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479
10-20-404
10-21-101
10-21-201
11-13-103
11-13-206
11-13-207
17-79-403
17-80-101
17-80-201
17B-2a-802
17D-4-102
17D-4-202.1
17D-4-203
20A-7-601
32B-1-202
53H-9-206
59-1-306
59-2-924
59-12-103
59-12-103
59-12-205
59-12-402.1
59-12-402.5
59-12-1102
59-12-2206
59-12-2220
63N-3-601
63N-3-602
63N-3-605
63N-3-606
10-21-203
63N-3-603
63N-3-604
63N-3-607
63N-3-608
63N-3-609
63N-3-610
63N-3-611
63N-3-603.1
63N-3-604.1
63N-23-303
63N-23-304
63N-23-305
63N-3-610.1
63N-23-307
63N-23-401
63N-23-402
63N-23-403
63N-23-404
63N-23-405
63N-23-406
63N-23-407
63N-23-501
10-21-501
10-21-502
10-21-503
10-21-504
63N-23-601
17-80-501
17-80-502
17-80-503
17-80-504
63N-3-1601
63N-3-1602
63N-3-1603
63N-3-1604
63N-3-1605
63N-3-1606
63N-3-1607
63N-3-1608
63N-3-1609
63N-3-1401
63N-3-1402
63N-3-1403
63N-3-1404
63N-3-1405
63N-3-1406
63N-3-1407
63N-3-1408
11-13-227
72-1-102
72-1-304
72-2-124
72-2-124
72-2-201
72-2-301
72-5-117
72-6-112.5
10-20-404
10-21-101
10-21-201
11-13-103
11-13-206
11-13-207
17-79-403
17-80-101
17-80-201
17B-2a-802
17D-4-102
17D-4-202.1
17D-4-203
20A-7-601
32B-1-202
53H-9-206
59-1-306
59-2-924
59-12-103
59-12-103
59-12-205
59-12-402.1
59-12-402.5
59-12-1102
59-12-2206
59-12-2220
63N-3-601
63N-3-602
63N-3-605
63N-3-606
10-21-203
63N-3-603
63N-3-604
63N-3-607
63N-3-608
63N-3-609
63N-3-610
63N-3-611
63N-3-603.1
63N-3-604.1
63N-23-303
63N-23-304
63N-23-305
63N-3-610.1
63N-23-307
63N-23-401
63N-23-402
63N-23-403
63N-23-404
63N-23-405
63N-23-406
63N-23-407
63N-23-501
10-21-501
10-21-502
10-21-503
10-21-504
63N-23-601
17-80-501
17-80-502
17-80-503
17-80-504
63N-3-1601
63N-3-1602
63N-3-1603
63N-3-1604
63N-3-1605
63N-3-1606
63N-3-1607
63N-3-1608
63N-3-1609
63N-3-1401
63N-3-1402
63N-3-1403
63N-3-1404
63N-3-1405
63N-3-1406
63N-3-1407
63N-3-1408
11-13-227
72-1-102
72-1-304
72-2-124
72-2-124
72-2-201
72-2-301
72-5-117
72-6-112.5
1
Investment Zones Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: Stephen L. Whyte
LONG TITLE
General Description:
This bill enacts, renumbers, amends, and repeals certain provisions of certain investment
zones within the Governor's Office of Economic Opportunity.
Highlighted Provisions:
This bill:
defines terms;
enacts, renumbers, and amends provisions of a convention center reinvestment zone and
convention center reinvestment zone in a capital city;
renumbers and amends provisions of:
a station area plan;
a housing and transit reinvestment zone; and
home ownership promotion zones in a municipality and county;
renumbers provisions of:
a first home investment zone;
a capital city revitalization zone; and
a transportation reinvestment zone;
repeals an outdated section of code; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
10-20-404
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 15
10-21-101
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 15
10-21-201
Effective
05/06/26
, as enacted by Laws of Utah 2025, First Special Session,
Chapter 15
11-13-103
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 187
11-13-206
Effective
05/06/26
, as last amended by Laws of Utah 2018, Chapter 424
11-13-207
Effective
05/06/26
, as last amended by Laws of Utah 2018, Chapter 424
17-79-403
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 14
17-80-101
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 14
17-80-201
Effective
05/06/26
, as enacted by Laws of Utah 2025, First Special Session,
Chapter 14
17B-2a-802
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
17D-4-102
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapters 29, 347
17D-4-202.1
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 29
17D-4-203
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 498
20A-7-601
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
32B-1-202
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 162
53H-9-206
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
59-1-306
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 258
59-2-924
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
59-12-103
Effective
05/06/26
Superseded
07/01/26
, as last amended by Laws of Utah
2025, Chapter 490
59-12-103
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapter 285
59-12-205
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapters 490,
495
59-12-402.1
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 29
59-12-402.5
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 436
59-12-1102
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
59-12-2206
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 400
59-12-2220
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
72-1-102
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 373
72-1-304
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
72-2-124
Effective
05/06/26
Superseded
07/01/26
, as last amended by Laws of Utah
2025, First Special Session, Chapter 15
72-2-124
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
72-2-201
Effective
05/06/26
, as last amended by Laws of Utah 2023, Chapter 16
72-2-301
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 501
72-5-117
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
72-6-112.5
Effective
05/06/26
, as last amended by Laws of Utah 2023, Chapter 22
ENACTS:
63N-23-303
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-304
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-305
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-307
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-401
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-402
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-403
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-404
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-405
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-406
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-407
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-501
Effective
05/06/26
, Utah Code Annotated 1953
63N-23-601
Effective
05/06/26
, Utah Code Annotated 1953
RENUMBERS AND AMENDS:
63N-23-101
Effective
05/06/26
, (Renumbered from 63N-3-602, as last amended by
Laws of Utah 2025, Chapter 29)
63N-23-102
Effective
05/06/26
, (Renumbered from 63N-3-605, as last amended by
Laws of Utah 2025, Chapter 29)
63N-23-103
Effective
05/06/26
, (Renumbered from 63N-3-606, as last amended by
Laws of Utah 2025, Chapter 29)
63N-23-104
Effective
05/06/26
, (Renumbered from 10-21-203, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 15)
63N-23-201
Effective
05/06/26
, (Renumbered from 63N-3-603, as last amended by
Laws of Utah 2025, First Special Session, Chapter 15)
63N-23-202
Effective
05/06/26
, (Renumbered from 63N-3-604, as last amended by
Laws of Utah 2025, Chapter 29)
63N-23-203
Effective
05/06/26
, (Renumbered from 63N-3-607, as last amended by
Laws of Utah 2025, Chapter 404)
63N-23-204
Effective
05/06/26
, (Renumbered from 63N-3-608, as last amended by
Laws of Utah 2025, Chapter 29)
63N-23-205
Effective
05/06/26
, (Renumbered from 63N-3-609, as last amended by
Laws of Utah 2025, Chapter 29)
63N-23-206
Effective
05/06/26
, (Renumbered from 63N-3-610, as last amended by
Laws of Utah 2025, Chapter 29)
63N-23-207
Effective
05/06/26
, (Renumbered from 63N-3-611, as last amended by
Laws of Utah 2025, Chapter 29)
63N-23-301
Effective
05/06/26
, (Renumbered from 63N-3-603.1, as enacted by
Laws of Utah 2025, Chapter 29)
63N-23-302
Effective
05/06/26
, (Renumbered from 63N-3-604.1, as enacted by
Laws of Utah 2025, Chapter 29)
63N-23-306
Effective
05/06/26
, (Renumbered from 63N-3-610.1, as enacted by
Laws of Utah 2025, Chapter 29)
63N-23-502
Effective
05/06/26
, (Renumbered from 10-21-501, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 15)
63N-23-503
Effective
05/06/26
, (Renumbered from 10-21-502, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 15)
63N-23-504
Effective
05/06/26
, (Renumbered from 10-21-503, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 15)
63N-23-505
Effective
05/06/26
, (Renumbered from 10-21-504, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 15)
63N-23-602
Effective
05/06/26
, (Renumbered from 17-80-501, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 14)
63N-23-603
Effective
05/06/26
, (Renumbered from 17-80-502, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 14)
63N-23-604
Effective
05/06/26
, (Renumbered from 17-80-503, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 14)
63N-23-605
Effective
05/06/26
, (Renumbered from 17-80-504, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 14)
63N-23-701
Effective
05/06/26
, (Renumbered from 63N-3-1601, as last amended
by Laws of Utah 2025, Chapter 440)
63N-23-702
Effective
05/06/26
, (Renumbered from 63N-3-1602, as last amended
by Laws of Utah 2025, First Special Session, Chapter 15)
63N-23-703
Effective
05/06/26
, (Renumbered from 63N-3-1603, as enacted by
Laws of Utah 2024, Chapter 537)
63N-23-704
Effective
05/06/26
, (Renumbered from 63N-3-1604, as enacted by
Laws of Utah 2024, Chapter 537)
63N-23-705
Effective
05/06/26
, (Renumbered from 63N-3-1605, as enacted by
Laws of Utah 2024, Chapter 537)
63N-23-706
Effective
05/06/26
, (Renumbered from 63N-3-1606, as enacted by
Laws of Utah 2024, Chapter 537)
63N-23-707
Effective
05/06/26
, (Renumbered from 63N-3-1607, as enacted by
Laws of Utah 2024, Chapter 537)
63N-23-708
Effective
05/06/26
, (Renumbered from 63N-3-1608, as enacted by
Laws of Utah 2024, Chapter 537)
63N-23-709
Effective
05/06/26
, (Renumbered from 63N-3-1609, as enacted by
Laws of Utah 2024, Chapter 537)
63N-23-801
Effective
05/06/26
, (Renumbered from 63N-3-1401, as enacted by
Laws of Utah 2024, Chapter 436)
63N-23-802
Effective
05/06/26
, (Renumbered from 63N-3-1402, as enacted by
Laws of Utah 2024, Chapter 436)
63N-23-803
Effective
05/06/26
, (Renumbered from 63N-3-1403, as last amended
by Laws of Utah 2025, Chapter 29)
63N-23-804
Effective
05/06/26
, (Renumbered from 63N-3-1404, as enacted by
Laws of Utah 2024, Chapter 436)
63N-23-805
Effective
05/06/26
, (Renumbered from 63N-3-1405, as enacted by
Laws of Utah 2024, Chapter 436)
63N-23-806
Effective
05/06/26
, (Renumbered from 63N-3-1406, as enacted by
Laws of Utah 2024, Chapter 436)
63N-23-807
Effective
05/06/26
, (Renumbered from 63N-3-1407, as enacted by
Laws of Utah 2024, Chapter 436)
63N-23-808
Effective
05/06/26
, (Renumbered from 63N-3-1408, as enacted by
Laws of Utah 2024, Chapter 538)
63N-23-901
Effective
05/06/26
, (Renumbered from 11-13-227, as last amended by
Laws of Utah 2025, First Special Session, Chapter 15)
REPEALS:
63N-3-601
Effective
05/06/26
, as enacted by Laws of Utah 2021, Chapter 411
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
10-20-404
is amended to read:
10-20-404
Effective
05/06/26
. General plan preparation.
(1)
(a)
The planning commission shall provide notice, as provided in Section
10-20-203
,
of the planning commission's intent to make a recommendation to the municipal
legislative body for a general plan or a comprehensive general plan amendment when
the planning commission initiates the process of preparing the planning commission's
recommendation.
(b)
The planning commission shall make and recommend to the legislative body a
proposed general plan for the area within the municipality.
(c)
The plan may include areas outside the boundaries of the municipality if, in the
planning commission's judgment, those areas are related to the planning of the
municipality's territory.
(d)
Except as otherwise provided by law or with respect to a municipality's power of
eminent domain, when the plan of a municipality involves territory outside the
boundaries of the municipality, the municipality may not take action affecting that
territory without the concurrence of the county or other municipalities affected.
(2)
(a)
At a minimum, the proposed general plan, with the accompanying maps, charts,
and descriptive and explanatory matter, shall include the planning commission's
recommendations for the following plan elements:
(i)
a land use element that:
(A)
designates the long-term goals and the proposed extent, general distribution,
and location of land for housing for residents of various income levels,
business, industry, agriculture, recreation, education, public buildings and
grounds, open space, and other categories of public and private uses of land as
appropriate;
(B)
includes a statement of the projections for and standards of population density
and building intensity recommended for the various land use categories
covered by the plan;
(C)
except for a city of the fifth class or a town, is coordinated to integrate the
land use element with the water use and preservation element; and
(D)
except for a city of the fifth class or a town, accounts for the effect of land use
categories and land uses on water demand;
(ii)
a transportation and traffic circulation element that:
(A)
provides the general location and extent of existing and proposed freeways,
arterial and collector streets, public transit, active transportation facilities, and
other modes of transportation that the planning commission considers
appropriate;
(B)
for a municipality that has access to a major transit investment corridor,
addresses the municipality's plan for residential and commercial development
around major transit investment corridors to maintain and improve the
connections between housing, employment, education, recreation, and
commerce;
(C)
for a municipality that does not have access to a major transit investment
corridor, addresses the municipality's plan for residential and commercial
development in areas that will maintain and improve the connections between
housing, transportation, employment, education, recreation, and commerce; and
(D)
correlates with the population projections, the employment projections, and
the proposed land use element of the general plan;
(iii)
a moderate income housing element that meets the requirements of Section
10-21-201
; and
(iv)
except for a city of the fifth class or a town, a water use and preservation element
that addresses:
(A)
the effect of permitted development or patterns of development on water
demand and water infrastructure;
(B)
methods of reducing water demand and per capita consumption for future
development;
(C)
methods of reducing water demand and per capita consumption for existing
development; and
(D)
opportunities for the municipality to modify the municipality's operations to
eliminate practices or conditions that waste water.
(b)
In drafting the land use element, the planning commission shall:
(i)
identify and consider each agriculture protection area within the municipality;
(ii)
avoid proposing a use of land within an agriculture protection area that is
inconsistent with or detrimental to the use of the land for agriculture; and
(iii)
consider and coordinate with any station area plans adopted by the municipality
if required under Section
10-21-203
63N-23-104
.
(c)
In drafting the transportation and traffic circulation element, the planning
commission shall:
(i)
(A)
consider and coordinate with the regional transportation plan developed by
the municipality's region's metropolitan planning organization, if the
municipality is within the boundaries of a metropolitan planning organization;
or
(B)
consider and coordinate with the long-range transportation plan developed by
the Department of Transportation, if the municipality is not within the
boundaries of a metropolitan planning organization; and
(ii)
consider and coordinate with any station area plans adopted by the municipality if
required under Section
10-21-203
63N-23-104
.
(d)
In drafting the water use and preservation element, the planning commission:
(i)
shall consider:
(A)
applicable regional water conservation goals recommended by the Division of
Water Resources; and
(B)
if Section
73-10-32
requires the municipality to adopt a water conservation
plan in accordance with Section
73-10-32
, the municipality's water
conservation plan;
(ii)
shall include a recommendation for:
(A)
water conservation policies to be determined by the municipality; and
(B)
landscaping options within a public street for current and future development
that do not require the use of lawn or turf in a parkstrip;
(iii)
shall review the municipality's land use ordinances and include a
recommendation for changes to an ordinance that promotes the inefficient use of
water;
(iv)
shall consider principles of sustainable landscaping, including the:
(A)
reduction or limitation of the use of lawn or turf;
(B)
promotion of site-specific landscape design that decreases stormwater runoff
or runoff of water used for irrigation;
(C)
preservation and use of healthy trees that have a reasonable water requirement
or are resistant to dry soil conditions;
(D)
elimination or regulation of ponds, pools, and other features that promote
unnecessary water evaporation;
(E)
reduction of yard waste; and
(F)
use of an irrigation system, including drip irrigation, best adapted to provide
the optimal amount of water to the plants being irrigated;
(v)
shall consult with the public water system or systems serving the municipality
with drinking water regarding how implementation of the land use element and
water use and preservation element may affect:
(A)
water supply planning, including drinking water source and storage capacity
consistent with Section
19-4-114
; and
(B)
water distribution planning, including master plans, infrastructure asset
management programs and plans, infrastructure replacement plans, and impact
fee facilities plans;
(vi)
shall consult with the Division of Water Resources for information and technical
resources regarding regional water conservation goals, including how
implementation of the land use element and the water use and preservation
element may affect the Great Salt Lake;
(vii)
may include recommendations for additional water demand reduction strategies,
including:
(A)
creating a water budget associated with a particular type of development;
(B)
adopting new or modified lot size, configuration, and landscaping standards
that will reduce water demand for new single family development;
(C)
providing one or more water reduction incentives for existing development
such as modification of existing landscapes and irrigation systems and
installation of water fixtures or systems that minimize water demand;
(D)
discouraging incentives for economic development activities that do not
adequately account for water use or do not include strategies for reducing
water demand; and
(E)
adopting water concurrency standards requiring that adequate water supplies
and facilities are or will be in place for new development; and
(viii)
for a town, may include, and for another municipality, shall include, a
recommendation for low water use landscaping standards for a new:
(A)
commercial, industrial, or institutional development;
(B)
common interest community, as defined in Section
57-25-102
; or
(C)
multifamily housing project.
(3)
The proposed general plan may include:
(a)
an environmental element that addresses:
(i)
the protection, conservation, development, and use of natural resources, including
the quality of:
(A)
air;
(B)
forests;
(C)
soils;
(D)
rivers;
(E)
groundwater and other waters;
(F)
harbors;
(G)
fisheries;
(H)
wildlife;
(I)
minerals; and
(J)
other natural resources; and
(ii)
(A)
the reclamation of land, flood control, prevention and control of the
pollution of streams and other waters;
(B)
the regulation of the use of land on hillsides, stream channels and other
environmentally sensitive areas;
(C)
the prevention, control, and correction of the erosion of soils;
(D)
the preservation and enhancement of watersheds and wetlands; and
(E)
the mapping of known geologic hazards;
(b)
a public services and facilities element showing general plans for sewage, water,
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for
them, police and fire protection, and other public services;
(c)
a rehabilitation, redevelopment, and conservation element consisting of plans and
programs for:
(i)
historic preservation;
(ii)
the diminution or elimination of a development impediment as defined in Section
17C-1-102
; and
(iii)
redevelopment of land, including housing sites, business and industrial sites, and
public building sites;
(d)
an economic element composed of appropriate studies and forecasts, as well as an
economic development plan, which may include review of existing and projected
municipal revenue and expenditures, revenue sources, identification of basic and
secondary industry, primary and secondary market areas, employment, and retail
sales activity;
(e)
recommendations for implementing all or any portion of the general plan, including
the adoption of land and water use ordinances, capital improvement plans,
community development and promotion, and any other appropriate action;
(f)
provisions addressing any of the matters listed in Subsection
10-20-401(2)
or Section
10-20-403
; and
(g)
any other element the municipality considers appropriate.
Section 2. Section
10-21-101
is amended to read:
10-21-101
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Affordable housing" means housing offered for sale at 80% or less of the median
county home price for housing of that type.
(2)
"Agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Applicable metropolitan planning organization" means the metropolitan planning
organization that has jurisdiction over the area in which a fixed guideway public transit
station is located.
(4)
"Applicable public transit district" means the public transit district, as defined in Section
17B-2a-802
, of which a fixed guideway public transit station is included.
(5)
"Base taxable value" means a property's taxable value as shown upon the assessment
roll last equalized during the base year.
(6)
"Base year" means, for a proposed home ownership promotion zone area, a year
beginning the first day of the calendar quarter determined by the last equalized tax roll
before the adoption of the home ownership promotion zone.
(7)
"Division" means the Housing and Community Development Division within the
Department of Workforce Services.
(8)
"Existing fixed guideway public transit station" means a fixed guideway public transit
station for which construction begins before June 1, 2022.
(9)
"Fixed guideway" means the same as that term is defined in Section
59-12-102
.
(10)
"Home ownership promotion zone" means a home ownership promotion zone created
in accordance with
this part
Title 63N, Chapter 23, Part 5, Home Ownership Promotion
Zone for Municipalities
.
