance with
51     this chapter.
52          (ii) "Ad valorem property tax revenue" does not include:
53          (A) interest;
54          (B) penalties;
55          (C) collections from redemptions; or
56          (D) revenue received by a taxing entity from personal property that is semiconductor

57     manufacturing equipment assessed by a county assessor in accordance with Part 3, County
58     Assessment.
59          (b) "Adjusted tax increment" means the same as that term is defined in Section
60     17C-1-102.
61          (c) (i) "Aggregate taxable value of all property taxed" means:
62          (A) the aggregate taxable value of all real property a county assessor assesses in
63     accordance with Part 3, County Assessment, for the current year;
64          (B) the aggregate taxable value of all real and personal property the commission
65     assesses in accordance with Part 2, Assessment of Property, for the current year; and
66          (C) the aggregate year end taxable value of all personal property a county assessor
67     assesses in accordance with Part 3, County Assessment, contained on the prior year's tax rolls
68     of the taxing entity.
69          (ii) "Aggregate taxable value of all property taxed" does not include the aggregate year
70     end taxable value of personal property that is:
71          (A) semiconductor manufacturing equipment assessed by a county assessor in
72     accordance with Part 3, County Assessment; and
73          (B) contained on the prior year's tax rolls of the taxing entity.
74          (d) "Base taxable value" means:
75          (i) for an authority created under Section 11-58-201, the same as that term is defined in
76     Section 11-58-102;
77          (ii) for an agency created under Section 17C-1-201.5, the same as that term is defined
78     in Section 17C-1-102;
79          (iii) for an authority created under Section 63H-1-201, the same as that term is defined
80     in Section 63H-1-102; or
81          (iv) for a host local government, the same as that term is defined in Section 63N-2-502.
82          (e) "Centrally assessed benchmark value" means an amount equal to the highest year
83     end taxable value of real and personal property the commission assesses in accordance with
84     Part 2, Assessment of Property, for a previous calendar year that begins on or after January 1,
85     2015, adjusted for taxable value attributable to:
86          (i) an annexation to a taxing entity; or
87          (ii) an incorrect allocation of taxable value of real or personal property the commission

88     assesses in accordance with Part 2, Assessment of Property.
89          (f) (i) "Centrally assessed new growth" means the greater of:
90          (A) zero; or
91          (B) the amount calculated by subtracting the centrally assessed benchmark value
92     adjusted for prior year end incremental value from the taxable value of real and personal
93     property the commission assesses in accordance with Part 2, Assessment of Property, for the
94     current year, adjusted for current year incremental value.
95          (ii) "Centrally assessed new growth" does not include a change in value as a result of a
96     change in the method of apportioning the value prescribed by the Legislature, a court, or the
97     commission in an administrative rule or administrative order.
98          (g) "Certified tax rate" means a tax rate that will provide the same ad valorem property
99     tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
100          (h) "Community reinvestment agency" means the same as that term is defined in
101     Section 17C-1-102.
102          (i) "Eligible new growth" means the greater of:
103          (i) zero; or
104          (ii) the sum of:
105          (A) locally assessed new growth;
106          (B) centrally assessed new growth; and
107          (C) project area new growth or hotel property new growth.
108          (j) "Host local government" means the same as that term is defined in Section
109     63N-2-502.
110          (k) "Hotel property" means the same as that term is defined in Section 63N-2-502.
111          (l) "Hotel property new growth" means an amount equal to the incremental value that
112     is no longer provided to a host local government as incremental property tax revenue.
113          (m) "Incremental property tax revenue" means the same as that term is defined in
114     Section 63N-2-502.
115          (n) "Incremental value" means:
116          (i) for an authority created under Section 11-58-201, the amount calculated by
117     multiplying:
118          (A) the difference between the taxable value and the base taxable value of the property

119     that is located within a project area and on which property tax differential is collected; and
120          (B) the number that represents the percentage of the property tax differential that is
121     paid to the authority;
122          (ii) for an agency created under Section 17C-1-201.5, the amount calculated by
123     multiplying:
124          (A) the difference between the taxable value and the base taxable value of the property
125     located within a project area and on which tax increment is collected; and
126          (B) the number that represents the adjusted tax increment from that project area that is
127     paid to the agency;
128          (iii) for an authority created under Section 63H-1-201, the amount calculated by
129     multiplying:
130          (A) the difference between the taxable value and the base taxable value of the property
131     located within a project area and on which property tax allocation is collected; and
132          (B) the number that represents the percentage of the property tax allocation from that
133     project area that is paid to the authority; [or]
134          (iv) for a housing and transit reinvestment zone created pursuant to Title 63N, Chapter
135     3, Part 6, Housing and Transit Reinvestment Zone Act, an amount calculated by multiplying:
136          (A) the difference between the taxable value and the base taxable value of the property
137     that is located within a housing and transit reinvestment zone and on which property tax
138     differential is collected; and
139          (B) the number that represents the percentage of the property tax differential that is
140     paid to the housing and transit reinvestment zone; or
141          [(iv)] (v) for a host local government, an amount calculated by multiplying:
142          (A) the difference between the taxable value and the base taxable value of the hotel
143     property on which incremental property tax revenue is collected; and
144          (B) the number that represents the percentage of the incremental property tax revenue
145     from that hotel property that is paid to the host local government.
146          (o) (i) "Locally assessed new growth" means the greater of:
147          (A) zero; or
148          (B) the amount calculated by subtracting the year end taxable value of real property the
149     county assessor assesses in accordance with Part 3, County Assessment, for the previous year,

150     adjusted for prior year end incremental value from the taxable value of real property the county
151     assessor assesses in accordance with Part 3, County Assessment, for the current year, adjusted
152     for current year incremental value.
153          (ii) "Locally assessed new growth" does not include a change in:
154          (A) value as a result of factoring in accordance with Section 59-2-704, reappraisal, or
155     another adjustment;
156          (B) assessed value based on whether a property is allowed a residential exemption for a
157     primary residence under Section 59-2-103;
158          (C) assessed value based on whether a property is assessed under Part 5, Farmland
159     Assessment Act; or
160          (D) assessed value based on whether a property is assessed under Part 17, Urban
161     Farming Assessment Act.
162          (p) "Project area" means:
163          (i) for an authority created under Section 11-58-201, the same as that term is defined in
164     Section 11-58-102;
165          (ii) for an agency created under Section 17C-1-201.5, the same as that term is defined
166     in Section 17C-1-102; or
167          (iii) for an authority created under Section 63H-1-201, the same as that term is defined
168     in Section 63H-1-102.
169          (q) "Project area new growth" means:
170          (i) for an authority created under Section 11-58-201, an amount equal to the
171     incremental value that is no longer provided to an authority as property tax differential;
172          (ii) for an agency created under Section 17C-1-201.5, an amount equal to the
173     incremental value that is no longer provided to an agency as tax increment; or
174          (iii) for an authority created under Section 63H-1-201, an amount equal to the
175     incremental value that is no longer provided to an authority as property tax allocation.
176          (r) "Project area incremental revenue" means the same as that term is defined in
177     Section 17C-1-1001.
178          (s) "Property tax allocation" means the same as that term is defined in Section
179     63H-1-102.
180          (t) "Property tax differential" means the same as that term is defined in Section

181     11-58-102.
182          (u) "Qualifying exempt revenue" means revenue received:
183          (i) for the previous calendar year;
184          (ii) by a taxing entity;
185          (iii) from tangible personal property contained on the prior year's tax rolls that is
186     exempt from property tax under Subsection 59-2-1115(2)(b) for a calendar year beginning on
187     January 1, 2022; and
188          (iv) on the aggregate 2021 year end taxable value of the tangible personal property that
189     exceeds $15,300.
190          (v) "Tax increment" means the same as that term is defined in Section 17C-1-102.
191          (2) Before June 1 of each year, the county assessor of each county shall deliver to the
192     county auditor and the commission the following statements:
193          (a) a statement containing the aggregate valuation of all taxable real property a county
194     assessor assesses in accordance with Part 3, County Assessment, for each taxing entity; and
195          (b) a statement containing the taxable value of all personal property a county assessor
196     assesses in accordance with Part 3, County Assessment, from the prior year end values.
197          (3) The county auditor shall, on or before June 8, transmit to the governing body of
198     each taxing entity:
199          (a) the statements described in Subsections (2)(a) and (b);
200          (b) an estimate of the revenue from personal property;
201          (c) the certified tax rate; and
202          (d) all forms necessary to submit a tax levy request.
203          (4) (a) Except as otherwise provided in this section, the certified tax rate shall be
204     calculated by dividing the ad valorem property tax revenue that a taxing entity budgeted for the
205     prior year minus the qualifying exempt revenue by the amount calculated under Subsection
206     (4)(b).
207          (b) For purposes of Subsection (4)(a), the legislative body of a taxing entity shall
208     calculate an amount as follows:
209          (i) calculate for the taxing entity the difference between:
210          (A) the aggregate taxable value of all property taxed; and
211          (B) any adjustments for current year incremental value;