(11)
"Implementation plan" means the implementation plan adopted as part of the moderate
income housing element of a specified municipality's general plan as provided in
Subsection
10-21-201(4)
.
(12)
"Initial report" or "initial moderate income housing report" means the one-time report
described in Subsection
10-21-202(1)
.
(13)
"Internal accessory dwelling unit" means an accessory dwelling unit created:
(a)
within a primary dwelling;
(b)
within the footprint of the primary dwelling described in Subsection
(13)(a)
at the
time the internal accessory dwelling unit is created; and
(c)
for the purpose of offering a long-term rental of 30 consecutive days or longer.
(14)
"Moderate income housing strategy" means a strategy described in Subsection
10-21-201(3)(a)(iii)
.
(15)
"New fixed guideway public transit station" means a fixed guideway public transit
station for which construction begins on or after June 1, 2022.
(16)
"Participant" means the same as that term is defined in Section
17C-1-102
.
(17)
"Participation agreement" means the same as that term is defined in Section
17C-1-102
.
(18)
(a)
"Primary dwelling" means a single-family dwelling that:
(i)
is detached; and
(ii)
is occupied as the primary residence of the owner of record.
(b)
"Primary dwelling" includes a garage if the garage:
(i)
is a habitable space; and
(ii)
is connected to the primary dwelling by a common wall.
(19)
"Project improvements" means the same as that term is defined in Section
11-36a-102
.
(20)
"Qualifying land use petition" means a petition:
(a)
that involves land located within a station area for an existing public transit station
that provides rail services;
(b)
that involves land located within a station area for which the municipality has not yet
satisfied the requirements of Subsection
10-21-203(1)(a)
63N-23-104(1)(a)
;
(c)
that proposes the development of an area greater than five contiguous acres, with no
less than 51% of the acreage within the station area;
(d)
that would require the municipality to amend the municipality's general plan or
change a zoning designation for the land use application to be approved;
(e)
that would require a higher density than the density currently allowed by the
municipality;
(f)
that proposes the construction of new residential units, at least 10% of which are
dedicated to moderate income housing; and
(g)
for which the land use applicant requests the municipality to initiate the process of
satisfying the requirements of Subsection
10-21-203(1)(a)
63N-23-104(1)(a)
for the
station area in which the development is proposed, subject to Subsection
10-21-203(2)(d)
63N-23-104(2)(d)
.
(21)
"Report" means an initial report or a subsequent progress report.
(22)
"Specified municipality" means:
(a)
a city of the first, second, third, or fourth class; or
(b)
a city of the fifth class with a population of 5,000 or more, if the city is located
within a county of the first, second, or third class.
(23)
(a)
"Station area" means:
(i)
for a fixed guideway public transit station that provides rail services, the area
within a one-half mile radius of the center of the fixed guideway public transit
station platform; or
(ii)
for a fixed guideway public transit station that provides bus services only, the
area within a one-fourth mile radius of the center of the fixed guideway public
transit station platform.
(b)
"Station area" includes any parcel bisected by the radius limitation described in
Subsection
(a)(i)
or
(ii)
.
(24)
"Station area plan" means a plan that:
(a)
establishes a vision, and the actions needed to implement that vision, for the
development of land within a station area; and
(b)
is developed and adopted in accordance with this section.
(25)
"Subsequent progress report" means the annual report described in Subsection
10-21-202(2)
.
(26)
"System improvements" means the same as that term is defined in Section
11-36a-102
.
(27)
"Tax commission" means the State Tax Commission created in Section
59-1-201
.
(28)
(a)
"Tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a home ownership promotion zone, using the current assessed
value and each taxing entity's current certified tax rate as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Tax increment" does not include property revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
or
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
.
(29)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
Section 3. Section
10-21-201
is amended to read:
10-21-201
Effective
05/06/26
. Moderate income housing plan required.
(1)
A moderate income housing element of a general plan shall include a moderate income
housing plan that meets the requirements of this section.
(2)
A moderate income housing plan:
(a)
shall provide a realistic opportunity to meet the need for additional moderate income
housing within the municipality during the next five years;
(b)
for a municipality that is not a specified municipality, may include a
recommendation to implement three or more of the moderate income housing
strategies described in Subsection
(3)(a)(iii)
;
(c)
for a specified municipality that does not have a fixed guideway public transit
station, shall include a recommendation to implement three or more of the moderate
income housing strategies described in Subsection
(3)(a)(iii)
or at least one of the
moderate income housing strategies described in Subsections
(3)(a)(iii)(X)
through
(CC);
(d)
for a specified municipality that has a fixed guideway public transit station, shall
include:
(i)
a recommendation to implement five or more of the moderate income housing
strategies described in Subsection
(3)(a)(iii)
, of which one shall be the moderate
income housing strategy described in Subsection
(3)(a)(iii)(U)
and one shall be a
moderate income housing strategy described in Subsection
(3)(a)(iii)(G)
or
(H)
; or
(ii)
a recommendation to implement the moderate income housing strategy described
in Subsection
(3)(a)(iii)(U)
, one of the moderate income housing strategies
described in Subsections
(3)(a)(iii)(X)
through (CC), and one moderate income
housing strategy described in Subsection
(3)(a)(iii)
; and
(e)
for a specified municipality shall include an implementation plan as provided in
Subsection
(4)
.
(3)
(a)
In drafting the moderate income housing element, the planning commission:
(i)
shall consider the Legislature's determination that municipalities shall facilitate a
reasonable opportunity for a variety of housing, including moderate income
housing:
(A)
to meet the needs of people of various income levels living, working, or
desiring to live or work in the community; and
(B)
to allow people with various incomes to benefit from and fully participate in
all aspects of neighborhood and community life;
(ii)
for a municipality that is not a specified municipality, may include, and for a
specified municipality shall include, an analysis of how the municipality will
provide a realistic opportunity for the development of moderate income housing
within the next five years;
and
(iii)
for a municipality that is not a specified municipality, may include, and for a
specified municipality shall include, a recommendation to implement the required
number of any of the following moderate income housing strategies as specified in
Subsection
(2)
:
(A)
rezone for densities necessary to facilitate the production of moderate income
housing;
(B)
demonstrate investment in the rehabilitation or expansion of infrastructure that
facilitates the construction of moderate income housing;
(C)
demonstrate investment in the rehabilitation of existing uninhabitable housing
stock into moderate income housing;
(D)
identify and utilize general fund subsidies or other sources of revenue to
waive construction related fees that are otherwise generally imposed by the
municipality for the construction or rehabilitation of moderate income housing;
(E)
create or allow for, and reduce regulations related to, internal or detached
accessory dwelling units in residential zones;
(F)
zone or rezone for higher density or moderate income residential development
in commercial or mixed-use zones near major transit investment corridors,
commercial centers, or employment centers;
(G)
amend land use regulations to allow for higher density or new moderate
income residential development in commercial or mixed-use zones near major
transit investment corridors;
(H)
amend land use regulations to eliminate or reduce parking requirements for
residential development where a resident is less likely to rely on the resident's
own vehicle, such as residential development near major transit investment
corridors or senior living facilities;
(I)
amend land use regulations to allow for single room occupancy developments;
(J)
implement zoning incentives for moderate income units in new developments;
(K)
preserve existing and new moderate income housing and subsidized units by
utilizing a landlord incentive program, providing for deed restricted units
through a grant program, or
, notwithstanding Section
10-21-301
,
establishing
a housing loss mitigation fund;
(L)
reduce, waive, or eliminate impact fees related to moderate income housing;
(M)
demonstrate creation of, or participation in, a community land trust program
for moderate income housing;
(N)
implement a mortgage assistance program for employees of the municipality,
an employer that provides contracted services to the municipality, or any other
public employer that operates within the municipality;
(O)
apply for or partner with an entity that applies for state or federal funds or tax
incentives to promote the construction of moderate income housing, an entity
that applies for programs offered by the Utah Housing Corporation within the
Utah Housing Corporation's funding capacity, an entity that applies for
affordable housing programs administered by the Department of Workforce
Services, an entity that applies for affordable housing programs administered
by an association of governments established by an interlocal agreement under
Title 11, Chapter 13, Interlocal Cooperation Act, an entity that applies for
services provided by a public housing authority to preserve and create
moderate income housing, or any other entity that applies for programs or
services that promote the construction or preservation of moderate income
housing;
(P)
demonstrate utilization of a moderate income housing set aside from a
community reinvestment agency, redevelopment agency, or community
development and renewal agency to create or subsidize moderate income
housing;
(Q)
eliminate impact fees for any accessory dwelling unit that is not an internal
accessory dwelling unit as defined in Section
10-21-101
;
(R)
create a program to transfer development rights for moderate income housing;
(S)
ratify a joint acquisition agreement with another local political subdivision for
the purpose of combining resources to acquire property for moderate income
housing;
(T)
develop a moderate income housing project for residents who are disabled or
55 years old or older;
(U)
develop and adopt a station area plan in accordance with Section
10-21-203
63N-23-104
;
(V)
create or allow for, and reduce regulations related to, multifamily residential
dwellings compatible in scale and form with detached single-family residential
dwellings and located in walkable communities within residential or mixed-use
zones;
(W)
demonstrate implementation of any other program or strategy to address the
housing needs of residents of the municipality who earn less than 80% of the
area median income, including the dedication of a local funding source to
moderate income housing or the adoption of a land use ordinance that requires
10% or more of new residential development in a residential zone be dedicated
to moderate income housing;
(X)
create a housing and transit reinvestment zone in accordance with
Title 63N,
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
Title 63N,
Chapter 23, Part 2, Housing and Transit Reinvestment Zone
;
(Y)
create a home ownership promotion zone in accordance with
Part 5, Home
Ownership Promotion Zone for Municipalities
Title 63N, Chapter 23, Part 5,
Home Ownership Promotion Zone for Municipalities
;
(Z)
create a first home investment zone in accordance with
Title 63N, Chapter 3,
Part 16, First Home Investment Zone Act
Title 63N, Chapter 23, Part 7, First
Home Investment Zone
;
(AA)
approve a project that receives funding from, or qualifies to receive funding
from, the Utah Homes Investment Program created in Title 51, Chapter 12,
Utah Homes Investment Program;
(BB)
adopt or approve a qualifying affordable home ownership density bonus for
single-family residential units, as described in Section
10-21-401
; and
(CC)
adopt or approve a qualifying affordable home ownership density bonus for
multi-family residential units, as described in Section
10-21-402
; and
(b)
the planning commission shall identify each moderate income housing strategy
recommended to the legislative body for implementation by restating the exact
language used to describe the strategy in Subsection
(3)(a)(iii)
.
(4)
(a)
In drafting the implementation plan portion of the moderate income housing
element as described in Subsection
(2)(c)
, the planning commission shall recommend
to the legislative body the establishment of a five-year timeline for implementing
each of the moderate income housing strategies selected by the municipality for
implementation.
(b)
The timeline described in Subsection
(4)(a)
shall:
(i)
identify specific measures and benchmarks for implementing each moderate
income housing strategy selected by the municipality, whether one-time or
ongoing; and
(ii)
provide flexibility for the municipality to make adjustments as needed.
Section 4. Section
11-13-103
is amended to read:
11-13-103
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
(a)
"Additional project capacity" means electric generating capacity provided by a
generating unit that first produces electricity on or after May 6, 2002, and that is
constructed or installed at or adjacent to the site of a project that first produced
electricity before May 6, 2002, regardless of whether:
(i)
the owners of the new generating unit are the same as or different from the owner
of the project; and
(ii)
the purchasers of electricity from the new generating unit are the same as or
different from the purchasers of electricity from the project.
(b)
"Additional project capacity" does not mean or include replacement project capacity.
(2)
"Board" means the Permanent Community Impact Fund Board created by Section
35A-8-304
, and
its
the board's
successors.
(3)
"Candidate" means one or more of:
(a)
the state;
(b)
a county, municipality, school district, special district, special service district, or
other political subdivision of the state; and
(c)
a prosecution district.
(4)
"Commercial project entity" means a project entity, defined in Subsection
(18)
, that:
(a)
has no taxing authority; and
(b)
is not supported in whole or in part by and does not expend or disburse tax revenues.
(5)
"Direct impacts" means an increase in the need for public facilities or services that is
attributable to the project or facilities providing additional project capacity, except
impacts resulting from the construction or operation of a facility that is:
(a)
owned by an owner other than the owner of the project or of the facilities providing
additional project capacity; and
(b)
used to furnish fuel, construction, or operation materials for use in the project.
(6)
"Electric interlocal entity" means an interlocal entity described in Subsection
11-13-203(3)
.
(7)
"Energy services interlocal entity" means an interlocal entity that is described in
Subsection
11-13-203(4)
.
(8)
(a)
"Estimated electric requirements," when used with respect to a qualified energy
services interlocal entity, includes any of the following that meets the requirements of
Subsection
(8)(b)
:
(i)
generation capacity;
(ii)
generation output; or
(iii)
an electric energy production facility.
(b)
An item listed in Subsection
(8)(a)
is included in "estimated electric requirements" if
it is
the item is
needed by the qualified energy services interlocal entity to perform
the qualified energy services interlocal entity's contractual or legal obligations to any
of
its
qualified energy services interlocal entity's
members.
(9)
(a)
"Facilities providing replacement project capacity" means facilities that have
been, are being, or are proposed to be constructed, reconstructed, converted,
repowered, acquired, leased, used, or installed to provide replacement project
capacity.
(b)
"Facilities providing replacement project capacity" includes facilities that have been,
are being, or are proposed to be constructed, reconstructed, converted, repowered,
acquired, leased, used, or installed:
(i)
to support and facilitate the construction, reconstruction, conversion, repowering,
installation, financing, operation, management, or use of replacement project
capacity; or
(ii)
for the distribution of power generated from existing capacity or replacement
project capacity to facilities located on real property in which the project entity
that owns the project has an ownership, leasehold, right-of-way, or permitted
interest.
(10)
"Governing authority" means a governing board or joint administrator.
(11)
(a)
"Governing board" means the body established in reliance on the authority
provided under Subsection
11-13-206(1)(b)
to govern an interlocal entity.
(b)
"Governing board" includes a board of directors described in an agreement, as
amended, that creates a project entity.
(c)
"Governing board" does not include a board as defined in Subsection
(2)
.
(12)
"Interlocal entity" means:
(a)
a Utah interlocal entity, an electric interlocal entity, or an energy services interlocal
entity; or
(b)
a separate legal or administrative entity created under Section
11-13-205
.
(13)
"Joint administrator" means an administrator or joint board described in Section
11-13-207
to administer a joint or cooperative undertaking.
(14)
"Joint or cooperative undertaking" means an undertaking described in Section
11-13-207
that is not conducted by an interlocal entity.
(15)
"Member" means a public agency that, with another public agency, creates an
interlocal entity under Section
11-13-203
.
(16)
"Out-of-state public agency" means a public agency as defined in Subsection
(19)(c)
,
(d)
, or
(e)
.
(17)
(a)
"Project":
(i)
means an electric generation and transmission facility owned by a Utah interlocal
entity or an electric interlocal entity; and
(ii)
includes fuel facilities, fuel production facilities, fuel transportation facilities,
energy storage facilities, or water facilities that are:
(A)
owned by that Utah interlocal entity or electric interlocal entity; and
(B)
required for the generation and transmission facility.
(b)
"Project" includes a project entity's ownership interest in:
(i)
facilities that provide additional project capacity;
(ii)
facilities providing replacement project capacity;
(iii)
additional generating, transmission, fuel, fuel transportation, water, or other
facilities added to a project; and
(iv)
a Utah interlocal energy hub, as defined in Section
11-13-602
.
(18)
"Project entity" means a Utah interlocal entity or an electric interlocal entity that owns
a project as defined in this section.
(19)
"Public agency" means:
(a)
a city, town, county, school district, special district, special service district, an
interlocal entity, or other political subdivision of the state;
(b)
the state or any department, division, or agency of the state;
(c)
any agency of the United States;
(d)
any political subdivision or agency of another state or the District of Columbia
including any interlocal cooperation or joint powers agency formed under the
authority of the law of the other state or the District of Columbia; or
(e)
any Indian tribe, band, nation, or other organized group or community which is
recognized as eligible for the special programs and services provided by the United
States to Indians because of their status as Indians.
(20)
"Public agency insurance mutual" means the same as that term is defined in Subsection
31A-1-103(7)
.
(21)
"Qualified energy services interlocal entity" means an energy services interlocal entity
that at the time that the energy services interlocal entity acquires
its
the energy services
interlocal entity
interest in facilities providing additional project capacity has at least
five members that are Utah public agencies.
(22)
"Replacement project capacity" means electric generating capacity or transmission
capacity that:
(a)
replaces all or a portion of the existing electric generating or transmission capacity of
a project; and
(b)
is provided by a facility that is on, adjacent to, in proximity to, or interconnected
with the site of a project, regardless of whether:
(i)
the capacity replacing existing capacity is less than or exceeds the generating or
transmission capacity of the project existing before installation of the capacity
replacing existing capacity;
(ii)
the capacity replacing existing capacity is owned by the project entity that is the
owner of the project, a segment established by the project entity, or a person with
whom the project entity or a segment established by the project entity has
contracted; or
(iii)
the facility that provides the capacity replacing existing capacity is constructed,
reconstructed, converted, repowered, acquired, leased, used, or installed before or
after any actual or anticipated reduction or modification to existing capacity of the
project.
(23)
"Reserve fund" means the same as that term is defined in Subsection
31A-1-103(7)
.
(24)
"Transportation reinvestment zone" means an area created by two or more public
agencies by interlocal agreement to capture increased property or sales tax revenue
generated by a transportation infrastructure project as described in Section
11-13-227
63N-23-901
.
(25)
"Utah interlocal entity":
(a)
means an interlocal entity described in Subsection
11-13-203(2)
; and
(b)
includes a separate legal or administrative entity created under
Laws of Utah 1977,
Chapter 47
, Section 3, as amended.
(26)
"Utah public agency" means a public agency under Subsection
(19)(a)
or
(b)
.
Section 5. Section
11-13-206
is amended to read:
11-13-206
Effective
05/06/26
. Requirements for agreements for joint or
cooperative action.
(1)
Each agreement under Section
11-13-202
,
11-13-203
,
11-13-205
, or
11-13-227
63N-23-901
shall specify:
(a)
its
the agreement's
duration;
(b)
if the agreement creates an interlocal entity:
(i)
the precise organization, composition, and nature of the interlocal entity;
(ii)
the powers delegated to the interlocal entity;
(iii)
the manner in which the interlocal entity is to be governed; and
(iv)
subject to Subsection
(2)
, the manner in which the members of
its
the
governing
board are to be appointed or selected;
(c)
its
the agreement's
purpose or purposes;
(d)
the manner of financing the joint or cooperative action and of establishing and
maintaining a budget for it;
(e)
the permissible method or methods to be employed in accomplishing the partial or
complete termination of the agreement and for disposing of property upon such
partial or complete termination;
(f)
the process, conditions, and terms for withdrawal of a participating public agency
from the interlocal entity or the joint or cooperative undertaking;
(g)
(i)
whether voting is based upon one vote per member or weighted; and
(ii)
if weighted voting is allowed, the basis upon which the vote weight will be
determined; and
(h)
any other necessary and proper matters.
(2)
Each agreement under Section
11-13-203
or
11-13-205
that creates an interlocal entity
shall require that Utah public agencies that are parties to the agreement have the right to
appoint or select members of the interlocal entity's governing board with a majority of
the voting power.
Section 6. Section
11-13-207
is amended to read:
11-13-207
Effective
05/06/26
. Additional requirements for agreement not
establishing interlocal entity.
(1)
If an agreement under Section
11-13-202
or
11-13-227
63N-23-901
does not establish
an interlocal entity to conduct the joint or cooperative undertaking, the agreement shall,
in addition to the items specified in Section
11-13-206
, provide for:
(a)
the joint or cooperative undertaking to be administered by:
(i)
an administrator; or
(ii)
a joint board with representation from the public agencies that are parties to the
agreement;
(b)
the manner of acquiring, holding, and disposing of real and personal property used in
the joint or cooperative undertaking;
(c)
the functions to be performed by the joint or cooperative undertaking; and
(d)
the powers of the joint administrator.
(2)
The creation, operation, governance, and fiscal procedures of a joint or cooperative
undertaking are governed by this chapter.
Section 7. Section
17-79-403
is amended to read:
17-79-403
Effective
05/06/26
. General plan preparation.
(1)
(a)
The planning commission shall provide notice, as provided in Section
17-79-203
,
of the planning commission's intent to make a recommendation to the county
legislative body for a general plan or a comprehensive general plan amendment when
the planning commission initiates the process of preparing the planning commission's
recommendation.
(b)
The planning commission shall make and recommend to the legislative body a
proposed general plan for:
(i)
the unincorporated area within the county; or
(ii)
if the planning commission is a planning commission for a mountainous planning
district, the mountainous planning district.
(c)
(i)
The plan may include planning for incorporated areas if, in the planning
commission's judgment,
they
the plans
are related to the planning of the
unincorporated territory or of the county as a whole.
(ii)
Elements of the county plan that address incorporated areas are not an official
plan or part of a municipal plan for any municipality, unless the county plan is
recommended by the municipal planning commission and adopted by the
governing body of the municipality.
(2)
(a)
At a minimum, the proposed general plan, with the accompanying maps, charts,
and descriptive and explanatory matter, shall include the planning commission's
recommendations for the following plan elements:
(i)
a land use element that:
(A)
designates the long-term goals and the proposed extent, general distribution,
and location of land for housing for residents of various income levels,
business, industry, agriculture, recreation, education, public buildings and
grounds, open space, and other categories of public and private uses of land as
appropriate;
(B)
includes a statement of the projections for and standards of population density
and building intensity recommended for the various land use categories
covered by the plan;
(C)
is coordinated to integrate the land use element with the water use and
preservation element; and
(D)
accounts for the effect of land use categories and land uses on water demand;
(ii)
a transportation and traffic circulation element that:
(A)
provides the general location and extent of existing and proposed freeways,
arterial and collector streets, public transit, active transportation facilities, and
other modes of transportation that the planning commission considers
appropriate;
(B)
addresses the county's plan for residential and commercial development
around major transit investment corridors to maintain and improve the
connections between housing, employment, education, recreation, and
commerce; and
(C)
correlates with the population projections, the employment projections, and
the proposed land use element of the general plan;
(iii)
for a specified county as defined in Section
17-80-101
, a moderate income
housing element that meets the requirements of Section
17-80-202
17-80-201
;
(iv)
a resource management plan detailing the findings, objectives, and policies
required by Section
17-79-402
; and
(v)
a water use and preservation element that addresses:
(A)
the effect of permitted development or patterns of development on water
demand and water infrastructure;
(B)
methods of reducing water demand and per capita consumption for future
development;
(C)
methods of reducing water demand and per capita consumption for existing
development; and
(D)
opportunities for the county to modify the county's operations to eliminate
practices or conditions that waste water.
(b)
In drafting the land use element, the planning commission shall:
(i)
identify and consider each agriculture protection area within the unincorporated
area of the county or mountainous planning district;
(ii)
avoid proposing a use of land within an agriculture protection area that is
inconsistent with or detrimental to the use of the land for agriculture; and
(iii)
consider and coordinate with any station area plans adopted by municipalities
located within the county under
10-21-203
Section
63N-23-104
.
(c)
In drafting the transportation and traffic circulation element, the planning
commission shall:
(i)
(A)
consider and coordinate with the regional transportation plan developed by
the county's region's metropolitan planning organization, if the relevant areas
of the county are within the boundaries of a metropolitan planning
organization; or
(B)
consider and coordinate with the long-range transportation plan developed by
the Department of Transportation, if the relevant areas of the county are not
within the boundaries of a metropolitan planning organization; and
(ii)
consider and coordinate with any station area plans adopted by municipalities
located within the county under Section
10-21-203
63N-23-104
.
(d)
In drafting the water use and preservation element, the planning commission:
(i)
shall consider applicable regional water conservation goals recommended by the
Division of Water Resources;
(ii)
shall consult with the Division of Water Resources for information and technical
resources regarding regional water conservation goals, including how
implementation of the land use element and water use and preservation element
may affect the Great Salt Lake;
(iii)
shall notify the community water systems serving drinking water within the
unincorporated portion of the county and request feedback from the community
water systems about how implementation of the land use element and water use
and preservation element may affect:
(A)
water supply planning, including drinking water source and storage capacity
consistent with Section
19-4-114
; and
(B)
water distribution planning, including master plans, infrastructure asset
management programs and plans, infrastructure replacement plans, and impact
fee facilities plans;
(iv)
shall consider the potential opportunities and benefits of planning for
regionalization of public water systems;
(v)
shall consult with the Department of Agriculture and Food for information and
technical resources regarding the potential benefits of agriculture conservation
easements and potential implementation of agriculture water optimization projects
that would support regional water conservation goals;
(vi)
shall notify an irrigation or canal company located in the county so that the
irrigation or canal company can be involved in the protection and integrity of the
irrigation or canal company's delivery systems;
(vii)
shall include a recommendation for:
(A)
water conservation policies to be determined by the county; and
(B)
landscaping options within a public street for current and future development
that do not require the use of lawn or turf in a parkstrip;
(viii)
shall review the county's land use ordinances and include a recommendation for
changes to an ordinance that promotes the inefficient use of water;
(ix)
shall consider principles of sustainable landscaping, including the:
(A)
reduction or limitation of the use of lawn or turf;
(B)
promotion of site-specific landscape design that decreases stormwater runoff
or runoff of water used for irrigation;
(C)
preservation and use of healthy trees that have a reasonable water requirement
or are resistant to dry soil conditions;
(D)
elimination or regulation of ponds, pools, and other features that promote
unnecessary water evaporation;
(E)
reduction of yard waste; and
(F)
use of an irrigation system, including drip irrigation, best adapted to provide
the optimal amount of water to the plants being irrigated;
(x)
may include recommendations for additional water demand reduction strategies,
including:
(A)
creating a water budget associated with a particular type of development;
(B)
adopting new or modified lot size, configuration, and landscaping standards
that will reduce water demand for new single family development;
(C)
providing one or more water reduction incentives for existing landscapes and
irrigation systems and installation of water fixtures or systems that minimize
water demand;
(D)
discouraging incentives for economic development activities that do not
adequately account for water use or do not include strategies for reducing
water demand; and
(E)
adopting water concurrency standards requiring that adequate water supplies
and facilities are or will be in place for new development; and
(xi)
shall include a recommendation for low water use landscaping standards for a
new:
(A)
commercial, industrial, or institutional development;
(B)
common interest community, as defined in Section
57-25-102
; or
(C)
multifamily housing project.
(3)
The proposed general plan may include:
(a)
an environmental element that addresses:
(i)
to the extent not covered by the county's resource management plan, the
protection, conservation, development, and use of natural resources, including the
quality of:
(A)
air;
(B)
forests;
(C)
soils;
(D)
rivers;
(E)
groundwater and other waters;
(F)
harbors;
(G)
fisheries;
(H)
wildlife;
(I)
minerals; and
(J)
other natural resources; and
(ii)
(A)
the reclamation of land, flood control, prevention and control of the
pollution of streams and other waters;
(B)
the regulation of the use of land on hillsides, stream channels and other
environmentally sensitive areas;
(C)
the prevention, control, and correction of the erosion of soils;
(D)
the preservation and enhancement of watersheds and wetlands; and
(E)
the mapping of known geologic hazards;
(b)
a public services and facilities element showing general plans for sewage, water,
waste disposal, drainage, public utilities, rights-of-way, easements, and facilities for
them, police and fire protection, and other public services;
(c)
a rehabilitation, redevelopment, and conservation element consisting of plans and
programs for:
(i)
historic preservation;
(ii)
the diminution or elimination of a development impediment as defined in Section
17C-1-102
; and
(iii)
redevelopment of land, including housing sites, business and industrial sites, and
public building sites;
(d)
an economic element composed of appropriate studies and forecasts, as well as an
economic development plan, which may include review of existing and projected
county revenue and expenditures, revenue sources, identification of basic and
secondary industry, primary and secondary market areas, employment, and retail
sales activity;
(e)
recommendations for implementing all or any portion of the general plan, including
the adoption of land and water use ordinances, capital improvement plans,
community development and promotion, and any other appropriate action;
(f)
provisions addressing any of the matters listed in Subsection
17-79-401(2)
or
17-79-402(1)
; and
(g)
any other element the county considers appropriate.
Section 8. Section
17-80-101
is amended to read:
17-80-101
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Affordable housing" means housing offered for sale at 80% or less of the median
county home price for housing of that type.
(2)
"Agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Base taxable value" means a property's taxable value as shown upon the assessment
roll last equalized during the base year.
(4)
"Base year" means, for a proposed home ownership promotion zone area, a year
beginning the first day of the calendar quarter determined by the last equalized tax roll
before the adoption of the home ownership promotion zone.
(5)
"Division" means the Housing and Community Development Division within the
Department of Workforce Services.
(6)
"Home ownership promotion zone" means a home ownership promotion zone created in
accordance with
this part
Title 63N, Chapter 23, Part 6, Home Ownership Promotion
Zone for Counties
.
(7)
"Implementation plan" means the implementation plan adopted as part of the moderate
income housing element of a specified county's general plan.
(8)
"Initial report" means the one-time moderate income housing report described in
Subsection
17-80-202(1)
.
(9)
"Internal accessory dwelling unit" means an accessory dwelling unit created:
(a)
within a primary dwelling;
(b)
within the footprint of the detached primary dwelling at the time the internal
accessory dwelling unit is created; and
(c)
for the purpose of offering a long-term rental of 30 consecutive days or longer.
(10)
"Moderate income housing strategy" means a strategy described in Section
17-80-201
.
(11)
"Participant" means the same as that term is defined in Section
17C-1-102
.
(12)
"Participation agreement" means the same as that term is defined in Section
17C-1-102
.
(13)
(a)
"Primary dwelling" means a single-family dwelling that:
(i)
is detached; and
(ii)
is occupied as the primary residence of the owner of record.
(b)
"Primary dwelling" includes a garage if the garage:
(i)
is a habitable space; and
(ii)
is connected to the primary dwelling by a common wall.
(14)
"Project improvements" means the same as that term is defined in Section
11-36a-102
.
(15)
"Report" means an initial report or a subsequent report described in Section
17-80-202
.
(16)
"Specified county" means a county of the first, second, or third class, which has a
population of more than 5,000 in the county's unincorporated areas.
(17)
"Subsequent progress report" means the annual moderate income housing report
described in Section
17-80-202
.
(18)
"System improvements" means the same as that term is defined in Section
11-36a-102
.
(19)
"Tax commission" means the State Tax Commission created in Section
59-1-201
.
(20)
(a)
"Tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a home ownership promotion zone, using the current assessed
value and each taxing entity's current certified tax rate as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Tax increment" does not include property revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
or
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
.
(21)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
Section 9. Section
17-80-201
is amended to read:
17-80-201
Effective
05/06/26
. Moderate income housing plan required.
(1)
A moderate income housing element of a general plan shall include a moderate income
housing element that meets the requirements of this section.
(2)
For a specified county, as defined in Section
17-80-101
, a moderate income housing
element shall:
(a)
provide a realistic opportunity to meet the need for additional moderate income
housing within the next five years;
(b)
select three or more moderate income housing strategies described in Subsections
(3)(a)(ii)(A)
through
(V)
, or at least one moderate income housing strategy described
in Subsections
(3)(a)(ii)(W)
through
(BB)
, for implementation; and
(c)
include an implementation plan as provided in Subsection
(4)
.
(3)
(a)
In drafting the moderate income housing element, the county planning
commission shall:
(i)
consider the Legislature's determination that counties should facilitate a
reasonable opportunity for a variety of housing, including moderate income
housing:
(A)
to meet the needs of people of various income levels living, working, or
desiring to live or work in the community; and
(B)
to allow people with various incomes to benefit from and fully participate in
all aspects of neighborhood and community life; and
(ii)
include an analysis of how the county will provide a realistic opportunity for the
development of moderate income housing within the planning horizon, including
a recommendation to implement three or more of the following moderate income
housing strategies:
(A)
rezone for densities necessary to facilitate the production of moderate income
housing;
(B)
demonstrate investment in the rehabilitation or expansion of infrastructure that
facilitates the construction of moderate income housing;
(C)
demonstrate investment in the rehabilitation of existing uninhabitable housing
stock into moderate income housing;
(D)
identify and utilize county general fund subsidies or other sources of revenue
to waive construction related fees that are otherwise generally imposed by the
county for the construction or rehabilitation of moderate income housing;
(E)
create or allow for, and reduce regulations related to, internal or detached
accessory dwelling units in residential zones;
(F)
zone or rezone for higher density or moderate income residential development
in commercial or mixed-use zones, commercial centers, or employment centers;
(G)
amend land use regulations to allow for higher density or new moderate
income residential development in commercial or mixed-use zones near major
transit investment corridors;
(H)
amend land use regulations to eliminate or reduce parking requirements for
residential development where a resident is less likely to rely on the resident's
own vehicle, such as residential development near major transit investment
corridors or senior living facilities;
(I)
amend land use regulations to allow for single room occupancy developments;
(J)
implement zoning incentives for moderate income units in new developments;
(K)
preserve existing and new moderate income housing and subsidized units by
utilizing a landlord incentive program, providing for deed restricted units
through a grant program, or establishing a housing loss mitigation fund;
(L)
reduce, waive, or eliminate impact fees related to moderate income housing;
(M)
demonstrate creation of, or participation in, a community land trust program
for moderate income housing;
(N)
implement a mortgage assistance program for employees of the county, an
employer that provides contracted services for the county, or any other public
employer that operates within the county;
(O)
apply for or partner with an entity that applies for state or federal funds or tax
incentives to promote the construction of moderate income housing, an entity
that applies for programs offered by the Utah Housing Corporation within that
agency's funding capacity, an entity that applies for affordable housing
programs administered by the Department of Workforce Services, an entity
that applies for services provided by a public housing authority to preserve and
create moderate income housing, or any other entity that applies for programs
or services that promote the construction or preservation of moderate income
housing;
(P)
demonstrate utilization of a moderate income housing set aside from a
community reinvestment agency, redevelopment agency, or community
development and renewal agency to create or subsidize moderate income
housing;
(Q)
eliminate impact fees for any accessory dwelling unit that is not an internal
accessory dwelling unit as defined in Section
17-79-611
;
(R)
create a program to transfer development rights for moderate income housing;
(S)
ratify a joint acquisition agreement with another local political subdivision for
the purpose of combining resources to acquire property for moderate income
housing;
(T)
develop a moderate income housing project for residents who are disabled or
55 years old or older;
(U)
create or allow for, and reduce regulations related to, multifamily residential
dwellings compatible in scale and form with detached single-family residential
dwellings and located in walkable communities within residential or mixed-use
zones;
(V)
demonstrate implementation of any other program or strategy to address the
housing needs of residents of the county who earn less than 80% of the area
median income, including the dedication of a local funding source to moderate
income housing or the adoption of a land use ordinance that requires 10% or
more of new residential development in a residential zone be dedicated to
moderate income housing;
(W)
create a housing and transit reinvestment zone in accordance with
Title 63N,
Chapter 3, Part 6
, Housing and Transit Reinvestment Zone Act
Title 63N,
Chapter 23, Part 2, Housing and Transit Reinvestment Zone
;
(X)
create a home ownership investment zone in accordance with
Part 5, Home
Ownership Promotion Zone
Title 63N, Chapter 23, Part 6, Home Ownership
Investment Zone for Counties
;
(Y)
create a first home investment zone in accordance with
Title 63N, Chapter 3,
Part 16
, First Home Investment Zone Act
Title 63N, Chapter 23, Part 7, First
Home Investment Zone
;
(Z)
approve a project that receives funding from, or qualifies to receive funding
from, the Utah Homes Investment Program created in
Title 51, Chapter 12
,
Utah Homes Investment Program;
(AA)
adopt or approve a qualifying affordable home ownership density bonus for
single-family residential units, as described in Section
17-80-401
; and
(BB)
adopt or approve an affordable home ownership density bonus for
multi-family residential units, as described in Section
17-80-402
.
(b)
The planning commission shall identify each moderate income housing strategy
recommended to the legislative body for implementation by restating the exact
language used to describe the strategy in Subsection
(3)(a)(ii)
.
(4)
(a)
In drafting the implementation plan portion of the moderate income housing
element as described in Subsection
(2)(c)
, the planning commission shall recommend
to the legislative body the establishment of a five-year timeline for implementing
each of the moderate income housing strategies selected by the county for
implementation.
(b)
The timeline described in Subsection
(4)(a)
shall:
(i)
identify specific measures and benchmarks for implementing each moderate
income housing strategy selected by the county; and
(ii)
provide flexibility for the county to make adjustments as needed.
Section 10. Section
17B-2a-802
is amended to read:
17B-2a-802
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Affordable housing" means housing occupied or reserved for occupancy by households
that meet certain gross household income requirements based on the area median income
for households of the same size.
(a)
"Affordable housing" may include housing occupied or reserved for occupancy by
households that meet specific area median income targets or ranges of area median
income targets.
(b)
"Affordable housing" does not include housing occupied or reserved for occupancy
by households with gross household incomes that are more than 60% of the area
median income for households of the same size.
(2)
"Appointing entity" means the person, county, unincorporated area of a county, or
municipality appointing a member to a public transit district board of trustees.
(3)
(a)
"Chief executive officer" means a person appointed by the board of trustees of a
small public transit district to serve as chief executive officer.
(b)
"Chief executive officer" shall enjoy all the rights, duties, and responsibilities
defined in Sections
17B-2a-810
and
17B-2a-811
and includes all rights, duties, and
responsibilities assigned to the general manager but prescribed by the board of
trustees to be fulfilled by the chief executive officer.
(4)
"Confidential employee" means a person who, in the regular course of the person's
duties:
(a)
assists in and acts in a confidential capacity in relation to other persons who
formulate, determine, and effectuate management policies regarding labor relations;
or
(b)
has authorized access to information relating to effectuating or reviewing the
employer's collective bargaining policies.
(5)
"Council of governments" means a decision-making body in each county composed of
membership including the county governing body and the mayors of each municipality
in the county.
(6)
"Department" means the Department of Transportation created in Section
72-1-201
.
(7)
"Executive director" means a person appointed by the board of trustees of a large public
transit district to serve as executive director.
(8)
"Fixed guideway" means the same as that term is defined in Section
59-12-102
.
(9)
"Fixed guideway capital development" means the same as that term is defined in
Section
72-1-102
.
(10)
(a)
"General manager" means a person appointed by the board of trustees of a small
public transit district to serve as general manager.
(b)
"General manager" shall enjoy all the rights, duties, and responsibilities defined in
Sections
17B-2a-810
and
17B-2a-811
prescribed by the board of trustees of a small
public transit district.
(11)
"Large public transit district" means a public transit district that provides public transit
to an area that includes:
(a)
more than 65% of the population of the state based on:
(i)
the estimate of the Utah Population Committee created in Section
63C-20-103
; or
(ii)
if the Utah Population Committee estimate is not available for each county,
municipality, and unincorporated area that comprise the district, the most recent
official census or census estimate of the United States Bureau of the Census; and
(b)
two or more counties.
(12)
"Local advisory council" means the local advisory council created in accordance with
Section
17B-2a-808.2
.
(13)
(a)
"Locally elected public official" means a person who holds an elected position
with a county or municipality.
(b)
"Locally elected public official" does not include a person who holds an elected
position if the elected position is not with a county or municipality.
(14)
"Managerial employee" means a person who is:
(a)
engaged in executive and management functions; and
(b)
charged with the responsibility of directing, overseeing, or implementing the
effectuation of management policies and practices.
(15)
"Metropolitan planning organization" means the same as that term is defined in
Section
72-1-208.5
.