212          (ii) after making the calculation required by Subsection (4)(b)(i), calculate an amount
213     determined by increasing or decreasing the amount calculated under Subsection (4)(b)(i) by the
214     average of the percentage net change in the value of taxable property for the equalization
215     period for the three calendar years immediately preceding the current calendar year;
216          (iii) after making the calculation required by Subsection (4)(b)(ii), calculate the product
217     of:
218          (A) the amount calculated under Subsection (4)(b)(ii); and
219          (B) the percentage of property taxes collected for the five calendar years immediately
220     preceding the current calendar year; and
221          (iv) after making the calculation required by Subsection (4)(b)(iii), calculate an amount
222     determined by:
223          (A) multiplying the percentage of property taxes collected for the five calendar years
224     immediately preceding the current calendar year by eligible new growth; and
225          (B) subtracting the amount calculated under Subsection (4)(b)(iv)(A) from the amount
226     calculated under Subsection (4)(b)(iii).
227          (5) A certified tax rate for a taxing entity described in this Subsection (5) shall be
228     calculated as follows:
229          (a) except as provided in Subsection (5)(b) or (c), for a new taxing entity, the certified
230     tax rate is zero;
231          (b) for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
232          (i) in a county of the first, second, or third class, the levy imposed for municipal-type
233     services under Sections 17-34-1 and 17-36-9; and
234          (ii) in a county of the fourth, fifth, or sixth class, the levy imposed for general county
235     purposes and such other levies imposed solely for the municipal-type services identified in
236     Section 17-34-1 and Subsection 17-36-3(23);
237          (c) for a community reinvestment agency that received all or a portion of a taxing
238     entity's project area incremental revenue in the prior year under Title 17C, Chapter 1, Part 10,
239     Agency Taxing Authority, the certified tax rate is calculated as described in Subsection (4)
240     except that the commission shall treat the total revenue transferred to the community
241     reinvestment agency as ad valorem property tax revenue that the taxing entity budgeted for the
242     prior year; and

243          (d) for debt service voted on by the public, the certified tax rate is the actual levy
244     imposed by that section, except that a certified tax rate for the following levies shall be
245     calculated in accordance with Section 59-2-913 and this section:
246          (i) a school levy provided for under Section 53F-8-301, 53F-8-302, or 53F-8-303; and
247          (ii) a levy to pay for the costs of state legislative mandates or judicial or administrative
248     orders under Section 59-2-1602.
249          (6) (a) A judgment levy imposed under Section 59-2-1328 or 59-2-1330 may be
250     imposed at a rate that is sufficient to generate only the revenue required to satisfy one or more
251     eligible judgments.
252          (b) The ad valorem property tax revenue generated by a judgment levy described in
253     Subsection (6)(a) may not be considered in establishing a taxing entity's aggregate certified tax
254     rate.
255          (7) (a) For the purpose of calculating the certified tax rate, the county auditor shall use:
256          (i) the taxable value of real property:
257          (A) the county assessor assesses in accordance with Part 3, County Assessment; and
258          (B) contained on the assessment roll;
259          (ii) the year end taxable value of personal property:
260          (A) a county assessor assesses in accordance with Part 3, County Assessment; and
261          (B) contained on the prior year's assessment roll; and
262          (iii) the taxable value of real and personal property the commission assesses in
263     accordance with Part 2, Assessment of Property.
264          (b) For purposes of Subsection (7)(a), taxable value does not include eligible new
265     growth.
266          (8) (a) On or before June 30, a taxing entity shall annually adopt a tentative budget.
267          (b) If a taxing entity intends to exceed the certified tax rate, the taxing entity shall
268     notify the county auditor of:
269          (i) the taxing entity's intent to exceed the certified tax rate; and
270          (ii) the amount by which the taxing entity proposes to exceed the certified tax rate.
271          (c) The county auditor shall notify property owners of any intent to levy a tax rate that
272     exceeds the certified tax rate in accordance with Sections 59-2-919 and 59-2-919.1.
273          (9) (a) Subject to Subsection (9)(d), the commission shall provide notice, through

274     electronic means on or before July 31, to a taxing entity and the Revenue and Taxation Interim
275     Committee if:
276          (i) the amount calculated under Subsection (9)(b) is 10% or more of the year end
277     taxable value of the real and personal property the commission assesses in accordance with
278     Part 2, Assessment of Property, for the previous year, adjusted for prior year end incremental
279     value; and
280          (ii) the amount calculated under Subsection (9)(c) is 50% or more of the total year end
281     taxable value of the real and personal property of a taxpayer the commission assesses in
282     accordance with Part 2, Assessment of Property, for the previous year.
283          (b) For purposes of Subsection (9)(a)(i), the commission shall calculate an amount by
284     subtracting the taxable value of real and personal property the commission assesses in
285     accordance with Part 2, Assessment of Property, for the current year, adjusted for current year
286     incremental value, from the year end taxable value of the real and personal property the
287     commission assesses in accordance with Part 2, Assessment of Property, for the previous year,
288     adjusted for prior year end incremental value.
289          (c) For purposes of Subsection (9)(a)(ii), the commission shall calculate an amount by
290     subtracting the total taxable value of real and personal property of a taxpayer the commission
291     assesses in accordance with Part 2, Assessment of Property, for the current year, from the total
292     year end taxable value of the real and personal property of a taxpayer the commission assesses
293     in accordance with Part 2, Assessment of Property, for the previous year.
294          (d) The notification under Subsection (9)(a) shall include a list of taxpayers that meet
295     the requirement under Subsection (9)(a)(ii).
296          Section 2. Section 59-12-103 is amended to read:
297          59-12-103. Sales and use tax base -- Rates -- Effective dates -- Use of sales and use
298     tax revenues.
299          (1) A tax is imposed on the purchaser as provided in this part on the purchase price or
300     sales price for amounts paid or charged for the following transactions:
301          (a) retail sales of tangible personal property made within the state;
302          (b) amounts paid for:
303          (i) telecommunications service, other than mobile telecommunications service, that
304     originates and terminates within the boundaries of this state;

305          (ii) mobile telecommunications service that originates and terminates within the
306     boundaries of one state only to the extent permitted by the Mobile Telecommunications
307     Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
308          (iii) an ancillary service associated with a:
309          (A) telecommunications service described in Subsection (1)(b)(i); or
310          (B) mobile telecommunications service described in Subsection (1)(b)(ii);
311          (c) sales of the following for commercial use:
312          (i) gas;
313          (ii) electricity;
314          (iii) heat;
315          (iv) coal;
316          (v) fuel oil; or
317          (vi) other fuels;
318          (d) sales of the following for residential use:
319          (i) gas;
320          (ii) electricity;
321          (iii) heat;
322          (iv) coal;
323          (v) fuel oil; or
324          (vi) other fuels;
325          (e) sales of prepared food;
326          (f) except as provided in Section 59-12-104, amounts paid or charged as admission or
327     user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
328     exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
329     fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
330     television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
331     driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
332     tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
333     horseback rides, sports activities, or any other amusement, entertainment, recreation,
334     exhibition, cultural, or athletic activity;
335          (g) amounts paid or charged for services for repairs or renovations of tangible personal

336     property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
337          (i) the tangible personal property; and
338          (ii) parts used in the repairs or renovations of the tangible personal property described
339     in Subsection (1)(g)(i), regardless of whether:
340          (A) any parts are actually used in the repairs or renovations of that tangible personal
341     property; or
342          (B) the particular parts used in the repairs or renovations of that tangible personal
343     property are exempt from a tax under this chapter;
344          (h) except as provided in Subsection 59-12-104(7), amounts paid or charged for
345     assisted cleaning or washing of tangible personal property;
346          (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
347     accommodations and services that are regularly rented for less than 30 consecutive days;
348          (j) amounts paid or charged for laundry or dry cleaning services;
349          (k) amounts paid or charged for leases or rentals of tangible personal property if within
350     this state the tangible personal property is:
351          (i) stored;
352          (ii) used; or
353          (iii) otherwise consumed;
354          (l) amounts paid or charged for tangible personal property if within this state the
355     tangible personal property is:
356          (i) stored;
357          (ii) used; or
358          (iii) consumed; and
359          (m) amounts paid or charged for a sale:
360          (i) (A) of a product transferred electronically; or
361          (B) of a repair or renovation of a product transferred electronically; and
362          (ii) regardless of whether the sale provides:
363          (A) a right of permanent use of the product; or
364          (B) a right to use the product that is less than a permanent use, including a right:
365          (I) for a definite or specified length of time; and
366          (II) that terminates upon the occurrence of a condition.