(16)
"Multicounty district" means a public transit district located in more than one county.
(17)
"Operator" means a public entity or other person engaged in the transportation of
passengers for hire.
(18)
(a)
"Public transit" means regular, continuing, shared-ride, surface transportation
services that are open to the general public or open to a segment of the general public
defined by age, disability, or low income.
(b)
"Public transit" does not include transportation services provided by:
(i)
chartered bus;
(ii)
sightseeing bus;
(iii)
taxi;
(iv)
school bus service;
(v)
courtesy shuttle service for patrons of one or more specific establishments; or
(vi)
intra-terminal or intra-facility shuttle services.
(19)
"Public transit district" means a special district that provides public transit services.
(20)
"Public transit innovation grant" means the same as that term is defined in Section
72-2-401
.
(21)
"Small public transit district" means any public transit district that is not a large public
transit district.
(22)
"Station area plan" means a plan developed and adopted by a municipality in
accordance with Section
10-21-203
63N-23-104
.
(23)
(a)
"Supervisor" means a person who has authority, in the interest of the employer,
to:
(i)
hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or
discipline other employees; or
(ii)
adjust another employee's grievance or recommend action to adjust another
employee's grievance.
(b)
"Supervisor" does not include a person whose exercise of the authority described in
Subsection
(23)(a)
:
(i)
is of a merely routine or clerical nature; and
(ii)
does not require the person to use independent judgment.
(24)
"Transit facility" means a transit vehicle, transit station, depot, passenger loading or
unloading zone, parking lot, or other facility:
(a)
leased by or operated by or on behalf of a public transit district; and
(b)
related to the public transit services provided by the district, including:
(i)
railway or other right-of-way;
(ii)
railway line; and
(iii)
a reasonable area immediately adjacent to a designated stop on a route traveled
by a transit vehicle.
(25)
"Transit vehicle" means a passenger bus, coach, railcar, van, or other vehicle operated
as public transportation by a public transit district.
(26)
"Transit-oriented development" means a mixed use residential or commercial area that
is designed to maximize access to public transit and includes the development of land
owned by a large public transit district.
(27)
"Transit-supportive development" means a mixed use residential or commercial area
that is designed to maximize access to public transit and does not include the
development of land owned by a large public transit district.
Section 11. Section
17D-4-102
is amended to read:
17D-4-102
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Board" means the board of trustees of a public infrastructure district.
(2)
"Capital city" means a city of the first class that is the capital of the state that has a
convention center within the boundary of the city.
(3)
"Convention center" means a government facility:
(a)
owned by the county in which the convention center is located;
(b)
primarily used for hosting conventions, exhibitions, trade shows, or similar events;
and
(c)
is located within the boundaries of a city of the first class in a county of the first class.
(4)
"Convention center public infrastructure district" means a public infrastructure district
created to finance public infrastructure and improvements associated with and benefiting
a convention center area and surrounding area, including the costs to finance any public
or privately owned improvements, including:
(a)
convention center-related improvements;
(b)
arena improvements; and
(c)
a convention
center
revitalization project, as that term is defined in Section
63N-3-602
63N-23-101
.
(5)
"Convention center public infrastructure district in a capital city" means a convention
center public infrastructure district created to finance public infrastructure and
improvements for a convention center in a capital city, including:
(a)
the costs to finance any public improvements that serve the convention center;
(b)
privately owned improvements if the improvements are an allowed use of funds
under Section
63N-3-1403
63N-23-803
; and
(c)
a convention center revitalization project, as that term is defined in Section
63N-3-602
63N-23-101
.
(6)
"Creating entity" means the county, municipality, basic special district, or development
authority that approves the creation of a public infrastructure district.
(7)
"Development authority" means:
(a)
the Utah Inland Port Authority created in Section
11-58-201
;
(b)
the Point of the Mountain State Land Authority created in Section
11-59-201
;
(c)
the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
; or
(d)
the military installation development authority created in Section
63H-1-201
.
(8)
"District applicant" means the person proposing the creation of a public infrastructure
district.
(9)
"Division" means a division of a public infrastructure district:
(a)
that is relatively equal in number of eligible voters or potential eligible voters to all
other divisions within the public infrastructure district, taking into account existing or
potential developments which, when completed, would increase or decrease the
population within the public infrastructure district; and
(b)
which a member of the board represents.
(10)
"Governing document" means the document governing a public infrastructure district
to which the creating entity agrees before the creation of the public infrastructure
district, as amended from time to time, and subject to the limitations of Title 17B,
Chapter 1, Provisions Applicable to All Special Districts, and this chapter.
(11)
(a)
"Limited tax bond" means a bond:
(i)
that is directly payable from and secured by ad valorem property taxes that are
levied:
(A)
by a public infrastructure district that issues the bond; and
(B)
on taxable property within the district;
(ii)
that is a general obligation of the public infrastructure district; and
(iii)
for which the ad valorem property tax levy for repayment of the bond does not
exceed the property tax levy rate limit established under Section
17D-4-303
for
any fiscal year, except as provided in Subsection
17D-4-301(13)
.
(b)
"Limited tax bond" does not include:
(i)
a short-term bond;
(ii)
a tax and revenue anticipation bond; or
(iii)
a special assessment bond.
(12)
(a)
"Municipal advisor" means a person that:
(i)
advises a political subdivision on matters related to the issuance of bonds by
governmental entities, including the pricing, sales, and marketing of bonds and the
procuring of bond ratings, credit enhancement, and insurance with respect to
bonds;
(ii)
is qualified to provide the advice described in Subsection
(12)(a)(i)
;
(iii)
is not an officer or employee of the political subdivision receiving advice;
(iv)
has not been engaged to provide underwriting services in connection with a
transaction in which the person will provide advice to the political subdivision; and
(v)
has experience doing business related to the issuance of bonds in the state.
(b)
"Municipal advisor" may include:
(i)
an individual who meets the description in Subsection
(12)(a)
; or
(ii)
a firm of individuals who collectively meet the description in Subsection
(12)(a)
.
(13)
(a)
"Participation agreement" means an executed agreement between a local
government
entity
and project participant, as those terms are defined in Section
63N-3-1401
63N-23-801
.
(b)
"Participation agreement" includes an agreement under
Title 63N, Chapter 3, Part
14, Capital City Revitalization Zone
Title 63N, Chapter 23, Part 8, Capital City
Revitalization Zone
.
(14)
(a)
"Public infrastructure and improvements" means:
(i)
infrastructure, utilities, improvements, facilities, buildings, or remediation that:
(A)
benefit the public and are owned by a public entity or a public or private
utility;
(B)
benefit the public and are publicly maintained or operated by a public entity; or
(C)
are privately owned and are expressly permitted to be acquired or financed by
the public infrastructure district's governing document or an agreement
between the public infrastructure district and the public infrastructure district's
creating entity;
(ii)
publicly or privately owned roads, rights-of-way, trails, parking, or parking
structures; and
(iii)
(A)
for a convention center public infrastructure district, infrastructure,
utilities, improvements, facilities, buildings, or remediation that:
(I)
benefit the public and are owned by a public entity or a utility;
(II)
benefit the public and are publicly maintained or operated by a public
entity;
or
(III)
are privately owned and provide a substantial benefit, as determined by
the board of a convention center public infrastructure district, to:
(Aa)
the development and operation of a convention center public
infrastructure district; or
(Bb)
the residents or property owners within the boundaries of a convention
center public infrastructure district or within the boundaries of a
convention center reinvestment zone to which the convention center
public infrastructure district is either within or adjacent; or
(B)
if the infrastructure and improvements are outside of the boundaries of a
convention center public infrastructure district, benefit a convention center
public infrastructure district to which the convention center public
infrastructure district project area is either within or adjacent.
(b)
"Public infrastructure and improvements" also means:
(i)
the same as that term is defined in Section
11-58-102
, for a public infrastructure
district created by the Utah Inland Port Authority created in Section
11-58-201
;
(ii)
the same as that term is defined in Section
11-70-101
, for a public infrastructure
district created by the Utah Fairpark Area Investment and Restoration District
created in Section
11-70-201
;
(iii)
the same as that term is defined in Section
63H-1-102
, for a public infrastructure
district created by the military installation development authority created in
Section
63H-1-201
;
(iv)
for any public infrastructure district created by a development authority, any
infrastructure, utilities, improvements, facilities, buildings, or remediation that are
privately owned and benefit the public; and
(v)
for a public infrastructure district to which tax increment revenue is pledged or
distributed, any publicly or privately owned infrastructure, utilities,
improvements, facilities, buildings, or remediation that is a permitted use of the
tax increment revenue.
(15)
(a)
"Tax increment revenue" means the difference between the tax revenue
generated from or within a specific area and the revenue that would be generated if a
base taxable value were used.
(b)
"Tax increment revenue" includes any concept substantially the same as the
definition in Subsection
(15)(a)
, regardless of the name of the concept.
Section 12. Section
17D-4-202.1
is amended to read:
17D-4-202.1
Effective
05/06/26
. Convention center public infrastructure --
District board -- Petition and process requirements -- Governing document.
(1)
As used is this section:
(a)
"City" means a municipality of the first class located in a county of the first class in
which a convention center is located.
(b)
"County" means a county in which a convention center is located.
(c)
"Lessee" means a lessee of property within the proposed convention center public
infrastructure district that leases the property from the city or county for a term of at
least 10 years.
(d)
(i)
"Petitioner" means:
(A)
a surface property owner, a property owner, or lessee of property within a
proposed convention center public infrastructure district's boundaries that
initiates the formation of a convention center public infrastructure district; or
(B)
a surface property owner under this chapter, and Title 17B, Chapter 1,
Provisions Applicable to All Special Districts, in relation to a convention
center public infrastructure district.
(ii)
"Petitioner" does not include a city, county, or other public entity.
(2)
A convention center public infrastructure district shall be created in a city upon the
submission of a petition in accordance with this part and shall have all the powers of a
public infrastructure district under this chapter.
(3)
A convention center public infrastructure district may only be created within a city in
which a convention center is located.
(4)
The petition described in Subsection
(2)
shall:
(a)
include the governing document; and
(b)
for a petition to a city which has previously authorized revitalization taxes described
in Section
63N-3-1403
63N-23-803
, include as part of the governing document
approval and authorization of an interlocal agreement pledging and securing the
revitalization taxes for debt of the proposed convention center public infrastructure
district.
(5)
(a)
The process for creating a convention center public infrastructure district or a
convention center public infrastructure district in a capital city shall be initiated by
the submission of a petition and a governing document to the city, except that:
(i)
the city recorder shall certify the petition within 14 days from the day the
petitioner submits the petition to the city recorder;
(ii)
if the city recorder fails to certify the petition within the time described in
Subsection
(5)(a)(i)
, the petition shall be considered certified; and
(iii)
within 30 days from the day that the petitioner submits the petition to the city
recorder, or if the city and the petitioner have come to an agreement as described
in Subsection
(5)(b)
, the city shall adopt a resolution to approve:
(A)
the governing document the petitioner submitted with the petition; and
(B)
the creation of a convention center public infrastructure district or a
convention center public infrastructure district in a capital city.
(b)
Notwithstanding Subsection
(5)(a)
, the city and petitioner may negotiate the finalized
terms of the petition, including the terms of an interlocal agreement, within a time
period agreed upon by the city and petitioner.
(6)
(a)
The boundaries of a convention center public infrastructure district shall be
limited to an area within a one-half-mile radius of a convention center.
(b)
If a parcel is intersected by the radius described in Subsection
(6)(a)
, the entire parcel
may be included in the district.
(7)
A convention center public infrastructure district shall be subject to the following
provisions regarding taxation and financing:
(a)
a convention center public infrastructure district may levy an administrative tax of up
to 0.0005 per dollar of taxable value on taxable property within the district; and
(b)
the administrative tax shall be used exclusively for administrative expenses and may
not be used for capital costs or debt payment.
(8)
A convention center public infrastructure district shall be governed by the governing
document submitted and approved as described in this section.
(9)
The convention center public infrastructure board shall consist of five members as
follows:
(a)
three members shall be representatives of the petitioner and selected by the petitioner;
(b)
one member may be a representative of the city and selected by the mayor of the
city; and
(c)
one member may be a representative of the county and selected by the mayor of the
county.
(10)
If a city or county mayor chooses not to select a member of the board as described in
Subsection
(9)(b)
or
(c)
, elects in writing to permanently abdicate the board seat, or
chooses to vacate a member at any time, the petitioner shall select a member for the
replacement who shall not be a representative of the city or county in which the
convention center is located.
(11)
(a)
A convention center public infrastructure district shall enter into an interlocal
agreement with the relevant county that provides that, for any revenue that is
transferred to the convention center public infrastructure district from a convention
center reinvestment zone created
pursuant to Title 63N, Chapter 3, Part 6, Housing
and Transit Reinvestment Zone Act
in accordance with Title 63N, Chapter 23, Part 3,
Convention Center Reinvestment Zone or Title 63N, Chapter 23, Part 4, Convention
Center Reinvestment Zone in a Capital City
, the mayor of the county shall have
approval authority for the expenditure of any revenue related to a convention center
revitalization project, as that term is defined in Section
63N-3-602
63N-23-101
.
(b)
The approval authority described in Subsection
(11)(a)
does not include approval
authority over:
(i)
any bonds or debt or related terms issued by the convention center public
infrastructure district; or
(ii)
revenue subject to a participation agreement entered into
pursuant to Title 63N,
Chapter 3, Part 14, Capital City Revitalization Zone
in accordance with Title 63N,
Chapter 23, Part 8, Capital City Revitalization Zone
.
Section 13. Section
17D-4-203
is amended to read:
17D-4-203
Effective
05/06/26
. Public infrastructure district powers.
(1)
A public infrastructure district has all of the authority conferred upon a special district
under Section
17B-1-103
.
(2)
A public infrastructure district may:
(a)
issue negotiable bonds to pay:
(i)
all or part of the costs of acquiring, acquiring an interest in, improving, or
extending any of the improvements, facilities, or property allowed under Section
11-14-103
;
(ii)
capital costs of improvements in an energy assessment area, as defined in Section
11-42a-102
, and other related costs, against the funds that the public infrastructure
district will receive because of an assessment in an energy assessment area;
(iii)
public improvements related to the provision of housing;
(iv)
capital costs related to public transportation;
(v)
for a public infrastructure district that is within or adjacent to a housing and
transit reinvestment zone described in
Title 63N, Chapter 3, Part 6, Housing and
Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 2, Housing and
Transit Reinvestment Zone
, any and all costs to finance any public or privately
owned improvements, which, in the discretion of the board of the public
infrastructure district, promote the objectives described in
Section
63N-3-603.1
Section
63N-23-301
or
63N-23-401
;
(vi)
the cost of acquiring or financing public infrastructure and improvements;
(vii)
for a public infrastructure district that is a subsidiary of or created by the Utah
Inland Port Authority, the costs associated with a remediation project, as defined
in Section
11-58-102
;
(viii)
for a convention center public infrastructure district that is within or adjacent to
a convention center reinvestment zone as defined in Section
63N-3-602
63N-23-101
, any or all of the costs to finance any public or privately owned
improvements, including convention center-related improvements and arena
improvements, which, in the discretion of the board of a convention center public
infrastructure district, promote the objectives of the convention center
reinvestment zone, as described in Section
63N-3-603.1
63N-23-301
;
(ix)
for a convention center public infrastructure district, the costs of financing a
convention
center
revitalization project, as the term is defined in Section
63N-3-602
63N-23-101
;
(x)
for a convention center public infrastructure district in a capital city that is within
or adjacent to a convention center reinvestment zone in a capital city, as defined in
Section
63N-3-602
63N-23-101
, any or all of the costs to financing any publicly
owned improvements, including the cost of financing a convention center
revitalization project in a capital city, as defined in Section
63N-3-602
63N-23-101
, convention center-related improvements, and publicly or privately
owned improvements that directly serve the convention center, which, in the
discretion of the board of the convention center public infrastructure district in a
capital city, promote the objectives of the convention center reinvestment zone in
a capital city, as described in Section
63N-3-603.1
63N-23-401
; and
(xi)
for a convention center public infrastructure district in a capital city that is within
a capital city revitalization zone project area, as defined in Section
63N-3-1401
63N-23-801
, any allowed uses of funds or revenue provided for under Section
59-12-402.5
, including eligible expenses consistent with the terms of the
participation agreement, except that a convention center public infrastructure
district in a capital city may not issue negotiable bonds serviced by the
revitalization tax under Section
59-12-402.5
for privately owned improvements
for more than the maximum dollar amount described in the participation
agreement.
(b)
enter into an interlocal agreement in accordance with
Title 11, Chapter 13, Interlocal
Cooperation Act
, provided that the interlocal agreement may not expand the powers
of the public infrastructure district, within the limitations of
Title 11, Chapter 13,
Interlocal Cooperation Act
, without the consent of the creating entity;
(c)
notwithstanding any other provision in code, acquire completed or partially
completed improvements, including related design and consulting services and
related work product, for fair market value as reasonably determined by:
(i)
the board;
(ii)
the creating entity, if required in the governing document; or
(iii)
a surveyor or engineer that a public infrastructure district employs or engages to
perform the necessary engineering services for and to supervise the construction
or installation of the improvements;
(d)
contract with the creating entity for the creating entity to provide administrative
services on behalf of the public infrastructure district, when agreed to by both parties,
in order to achieve cost savings and economic efficiencies, at the discretion of the
creating entity;
(e)
for a public infrastructure district created by a development authority, or for a public
infrastructure district created by a municipality and located in an urban renewal
project area that includes some or all of an inactive industrial site:
(i)
(A)
operate and maintain public infrastructure and improvements the district
acquires or finances; and
(B)
use fees, assessments, or taxes to pay for the operation and maintenance of
those public infrastructure and improvements; and
(ii)
issue bonds under
Title 11, Chapter 42, Assessment Area Act
; and
(f)
for a public infrastructure district that is a subsidiary of or created by the Utah Inland
Port Authority, pay for costs associated with a remediation project, as defined in
Section
11-58-102
, of the Utah Inland Port Authority.
(3)
A public infrastructure district created by the Utah Fairpark Area Investment and
Restoration District, created in Section
11-70-201
, may:
(a)
pay for the cost of the development and construction of a qualified stadium, as
defined in Section
11-70-101
; and
(b)
pay for the cost of public infrastructure and improvements.
Section 14. Section
20A-7-601
is amended to read:
20A-7-601
Effective
05/06/26
. Referenda -- General signature requirements --
Signature requirements for land use laws, subjurisdictional laws, and transit area land
use laws -- Time requirements.
(1)
As used in this section:
(a)
"Number of active voters" means the number of active voters in the county, city, or
town on the immediately preceding January 1.
(b)
"Qualifying county" means a county that has created a small public transit district, as
defined in Section
17B-2a-802
, on or before January 1, 2022.
(c)
"Qualifying transit area" means:
(i)
a station area, as defined in Section
10-21-101
63N-23-101
, for which the
municipality with jurisdiction over the station area has satisfied the requirements
of Subsection
10-21-203(1)(a)(i)
63N-23-104(1)(a)(i)
, as demonstrated by the
adoption of a station area plan or resolution under Subsection
10-21-203(1)
63N-23-104(1)
; or
(ii)
a housing and transit reinvestment zone, as defined in Section
63N-3-602
63N-23-101
, created within a qualifying county.
(d)
"Subjurisdiction" means an area comprised of all precincts and subprecincts in the
jurisdiction of a county, city, or town that are subject to a subjurisdictional law.
(e)
(i)
"Subjurisdictional law" means a local law or local obligation law passed by a
local legislative body that imposes a tax or other payment obligation on property
in an area that does not include all precincts and subprecincts under the
jurisdiction of the county, city, or town.
(ii)
"Subjurisdictional law" does not include a land use law.
(f)
"Transit area land use law" means a land use law that relates to the use of land within
a qualifying transit area.
(g)
"Voter participation area" means an area described in Subsection
20A-7-401.3(1)(a)
or
(2)(b)
.