367          (2) (a) Except as provided in Subsections (2)(b) through (f), a state tax and a local tax
368     are imposed on a transaction described in Subsection (1) equal to the sum of:
369          (i) a state tax imposed on the transaction at a tax rate equal to the sum of:
370          (A) 4.70% plus the rate specified in Subsection (12)(a); and
371          (B) (I) the tax rate the state imposes in accordance with Part 18, Additional State Sales
372     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
373     through 59-12-215 is in a county in which the state imposes the tax under Part 18, Additional
374     State Sales and Use Tax Act; and
375          (II) the tax rate the state imposes in accordance with Part 20, Supplemental State Sales
376     and Use Tax Act, if the location of the transaction as determined under Sections 59-12-211
377     through 59-12-215 is in a city, town, or the unincorporated area of a county in which the state
378     imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
379          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
380     transaction under this chapter other than this part.
381          (b) Except as provided in Subsection (2)(e) or (f) and subject to Subsection (2)(k), a
382     state tax and a local tax are imposed on a transaction described in Subsection (1)(d) equal to
383     the sum of:
384          (i) a state tax imposed on the transaction at a tax rate of 2%; and
385          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
386     transaction under this chapter other than this part.
387          (c) Except as provided in Subsection (2)(e) or (f), a state tax and a local tax are
388     imposed on amounts paid or charged for food and food ingredients equal to the sum of:
389          (i) a state tax imposed on the amounts paid or charged for food and food ingredients at
390     a tax rate of 1.75%; and
391          (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
392     amounts paid or charged for food and food ingredients under this chapter other than this part.
393          (d) Except as provided in Subsection (2)(e) or (f), a state tax is imposed on amounts
394     paid or charged for fuel to a common carrier that is a railroad for use in a locomotive engine at
395     a rate of 4.85%.
396          (e) (i) For a bundled transaction that is attributable to food and food ingredients and
397     tangible personal property other than food and food ingredients, a state tax and a local tax is

398     imposed on the entire bundled transaction equal to the sum of:
399          (A) a state tax imposed on the entire bundled transaction equal to the sum of:
400          (I) the tax rate described in Subsection (2)(a)(i)(A); and
401          (II) (Aa) the tax rate the state imposes in accordance with Part 18, Additional State
402     Sales and Use Tax Act, if the location of the transaction as determined under Sections
403     59-12-211 through 59-12-215 is in a county in which the state imposes the tax under Part 18,
404     Additional State Sales and Use Tax Act; and
405          (Bb) the tax rate the state imposes in accordance with Part 20, Supplemental State
406     Sales and Use Tax Act, if the location of the transaction as determined under Sections
407     59-12-211 through 59-12-215 is in a city, town, or the unincorporated area of a county in which
408     the state imposes the tax under Part 20, Supplemental State Sales and Use Tax Act; and
409          (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates
410     described in Subsection (2)(a)(ii).
411          (ii) If an optional computer software maintenance contract is a bundled transaction that
412     consists of taxable and nontaxable products that are not separately itemized on an invoice or
413     similar billing document, the purchase of the optional computer software maintenance contract
414     is 40% taxable under this chapter and 60% nontaxable under this chapter.
415          (iii) Subject to Subsection (2)(e)(iv), for a bundled transaction other than a bundled
416     transaction described in Subsection (2)(e)(i) or (ii):
417          (A) if the sales price of the bundled transaction is attributable to tangible personal
418     property, a product, or a service that is subject to taxation under this chapter and tangible
419     personal property, a product, or service that is not subject to taxation under this chapter, the
420     entire bundled transaction is subject to taxation under this chapter unless:
421          (I) the seller is able to identify by reasonable and verifiable standards the tangible
422     personal property, product, or service that is not subject to taxation under this chapter from the
423     books and records the seller keeps in the seller's regular course of business; or
424          (II) state or federal law provides otherwise; or
425          (B) if the sales price of a bundled transaction is attributable to two or more items of
426     tangible personal property, products, or services that are subject to taxation under this chapter
427     at different rates, the entire bundled transaction is subject to taxation under this chapter at the
428     higher tax rate unless:

429          (I) the seller is able to identify by reasonable and verifiable standards the tangible
430     personal property, product, or service that is subject to taxation under this chapter at the lower
431     tax rate from the books and records the seller keeps in the seller's regular course of business; or
432          (II) state or federal law provides otherwise.
433          (iv) For purposes of Subsection (2)(e)(iii), books and records that a seller keeps in the
434     seller's regular course of business includes books and records the seller keeps in the regular
435     course of business for nontax purposes.
436          (f) (i) Except as otherwise provided in this chapter and subject to Subsections (2)(f)(ii)
437     and (iii), if a transaction consists of the sale, lease, or rental of tangible personal property, a
438     product, or a service that is subject to taxation under this chapter, and the sale, lease, or rental
439     of tangible personal property, other property, a product, or a service that is not subject to
440     taxation under this chapter, the entire transaction is subject to taxation under this chapter unless
441     the seller, at the time of the transaction:
442          (A) separately states the portion of the transaction that is not subject to taxation under
443     this chapter on an invoice, bill of sale, or similar document provided to the purchaser; or
444          (B) is able to identify by reasonable and verifiable standards, from the books and
445     records the seller keeps in the seller's regular course of business, the portion of the transaction
446     that is not subject to taxation under this chapter.
447          (ii) A purchaser and a seller may correct the taxability of a transaction if:
448          (A) after the transaction occurs, the purchaser and the seller discover that the portion of
449     the transaction that is not subject to taxation under this chapter was not separately stated on an
450     invoice, bill of sale, or similar document provided to the purchaser because of an error or
451     ignorance of the law; and
452          (B) the seller is able to identify by reasonable and verifiable standards, from the books
453     and records the seller keeps in the seller's regular course of business, the portion of the
454     transaction that is not subject to taxation under this chapter.
455          (iii) For purposes of Subsections (2)(f)(i) and (ii), books and records that a seller keeps
456     in the seller's regular course of business includes books and records the seller keeps in the
457     regular course of business for nontax purposes.
458          (g) (i) If the sales price of a transaction is attributable to two or more items of tangible
459     personal property, products, or services that are subject to taxation under this chapter at

460     different rates, the entire purchase is subject to taxation under this chapter at the higher tax rate
461     unless the seller, at the time of the transaction:
462          (A) separately states the items subject to taxation under this chapter at each of the
463     different rates on an invoice, bill of sale, or similar document provided to the purchaser; or
464          (B) is able to identify by reasonable and verifiable standards the tangible personal
465     property, product, or service that is subject to taxation under this chapter at the lower tax rate
466     from the books and records the seller keeps in the seller's regular course of business.
467          (ii) For purposes of Subsection (2)(g)(i), books and records that a seller keeps in the
468     seller's regular course of business includes books and records the seller keeps in the regular
469     course of business for nontax purposes.
470          (h) Subject to Subsections (2)(i) and (j), a tax rate repeal or tax rate change for a tax
471     rate imposed under the following shall take effect on the first day of a calendar quarter:
472          (i) Subsection (2)(a)(i)(A);
473          (ii) Subsection (2)(b)(i);
474          (iii) Subsection (2)(c)(i); or
475          (iv) Subsection (2)(e)(i)(A)(I).
476          (i) (i) A tax rate increase takes effect on the first day of the first billing period that
477     begins on or after the effective date of the tax rate increase if the billing period for the
478     transaction begins before the effective date of a tax rate increase imposed under:
479          (A) Subsection (2)(a)(i)(A);
480          (B) Subsection (2)(b)(i);
481          (C) Subsection (2)(c)(i); or
482          (D) Subsection (2)(e)(i)(A)(I).
483          (ii) The repeal of a tax or a tax rate decrease applies to a billing period if the billing
484     statement for the billing period is rendered on or after the effective date of the repeal of the tax
485     or the tax rate decrease imposed under:
486          (A) Subsection (2)(a)(i)(A);
487          (B) Subsection (2)(b)(i);
488          (C) Subsection (2)(c)(i); or
489          (D) Subsection (2)(e)(i)(A)(I).
490          (j) (i) For a tax rate described in Subsection (2)(j)(ii), if a tax due on a catalogue sale is

491     computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
492     change in a tax rate takes effect:
493          (A) on the first day of a calendar quarter; and
494          (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change.
495          (ii) Subsection (2)(j)(i) applies to the tax rates described in the following:
496          (A) Subsection (2)(a)(i)(A);
497          (B) Subsection (2)(b)(i);
498          (C) Subsection (2)(c)(i); or
499          (D) Subsection (2)(e)(i)(A)(I).
500          (iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
501     the commission may by rule define the term "catalogue sale."
502          (k) (i) For a location described in Subsection (2)(k)(ii), the commission shall determine
503     the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel based on the
504     predominant use of the gas, electricity, heat, coal, fuel oil, or other fuel at the location.
505          (ii) Subsection (2)(k)(i) applies to a location where gas, electricity, heat, coal, fuel oil,
506     or other fuel is furnished through a single meter for two or more of the following uses:
507          (A) a commercial use;
508          (B) an industrial use; or
509          (C) a residential use.
510          (3) (a) The following state taxes shall be deposited into the General Fund:
511          (i) the tax imposed by Subsection (2)(a)(i)(A);
512          (ii) the tax imposed by Subsection (2)(b)(i);
513          (iii) the tax imposed by Subsection (2)(c)(i); and
514          (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
515          (b) The following local taxes shall be distributed to a county, city, or town as provided
516     in this chapter:
517          (i) the tax imposed by Subsection (2)(a)(ii);
518          (ii) the tax imposed by Subsection (2)(b)(ii);
519          (iii) the tax imposed by Subsection (2)(c)(ii); and
520          (iv) the tax imposed by Subsection (2)(e)(i)(B).
521          (c) The state tax imposed by Subsection (2)(d) shall be deposited into the General