(2)
Except as provided in Subsections
(3)
through
(5)
, an eligible voter seeking to have a
local law passed by the local legislative body submitted to a vote of the people shall,
after filing a referendum application, obtain legal signatures equal to:
(a)
for a county of the first class:
(i)
7.75% of the number of active voters in the county; and
(ii)
beginning on January 1, 2020, 7.75% of the number of active voters in at least
75% of the county's voter participation areas;
(b)
for a city of the first class:
(i)
7.5% of the number of active voters in the city; and
(ii)
beginning on January 1, 2020, 7.5% of the number of active voters in at least 75%
of the city's voter participation areas;
(c)
for a county of the second class:
(i)
8% of the number of active voters in the county; and
(ii)
beginning on January 1, 2020, 8% of the number of active voters in at least 75%
of the county's voter participation areas;
(d)
for a city of the second class:
(i)
8.25% of the number of active voters in the city; and
(ii)
beginning on January 1, 2020, 8.25% of the number of active voters in at least
75% of the city's voter participation areas;
(e)
for a county of the third class:
(i)
9.5% of the number of active voters in the county; and
(ii)
beginning on January 1, 2020, 9.5% of the number of active voters in at least 75%
of the county's voter participation areas;
(f)
for a city of the third class:
(i)
10% of the number of active voters in the city; and
(ii)
beginning on January 1, 2020, 10% of the number of active voters in at least 75%
of the city's voter participation areas;
(g)
for a county of the fourth class:
(i)
11.5% of the number of active voters in the county; and
(ii)
beginning on January 1, 2020, 11.5% of the number of active voters in at least
75% of the county's voter participation areas;
(h)
for a city of the fourth class:
(i)
11.5% of the number of active voters in the city; and
(ii)
beginning on January 1, 2020, 11.5% of the number of active voters in at least
75% of the city's voter participation areas;
(i)
for a city of the fifth class or a county of the fifth class, 25% of the number of active
voters in the city or county; or
(j)
for a town or a county of the sixth class, 35% of the number of active voters in the
town or county.
(3)
Except as provided in Subsection
(4)
or
(5)
, an eligible voter seeking to have a land use
law or local obligation law passed by the local legislative body submitted to a vote of the
people shall, after filing a referendum application, obtain legal signatures equal to:
(a)
for a county of the first, second, third, or fourth class:
(i)
16% of the number of active voters in the county; and
(ii)
beginning on January 1, 2020, 16% of the number of active voters in at least 75%
of the county's voter participation areas;
(b)
for a county of the fifth or sixth class:
(i)
16% of the number of active voters in the county; and
(ii)
beginning on January 1, 2020, 16% of the number of active voters in at least 75%
of the county's voter participation areas;
(c)
for a city of the first class:
(i)
15% of the number of active voters in the city; and
(ii)
beginning on January 1, 2020, 15% of the number of active voters in at least 75%
of the city's voter participation areas;
(d)
for or a city of the second class:
(i)
16% of the number of active voters in the city; and
(ii)
beginning on January 1, 2020, 16% of the number of active voters in at least 75%
of the city's voter participation areas;
(e)
for a city of the third class:
(i)
27.5% of the number of active voters in the city; and
(ii)
beginning on January 1, 2020, 27.5% of the number of active voters in at least
75% of the city's voter participation areas;
(f)
for a city of the fourth class:
(i)
29% of the number of active voters in the city; and
(ii)
beginning on January 1, 2020, 29% of the number of active voters in at least 75%
of the city's voter participation areas;
(g)
for a city of the fifth class, 35% of the number of active voters in the city; or
(h)
for a town, 40% of the number of active voters in the town.
(4)
A person seeking to have a subjurisdictional law passed by the local legislative body
submitted to a vote of the people shall, after filing a referendum application, obtain legal
signatures of the residents in the subjurisdiction equal to:
(a)
10% of the number of active voters in the subjurisdiction if the number of active
voters exceeds 25,000;
(b)
12.5% of the number of active voters in the subjurisdiction if the number of active
voters does not exceed 25,000 but is more than 10,000;
(c)
15% of the number of active voters in the subjurisdiction if the number of active
voters does not exceed 10,000 but is more than 2,500;
(d)
20% of the number of active voters in the subjurisdiction if the number of active
voters does not exceed 2,500 but is more than 500;
(e)
25% of the number of active voters in the subjurisdiction if the number of active
voters does not exceed 500 but is more than 250; and
(f)
30% of the number of active voters in the subjurisdiction if the number of active
voters does not exceed 250.
(5)
An eligible voter seeking to have a transit area land use law passed by the local
legislative body submitted to a vote of the people shall, after filing a referendum
application, obtain legal signatures equal to:
(a)
for a county:
(i)
20% of the number of active voters in the county; and
(ii)
21% of the number of active voters in at least 75% of the county's voter
participation areas;
(b)
for a city of the first class:
(i)
20% of the number of active voters in the city; and
(ii)
20% of the number of active voters in at least 75% of the city's voter participation
areas;
(c)
for a city of the second class:
(i)
20% of the number of active voters in the city; and
(ii)
21% of the number of active voters in at least 75% of the city's voter participation
areas;
(d)
for a city of the third class:
(i)
34% of the number of active voters in the city; and
(ii)
34% of the number of active voters in at least 75% of the city's voter participation
areas;
(e)
for a city of the fourth class:
(i)
36% of the number of active voters in the city; and
(ii)
36% of the number of active voters in at least 75% of the city's voter participation
areas; or
(f)
for a city of the fifth class or a town, 40% of the number of active voters in the city or
town.
(6)
Sponsors of any referendum petition challenging, under Subsection
(2)
, (3), (4), or (5),
any local law passed by a local legislative body shall file the application no later than the
first business day that is at least five days after the day on which the local law was
passed.
(7)
This section does not authorize a local legislative body to impose a tax or other payment
obligation on a subjurisdiction in order to benefit an area outside of the subjurisdiction.
Section 15. Section
32B-1-202
is amended to read:
32B-1-202
Effective
05/06/26
. Proximity to community location.
(1)
As used in this section:
(a)
"Designated project area zone" means the area that is:
(i)
bounded by:
(A)
South Temple Street;
(B)
100 South Street;
(C)
West Temple Street; and
(D)
400 West Street; and
(ii)
within a project area as defined in Section
63N-3-1401
63N-23-801
.
(b)
(i)
"Outlet" means:
(A)
a state store;
(B)
a package agency; or
(C)
a retail licensee.
(ii)
"Outlet" does not include:
(A)
an airport lounge licensee; or
(B)
a restaurant.
(c)
"Restaurant" means:
(i)
a full-service restaurant licensee;
(ii)
a limited-service restaurant licensee;
(iii)
a beer-only restaurant licensee; or
(iv)
a restaurant venue on-premise banquet licensee.
(2)
(a)
Except as otherwise provided in this section or Section
32B-1-202.1
, the
commission may not issue a license for an outlet if, on the date the commission takes
final action to approve or deny the application, there is a community location:
(i)
within 600 feet of the proposed outlet, as measured from the nearest patron
entrance of the proposed outlet by following the shortest route of ordinary
pedestrian travel to the property boundary of the community location; or
(ii)
within 200 feet of the proposed outlet, measured in a straight line from the
nearest patron entrance of the proposed outlet to the nearest property boundary of
the community location.
(b)
Except as otherwise provided in this section or Section
32B-1-202.1
, the commission
may not issue a license for a restaurant if, on the date the commission takes final
action to approve or deny the application, there is a community location:
(i)
within 300 feet of the proposed restaurant, as measured from the nearest patron
entrance of the proposed restaurant by following the shortest route of ordinary
pedestrian travel to the property boundary of the community location; or
(ii)
within 200 feet of the proposed restaurant, measured in a straight line from the
nearest patron entrance of the proposed restaurant to the nearest property
boundary of the community location.
(3)
(a)
For an outlet or a restaurant that holds a license on May 9, 2017, and operates
under a previously approved variance to one or more proximity requirements in
effect before May 9, 2017, subject to the other provisions of this title, that outlet or
restaurant, or another outlet or restaurant with the same type of license as that outlet
or restaurant, may operate under the previously approved variance regardless of
whether:
(i)
the outlet or restaurant changes ownership;
(ii)
the property on which the outlet or restaurant is located changes ownership; or
(iii)
there is a lapse in the use of the property as an outlet or a restaurant with the
same type of license, unless during the lapse, the property is used for a different
purpose.
(b)
An outlet or a restaurant that has continuously operated at a location since before
January 1, 2007, is considered to have a previously approved variance.
(4)
An outlet or restaurant that holds a license on May 12, 2020, and operates in accordance
with the proximity requirements in effect at the time the commission issued the license
or operates under a previously approved variance described in Subsection
(3)
, subject to
the other provisions of this title, that outlet or restaurant or an outlet or a restaurant with
the same type of license as that outlet or restaurant may operate at the premises
regardless of whether:
(a)
the outlet or restaurant changes ownership;
(b)
the property on which the outlet or restaurant is located changes ownership; or
(c)
there is a lapse of one year or less in the use of the property as an outlet or a
restaurant with the same type of license, unless during the lapse the property is used
for a different purpose.
(5)
(a)
If, after an outlet or a restaurant obtains a license under this title, a person
establishes a community location on a property that puts the outlet or restaurant in
violation of the proximity requirements in effect at the time the license is issued or a
previously approved variance described in Subsection
(3)
, subject to the other
provisions of this title, that outlet or restaurant, or an outlet or a restaurant with the
same type of license as that outlet or restaurant, may operate at the premises
regardless of whether:
(i)
the outlet or restaurant changes ownership;
(ii)
the property on which the outlet or restaurant is located changes ownership; or
(iii)
there is a lapse in the use of the property as an outlet or a restaurant with the
same type of license, unless during the lapse the property is used for a different
purpose.
(b)
The provisions of this Subsection
(5)
apply regardless of when the outlet's or
restaurant's license is issued.
(6)
The proximity requirements described in Subsection
(2)
do not apply:
(a)
if the proposed outlet or proposed restaurant and the community location are located
within the boundaries of a designated project area zone; or
(b)
if a local authority includes in the written consent of the local authority an
acknowledgment and authorization of the outlet's or the restaurant's proximity to a
public park, including any connected trail system, if the public park and connected
trail system are:
(i)
at least 12 acres in size;
(ii)
on land the state owns; and
(iii)
managed by the Point of the Mountain State Land Authority created in Section
11-59-201
.
(7)
Nothing in this section prevents the commission from considering the proximity of an
educational, religious, and recreational facility, or any other relevant factor in reaching a
decision on a proposed location of an outlet.
Section 16. Section
53H-9-206
is amended to read:
53H-9-206
Effective
05/06/26
. Development of university property.
(1)
As used in this section:
(a)
"Board of trustees" means the board of trustees of an eligible university.
(b)
"Conflict" means a situation in which a board of trustees member or a family
member of a board of trustees member will or is likely to receive a direct financial
benefit because of the development of eligible university property within a
development area.
(c)
"Designation resolution" means a board of trustees' resolution designating eligible
university property as a development area.
(d)
"Development action" means:
(i)
a board of trustees' deliberations on whether to adopt a designation resolution;
(ii)
a board of trustees' adoption of a designation resolution;
(iii)
a board of trustees' deliberations on whether to approve a development
agreement; or
(iv)
a board of trustees' approval of a development agreement.
(e)
"Development agreement" means an agreement between an eligible university and a
development partner that governs the development of eligible university property
within a development area.
(f)
"Development area" means a single, contiguous area that:
(i)
consists only of eligible university property;
(ii)
is no larger than 75 acres; and
(iii)
the board of trustees designates for development or redevelopment in a
designation resolution under this section.
(g)
"Development fund" means the fund described in and established under Subsection
(4)
.
(h)
"Development partner" means a person who enters into a development agreement
with an eligible university to develop or redevelop eligible university property within
a development area.
(i)
"Direct financial benefit":
(i)
means any form of financial benefit that accrues to an individual directly,
including:
(A)
compensation, commission, or any other form of a payment or increase of
money; and
(B)
an increase in the value of a business or property; and
(ii)
does not include a financial benefit that accrues to the public generally.
(j)
"Eligible university" means an institution of higher education listed in Subsection
53H-1-102(1)(a)
.
(k)
"Eligible university property" means real property owned by an eligible university as
of January 1, 2025.
(l)
"Family member" means a parent, spouse, sibling, child, or grandchild.
(m)
"Leased property" means eligible university property that:
(i)
is within a development area; and
(ii)
an eligible university leases to a private person.
(n)
"Privilege tax" means a tax imposed under Section
59-4-101
.
(2)
(a)
Except as provided in Subsection
(2)(f)
, before January 1, 2035, an eligible
university may, by resolution of the eligible university's board of trustees, designate
eligible university property as a development area.
(b)
Before adopting a designation resolution, a board of trustees shall:
(i)
obtain approval from the Utah Board of Higher Education of the geographic area
proposed to be designated as a development area; and
(ii)
after obtaining approval from the Utah Board of Higher Education under
Subsection
(2)(b)(i)
:
(A)
provide notice of the public hearing required under Subsection
(2)(b)(ii)(B)
,
as required for a class A notice under Section
63G-30-102
, for at least seven
days before the day of the public hearing; and
(B)
hold a public hearing on the proposed adoption of a designation resolution.
(c)
A notice under Subsection
(2)(b)(ii)(A)
shall include a copy of the proposed
designation resolution.
(d)
A designation resolution, including a proposed designation resolution that
accompanies a notice under Subsection
(2)(b)(ii)(A)
, shall:
(i)
accurately describe the boundary of the proposed development area;
(ii)
describe the development that is proposed to occur in the proposed development
area; and
(iii)
estimate the amount and sources of revenue the eligible university expects to
receive from the development area.
(e)
Before adopting a designation resolution, a board of trustees may modify the
proposed designation resolution to:
(i)
address concerns raised in a public hearing held under Subsection
(2)(b)(ii)(B)
; or
(ii)
clarify or adjust provisions of the proposed designation resolution, as the board of
trustees considers appropriate.
(f)
A board of trustees may not adopt a designation resolution if:
(i)
the board of trustees has previously adopted a designation resolution; or
(ii)
the area in the proposed development area would overlap with part or all of:
(A)
a community reinvestment project area created under Title
17C, Chapter 5,
Part 1
, Community Reinvestment Project Area Plan, as that project area exists
on January 1, 2025; or
(B)
a housing and transit reinvestment zone created under
Title
63N, Chapter 3,
Part 6
, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23,
Part 2, Housing and Transit Reinvestment Zone
, as that zone exists on January
1, 2025.
(3)
Within 30 days after a board of trustees' adoption of a designation resolution, the board
of trustees or the board of trustees' delegee shall deliver a copy of the designation
resolution to:
(a)
the clerk of the municipality in which the development area that is the subject of the
designation resolution is located; and
(b)
the assessor, treasurer, and auditor of the county in which the development area that
is the subject of the designation resolution is located.
(4)
(a)
Upon adoption of a designation resolution, a board of trustees shall establish a
separate fund related to the development area that is the subject of the designation
resolution.
(b)
An eligible university shall deposit into a development fund all money the eligible
university receives from the development and lease of eligible university property
within a development area.
(c)
Money in a development fund shall be accounted for separately from any other fund
of the eligible university.
(d)
An eligible university may use money in a development fund for:
(i)
expenses associated with the development of the development area;
(ii)
capital facility projects of the eligible university;
(iii)
operation and maintenance costs associated with capital facilities of the eligible
university; or
(iv)
any other eligible university-related purpose.
(5)
An eligible university may enter into a development agreement.
(6)
(a)
A board of trustees member may not participate in a development action if the
board of trustees member or a family member of the board of trustees member owns
an interest in, is directly affiliated with, or is an employee or officer of a private firm,
private company, or other private entity that the board of trustees member reasonably
believes is likely to participate in or receive a direct financial benefit from the
development of land that is the subject of a development agreement.
(b)
Before the board of trustees approves a development agreement, the board of trustees
shall require any member with a conflict to disclose the conflict in writing to the
board of trustees.
(c)
Nothing in this Subsection
(6)
affects the application or effect of any other code
provision applicable to a board of trustees member relating to ethics or conflicts of
interest.
(7)
(a)
Beginning January 1 of the year immediately following the execution of a
development agreement, the possession or other beneficial use enjoyed by a person of
leased property that is located within the development area subject to the
development agreement shall be subject to Title
59, Chapter 4
, Privilege Tax, if that
leased property is used in connection with a business conducted for profit.
(b)
The treasurer of the county in which the leased property described in Subsection
(7)(a)
is located shall, in the manner and at the time provided in Section
59-2-1365
:
(i)
collect privilege tax from a lessee of the leased property; and
(ii)
distribute 80% of the privilege tax revenue to the eligible university.
(8)
(a)
A board of trustees shall present a written report to the Higher Education
Appropriations Subcommittee no later than September 30 of each year after the board
of trustees' adoption of a designation resolution.
(b)
A report under Subsection
(8)(a)
shall:
(i)
describe the development taking place or expected to take place within the
development area; and
(ii)
provide a summary of money deposited into and expended from the development
fund for that development area.
Section 17. Section
59-1-306
is amended to read:
59-1-306
Effective
05/06/26
. Definition -- State Tax Commission
Administrative Charge Account -- Amount of administrative charge -- Deposit of
revenue into the restricted account -- Interest deposited into General Fund --
Expenditure of money deposited into the restricted account.
(1)
As used in this section, "qualifying tax, fee, or charge" means a tax, fee, or charge the
commission administers under:
(a)
Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act;
(b)
Title 10, Chapter 1, Part 4, Municipal Telecommunications License Tax Act;
(c)
Section
19-6-714
;
(d)
Section
19-6-805
;
(e)
Chapter 12, Sales and Use Tax Act, other than a tax under Chapter 12, Part 1, Tax
Collection, or Chapter 12, Part 18, Additional State Sales and Use Tax Act;
(f)
Section
59-27-105
;
(g)
Chapter 31, Cannabinoid Licensing and Tax Act;
(h)
Chapter 32, Local Impact Mitigation Tax Act;
(i)
Chapter 33, Wind or Solar Electric Generation Facility Capacity Tax;
(j)
Section
63H-1-205
;
(k)
Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
Title
63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone
;
or
(l)
Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone;
(m)
Title 63N, Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital
City;
(l)
(n)
Title 69, Chapter 2, Part 4, Prepaid Wireless Telecommunications Service
Charges; or
(m)
(o)
Title 79, Chapter 6, Part
11
14
, Energy Project Assessment.
(2)
There is created a restricted account within the General Fund known as the "State Tax
Commission Administrative Charge Account."
(3)
Subject to the other provisions of this section, the restricted account shall consist of
administrative charges the commission retains and deposits in accordance with this
section.
(4)
For purposes of this section, the administrative charge is a percentage of revenue the
commission collects from each qualifying tax, fee, or charge of not to exceed the lesser
of:
(a)
1.5%; or
(b)
an equal percentage of revenue the commission collects from each qualifying tax,
fee, or charge sufficient to cover the cost to the commission of administering the
qualifying taxes, fees, or charges.
(5)
The commission shall deposit an administrative charge into the restricted account.
(6)
Interest earned on the restricted account shall be deposited into the General Fund.
(7)
The commission shall expend money appropriated by the Legislature to the commission
from the restricted account to administer qualifying taxes, fees, or charges or to offset
general operational expenses.
Section 18. Section
59-2-924
is amended to read:
59-2-924
Effective
05/06/26
. Definitions -- Report of valuation of property to
county auditor and commission -- Transmittal by auditor to governing bodies --
Calculation of certified tax rate -- Rulemaking authority -- Adoption of tentative budget
-- Notice provided by the commission.
(1)
As used in this section:
(a)
(i)
"Ad valorem property tax revenue" means revenue collected in accordance with
this chapter.
(ii)
"Ad valorem property tax revenue" does not include:
(A)
interest;
(B)
penalties;
(C)
collections from redemptions; or
(D)
revenue received by a taxing entity from personal property that is
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment.
(b)
"Adjusted tax increment" means the same as that term is defined in Section
17C-1-102
.
(c)
(i)
"Aggregate taxable value of all property taxed" means:
(A)
the aggregate taxable value of all real property a county assessor assesses in
accordance with Part 3, County Assessment, for the current year;
(B)
the aggregate taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current
year; and
(C)
the aggregate year end taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, contained on the prior
year's tax rolls of the taxing entity.
(ii)
"Aggregate taxable value of all property taxed" does not include the aggregate
year end taxable value of personal property that is:
(A)
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B)
contained on the prior year's tax rolls of the taxing entity.
(d)
"Base taxable value" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
the same as that term is defined in Section
11-59-207
11-59-208
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(v)
for an authority created under Section
63H-1-201
, the same as that term is defined
in Section
63H-1-102
;
(vi)
for a host local government, the same as that term is defined in Section
63N-2-502
;
(vii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under
Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone, Title 63N,
Chapter 23, Part 3, Convention Center Reinvestment Zone, or Title 63N, Chapter
23, Part 4, Convention Center Reinvestment Zone in a Capital City, the same as
that term is defined in Section
63N-23-101
;
(viii)
for a home ownership promotion zone created under
Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone
Title 63N, Chapter 23, Part 5, Home
Ownership Promotion Zone for Municipalities, or Title 63N, Chapter 23, Part 6,
Home Ownership Promotion Zone for Counties
, a property's taxable value as
shown upon the assessment roll last equalized during the base year, as that term is
defined in Section
10-21-101
63N-23-501
or
Section
17-80-101
63N-23-601
;
(ix)
for a first home investment zone created under
Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act
Title 63N, Chapter 23, Part 7, First Home
Investment Zone
, a property's taxable value as shown upon the assessment roll last
equalized during the base year, as that term is defined in Section
63N-3-1601
63N-23-701
;
(x)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, a property's taxable value as shown upon
the assessment roll last equalized during the property tax base year, as that term is
defined in Section
63N-3-1701
; or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
value of the property within an electrical energy development zone, as shown on
the assessment roll last equalized before the creation of the electrical development
zone, as that term is defined in Section
79-6-1104
.
(e)
"Centrally assessed benchmark value" means an amount equal to the average year
end taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous three calendar
years, adjusted for taxable value attributable to:
(i)
an annexation to a taxing entity;
(ii)
an incorrect allocation of taxable value of real or personal property the
commission assesses in accordance with Part 2, Assessment of Property; or
(iii)
a change in value as a result of a change in the method of apportioning the value
prescribed by the Legislature, a court, or the commission in an administrative rule
or administrative order.
(f)
"Centrally assessed industry" means the following industry classes the commission
assesses in accordance with Part 2, Assessment of Property:
(i)
air carrier;
(ii)
coal;
(iii)
coal load out property;
(iv)
electric generation;
(v)
electric rural;
(vi)
electric utility;
(vii)
gas utility;
(viii)
ground access property;
(ix)
land only property;
(x)
liquid pipeline;
(xi)
metalliferous mining;
(xii)
nonmetalliferous mining;
(xiii)
oil and gas gathering;
(xiv)
oil and gas production;
(xv)
oil and gas water disposal;
(xvi)
railroad;
(xvii)
sand and gravel; and
(xviii)
uranium.
(g)
(i)
"Centrally assessed new growth" means the greater of:
(A)
for each centrally assessed industry, zero; or
(B)
the amount calculated by subtracting the centrally assessed benchmark value
for each centrally assessed industry, adjusted for prior year end incremental
value, from the taxable value of real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for each centrally
assessed industry for the current year, adjusted for current year incremental
value.
(ii)
"Centrally assessed new growth" does not include a change in value for a
centrally assessed industry as a result of a change in the method of apportioning
the value prescribed by the Legislature, a court, or the commission in an
administrative rule or administrative order.
(h)
"Certified tax rate" means a tax rate that will provide the same ad valorem property
tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
(i)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(j)
"Eligible new growth" means the greater of:
(i)
zero; or
(ii)
the sum of:
(A)
locally assessed new growth;
(B)
centrally assessed new growth; and
(C)
project area new growth or hotel property new growth.
(k)
"Host local government" means the same as that term is defined in Section
63N-2-502
.
(l)
"Hotel property" means the same as that term is defined in Section
63N-2-502
.
(m)
"Hotel property new growth" means an amount equal to the incremental value that is
no longer provided to a host local government as incremental property tax revenue.
(n)
"Incremental property tax revenue" means the same as that term is defined in Section
63N-2-502
.
(o)
"Incremental value" means:
(i)
for an authority created under Section
11-58-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a project area and on which property tax
differential is collected; and
(B)
the number that represents the percentage of the property tax differential that
is paid to the authority;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount calculated by multiplying:
(A)
the difference between the current assessed value of the property and the base
taxable value; and
(B)
the number that represents the percentage of the property tax augmentation, as
defined in Section
11-59-207
11-59-208
, that is paid to the Point of the
Mountain State Land Authority;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the amount calculated by multiplying:
(A)
the difference between the taxable value for the current year and the base
taxable value of the property that is located within a project area; and
(B)
the number that represents the percentage of enhanced property tax revenue,
as defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which tax increment is collected;
and
(B)
the number that represents the adjusted tax increment from that project area
that is paid to the agency;
(v)
for an authority created under Section
63H-1-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which property tax allocation is
collected; and
(B)
the number that represents the percentage of the property tax allocation from
that project area that is paid to the authority;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created in accordance with
Title 63N, Chapter 3, Part 6, Housing and
Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 2, Housing and
Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3, Convention Center
Reinvestment Zone, or Title 63N, Chapter 23, Part 4, Convention Center
Reinvestment Zone in a Capital City
, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a housing and transit reinvestment zone or
convention center reinvestment zone and on which tax increment is collected;
and
(B)
the number that represents the percentage of the tax increment that is paid to
the housing and transit reinvestment zone or convention center reinvestment
zone;
(vii)
for a host local government, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
hotel property on which incremental property tax revenue is collected; and
(B)
the number that represents the percentage of the incremental property tax
revenue from that hotel property that is paid to the host local government;
(viii)
for a home ownership promotion zone created
under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone
in accordance with Title 63N, Chapter
23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N,
Chapter 23, Part 6, Home Ownership Promotion Zone for Counties
, an amount
calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a home ownership promotion zone and on which
tax increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the home ownership promotion zone;
(ix)
for a first home investment zone created in accordance with
Title 63N, Chapter
3, Part 16, First Home Investment Zone Act
Title 63N, Chapter 23, Part 7, First
Home Investment Zone
, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a first home investment zone and on which tax
increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the first home investment zone;
(x)
for a major sporting event venue zone created
pursuant to
in accordance with
Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount
calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a qualified development zone for a major sporting
event venue zone and upon which property tax increment is collected; and
(B)
the number that represents the percentage of tax increment that is paid to the
major sporting event venue zone, as approved by a major sporting event venue
zone committee described in Section
63N-1a-1706
; or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the electrical energy developmental zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
community reinvestment agency and the Electrical Energy Development
Investment Fund created in Section
79-6-1105
.
(p)
(i)
"Locally assessed new growth" means the greater of:
(A)
zero; or
(B)
the amount calculated by subtracting the year end taxable value of real
property the county assessor assesses in accordance with Part 3, County
Assessment, for the previous year, adjusted for prior year end incremental
value from the taxable value of real property the county assessor assesses in
accordance with Part 3, County Assessment, for the current year, adjusted for
current year incremental value.
(ii)
"Locally assessed new growth" does not include a change in:
(A)
value as a result of factoring in accordance with Section
59-2-704
, reappraisal,
or another adjustment;
(B)
assessed value based on whether a property is allowed a residential exemption
for a primary residence under Section
59-2-103
;
(C)
assessed value based on whether a property is assessed under Part 5, Farmland
Assessment Act; or
(D)
assessed value based on whether a property is assessed under Part 17, Urban
Farming Assessment Act.
(q)
"Project area" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iii)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(iv)
for an authority created under Section
63H-1-201
, the same as that term is
defined in Section
63H-1-102
;
(v)
for a housing and transit reinvestment zone or convention center reinvestment
zone created
under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act
in accordance with Title 63N, Chapter 23, Part 2,
Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3,
Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Convention
Center Reinvestment Zone in a Capital City
, the same as that term is defined in
Section
63N-3-602
63N-23-101
;
(vi)
for a home ownership promotion zone created
under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone
in accordance with Title 63N, Chapter
23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N,
Chapter 23, Part 6, Home Ownership Promotion Zone for Counties
, the same as
that term is defined in
Section
10-21-101
or Section
17-80-101
Section
63N-23-101
;
(vii)
for a first home investment zone created
under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act
in accordance with Title 63N, Chapter 23, Part 7,
First Home Investment Zone
, the same as that term is defined in Section
63N-3-1601
63N-23-701
; or
(viii)
for a major sporting event venue zone established under Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
as defined in Section
63N-3-1701
.
(r)
"Project area new growth" means:
(i)
for an authority created under Section
11-58-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
differential;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount equal to the incremental value that is no longer provided to the Point of
the Mountain State Land Authority as property tax augmentation, as defined in
Section
11-59-207
11-59-208
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, an amount equal to the incremental value that is no longer provided to
the Utah Fairpark Area Investment and Restoration District;
(iv)
for an agency created under Section
17C-1-201.5
, an amount equal to the
incremental value that is no longer provided to an agency as tax increment;
(v)
for an authority created under Section
63H-1-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
allocation;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created
under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act
in accordance with Title 63N, Chapter 23, Part 2,
Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3,
Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4,
Convention Center Reinvestment Zone in a Capital City
, an amount equal to the
incremental value that is no longer provided to a housing and transit reinvestment
zone or convention center reinvestment zone as tax increment;
(vii)
for a home ownership promotion zone created
under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone
in accordance with Title 63N, Chapter
23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N,
Chapter 23, Part 6, Home Ownership Promotion Zone for Counties
, an amount
equal to the incremental value that is no longer provided to a home ownership
promotion zone as tax increment;
(viii)
for a first home investment zone created under
Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act
Title 63N, Chapter 23, Part 7, First Home
Investment Zone
, an amount equal to the incremental value that is no longer
provided to a first home investment zone as tax increment; or
(ix)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, an amount equal to the incremental value
that is no longer provided to the creating entity of a major sporting event venue
zone as property tax increment.
(s)
"Project area incremental revenue" means the same as that term is defined in Section
17C-1-1001
.
(t)
"Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(u)
"Property tax differential" means the same as that term is defined in Sections
11-58-102
and
79-6-1104
.
(v)
"Tax increment" means:
(i)
for a project created under Section
17C-1-201.5
, the same as that term is defined
in Section
17C-1-102
;
(ii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created
under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act
in accordance with Title 63N, Chapter 23, Part 2,
Housing and Transit Reinvestment Zone, Title 63N, Chapter 23, Part 3,
Convention Center Reinvestment Zone, or Title 63N, Chapter 23, Part 4,
Convention Center Reinvestment Zone in a Capital City
, the same as the term
"property tax increment" is defined in Section
63N-3-602
63N-23-101
;
(iii)
for a home ownership promotion zone created
under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone
in accordance with Title 63N, Chapter
23, Part 5, Home Ownership Promotion Zone for Municipalities, or Title 63N,
Chapter 23, Part 6, Home Ownership Promotion Zone for Counties
, the same as
that term is defined in Section
10-21-101
or
Section
17-80-101
;
(iv)
for a first home investment zone created
under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act
in accordance with Title 63N, Chapter 23, Part 7,
First Home Investment Zone
, the same as that term is defined in Section
63N-3-1601
63N-23-701
; or
(v)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part 17,
Major Sporting Event Venue Zone Act, property tax increment, as that term is
defined in Section
63N-3-1701
.
(2)
Before June 1 of each year, each county assessor shall deliver to the county auditor and
the commission the following statements:
(a)
a statement containing the aggregate valuation of all taxable real property a county
assessor assesses in accordance with Part 3, County Assessment, for each taxing
entity; and
(b)
a statement containing the taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, from the prior year end
values.
(3)
The county auditor shall, on or before June 8, transmit to the governing body of each
taxing entity:
(a)
the statements described in Subsections
(2)(a)
and
(b)
;
(b)
an estimate of the revenue from personal property;
(c)
the certified tax rate; and
(d)
all forms necessary to submit a tax levy request.
(4)
(a)
Except as otherwise provided in this section, the certified tax rate shall be
calculated by dividing the ad valorem property tax revenue that a taxing entity
budgeted for the prior year by the amount calculated under Subsection
(4)(b)
.
(b)
For purposes of Subsection
(4)(a)
, the legislative body of a taxing entity shall
calculate an amount as follows:
(i)
calculate for the taxing entity the difference between:
(A)
the aggregate taxable value of all property taxed; and
(B)
any adjustments for current year incremental value;
(ii)
after making the calculation required by Subsection
(4)(b)(i)
, calculate an amount
determined by increasing or decreasing the amount calculated under Subsection
(4)(b)(i)
by the average of the percentage net change in the value of taxable
property for the equalization period for the three calendar years immediately
preceding
before
the current calendar year;
(iii)
after making the calculation required by Subsection
(4)(b)(ii)
, calculate the
product of:
(A)
the amount calculated under Subsection
(4)(b)(ii)
; and
(B)
the percentage of property taxes collected for the five calendar years
immediately
preceding
before
the current calendar year; and
(iv)
after making the calculation required by Subsection
(4)(b)(iii)
, calculate an
amount determined by:
(A)
multiplying the percentage of property taxes collected for the five calendar
years immediately
preceding
before
the current calendar year by eligible new
growth; and
(B)
subtracting the amount calculated under Subsection
(4)(b)(iv)(A)
from the
amount calculated under Subsection
(4)(b)(iii)
.
(5)
A certified tax rate for a taxing entity described in this Subsection
(5)
shall be calculated
as follows:
(a)
except as provided in Subsection
(5)(b)
or
(c)
, for a new taxing entity, the certified
tax rate is zero;
(b)
for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(i)
in a county of the first, second, or third class, the levy imposed for municipal-type
services under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services
to Unincorporated Areas; and
(ii)
in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services
identified in Section
17-78-501
and Subsection
17-63-101(23)
;
(c)
for a community reinvestment agency that received all or a portion of a taxing
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
Subsection
(4)
except that the commission shall treat the total revenue transferred to
the community reinvestment agency as ad valorem property tax revenue that the
taxing entity budgeted for the prior year; and
(d)
for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall
be calculated in accordance with Section
59-2-913
and this section:
(i)
a school levy provided for under Section
53F-8-301
,
53F-8-302
, or
53F-8-303
; and
(ii)
a levy to pay for the costs of state legislative mandates or judicial or
administrative orders under Section
59-2-1602
.
(6)
(a)
A taxing entity may impose a judgment levy under Section
59-2-1328
or
59-2-1330
at a rate that is sufficient to generate only the revenue required to satisfy
one or more eligible judgments.
(b)
The ad valorem property tax revenue generated by a judgment levy described in
Subsection
(6)(a)
may not be considered in establishing a taxing entity's aggregate
certified tax rate.
(7)
(a)
For the purpose of calculating the certified tax rate, the county auditor shall use:
(i)
the taxable value of real property:
(A)
the county assessor assesses in accordance with Part 3, County Assessment;
and
(B)
contained on the assessment roll;
(ii)
the year end taxable value of personal property:
(A)
a county assessor assesses in accordance with Part 3, County Assessment; and
(B)
contained on the prior year's assessment roll; and
(iii)
the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property.
(b)
For purposes of Subsection
(7)(a)
, taxable value does not include eligible new
growth.
(8)
(a)
On or before June 30 of each year, a taxing entity shall adopt a tentative budget.
(b)
If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
the county auditor of:
(i)
the taxing entity's intent to exceed the certified tax rate; and
(ii)
the amount by which the taxing entity proposes to exceed the certified tax rate.
(c)
The county auditor shall notify property owners of any intent to levy a tax rate that
exceeds the certified tax rate in accordance with Sections
59-2-919
and
59-2-919.1
.
(9)
(a)
Subject to Subsection
(9)(d)
, the commission shall provide notice, through
electronic means on or before July 31, to a taxing entity and the Revenue and
Taxation Interim Committee if:
(i)
the amount calculated under Subsection
(9)(b)
is 10% or more of the year end
taxable value of the real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous year, adjusted
for prior year end incremental value; and
(ii)
the amount calculated under Subsection
(9)(c)
is 50% or more of the total year
end taxable value of the real and personal property of a taxpayer the commission
assesses in accordance with Part 2, Assessment of Property, for the previous year.
(b)
For purposes of Subsection
(9)(a)(i)
, the commission shall calculate an amount by
subtracting the taxable value of real and personal property the commission assesses
in accordance with Part 2, Assessment of Property, for the current year, adjusted for
current year incremental value, from the year end taxable value of the real and
personal property the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year, adjusted for prior year end incremental value.
(c)
For purposes of Subsection
(9)(a)(ii)
, the commission shall calculate an amount by
subtracting the total taxable value of real and personal property of a taxpayer the
commission assesses in accordance with Part 2, Assessment of Property, for the
current year, from the total year end taxable value of the real and personal property of
a taxpayer the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year.
(d)
The notification under Subsection
(9)(a)
shall include a list of taxpayers that meet the
requirement under Subsection
(9)(a)(ii)
.
Section 19. Section
59-12-103
is amended to read:
59-12-103
Effective
05/06/26
Superseded
07/01/26
. Sales and use tax base --
Rates -- Effective dates -- Use of sales and use tax revenue.
(1)
A tax is imposed on the purchaser as provided in this part on the purchase price or sales
price for amounts paid or charged for the following transactions:
(a)
retail sales of tangible personal property made within the state;
(b)
amounts paid for:
(i)
telecommunications service, other than mobile telecommunications service, that
originates and terminates within the boundaries of this state;
(ii)
mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii)
an ancillary service associated with a:
(A)
telecommunications service described in Subsection
(1)(b)(i)
; or
(B)
mobile telecommunications service described in Subsection
(1)(b)(ii)
;
(c)
sales of the following for commercial use:
(i)
gas;
(ii)
electricity;
(iii)
heat;
(iv)
coal;
(v)
fuel oil; or
(vi)
other fuels;
(d)
sales of the following for residential use:
(i)
gas;
(ii)
electricity;
(iii)
heat;
(iv)
coal;
(v)
fuel oil; or
(vi)
other fuels;
(e)
sales of prepared food;
(f)
except as provided in Section
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or
nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
any other amusement, entertainment, recreation, exhibition, cultural, or athletic
activity;
(g)
amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section
59-12-104
provides for an exemption from sales and use tax
for:
(i)
the tangible personal property; and
(ii)
parts used in the repairs or renovations of the tangible personal property described
in Subsection
(1)(g)(i)
, regardless of whether:
(A)
any parts are actually used in the repairs or renovations of that tangible
personal property; or
(B)
the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h)
except as provided in Subsection
59-12-104(7)
, amounts paid or charged for assisted
cleaning or washing of tangible personal property;
(i)
amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
court accommodations and services;
(j)
amounts paid or charged for laundry or dry cleaning services;
(k)
amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i)
stored;
(ii)
used; or
(iii)
otherwise consumed;
(l)
amounts paid or charged for tangible personal property if within this state the tangible
personal property is:
(i)
stored;
(ii)
used; or
(iii)
consumed;
(m)
amounts paid or charged for a sale:
(i)
(A)
of a product transferred electronically; or
(B)
of a repair or renovation of a product transferred electronically; and
(ii)
regardless of whether the sale provides:
(A)
a right of permanent use of the product; or
(B)
a right to use the product that is less than a permanent use, including a right:
(I)
for a definite or specified length of time; and
(II)
that terminates upon the occurrence of a condition; and
(n)
sales of leased tangible personal property from the lessor to the lessee made in the
state.