522     Fund.
523          (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
524     2003, the lesser of the following amounts shall be expended as provided in Subsections (4)(b)
525     through (g):
526          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
527          (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
528          (B) for the fiscal year; or
529          (ii) $17,500,000.
530          (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
531     described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
532     Department of Natural Resources to:
533          (A) implement the measures described in Subsections 79-2-303(3)(a) through (d) to
534     protect sensitive plant and animal species; or
535          (B) award grants, up to the amount authorized by the Legislature in an appropriations
536     act, to political subdivisions of the state to implement the measures described in Subsections
537     79-2-303(3)(a) through (d) to protect sensitive plant and animal species.
538          (ii) Money transferred to the Department of Natural Resources under Subsection
539     (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
540     person to list or attempt to have listed a species as threatened or endangered under the
541     Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
542          (iii) At the end of each fiscal year:
543          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
544     Conservation and Development Fund created in Section 73-10-24;
545          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
546     Program Subaccount created in Section 73-10c-5; and
547          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
548     Program Subaccount created in Section 73-10c-5.
549          (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
550     Subsection (4)(a) shall be deposited each year in the Agriculture Resource Development Fund
551     created in Section 4-18-106.
552          (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described

553     in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
554     Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
555     water rights.
556          (ii) At the end of each fiscal year:
557          (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
558     Conservation and Development Fund created in Section 73-10-24;
559          (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
560     Program Subaccount created in Section 73-10c-5; and
561          (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
562     Program Subaccount created in Section 73-10c-5.
563          (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
564     in Subsection (4)(a) shall be deposited into the Water Resources Conservation and
565     Development Fund created in Section 73-10-24 for use by the Division of Water Resources.
566          (ii) In addition to the uses allowed of the Water Resources Conservation and
567     Development Fund under Section 73-10-24, the Water Resources Conservation and
568     Development Fund may also be used to:
569          (A) conduct hydrologic and geotechnical investigations by the Division of Water
570     Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
571     quantifying surface and ground water resources and describing the hydrologic systems of an
572     area in sufficient detail so as to enable local and state resource managers to plan for and
573     accommodate growth in water use without jeopardizing the resource;
574          (B) fund state required dam safety improvements; and
575          (C) protect the state's interest in interstate water compact allocations, including the
576     hiring of technical and legal staff.
577          (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
578     in Subsection (4)(a) shall be deposited into the Utah Wastewater Loan Program Subaccount
579     created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
580          (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
581     in Subsection (4)(a) shall be deposited into the Drinking Water Loan Program Subaccount
582     created in Section 73-10c-5 for use by the Division of Drinking Water to:
583          (i) provide for the installation and repair of collection, treatment, storage, and

584     distribution facilities for any public water system, as defined in Section 19-4-102;
585          (ii) develop underground sources of water, including springs and wells; and
586          (iii) develop surface water sources.
587          (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
588     2006, the difference between the following amounts shall be expended as provided in this
589     Subsection (5), if that difference is greater than $1:
590          (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated for the
591     fiscal year by a 1/16% tax rate on the transactions described in Subsection (1); and
592          (ii) $17,500,000.
593          (b) (i) The first $500,000 of the difference described in Subsection (5)(a) shall be:
594          (A) transferred each fiscal year to the Department of Natural Resources as dedicated
595     credits; and
596          (B) expended by the Department of Natural Resources for watershed rehabilitation or
597     restoration.
598          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
599     in Subsection (5)(b)(i) shall lapse to the Water Resources Conservation and Development Fund
600     created in Section 73-10-24.
601          (c) (i) After making the transfer required by Subsection (5)(b)(i), $150,000 of the
602     remaining difference described in Subsection (5)(a) shall be:
603          (A) transferred each fiscal year to the Division of Water Resources as dedicated
604     credits; and
605          (B) expended by the Division of Water Resources for cloud-seeding projects
606     authorized by Title 73, Chapter 15, Modification of Weather.
607          (ii) At the end of each fiscal year, 100% of any unexpended dedicated credits described
608     in Subsection (5)(c)(i) shall lapse to the Water Resources Conservation and Development Fund
609     created in Section 73-10-24.
610          (d) After making the transfers required by Subsections (5)(b) and (c), 85% of the
611     remaining difference described in Subsection (5)(a) shall be deposited into the Water
612     Resources Conservation and Development Fund created in Section 73-10-24 for use by the
613     Division of Water Resources for:
614          (i) preconstruction costs:

615          (A) as defined in Subsection 73-26-103(6) for projects authorized by Title 73, Chapter
616     26, Bear River Development Act; and
617          (B) as defined in Subsection 73-28-103(8) for the Lake Powell Pipeline project
618     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
619          (ii) the cost of employing a civil engineer to oversee any project authorized by Title 73,
620     Chapter 26, Bear River Development Act;
621          (iii) the cost of employing a civil engineer to oversee the Lake Powell Pipeline project
622     authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act; and
623          (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and
624     Subsection (4)(e)(ii) after funding the uses specified in Subsections (5)(d)(i) through (iii).
625          (e) After making the transfers required by Subsections (5)(b) and (c) and subject to
626     Subsection (5)(f), 15% of the remaining difference described in Subsection (5)(a) shall be
627     transferred each year as dedicated credits to the Division of Water Rights to cover the costs
628     incurred for employing additional technical staff for the administration of water rights.
629          (f) At the end of each fiscal year, any unexpended dedicated credits described in
630     Subsection (5)(e) over $150,000 lapse to the Water Resources Conservation and Development
631     Fund created in Section 73-10-24.
632          (6) Notwithstanding Subsection (3)(a) and for taxes listed under Subsection (3)(a), the
633     amount of revenue generated by a 1/16% tax rate on the transactions described in Subsection
634     (1) for the fiscal year shall be deposited as follows:
635          (a) for fiscal year 2020-21 only:
636          (i) 20% of the revenue described in this Subsection (6) shall be deposited into the
637     Transportation Investment Fund of 2005 created by Section 72-2-124; and
638          (ii) 80% of the revenue described in this Subsection (6) shall be deposited into the
639     Water Infrastructure Restricted Account created by Section 73-10g-103; and
640          (b) for a fiscal year beginning on or after July 1, 2021, 100% of the revenue described
641     in this Subsection (6) shall be deposited into the Water Infrastructure Restricted Account
642     created by Section 73-10g-103.
643          (7) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited in
644     Subsection (6), and subject to Subsection (7)(b), for a fiscal year beginning on or after July 1,
645     2012, the Division of Finance shall deposit into the Transportation Investment Fund of 2005

646     created by Section 72-2-124:
647          (i) a portion of the taxes listed under Subsection (3)(a) in an amount equal to 8.3% of
648     the revenues collected from the following taxes, which represents a portion of the
649     approximately 17% of sales and use tax revenues generated annually by the sales and use tax
650     on vehicles and vehicle-related products:
651          (A) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
652          (B) the tax imposed by Subsection (2)(b)(i);
653          (C) the tax imposed by Subsection (2)(c)(i); and
654          (D) the tax imposed by Subsection (2)(e)(i)(A)(I); plus
655          (ii) an amount equal to 30% of the growth in the amount of revenues collected in the
656     current fiscal year from the sales and use taxes described in Subsections (7)(a)(i)(A) through
657     (D) that exceeds the amount collected from the sales and use taxes described in Subsections
658     (7)(a)(i)(A) through (D) in the 2010-11 fiscal year.
659          (b) (i) Subject to Subsections (7)(b)(ii) and (iii), in any fiscal year that the portion of
660     the sales and use taxes deposited under Subsection (7)(a) represents an amount that is a total
661     lower percentage of the sales and use taxes described in Subsections (7)(a)(i)(A) through (D)
662     generated in the current fiscal year than the total percentage of sales and use taxes deposited in
663     the previous fiscal year, the Division of Finance shall deposit an amount under Subsection
664     (7)(a) equal to the product of:
665          (A) the total percentage of sales and use taxes deposited under Subsection (7)(a) in the
666     previous fiscal year; and
667          (B) the total sales and use tax revenue generated by the taxes described in Subsections
668     (7)(a)(i)(A) through (D) in the current fiscal year.
669          (ii) In any fiscal year in which the portion of the sales and use taxes deposited under
670     Subsection (7)(a) would exceed 17% of the revenues collected from the sales and use taxes
671     described in Subsections (7)(a)(i)(A) through (D) in the current fiscal year, the Division of
672     Finance shall deposit 17% of the revenues collected from the sales and use taxes described in
673     Subsections (7)(a)(i)(A) through (D) for the current fiscal year under Subsection (7)(a).
674          (iii) Subject to Subsection (7)(b)(iv)(E), in all subsequent fiscal years after a year in
675     which 17% of the revenues collected from the sales and use taxes described in Subsections
676     (7)(a)(i)(A) through (D) was deposited under Subsection (7)(a), the Division of Finance shall

677     annually deposit 17% of the revenues collected from the sales and use taxes described in
678     Subsections (7)(a)(i)(A) through (D) in the current fiscal year under Subsection (7)(a).
679          (iv) (A) As used in this Subsection (7)(b)(iv), "additional growth revenue" means the
680     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
681     the relevant revenue collected in the previous fiscal year.
682          (B) As used in this Subsection (7)(b)(iv), "combined amount" means the combined
683     total amount of money deposited into the Cottonwood Canyons fund under Subsections
684     (7)(b)(iv)(F) and [(8)(c)(iv)(F)] (8)(d)(vi) in any single fiscal year.
685          (C) As used in this Subsection (7)(b)(iv), "Cottonwood Canyons fund" means the
686     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
687          (D) As used in this Subsection (7)(b)(iv), "relevant revenue" means the portion of taxes
688     listed under Subsection (3)(a) that equals 17% of the revenue collected from taxes described in
689     Subsections (7)(a)(i)(A) through (D).
690          (E) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
691     reduce the deposit under Subsection [(7)(c)(iii)] (7)(b)(iii) into the Transportation Investment
692     Fund of 2005 by an amount equal to the amount of the deposit under this Subsection (7)(b)(iv)
693     to the Cottonwood Canyons fund in the previous fiscal year plus 25% of additional growth
694     revenue, subject to the limit in Subsection (7)(b)(iv)(F).
695          (F) The commission shall annually deposit the amount described in Subsection
696     (7)(b)(iv)(E) into the Cottonwood Canyons fund, subject to an annual maximum combined
697     amount for any single fiscal year of $20,000,000.
698          (G) If the amount of relevant revenue declines in a fiscal year compared to the previous
699     fiscal year, the commission shall decrease the amount of the contribution to the Cottonwood
700     Canyons fund under this Subsection (7)(b)(iv) in the same proportion as the decline in relevant
701     revenue.
702          (8) (a) Notwithstanding Subsection (3)(a), in addition to the amounts deposited under
703     Subsections (6) and (7), and subject to Subsections (8)(b) and (d)(v), for a fiscal year beginning
704     on or after July 1, 2018, the commission shall annually deposit into the Transportation
705     Investment Fund of 2005 created by Section 72-2-124 a portion of the taxes listed under
706     Subsection (3)(a) in an amount equal to 3.68% of the revenues collected from the following
707     taxes:

708          (i) the tax imposed by Subsection (2)(a)(i)(A) at a 4.7% rate;
709          (ii) the tax imposed by Subsection (2)(b)(i);
710          (iii) the tax imposed by Subsection (2)(c)(i); and
711          (iv) the tax imposed by Subsection (2)(e)(i)(A)(I).
712          (b) For a fiscal year beginning on or after July 1, 2019, the commission shall annually
713     reduce the deposit into the Transportation Investment Fund of 2005 under Subsection (8)(a) by
714     an amount that is equal to 35% of the amount of revenue generated in the current fiscal year by
715     the portion of the tax imposed on motor and special fuel that is sold, used, or received for sale
716     or use in this state that exceeds 29.4 cents per gallon.
717          (c) The commission shall annually deposit the amount described in Subsection (8)(b)
718     into the Transit Transportation Investment Fund created in Section 72-2-124.
719          (d) (i) As used in this Subsection (8)(d), "additional growth revenue" means the
720     amount of relevant revenue collected in the current fiscal year that exceeds by more than 3%
721     the relevant revenue collected in the previous fiscal year.
722          (ii) As used in this Subsection (8)(d), "combined amount" means the combined total
723     amount of money deposited into the Cottonwood Canyons fund under Subsections (7)(b)(iv)(F)
724     and (8)(d)(vi) in any single fiscal year.
725          (iii) As used in this Subsection (8)(d), "Cottonwood Canyons fund" means the
726     Cottonwood Canyons Transportation Investment Fund created in Subsection 72-2-124(10).
727          (iv) As used in this Subsection (8)(d), "relevant revenue" means the portion of taxes
728     listed under Subsection (3)(a) that equals 3.68% of the revenue collected from taxes described
729     in Subsections (8)(a)(i) through (iv).
730          (v) For a fiscal year beginning on or after July 1, 2020, the commission shall annually
731     reduce the deposit under Subsection (8)(a) into the Transportation Investment Fund of 2005 by
732     an amount equal to the amount of the deposit under this Subsection (8)(d) to the Cottonwood
733     Canyons fund in the previous fiscal year plus 25% of additional growth revenue, subject to the
734     limit in Subsection (8)(d)(vi).
735          (vi) The commission shall annually deposit the amount described in Subsection
736     (8)(d)(v) into the Cottonwood Canyons fund, subject to an annual maximum combined amount
737     for any single fiscal year of $20,000,000.
738          (vii) If the amount of relevant revenue declines in a fiscal year compared to the

739     previous fiscal year, the commission shall decrease the amount of the contribution to the
740     Cottonwood Canyons fund under this Subsection (8)(d) in the same proportion as the decline in
741     relevant revenue.
742          (9) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
743     2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies Fund
744     created by Section 35A-8-1009 and expended as provided in Section 35A-8-1009.
745          (10) (a) Notwithstanding Subsection (3)(a), except as provided in Subsection (10)(b),
746     and in addition to any amounts deposited under Subsections (6), (7), and (8), the Division of
747     Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
748     72-2-124 the amount of revenue described as follows:
749          (i) for fiscal year 2020-21 only, 33.33% of the amount of revenue generated by a .05%
750     tax rate on the transactions described in Subsection (1); and
751          (ii) for fiscal year 2021-22 only, 16.67% of the amount of revenue generated by a .05%
752     tax rate on the transactions described in Subsection (1).
753          (b) For purposes of Subsection (10)(a), the Division of Finance may not deposit into
754     the Transportation Investment Fund of 2005 any tax revenue generated by amounts paid or
755     charged for food and food ingredients, except for tax revenue generated by a bundled
756     transaction attributable to food and food ingredients and tangible personal property other than
757     food and food ingredients described in Subsection (2)(e).
758          (11) Notwithstanding Subsection (3)(a), beginning the second fiscal year after the
759     fiscal year during which the Division of Finance receives notice under Section 63N-2-510 that
760     construction on a qualified hotel, as defined in Section 63N-2-502, has begun, the Division of
761     Finance shall, for two consecutive fiscal years, annually deposit $1,900,000 of the revenue
762     generated by the taxes listed under Subsection (3)(a) into the Hotel Impact Mitigation Fund,
763     created in Section 63N-2-512.
764          (12) (a) The rate specified in this subsection is 0.15%.
765          (b) Notwithstanding Subsection (3)(a), the Division of Finance shall, for a fiscal year
766     beginning on or after July 1, 2019, annually transfer the amount of revenue collected from the
767     rate described in Subsection (12)(a) on the transactions that are subject to the sales and use tax
768     under Subsection (2)(a)(i)(A) into the Medicaid Expansion Fund created in Section
769     26-36b-208.

770          (13) Notwithstanding Subsection (3)(a), for each fiscal year beginning with fiscal year
771     2020-21, the Division of Finance shall deposit $200,000 into the General Fund as a dedicated
772     credit solely for use of the Search and Rescue Financial Assistance Program created in, and
773     expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
774          (14) (a) For each fiscal year beginning with fiscal year 2020-21, the Division of
775     Finance shall annually transfer $1,813,400 of the revenue deposited into the Transportation
776     Investment Fund of 2005 under Subsections (6) through (8) to the General Fund.
777          (b) If the total revenue deposited into the Transportation Investment Fund of 2005
778     under Subsections (6) through (8) is less than $1,813,400 for a fiscal year, the Division of
779     Finance shall transfer the total revenue deposited into the Transportation Investment Fund of
780     2005 under Subsections (6) through (8) during the fiscal year to the General Fund.
781          (15) Notwithstanding Subsection (3)(a), and as described in Section 63N-3-610,
782     beginning the first day of the calendar quarter one year after the sales and use tax boundary for
783     a housing and transit reinvestment zone is established, the commission, at least annually, shall
784     transfer an amount equal to [15%] 20% of the sales and use tax increment within an established
785     sales and use tax boundary, as defined in Section 63N-3-602, and as determined by the housing
786     and transit reinvestment zone committee as described in Subsection 63N-3-610(3):
787          (a) at least 10% transferred into the Transit Transportation Investment Fund created in
788     Section 72-2-124[.]; and
789          (b) up to 10% transferred to the municipality or public transit county to be used as
790     described in Section 63N-3-610.
791          Section 3. Section 63N-3-602 is amended to read:
792          63N-3-602. Definitions.
793          As used in this part:
794          (1) "Affordable housing" means the same as that term is defined in Section 11-38-102.
795          (2) "Agency" means the same as that term is defined in Section 17C-1-102.
796          (3) "Base taxable value" means a property's taxable value as shown upon the
797     assessment roll last equalized during the base year.
798          (4) "Base year" means, for a proposed housing and transit reinvestment zone area, a
799     year beginning the first day of the calendar quarter determined by the last equalized tax roll
800     before the adoption of the housing and transit reinvestment zone.