(2)
(a)
Except as provided in Subsections
(2)(b)
through
(f)
, a state tax and a local tax are
imposed on a transaction described in Subsection
(1)
equal to the sum of:
(i)
a state tax imposed on the transaction at a tax rate equal to the sum of:
(A)
4.70% plus the rate specified in Subsection
(11)(a)
; and
(B)
(I)
the tax rate the state imposes in accordance with Part 18, Additional
State Sales and Use Tax Act, if the location of the transaction as determined
under Sections
59-12-211
through
59-12-215
is in a county in which the
state imposes the tax under Part 18, Additional State Sales and Use Tax Act;
and
(II)
the tax rate the state imposes in accordance with Part 20, Supplemental
State Sales and Use Tax Act, if the location of the transaction as determined
under Sections
59-12-211
through
59-12-215
is in a city, town, or the
unincorporated area of a county in which the state imposes the tax under
Part 20, Supplemental State Sales and Use Tax Act; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b)
Except as provided in Subsection
(2)(f)
or (g) and subject to Subsection
(2)(l)
, a state
tax and a local tax are imposed on a transaction described in Subsection
(1)(d)
equal
to the sum of:
(i)
a state tax imposed on the transaction at a tax rate of 2%; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c)
Except as provided in Subsection
(2)(f)
or (g), a state tax and a local tax are imposed
on amounts paid or charged for food and food ingredients equal to the sum of:
(i)
a state tax imposed on the amounts paid or charged for food and food ingredients
at a tax rate of 1.75%; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
amounts paid or charged for food and food ingredients under this chapter other
than this part.
(d)
Except as provided in Subsection
(2)(f)
or
(g)
, a state tax is imposed on amounts paid
or charged for fuel to a common carrier that is a railroad for use in a locomotive
engine at a rate of 4.85%.
(e)
(i)
(A)
If a shared vehicle owner certifies to the commission, on a form
prescribed by the commission, that the shared vehicle is an individual-owned
shared vehicle, a tax imposed under Subsection
(2)(a)(i)(A)
does not apply to
car sharing, a car-sharing program, a shared vehicle driver, or a shared vehicle
owner.
(B)
A shared vehicle owner's certification described in Subsection
(2)(e)(i)(A)
is
required once during the time that the shared vehicle owner owns the shared
vehicle.
(C)
The commission shall verify that a shared vehicle is an individual-owned
shared vehicle by verifying that the applicable Utah taxes imposed under this
chapter were paid on the purchase of the shared vehicle.
(D)
The exception under Subsection
(2)(e)(i)(A)
applies to a certified
individual-owned shared vehicle shared through a car-sharing program even if
non-certified shared vehicles are also available to be shared through the same
car-sharing program.
(ii)
A tax imposed under Subsection
(2)(a)(i)(B)
or (2)(a)(ii) applies to car sharing.
(iii)
(A)
A car-sharing program may rely in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle
certified with the commission as described in Subsection
(2)(e)(i)
.
(B)
If a car-sharing program relies in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle
certified with the commission as described in Subsection
(2)(e)(i)
, the
car-sharing program is not liable for any tax, penalty, fee, or other sanction
imposed on the shared vehicle owner.
(iv)
If all shared vehicles shared through a car-sharing program are certified as
described in Subsection
(2)(e)(i)(A)
for a tax period, the car-sharing program has
no obligation to collect and remit the tax under Subsection
(2)(a)(i)(A)
for that tax
period.
(v)
A car-sharing program is not required to list or otherwise identify an
individual-owned shared vehicle on a return or an attachment to a return.
(vi)
A car-sharing program shall:
(A)
retain tax information for each car-sharing program transaction; and
(B)
provide the information described in Subsection
(2)(e)(vi)(A)
to the
commission at the commission's request.
(f)
(i)
For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a
local tax is imposed on the entire bundled transaction equal to the sum of:
(A)
a state tax imposed on the entire bundled transaction equal to the sum of:
(I)
the tax rate described in Subsection
(2)(a)(i)(A)
; and
(II)
(Aa)
the tax rate the state imposes in accordance with Part 18,
Additional State Sales and Use Tax Act, if the location of the transaction
as determined under Sections
59-12-211
through
59-12-215
is in a
county in which the state imposes the tax under Part 18, Additional State
Sales and Use Tax Act; and
(Bb)
the tax rate the state imposes in accordance with Part 20, Supplemental
State Sales and Use Tax Act, if the location of the transaction as
determined under Sections
59-12-211
through
59-12-215
is in a city,
town, or the unincorporated area of a county in which the state imposes
the tax under Part 20, Supplemental State Sales and Use Tax Act; and
(B)
a local tax imposed on the entire bundled transaction at the sum of the tax
rates described in Subsection
(2)(a)(ii)
.
(ii)
If an optional computer software maintenance contract is a bundled transaction
that consists of taxable and nontaxable products that are not separately itemized
on an invoice or similar billing document, the purchase of the optional computer
software maintenance contract is 40% taxable under this chapter and 60%
nontaxable under this chapter.
(iii)
Subject to Subsection
(2)(f)(iv)
, for a bundled transaction other than a bundled
transaction described in Subsection
(2)(f)(i)
or
(ii)
:
(A)
if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter
and tangible personal property, a product, or service that is not subject to
taxation under this chapter, the entire bundled transaction is subject to taxation
under this chapter unless:
(I)
the seller is able to identify by reasonable and verifiable standards the
tangible personal property, product, or service that is not subject to taxation
under this chapter from the books and records the seller keeps in the seller's
regular course of business; or
(II)
state or federal law provides otherwise; or
(B)
if the sales price of a bundled transaction is attributable to two or more items
of tangible personal property, products, or services that are subject to taxation
under this chapter at different rates, the entire bundled transaction is subject to
taxation under this chapter at the higher tax rate unless:
(I)
the seller is able to identify by reasonable and verifiable standards the
tangible personal property, product, or service that is subject to taxation
under this chapter at the lower tax rate from the books and records the seller
keeps in the seller's regular course of business; or
(II)
state or federal law provides otherwise.
(iv)
For purposes of Subsection
(2)(f)(iii)
, books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in
the regular course of business for nontax purposes.
(g)
(i)
Except as otherwise provided in this chapter and subject to Subsections
(2)(g)(ii)
and
(iii)
, if a transaction consists of the sale, lease, or rental of tangible
personal property, a product, or a service that is subject to taxation under this
chapter, and the sale, lease, or rental of tangible personal property, other property,
a product, or a service that is not subject to taxation under this chapter, the entire
transaction is subject to taxation under this chapter unless the seller, at the time of
the transaction:
(A)
separately states the portion of the transaction that is not subject to taxation
under this chapter on an invoice, bill of sale, or similar document provided to
the purchaser; or
(B)
is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of
the transaction that is not subject to taxation under this chapter.
(ii)
A purchaser and a seller may correct the taxability of a transaction if:
(A)
after the transaction occurs, the purchaser and the seller discover that the
portion of the transaction that is not subject to taxation under this chapter was
not separately stated on an invoice, bill of sale, or similar document provided
to the purchaser because of an error or ignorance of the law; and
(B)
the seller is able to identify by reasonable and verifiable standards, from the
books and records the seller keeps in the seller's regular course of business, the
portion of the transaction that is not subject to taxation under this chapter.
(iii)
For purposes of Subsections
(2)(g)(i)
and (ii), books and records that a seller
keeps in the seller's regular course of business includes books and records the
seller keeps in the regular course of business for nontax purposes.
(h)
(i)
If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this
chapter at different rates, the entire purchase is subject to taxation under this
chapter at the higher tax rate unless the seller, at the time of the transaction:
(A)
separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the
purchaser; or
(B)
is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the
lower tax rate from the books and records the seller keeps in the seller's regular
course of business.
(ii)
For purposes of Subsection
(2)(h)(i)
, books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in
the regular course of business for nontax purposes.
(i)
Subject to Subsections
(2)(j)
and
(k)
, a tax rate repeal or tax rate change for a tax rate
imposed under the following shall take effect on the first day of a calendar quarter:
(i)
Subsection
(2)(a)(i)(A)
;
(ii)
Subsection
(2)(b)(i)
;
(iii)
Subsection
(2)(c)(i)
; or
(iv)
Subsection
(2)(f)(i)(A)(I)
.
(j)
(i)
A tax rate increase takes effect on the first day of the first billing period that
begins on or after the effective date of the tax rate increase if the billing period for
the transaction begins before the effective date of a tax rate increase imposed
under:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(b)(i)
;
(C)
Subsection
(2)(c)(i)
; or
(D)
Subsection
(2)(f)(i)(A)(I)
.
(ii)
The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is rendered on or after the effective date of the
repeal of the tax or the tax rate decrease imposed under:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(b)(i)
;
(C)
Subsection
(2)(c)(i)
; or
(D)
Subsection
(2)(f)(i)(A)(I)
.
(k)
(i)
For a tax rate described in Subsection
(2)(k)(ii)
, if a tax due on a catalogue sale
is computed on the basis of sales and use tax rates published in the catalogue, a
tax rate repeal or change in a tax rate takes effect:
(A)
on the first day of a calendar quarter; and
(B)
beginning 60 days after the effective date of the tax rate repeal or tax rate
change.
(ii)
Subsection
(2)(k)(i)
applies to the tax rates described in the following:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(b)(i)
;
(C)
Subsection
(2)(c)(i)
; or
(D)
Subsection
(2)(f)(i)(A)(I)
.
(iii)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(l)
(i)
For a location described in Subsection
(2)(l)(ii)
, the commission shall determine
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
fuel at the location.
(ii)
Subsection
(2)(l)(i)
applies to a location where gas, electricity, heat, coal, fuel oil,
or other fuel is furnished through a single meter for two or more of the following
uses:
(A)
a commercial use;
(B)
an industrial use; or
(C)
a residential use.
(3)
(a)
The following state taxes shall be deposited into the General Fund:
(i)
the tax imposed by Subsection
(2)(a)(i)(A)
;
(ii)
the tax imposed by Subsection
(2)(b)(i)
;
(iii)
the tax imposed by Subsection
(2)(c)(i)
; and
(iv)
the tax imposed by Subsection
(2)(f)(i)(A)(I)
.
(b)
The following local taxes shall be distributed to a county, city, or town as provided
in this chapter:
(i)
the tax imposed by Subsection
(2)(a)(ii)
;
(ii)
the tax imposed by Subsection
(2)(b)(ii)
;
(iii)
the tax imposed by Subsection
(2)(c)(ii)
; and
(iv)
the tax imposed by Subsection
(2)(f)(i)(B)
.
(c)
The state tax imposed by Subsection
(2)(d)
shall be deposited into the General Fund.
(4)
(a)
Notwithstanding Subsection
(3)(a)
, for a fiscal year beginning on or after July 1,
2003, the lesser of the following amounts shall be expended as provided in
Subsections
(4)(b)
through
(g)
:
(i)
for taxes listed under Subsection
(3)(a)
, the amount of tax revenue generated:
(A)
by a 1/16% tax rate on the transactions described in Subsection
(1)
; and
(B)
for the fiscal year; or
(ii)
$17,500,000.
(b)
(i)
For a fiscal year beginning on or after July 1, 2003, 14% of the amount
described in Subsection
(4)(a)
shall be transferred each year as designated sales
and use tax revenue to the Division of Wildlife Resources to:
(A)
implement the measures described in Subsections
23A-3-214(3)(a)
through
(d)
to protect sensitive plant and animal species; or
(B)
award grants, up to the amount authorized by the Legislature in an
appropriations act, to political subdivisions of the state to implement the
measures described in Subsections
23A-3-214(3)(a)
through (d) to protect
sensitive plant and animal species.
(ii)
Money transferred to the Division of Wildlife Resources under Subsection
(4)(b)(i)
may not be used to assist the United States Fish and Wildlife Service or
any other person to list or attempt to have listed a species as threatened or
endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et
seq.
(iii)
At the end of each fiscal year:
(A)
50% of any unexpended designated sales and use tax revenue shall lapse to
the Water Resources Conservation and Development Fund created in Section
73-10-24
;
(B)
25% of any unexpended designated sales and use tax revenue shall lapse to the
Utah Wastewater Loan Program Subaccount created in Section
73-10c-5
; and
(C)
25% of any unexpended designated sales and use tax revenue shall lapse to the
Drinking Water Loan Program Subaccount created in Section
73-10c-5
.
(c)
For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
Subsection
(4)(a)
shall be transferred each year as designated sales and use tax
revenue to the Division of Conservation created in Section
4-46-401
to implement
water related programs.
(d)
(i)
For a fiscal year beginning on or after July 1, 2003, 1% of the amount
described in Subsection
(4)(a)
shall be transferred each year as designated sales
and use tax revenue to the Division of Water Rights to cover the costs incurred in
hiring legal and technical staff for the adjudication of water rights.
(ii)
At the end of each fiscal year:
(A)
50% of any unexpended designated sales and use tax revenue shall lapse to
the Water Resources Conservation and Development Fund created in Section
73-10-24
;
(B)
25% of any unexpended designated sales and use tax revenue shall lapse to the
Utah Wastewater Loan Program Subaccount created in Section
73-10c-5
; and
(C)
25% of any unexpended designated sales and use tax revenue shall lapse to the
Drinking Water Loan Program Subaccount created in Section
73-10c-5
.
(e)
(i)
For a fiscal year beginning on or after July 1, 2003, 41% of the amount
described in Subsection
(4)(a)
shall be deposited into the Water Resources
Conservation and Development Fund created in Section
73-10-24
for use by the
Division of Water Resources.
(ii)
In addition to the uses allowed of the Water Resources Conservation and
Development Fund under Section
73-10-24
, the Water Resources Conservation
and Development Fund may also be used to:
(A)
conduct hydrologic and geotechnical investigations by the Division of Water
Resources in a cooperative effort with other state, federal, or local entities, for
the purpose of quantifying surface and ground water resources and describing
the hydrologic systems of an area in sufficient detail so as to enable local and
state resource managers to plan for and accommodate growth in water use
without jeopardizing the resource;
(B)
fund state required dam safety improvements; and
(C)
protect the state's interest in interstate water compact allocations, including the
hiring of technical and legal staff.
(f)
For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described in
Subsection
(4)(a)
shall be deposited into the Utah Wastewater Loan Program
Subaccount created in Section
73-10c-5
for use by the Water Quality Board to fund
wastewater projects.
(g)
For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
in Subsection
(4)(a)
shall be deposited into the Drinking Water Loan Program
Subaccount created in Section
73-10c-5
for use by the Division of Drinking Water to:
(i)
provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section
19-4-102
;
(ii)
develop underground sources of water, including springs and wells; and
(iii)
develop surface water sources.
(5)
(a)
Notwithstanding Subsection
(3)(a)
, for a fiscal year beginning on or after July 1,
2006, the difference between the following amounts shall be expended as provided in
this Subsection
(5)
, if that difference is greater than $1:
(i)
for taxes listed under Subsection
(3)(a)
, the amount of tax revenue generated for
the fiscal year by a 1/16% tax rate on the transactions described in Subsection
(1)
;
and
(ii)
$17,500,000.
(b)
(i)
The first $500,000 of the difference described in Subsection
(5)(a)
shall be:
(A)
transferred each fiscal year to the Department of Natural Resources as
designated sales and use tax revenue; and
(B)
expended by the Department of Natural Resources for watershed rehabilitation
or restoration.
(ii)
At the end of each fiscal year, 100% of any unexpended designated sales and use
tax revenue described in Subsection
(5)(b)(i)
shall lapse to the Water Resources
Conservation and Development Fund created in Section
73-10-24
.
(c)
(i)
After making the transfer required by Subsection
(5)(b)(i)
, $150,000 of the
remaining difference described in Subsection
(5)(a)
shall be:
(A)
transferred each fiscal year to the Division of Water Resources as designated
sales and use tax revenue; and
(B)
expended by the Division of Water Resources for cloud-seeding projects
authorized by Title 73, Chapter 15, Modification of Weather.
(ii)
At the end of each fiscal year, 100% of any unexpended designated sales and use
tax revenue described in Subsection
(5)(c)(i)
shall lapse to the Water Resources
Conservation and Development Fund created in Section
73-10-24
.
(d)
After making the transfers required by Subsections
(5)(b)
and
(c)
, 85% of the
remaining difference described in Subsection
(5)(a)
shall be deposited into the Water
Resources Conservation and Development Fund created in Section
73-10-24
for use
by the Division of Water Resources for:
(i)
preconstruction costs:
(A)
as defined in Subsection
73-26-103(6)
for projects authorized by Title 73,
Chapter 26, Bear River Development Act; and
(B)
as defined in Subsection
73-28-103(8)
for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii)
the cost of employing a civil engineer to oversee any project authorized by Title
73, Chapter 26, Bear River Development Act;
(iii)
the cost of employing a civil engineer to oversee the Lake Powell Pipeline
project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
Act; and
(iv)
other uses authorized under Sections
73-10-24
,
73-10-25.1
, and
73-10-30
, and
Subsection
(4)(e)(ii)
after funding the uses specified in Subsections
(5)(d)(i)
through
(iii)
.
(e)
After making the transfers required by Subsections
(5)(b)
and
(c)
, 15% of the
remaining difference described in Subsection
(5)(a)
shall be deposited each year into
the Water Rights Restricted Account created by Section
73-2-1.6
.
(6)
Notwithstanding Subsection
(3)(a)
and for taxes listed under Subsection
(3)(a)
, each
fiscal year, the commission shall deposit into the Water Infrastructure Restricted
Account created in Section
73-10g-103
the amount of revenue generated by a 1/16% tax
rate on the transactions described in Subsection
(1)
for the fiscal year.
(7)
(a)
Notwithstanding Subsection
(3)(a)
and subject to Subsections
(7)(b)
, (c), and (d),
for a fiscal year beginning on or after July 1, 2023, the commission shall deposit into
the Transportation Investment Fund of 2005 created by Section
72-2-124
a portion of
the taxes listed under Subsection
(3)(a)
equal to 24% of the revenue collected from
the following sales and use taxes:
(i)
the tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate;
(ii)
the tax imposed by Subsection
(2)(b)(i)
;
(iii)
the tax imposed by Subsection
(2)(c)(i)
; and
(iv)
the tax imposed by Subsection
(2)(f)(i)(A)(I)
.
(b)
(i)
For a fiscal year beginning on or after July 1, 2024, the commission shall
annually reduce the deposit under Subsection
(7)(a)
into the Transportation
Investment Fund of 2005 by an amount equal to .44% of the revenue collected
from the following sales and use taxes:
(A)
the tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate;
(B)
the tax imposed by Subsection
(2)(b)(i)
;
(C)
the tax imposed by Subsection
(2)(c)(i)
; and
(D)
the tax imposed by Subsection
(2)(f)(i)(A)(I)
.
(ii)
The commission shall annually deposit the amount described in Subsection
(7)(b)(i)
into the Cottonwood Canyons Transportation Investment Fund created in
Section
72-2-124
.
(c)
(i)
Subject to Subsection
(7)(c)(ii)
, for a fiscal year beginning on or after July 1,
2023, the commission shall annually reduce the deposit into the Transportation
Investment Fund of 2005 under Subsections
(7)(a)
and
(7)(b)
by an amount that is
equal to 5% of:
(A)
the amount of revenue generated in the current fiscal year by the portion of
taxes listed under Subsection
(3)(a)
that equals 20.68% of the revenue
collected from taxes described in Subsections
(7)(a)(i)
through
(iv)
;
(B)
the amount of revenue generated in the current fiscal year by registration fees
designated under Section
41-1a-1201
to be deposited into the Transportation
Investment Fund of 2005; and
(C)
revenue transferred by the Division of Finance to the Transportation
Investment Fund of 2005 in accordance with Section
72-2-106
in the current
fiscal year.
(ii)
The amount described in Subsection
(7)(c)(i)
may not exceed $45,000,000 in a
given fiscal year.
(iii)
The commission shall annually deposit the amount described in Subsection
(7)(c)(i)
into the Active Transportation Investment Fund created in Subsection
72-2-124(11)
72-2-124(12)
.