801          (5) "Bus rapid transit" means a high-quality bus-based transit system that delivers fast
802     and efficient service that may include dedicated lanes, busways, traffic signal priority,
803     off-board fare collection, elevated platforms, and enhanced stations.
804          [(5)] (6) (a) "Commuter rail" means a heavy-rail passenger rail transit facility operated
805     by a large public transit district.
806          (b) "Commuter rail" does not include a light-rail passenger rail facility of a large public
807     transit district.
808          [(6)] (7) "Commuter rail station" means a station, stop, or terminal along an existing
809     commuter rail line, or along an extension to an existing commuter rail line or new commuter
810     rail line that is included in a metropolitan planning organization's adopted long-range
811     transportation plan.
812          [(7)] (8) "Dwelling unit" means one or more rooms arranged for the use of one or more
813     individuals living together, as a single housekeeping unit normally having cooking, living,
814     sanitary, and sleeping facilities.
815          [(8)] (9) "Enhanced development" means the construction of mixed uses including
816     housing, commercial uses, and related facilities[, at an average density of 50 dwelling units or
817     more per acre on the developable acres].
818          [(9)] (10) "Enhanced development costs" means extra costs associated with structured
819     parking costs, vertical construction costs, horizontal construction costs, life safety costs,
820     structural costs, conveyor or elevator costs, and other costs incurred due to the increased height
821     of buildings or enhanced development.
822          [(10)] (11) "Horizontal construction costs" means the additional costs associated with
823     earthwork, over excavation, utility work, transportation infrastructure, and landscaping to
824     achieve enhanced development in the housing and transit reinvestment zone.
825          [(11)] (12) "Housing and transit reinvestment zone" means a housing and transit
826     reinvestment zone created pursuant to this part.
827          [(12)] (13) "Housing and transit reinvestment zone committee" means a housing and
828     transit reinvestment zone committee created pursuant to Section 63N-3-605.
829          [(13)] (14) "Large public transit district" means the same as that term is defined in
830     Section 17B-2a-802.
831          (15) "Light rail" means a passenger rail public transit system with right-of-way and

832     fixed rails:
833          (a) dedicated to exclusive use by light-rail public transit vehicles;
834          (b) that may cross streets at grade; and
835          (c) that may share parts of surface streets.
836          [(14)] (16) "Metropolitan planning organization" means the same as that term is
837     defined in Section 72-1-208.5.
838          [(15)] (17) "Mixed use development" means development with a mix of multi-family
839     residential use and at least one additional land use.
840          [(16)] (18) "Municipality" means the same as that term is defined in Section 10-1-104.
841          [(17)] (19) "Participant" means the same as that term is defined in Section 17C-1-102.
842          [(18)] (20) "Participation agreement" means the same as that term is defined in Section
843     17C-1-102.
844          [(19)] (21) "Public transit county" means a county that has created a small public
845     transit district.
846          [(20)] (22) "Public transit hub" means a public transit depot or station where four or
847     more routes serving separate parts of the county-created transit district stop to transfer riders
848     between routes.
849          [(21)] (23) "Sales and use tax base year" means a sales and use tax year determined by
850     the first year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax
851     boundary for a housing and transit reinvestment zone is established.
852          [(22)] (24) "Sales and use tax boundary" means a boundary created as described in
853     Section 63N-3-604, based on state sales and use tax collection that corresponds as closely as
854     reasonably practicable to the housing and transit reinvestment zone boundary.
855          [(23)] (25) "Sales and use tax increment" means the difference between:
856          (a) the amount of state sales and use tax revenue generated each year following the
857     sales and use tax base year by the sales and use tax from the area within a housing and transit
858     reinvestment zone designated in the housing and transit reinvestment zone proposal as the area
859     from which sales and use tax increment is to be collected; and
860          (b) the amount of state sales and use tax revenue that was generated from that same
861     area during the sales and use tax base year.
862          [(24)] (26) "Sales and use tax revenue" means revenue that is generated from the tax

863     imposed under Section 59-12-103.
864          [(25)] (27) "Small public transit district" means the same as that term is defined in
865     Section 17B-2a-802.
866          [(26)] (28) "Tax commission" means the State Tax Commission created in Section
867     59-1-201.
868          [(27)] (29) "Tax increment" means the difference between:
869          (a) the amount of property tax revenue generated each tax year by a taxing entity from
870     the area within a housing and transit reinvestment zone designated in the housing and transit
871     reinvestment zone proposal as the area from which tax increment is to be collected, using the
872     current assessed value and each taxing entity's current certified tax rate as defined in Section
873     59-2-924; and
874          (b) the amount of property tax revenue that would be generated from that same area
875     using the base taxable value and each taxing entity's current certified tax rate as defined in
876     Section 59-2-924.
877          [(28)] (30) "Taxing entity" means the same as that term is defined in Section
878     17C-1-102.
879          [(29)] (31) "Vertical construction costs" means the additional costs associated with
880     construction above four stories and structured parking to achieve enhanced development in the
881     housing and transit reinvestment zone.
882          Section 4. Section 63N-3-603 is amended to read:
883          63N-3-603. Applicability, requirements, and limitations on a housing and transit
884     reinvestment zone.
885          (1) A housing and transit reinvestment zone proposal created under this part shall
886     promote the following objectives:
887          (a) higher utilization of public transit;
888          (b) increasing availability of housing, including affordable housing;
889          (c) conservation of water resources through efficient land use;
890          (d) improving air quality by reducing fuel consumption and motor vehicle trips;
891          (e) encouraging transformative mixed-use development and investment in
892     transportation and public transit infrastructure in strategic areas;
893          (f) strategic land use and municipal planning in major transit investment corridors as

894     described in Subsection 10-9a-403(2); and
895          (g) increasing access to employment and educational opportunities.
896          (2) In order to accomplish the objectives described in Subsection (1), a municipality or
897     public transit county that initiates the process to create a housing and transit reinvestment zone
898     as described in this part shall ensure that the proposal for a housing and transit reinvestment
899     zone includes:
900          (a) except as provided in Subsection (3), at least 10% of the proposed [housing]
901     dwelling units within the housing and transit reinvestment zone are affordable housing units;
902          (b) [a dedication of] at least 51% of the developable area within the housing and transit
903     reinvestment zone [to residential development] includes residential uses with an average of 50
904     [multi-family] dwelling units per acre or greater; and
905          (c) mixed-use development.
906          (3) A municipality or public transit county that, at the time the housing and transit
907     reinvestment zone proposal is approved by the housing and transit reinvestment zone
908     committee, meets the affordable housing guidelines of the United States Department of
909     Housing and Urban Development at 60% area median income is exempt from the requirement
910     described in Subsection (2)(a).
911          [(4) A municipality or public transit county may only propose a housing and transit
912     reinvestment zone that:]
913          (4) (a) A municipality may only propose a housing and transit reinvestment zone at a
914     commuter rail station, and a public transit county may only propose a housing and transit
915     reinvestment zone at a public transit hub, that:
916          [(a)] (i) subject to Subsection (5)(a):
917          [(i)] (A) (I) for a municipality, does not exceed a 1/3 mile radius of a commuter rail
918     station; or
919          [(B)] (II) for a public transit county, does not exceed a 1/3 mile radius of a public
920     transit hub; and
921          [(ii)] (B) has a total area of no more than 125 noncontiguous [square] acres;
922          [(b)] (ii) subject to Section 63N-3-607, proposes the capture of a maximum of 80% of
923     each taxing entity's tax increment above the base year for a term of no more than 25
924     consecutive years on each parcel within a 45-year period not to exceed the tax increment

925     amount approved in the housing and transit reinvestment zone proposal; and
926          [(c)] (iii) the commencement of collection of tax increment, for all or a portion of the
927     housing and transit reinvestment zone, will be triggered by providing notice as described in
928     Subsection (6).
929          (b) A municipality or public transit county may only propose a housing and transit
930     reinvestment zone at a light rail station or bus rapid transit station that:
931          (i) subject to Subsection (5):
932          (A) does not exceed a 1/3 mile radius of a bus rapid transit station or light rail station;
933     and
934          (B) has a total area of no more than 100 noncontiguous acres;
935          (ii) subject to Subsection (4)(c) and Section 63N-3-607, proposes the capture of a
936     maximum of 80% of each taxing entity's tax increment above the base year for a term of no
937     more than 15 consecutive years on each parcel within a 30-year period not to exceed the tax
938     increment amount approved in the housing and transit reinvestment zone proposal; and
939          (iii) the commencement of collection of tax increment, for all or a portion of the
940     housing and transit reinvestment zone, will be triggered by providing notice as described in
941     Subsection (6).
942          (c) For a housing and transit reinvestment zone around a light rail or bus rapid transit
943     station, if the proposed housing density within the housing and transit reinvestment zone is less
944     than:
945          (i) 40 dwelling units per acre, the maximum capture of each taxing entity's tax
946     increment above the base year is 60%; and
947          (ii) 30 dwelling units per acre, the maximum capture of each taxing entity's tax
948     increment above the base year is 40%.
949          [(5) If] (5) (a) For a housing and transit reinvestment zone for a commuter rail station,
950     if a parcel is bisected by the 1/3 mile radius, the full parcel may be included as part of the
951     housing and transit reinvestment zone area and will not count against the limitations described
952     in Subsection (4)(a)(i).
953          (b) For a housing and transit reinvestment zone for a light rail or bus rapid transit
954     station, if a parcel is bisected by the 1/3 mile radius, the full parcel may be included as part of
955     the housing and transit reinvestment zone area and will not count against the limitations

956     described in Subsection (4)(b)(i).
957          (6) The notice of commencement of collection of tax increment required in Subsection
958     [(4)(c)] (4)(a)(iii) or (4)(b)(iii) shall be sent by mail or electronically to:
959          (a) the tax commission;
960          (b) the State Board of Education;
961          (c) the state auditor;
962          (d) the auditor of the county in which the housing and transit reinvestment zone is
963     located;
964          (e) each taxing entity affected by the collection of tax increment from the housing and
965     transit reinvestment zone; and
966          (f) the Governor's Office of Economic Opportunity.
967          (7) (a) The maximum number of housing and transit reinvestment zones at light rail
968     stations is eight in any given county.
969          (b) The maximum number of housing and transit reinvestment zones at bus rapid
970     transit stations is three in any given county.
971          Section 5. Section 63N-3-604 is amended to read:
972          63N-3-604. Process for a proposal of a housing and transit reinvestment zone --
973     Analysis.
974          (1) Subject to approval of the housing and transit reinvestment zone committee as
975     described in Section 63N-3-605, in order to create a housing and transit reinvestment zone, a
976     municipality or public transit county that has general land use authority over the housing and
977     transit reinvestment zone area, shall:
978          (a) prepare a proposal for the housing and transit reinvestment zone that:
979          (i) demonstrates that the proposed housing and transit reinvestment zone will meet the
980     objectives described in Subsection 63N-3-603(1);
981          (ii) explains how the municipality or public transit county will achieve the
982     requirements of Subsection 63N-3-603(2)(a);
983          (iii) defines the specific transportation infrastructure needs, if any, and proposed
984     improvements;
985          (iv) defines the boundaries of:
986          (A) the housing and transit reinvestment zone; and

987          (B) the sales and use tax boundary corresponding to the housing and transit
988     reinvestment zone boundary, as described in Section 63N-3-610;
989          (v) identifies any development impediments that prevent the development from being a
990     market-rate investment and proposed strategies for addressing each one;
991          (vi) describes the proposed development plan, including the requirements described in
992     Subsections 63N-3-603(2) and (4);
993          (vii) establishes a base year and collection period to calculate the tax increment within
994     the housing and transit reinvestment zone;
995          (viii) establishes a sales and use tax base year to calculate the sales and use tax
996     increment within the housing and transit reinvestment zone;
997          (ix) describes projected maximum revenues generated and the amount of tax increment
998     capture from each taxing entity and proposed expenditures of revenue derived from the housing
999     and transit reinvestment zone;
1000          (x) includes an analysis of other applicable or eligible incentives, grants, or sources of
1001     revenue that can be used to reduce the finance gap;
1002          (xi) evaluates possible benefits to active and public transportation availability and
1003     impacts on air quality;
1004          [(xi)] (xii) proposes a finance schedule to align expected revenue with required
1005     financing costs and payments; and
1006          [(xii)] (xiii) provides a pro-forma for the planned development including the cost
1007     differential between surface parked multi-family development and enhanced development that
1008     satisfies the requirements described in Subsections 63N-3-603(2), (3), and (4); and
1009          (b) submit the housing and transit reinvestment zone proposal to the Governor's Office
1010     of Economic Opportunity.
1011          [(2) Before submitting the proposed housing and transit reinvestment zone to the
1012     Governor's Office of Economic Opportunity as described in Subsection (1)(b), the municipality
1013     or public transit county proposing the housing and transit reinvestment zone shall ensure that
1014     the area of the proposed housing and transit reinvestment zone is zoned in such a manner to
1015     accommodate the requirements of a housing and transit reinvestment zone described in this
1016     section and the proposed development.]
1017          (2) As part of the proposal described in Subsection (1), a municipality or public transit

1018     county shall study and evaluate possible impacts of a proposed housing and transit
1019     reinvestment zone on parking within the city and housing and transit reinvestment zone.
1020          (3) (a) After receiving the proposal as described in Subsection (1)(b), the Governor's
1021     Office of Economic Opportunity shall, at the expense of the proposing municipality or public
1022     transit county as described in Subsection (5), contract with an independent entity to perform the
1023     gap analysis described in Subsection (3)(b).
1024          (b) The gap analysis required in Subsection (3)(a) shall include:
1025          (i) a description of the planned development;
1026          (ii) a market analysis relative to other comparable project developments included in or
1027     adjacent to the municipality or public transit county absent the proposed housing and transit
1028     reinvestment zone;
1029          (iii) an evaluation of the proposal to and a determination of the adequacy and efficiency
1030     of the proposal; [and]
1031          (iv) an evaluation of the proposed increment capture needed to cover the enhanced
1032     development costs associated with the housing and transit reinvestment zone proposal and
1033     enable the proposed development to occur; and
1034          [(iv)] (v) based on the market analysis and other findings, an opinion relative to the
1035     minimum amount of potential public financing reasonably determined to be necessary to
1036     achieve the objectives described in Subsection 63N-3-603(1).
1037          (4) After receiving the results from the analysis described in Subsection (3)(b), the
1038     municipality or public transit county proposing the housing and transit reinvestment zone may:
1039          (a) amend the housing and transit reinvestment zone proposal based on the findings of
1040     the analysis described in Subsection (3)(b) and request that the Governor's Office of Economic
1041     Opportunity submit the amended housing and transit reinvestment zone proposal to the housing
1042     and transit reinvestment zone committee; or
1043          (b) request that the Governor's Office of Economic Opportunity submit the original
1044     housing and transit reinvestment zone proposal to the housing and transit reinvestment zone
1045     committee.
1046          (5) (a) The Governor's Office of Economic Opportunity may accept, as a dedicated
1047     credit, up to $20,000 from a municipality or public transit county for the costs of the gap
1048     analysis described in Subsection (3)(b).

1049          (b) The Governor's Office of Economic Opportunity may expend funds received from a
1050     municipality or public transit county as dedicated credits to pay for the costs associated with
1051     the gap analysis described in Subsection (3)(b).
1052          Section 6. Section 63N-3-605 is amended to read:
1053          63N-3-605. Housing and Transit Reinvestment Zone Committee -- Creation.
1054          (1) For any housing and transit reinvestment zone proposed under this part, there is
1055     created a housing and transit reinvestment zone committee with membership described in
1056     Subsection (2).
1057          (2) Each housing and transit reinvestment zone committee shall consist of the
1058     following members:
1059          (a) one representative from the Governor's Office of Economic Opportunity, designated
1060     by the executive director of the Governor's Office of Economic Opportunity;
1061          (b) one representative from each municipality that is a party to the proposed housing
1062     and transit reinvestment zone, designated by the chief executive officer of each respective
1063     municipality;
1064          (c) one representative from the Department of Transportation created in Section
1065     72-1-201, designated by the executive director of the Department of Transportation;
1066          (d) one representative from a large public transit district that serves the proposed
1067     housing and transit reinvestment zone area, designated by the chair of the board of trustees of a
1068     large public transit district;
1069          [(e) one representative of each relevant metropolitan planning organization, designated
1070     by the chair of the metropolitan planning organization;]
1071          (e) one individual from the Office of the State Treasurer, designated by the state
1072     treasurer;
1073          (f) one member designated by the president of the Senate;
1074          (g) one member designated by the speaker of the House of Representatives;
1075          [(h) one member designated by the chair of the State Board of Education;]
1076          (h) one individual from the tax commission, designated by the executive director of the
1077     tax commission;
1078          (i) one member designated by the chief executive officer of each county affected by the
1079     housing and transit reinvestment zone;

1080          (j) one representative designated by the school superintendent from the school district
1081     affected by the housing and transit reinvestment zone; and
1082          (k) one representative, representing the largest participating local taxing entity, after
1083     the municipality, county, and school district.
1084          (3) The individual designated by the Governor's Office of Economic Opportunity as
1085     described in Subsection (2)(a) shall serve as chair of the housing and transit reinvestment zone
1086     committee.
1087          (4) (a) A majority of the members of the housing and transit reinvestment zone
1088     committee constitutes a quorum of the housing and transit reinvestment zone committee.
1089          (b) An action by a majority of a quorum of the housing and transit reinvestment zone
1090     committee is an action of the housing and transit reinvestment zone committee.
1091          (5) After the Governor's Office of Economic Opportunity receives the results of the
1092     analysis described in Section 63N-3-604, and after the Governor's Office of Economic
1093     Opportunity has received a request from the submitting municipality or public transit county to
1094     submit the housing and transit reinvestment zone proposal to the housing and transit
1095     reinvestment zone committee, the Governor's Office of Economic Opportunity shall notify each
1096     of the entities described in Subsection (2) of the formation of the housing and transit
1097     reinvestment zone committee.
1098          (6) (a) The chair of the housing and transit reinvestment zone committee shall convene
1099     a public meeting to consider the proposed housing and transit reinvestment zone.
1100          (b) A meeting of the housing and transit reinvestment zone committee is subject to
1101     Title 52, Chapter 4, Open and Public Meetings Act.
1102          (7) (a) The proposing municipality or public transit county shall present the housing
1103     and transit reinvestment zone proposal to the housing and transit reinvestment zone committee
1104     in a public meeting.
1105          (b) The housing and transit reinvestment zone committee shall:
1106          (i) evaluate and verify whether the elements of a housing and transit reinvestment zone
1107     described in Subsections 63N-3-603(2) and (4) have been met; and
1108          (ii) evaluate the proposed housing and transit reinvestment zone relative to the analysis
1109     described in Subsection 63N-3-604(2).
1110          (8) (a) [The] Subject to Subsection (8)(b), the housing and transit reinvestment zone

1111     committee may:
1112          [(a)] (i) request changes to the housing and transit reinvestment zone proposal based on
1113     the analysis described in Section 63N-3-604; or
1114          [(b)] (ii) vote to approve or deny the proposal.
1115          (b) Before the housing and transit reinvestment zone committee may approve the
1116     housing and transit reinvestment zone proposal, the municipality or public transit county
1117     proposing the housing and transit reinvestment zone shall ensure that the area of the proposed
1118     housing and transit reinvestment zone is zoned in such a manner to accommodate the
1119     requirements of a housing and transit reinvestment zone described in this section and the
1120     proposed development.
1121          (9) If a housing and transit reinvestment zone is approved by the committee:
1122          (a) the proposed housing and transit reinvestment zone is established according to the
1123     terms of the housing and transit reinvestment zone proposal; [and]
1124          (b) affected local taxing entities are required to participate according to the terms of the
1125     housing and transit reinvestment zone proposal[.]; and
1126          (c) each affected taxing municipality is required to participate at the same rate as a
1127     participating county.
1128          (10) A housing and transit reinvestment zone proposal may be amended by following
1129     the same procedure as approving a housing and transit reinvestment zone proposal.
1130          Section 7. Section 63N-3-607 is amended to read:
1131          63N-3-607. Payment, use, and administration of revenue from a housing and
1132     transit reinvestment zone.
1133          (1) A municipality or public transit county may receive and use tax increment and
1134     housing and transit reinvestment zone funds in accordance with this part.
1135          (2) (a) A county that collects property tax on property located within a housing and
1136     transit reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the
1137     municipality or public transit county any tax increment the municipality or public transit county
1138     is authorized to receive up to the maximum approved by the housing and transit reinvestment
1139     zone committee.
1140          (b) Tax increment distributed to a municipality or public transit county in accordance
1141     with Subsection (2)(a) is not revenue of the taxing entity or municipality or public transit

1142     county.
1143          (c) (i) Tax increment paid to the municipality or public transit county are housing and
1144     transit reinvestment zone funds and shall be administered by an agency created by the
1145     municipality or public transit county within which the housing and transit reinvestment zone is
1146     located.
1147          (ii) Before an agency may receive housing and transit reinvestment zone funds from
1148     the municipality or public transit county, the municipality or public transit county and the
1149     agency shall enter into an interlocal agreement with terms that:
1150          (A) are consistent with the approval of the housing and transit reinvestment zone
1151     committee; and
1152          (B) meet the requirements of Section 63N-3-603.
1153          (3) (a) A municipality or public transit county and agency shall use housing and transit
1154     reinvestment zone funds within, or for the direct benefit of, the housing and transit
1155     reinvestment zone.
1156          (b) If any housing and transit reinvestment zone funds will be used outside of the
1157     housing and transit reinvestment zone there must be a finding in the approved proposal for a
1158     housing and transit reinvestment zone that the use of the housing and transit reinvestment zone
1159     funds outside of the housing and transit reinvestment zone will directly benefit the housing and
1160     transit reinvestment zone.
1161          (4) A municipality or public transit county shall use housing and transit reinvestment
1162     zone funds to achieve the purposes described in Subsections 63N-3-603(1) and (2), by paying
1163     all or part of the costs of any of the following:
1164          (a) income targeted housing costs;
1165          (b) structured parking within the housing and transit reinvestment zone;
1166          (c) enhanced development costs;
1167          (d) horizontal construction costs;
1168          (e) vertical construction costs;
1169          (f) [land purchase] property acquisition costs within the housing and transit
1170     reinvestment zone; or
1171          (g) the costs of the municipality or public transit county to create and administer the
1172     housing and transit reinvestment zone, which may not exceed 1% of the total housing and

1173     transit reinvestment zone funds, plus the costs to complete the gap analysis described in
1174     Subsection 63N-3-604[(3)](2).
1175          (5) Housing and transit reinvestment zone funds may be paid to a participant, if the
1176     agency and participant enter into a participation agreement which requires the participant to
1177     utilize the housing and transit reinvestment zone funds as allowed in this section.
1178          (6) Housing and transit reinvestment zone funds may be used to pay all of the costs of
1179     bonds issued by the municipality or public transit county in accordance with Title 17C, Chapter
1180     1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest.
1181          (7) A municipality or public transit county may create one or more public infrastructure
1182     districts within the housing and transit reinvestment zone under [Title 17B, Chapter 2a, Part
1183     12] Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the housing
1184     and transit reinvestment zone funds to guarantee the payment of public infrastructure bonds
1185     issued by a public infrastructure district.
1186          Section 8. Section 63N-3-610 is amended to read:
1187          63N-3-610. Sales and use tax increment in a housing and transit reinvestment
1188     zone.
1189          (1) A housing and transit reinvestment proposal shall, in consultation with the tax
1190     commission:
1191          (a) create a sales and use tax boundary as described in Subsection (2); and
1192          (b) establish a sales and use tax base year and collection period to calculate and transfer
1193     the state sales and use tax increment within the housing and transit reinvestment zone.
1194          (2) (a) The municipality or public transit county, in consultation with the tax
1195     commission, shall establish a sales and use tax boundary that:
1196          (i) is based on state sales and use tax collection boundaries; and
1197          (ii) follows as closely as reasonably practicable the boundary of the housing and transit
1198     reinvestment zone.
1199          (b) The municipality or public transit county shall include the sales and use tax
1200     boundary in the housing and transit reinvestment zone proposal as described in Section
1201     63N-3-604.
1202          (3) (a) Beginning the first day of the calendar quarter one year after the sales and use
1203     tax boundary for a housing and transit reinvestment zone is established, the tax commission

1204     shall, at least annually, transfer [an] a total amount equal to [15] 20% of the sales and use tax
1205     increment within an established sales and use tax boundary [into the Transit Transportation
1206     Investment Fund created in Section 72-2-124.], with:
1207          (i) at least 10% of the sales and use tax increment within the established sales and use
1208     tax boundary being transferred to the Transit Transportation Investment Fund created in
1209     Section 72-2-124; and
1210          (ii) upon approval of the housing and transit reinvestment zone committee, up to 10%
1211     of the sales and use tax increment within the established sales and use tax boundary being
1212     transferred to the municipality or public transit county that proposed the housing and transit
1213     reinvestment zone.
1214          (b) (i) Any revenue transferred in accordance with Subsection (3)(a)(ii) may only be
1215     used within the housing and transit reinvestment zone for the uses described in Subsection
1216     63N-3-607(4).
1217          (ii) Any revenue transferred in accordance with Subsection (3)(a)(ii) that is not
1218     allocated for parking or other infrastructure within the housing and transit reinvestment zone
1219     shall be transferred to the Transit Transportation Investment Fund created in Section 72-2-124.
1220          (4) (a) The requirement described in Subsection (3) to transfer incremental sales tax
1221     revenue shall take effect:
1222          (i) on the first day of a calendar quarter; and
1223          (ii) after a 90-day waiting period, beginning on the date the commission receives notice
1224     from the municipality or public transit county meeting the requirements of Subsection (4)(b).
1225          (b) The notice described in Subsection (4)(a) shall include:
1226          (i) a statement that the housing and transit reinvestment zone will be established under
1227     this part;
1228          (ii) the approval date and effective date of the housing and transit reinvestment zone;
1229     and
1230          (iii) the definitions of the sales and use tax boundary and sales and use tax base year.