(d)
(i)
For a fiscal year beginning on or after July 1, 2024, the commission shall
annually reduce the deposit into the Transportation Investment Fund of 2005
under this Subsection
(7)
by an amount that is equal to 1% of the revenue
collected from the following sales and use taxes:
(A)
the tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate;
(B)
the tax imposed by Subsection
(2)(b)(i)
;
(C)
the tax imposed by Subsection
(2)(c)(i)
; and
(D)
the tax imposed by Subsection
(2)(f)(i)(A)(I)
.
(ii)
The commission shall annually deposit the amount described in Subsection
(7)(d)(i)
into the Commuter Rail Subaccount created in Section
72-2-124
.
(8)
(a)
Notwithstanding Subsection
(3)(a)
, in addition to the amounts deposited under
Subsection
(7)
, and subject to Subsection
(8)(b)
, for a fiscal year beginning on or
after July 1, 2018, the commission shall annually deposit into the Transportation
Investment Fund of 2005 created by Section
72-2-124
a portion of the taxes listed
under Subsection
(3)(a)
in an amount equal to 3.68% of the revenue collected from
the following taxes:
(i)
the tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate;
(ii)
the tax imposed by Subsection
(2)(b)(i)
;
(iii)
the tax imposed by Subsection
(2)(c)(i)
; and
(iv)
the tax imposed by Subsection
(2)(f)(i)(A)(I)
.
(b)
For a fiscal year beginning on or after July 1, 2019, the commission shall annually
reduce the deposit into the Transportation Investment Fund of 2005 under Subsection
(8)(a)
by an amount that is equal to 35% of the amount of revenue generated in the
current fiscal year by the portion of the tax imposed on motor and special fuel that is
sold, used, or received for sale or use in this state that exceeds 29.4 cents per gallon.
(c)
The commission shall annually deposit the amount described in Subsection
(8)(b)
into the Transit Transportation Investment Fund created in Section
72-2-124
.
(9)
Notwithstanding Subsection
(3)(a)
, for each fiscal year beginning with fiscal year
2009-10, $533,750 shall be deposited into the Qualified Emergency Food Agencies
Fund created by Section
35A-8-1009
and expended as provided in Section
35A-8-1009
.
(10)
Notwithstanding Subsection
(3)(a)
, beginning the second fiscal year after the fiscal
year during which the commission receives notice under Section
63N-2-510
that
construction on a qualified hotel, as defined in Section
63N-2-502
, has begun, the
commission shall, for two consecutive fiscal years, annually deposit $1,900,000 of the
revenue generated by the taxes listed under Subsection
(3)(a)
into the Hotel Impact
Mitigation Fund, created in Section
63N-2-512
.
(11)
(a)
The rate specified in this subsection is 0.15%.
(b)
Notwithstanding Subsection
(3)(a)
, the commission shall, for a fiscal year beginning
on or after July 1, 2019, annually transfer the amount of revenue collected from the
rate described in Subsection
(11)(a)
on the transactions that are subject to the sales
and use tax under Subsection
(2)(a)(i)(A)
into the Medicaid ACA Fund created in
Section
26B-1-315
.
(12)
Notwithstanding Subsection
(3)(a)
, for each fiscal year beginning with fiscal year
2020-21, the commission shall deposit $200,000 into the General Fund as a dedicated
credit solely for use of the Search and Rescue Financial Assistance Program created in,
and expended in accordance with, Title 53, Chapter 2a, Part 11, Search and Rescue Act.
(13)
(a)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(17)
,
(18)
, and (19), and as described in Section
63N-3-610
63N-23-206
, beginning the
first day of a calendar quarter one year after the sales and use tax boundary for a
housing and transit reinvestment zone is established under
Title 63N, Chapter 3, Part
6, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 2,
Housing and Transit Reinvestment Zone
, the commission, at least annually, shall
transfer an amount equal to 15% of the sales and use tax increment from the sales and
use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate, on transactions occurring
within an established sales and use tax boundary, as defined in Section
63N-3-602
63N-23-101
, into the Transit Transportation Investment Fund created in Section
72-2-124
.
(b)
Beginning no sooner than January 1, 2026, notwithstanding Subsection
(3)(a)
, and
except as provided in Subsections
(17)
, (18), and (19), and as described in Section
63N-3-610.1
63N-23-406
, beginning the first day of a calendar quarter after the year
set in the proposal and after the sales and use tax boundary for a convention center
reinvestment zone is established in a capital city under
Title 63N, Chapter 3, Part 6,
Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 4,
Convention Center Reinvestment Zone in a Capital City
, the commission, at least
annually, shall transfer an amount equal to 50% of the sales and use tax increment as
defined in Section
63N-3-602
63N-23-101
from the sales and use tax imposed by
Subsection
(2)(a)(i)(A)
at a 4.7% rate, on transactions occurring within an established
sales and use tax boundary, as defined in Section
63N-3-602
63N-23-101
, to a
convention center public infrastructure district created in accordance with Section
17D-4-202.1
and specified in the convention center reinvestment zone proposal
submitted
pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act
in accordance with Title 63N, Chapter 23, Part 4,
Convention Center Reinvestment Zone in a Capital City
.
(14)
(a)
Notwithstanding Subsection
(3)(a)
, for a fiscal year beginning on or after July 1,
2025, the commission shall, in accordance with Subsection
(14)(b)
, transfer a portion
of the taxes listed under Subsection
(3)(a)
equal to 1% of the revenue collected from
the following sales and use taxes:
(i)
the tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate;
(ii)
the tax imposed by Subsection
(2)(b)(i)
;
(iii)
the tax imposed by Subsection
(2)(c)(i)
; and
(iv)
the tax imposed by Subsection
(2)(f)(i)(A)(I)
.
(b)
The commission shall transfer the portion of the taxes described in Subsection
(14)(a)
as follows:
(i)
into the Outdoor Adventure Infrastructure Restricted Account created in Section
51-9-902
, an amount equal to the amount that was deposited into the Outdoor
Adventure Infrastructure Restricted Account in fiscal year 2025; and
(ii)
for any amount exceeding the amount described in Subsection
(14)(b)(i)
, 50%
into the Outdoor Adventure Infrastructure Restricted Account and 50% to the
Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
.
(15)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(17)
, (18),
and (19), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark
Area Investment and Restoration District, created in Section
11-70-201
, the revenue
from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate, on
transactions occurring within the district sales tax area, as defined in Section
11-70-101
.
(16)
(a)
As used in this Subsection
(16)
:
(i)
"Additional land" means point of the mountain state land described in Subsection
11-59-102(6)(b)
that the point of the mountain authority acquires after the point of
the mountain authority provides the commission a map under Subsection
(16)(c)
.
(ii)
"Point of the mountain authority" means the Point of the Mountain State Land
Authority, created in Section
11-59-201
.
(iii)
"Point of the mountain state land" means the same as that term is defined in
Section
11-59-102
.
(b)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsection
(17)
, (18),
and (19), the commission shall distribute to the point of the mountain authority 50%
of the revenue from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a
4.7% rate, on transactions occurring on the point of the mountain state land.
(c)
The distribution under Subsection
(16)(b)
shall begin the next calendar quarter that
begins at least 90 days after the point of the mountain authority provides the
commission a map that:
(i)
accurately describes the point of the mountain state land; and
(ii)
the point of the mountain authority certifies as accurate.
(d)
A distribution under Subsection
(16)(b)
with respect to additional land shall begin
the next calendar quarter that begins at least 90 days after the point of the mountain
authority provides the commission a map of point of the mountain state land that:
(i)
accurately describes the point of the mountain state land, including the additional
land; and
(ii)
the point of the mountain authority certifies as accurate.
(e)
(i)
Upon the payment in full of bonds secured by the sales and use tax revenue
distributed to the point of the mountain authority under Subsection
(16)(b)
, the
point of the mountain authority shall immediately notify the commission in
writing that the bonds are paid in full.
(ii)
The commission shall discontinue distributions of sales and use tax revenue under
Subsection
(16)(b)
at the beginning of the calendar quarter that begins at least 90
days after the date that the commission receives the written notice under
Subsection
(16)(e)(i)
.
(17)
(a)
As used in this Subsection
(17)
:
(i)
"Applicable percentage" means:
(A)
for a housing and transit reinvestment zone created under
Title 63N, Chapter
3, Part 6, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23,
Part 2, Housing and Transit Reinvestment Zone
, 15% of the revenue from the
sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales
occurring within the qualified development zone described in Subsection
(17)(a)(ii)(A)
;
(B)
for the Utah Fairpark Area Investment and Restoration District created in
Section
11-70-201
, the revenue from the sales and use tax imposed by
Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the qualified
development zone described in Subsection
(17)(a)(ii)(B)
; and
(C)
for the Point of the Mountain State Land Authority created in Section
11-59-201
, 50% of the revenue from sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the qualified development
zone described in Subsection
(17)(a)(ii)(C)
.
(ii)
"Qualified development zone" means:
(A)
the sales and use tax boundary of a housing and transit reinvestment zone
created under
Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment
Act
Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone
;
(B)
the district sales tax boundary as defined in Section
11-70-101
for the Utah
Fairpark Area Investment and Restoration District, created in Section
11-70-201
; or
(C)
the sales and use tax boundary of point of the mountain state land, as defined
in Section
11-59-102
, under the Point of the Mountain State Land Authority
created in Section
11-59-201
.
(iii)
"Schedule J sale" means a sale reported on State Tax Commission Form
TC-62M, Schedule J or a substantially similar form as designated by the
commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be deposited into the General Fund.
(18)
(a)
As used in Subsections
(18)
and (19):
(i)
"Applicable percentage" means, for a convention center reinvestment zone created
in a capital city under
Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act
Title 63N, Chapter 23, Part 4, Convention Center
Reinvestment Zone in a Capital City
, an amount equal to 50% of the sales and use
tax increment, as that term is defined in Section
63N-3-602
63N-23-101
, from
the sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales
occurring within the qualified development zone described in Subsection
(18)(a)(ii)
.
(ii)
"Qualified development zone" means the sales and use tax boundary of a
convention center reinvestment zone created in a capital city under
Title 63N,
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter
23, Part 4, Convention Center Reinvestment Zone in a Capital City
.
(iii)
"Qualifying construction materials" means construction materials that are:
(A)
delivered to a delivery outlet within a qualified development zone; and
(B)
intended to be permanently attached to real property within the qualified
development zone.
(b)
For a sale of qualifying construction materials, the commission shall distribute the
product calculated in Subsection
(18)(c)
to a qualified development zone if the seller
of the construction materials:
(i)
establishes a delivery outlet with the commission within the qualified development
zone;
(ii)
reports the sales of the construction materials to the delivery outlet described in
Subsection
(18)(b)(i)
; and
(iii)
does not report the sales of the construction materials on a simplified electronic
return.
(c)
For the purposes of Subsection
(18)(b)
, the product is equal to:
(i)
the sales price or purchase price of the qualifying construction materials; and
(ii)
the applicable percentage.
(19)
(a)
As used in this Subsection
(19)
, "Schedule J sale" means a sale reported on State
Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
designated by the commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be distributed into the General Fund.
Section 20. Section
59-12-103
is amended to read:
59-12-103
Effective
07/01/26
. Sales and use tax base -- Rates -- Effective dates
-- Use of sales and use tax revenue.
(1)
A tax is imposed on the purchaser as provided in this part on the purchase price or sales
price for amounts paid or charged for the following transactions:
(a)
retail sales of tangible personal property made within the state;
(b)
amounts paid for:
(i)
telecommunications service, other than mobile telecommunications service, that
originates and terminates within the boundaries of this state;
(ii)
mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii)
an ancillary service associated with a:
(A)
telecommunications service described in Subsection
(1)(b)(i)
; or
(B)
mobile telecommunications service described in Subsection
(1)(b)(ii)
;
(c)
sales of the following for commercial use:
(i)
gas;
(ii)
electricity;
(iii)
heat;
(iv)
coal;
(v)
fuel oil; or
(vi)
other fuels;
(d)
sales of the following for residential use:
(i)
gas;
(ii)
electricity;
(iii)
heat;
(iv)
coal;
(v)
fuel oil; or
(vi)
other fuels;
(e)
sales of prepared food;
(f)
except as provided in Section
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or
nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
any other amusement, entertainment, recreation, exhibition, cultural, or athletic
activity;
(g)
amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section
59-12-104
provides for an exemption from sales and use tax
for:
(i)
the tangible personal property; and
(ii)
parts used in the repairs or renovations of the tangible personal property described
in Subsection
(1)(g)(i)
, regardless of whether:
(A)
any parts are actually used in the repairs or renovations of that tangible
personal property; or
(B)
the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h)
except as provided in Subsection
59-12-104(7)
, amounts paid or charged for assisted
cleaning or washing of tangible personal property;
(i)
amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
court accommodations and services;
(j)
amounts paid or charged for laundry or dry cleaning services;
(k)
amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i)
stored;
(ii)
used; or
(iii)
otherwise consumed;
(l)
amounts paid or charged for tangible personal property if within this state the tangible
personal property is:
(i)
stored;
(ii)
used; or
(iii)
consumed;
(m)
amounts paid or charged for a sale:
(i)
(A)
of a product transferred electronically; or
(B)
of a repair or renovation of a product transferred electronically; and
(ii)
regardless of whether the sale provides:
(A)
a right of permanent use of the product; or
(B)
a right to use the product that is less than a permanent use, including a right:
(I)
for a definite or specified length of time; and
(II)
that terminates upon the occurrence of a condition; and
(n)
sales of leased tangible personal property from the lessor to the lessee made in the
state.
(2)
(a)
Except as provided in Subsections
(2)(b)
through (f), a state tax and a local tax are
imposed on a transaction described in Subsection
(1)
equal to the sum of:
(i)
a state tax imposed on the transaction at a tax rate equal to the sum of:
(A)
4.70%;
(B)
the rate specified in Subsection
(6)(a)
; and
(C)
the tax rate the state imposes in accordance with Part 20, Supplemental State
Sales and Use Tax Act, if the location of the transaction as determined under
Sections
59-12-211
through
59-12-215
is in a city, town, or the unincorporated
area of a county in which the state imposes the tax under Part 20, Supplemental
State Sales and Use Tax Act; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b)
Except as provided in Subsection
(2)(f)
or
(g)
and subject to Subsection
(2)(l)
, a state
tax and a local tax are imposed on a transaction described in Subsection
(1)(d)
equal
to the sum of:
(i)
a state tax imposed on the transaction at a tax rate of 2%; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c)
Except as provided in Subsection
(2)(f)
or
(g)
, a state tax and a local tax are imposed
on amounts paid or charged for food and food ingredients equal to the sum of:
(i)
a state tax imposed on the amounts paid or charged for food and food ingredients
at a tax rate of 1.75%; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
amounts paid or charged for food and food ingredients under this chapter other
than this part.
(d)
Except as provided in Subsection
(2)(f)
or
(g)
, a state tax is imposed on amounts paid
or charged for fuel to a common carrier that is a railroad for use in a locomotive
engine at a rate equal to the sum of the rates described in Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
.
(e)
(i)
(A)
The rates described in Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
do not
apply to car sharing, a car sharing program, a shared vehicle driver, or a shared
vehicle owner, for a car sharing or shared vehicle transaction if a shared
vehicle owner certifies to the commission, on a form prescribed by the
commission, that the shared vehicle is an individual-owned shared vehicle.
(B)
A shared vehicle owner's certification described in Subsection
(2)(e)(i)(A)
is
required once during the time that the shared vehicle owner owns the shared
vehicle.
(C)
The commission shall verify that a shared vehicle is an individual-owned
shared vehicle by verifying that the applicable Utah taxes imposed under this
chapter were paid on the purchase of the shared vehicle.
(D)
The exception under Subsection
(2)(e)(i)(A)
applies to a certified
individual-owned shared vehicle shared through a car-sharing program even if
non-certified shared vehicles are also available to be shared through the same
car-sharing program.
(ii)
A tax imposed under Subsection
(2)(a)(i)(C)
or
(2)(a)(ii)
applies to car sharing.
(iii)
(A)
A car-sharing program may rely in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle
certified with the commission as described in Subsection
(2)(e)(i)
.
(B)
If a car-sharing program relies in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle
certified with the commission as described in Subsection
(2)(e)(i)
, the
car-sharing program is not liable for any tax, penalty, fee, or other sanction
imposed on the shared vehicle owner.
(iv)
If all shared vehicles shared through a car-sharing program are certified as
described in Subsection
(2)(e)(i)(A)
for a tax period, the car-sharing program has
no obligation to collect and remit the tax under Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
for that tax period.
(v)
A car-sharing program is not required to list or otherwise identify an
individual-owned shared vehicle on a return or an attachment to a return.
(vi)
A car-sharing program shall:
(A)
retain tax information for each car-sharing program transaction; and
(B)
provide the information described in Subsection
(2)(e)(vi)(A)
to the
commission at the commission's request.
(f)
(i)
For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a
local tax is imposed on the entire bundled transaction equal to the sum of:
(A)
the tax rates described in Subsection
(2)(a)(i)
; and
(B)
a local tax imposed on the entire bundled transaction at the sum of the tax
rates described in Subsection
(2)(a)(ii)
.
(ii)
If an optional computer software maintenance contract is a bundled transaction
that consists of taxable and nontaxable products that are not separately itemized
on an invoice or similar billing document, the purchase of the optional computer
software maintenance contract is 40% taxable under this chapter and 60%
nontaxable under this chapter.
(iii)
Subject to Subsection
(2)(f)(iv)
, for a bundled transaction other than a bundled
transaction described in Subsection
(2)(f)(i)
or
(ii)
:
(A)
if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter
and tangible personal property, a product, or service that is not subject to
taxation under this chapter, the entire bundled transaction is subject to taxation
under this chapter unless:
(I)
the seller is able to identify by reasonable and verifiable standards the
tangible personal property, product, or service that is not subject to taxation
under this chapter from the books and records the seller keeps in the seller's
regular course of business; or
(II)
state or federal law provides otherwise; or
(B)
if the sales price of a bundled transaction is attributable to two or more items
of tangible personal property, products, or services that are subject to taxation
under this chapter at different rates, the entire bundled transaction is subject to
taxation under this chapter at the higher tax rate unless:
(I)
the seller is able to identify by reasonable and verifiable standards the
tangible personal property, product, or service that is subject to taxation
under this chapter at the lower tax rate from the books and records the seller
keeps in the seller's regular course of business; or
(II)
state or federal law provides otherwise.
(iv)
For purposes of Subsection
(2)(f)(iii)
, books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in
the regular course of business for nontax purposes.
(g)
(i)
Except as otherwise provided in this chapter and subject to Subsections
(2)(g)(ii)
and
(iii)
, if a transaction consists of the sale, lease, or rental of tangible
personal property, a product, or a service that is subject to taxation under this
chapter, and the sale, lease, or rental of tangible personal property, other property,
a product, or a service that is not subject to taxation under this chapter, the entire
transaction is subject to taxation under this chapter unless the seller, at the time of
the transaction:
(A)
separately states the portion of the transaction that is not subject to taxation
under this chapter on an invoice, bill of sale, or similar document provided to
the purchaser; or
(B)
is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of
the transaction that is not subject to taxation under this chapter.
(ii)
A purchaser and a seller may correct the taxability of a transaction if:
(A)
after the transaction occurs, the purchaser and the seller discover that the
portion of the transaction that is not subject to taxation under this chapter was
not separately stated on an invoice, bill of sale, or similar document provided
to the purchaser because of an error or ignorance of the law; and
(B)
the seller is able to identify by reasonable and verifiable standards, from the
books and records the seller keeps in the seller's regular course of business, the
portion of the transaction that is not subject to taxation under this chapter.
(iii)
For purposes of Subsections
(2)(g)(i)
and
(ii)
, books and records that a seller
keeps in the seller's regular course of business includes books and records the
seller keeps in the regular course of business for nontax purposes.
(h)
(i)
If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this
chapter at different rates, the entire purchase is subject to taxation under this
chapter at the higher tax rate unless the seller, at the time of the transaction:
(A)
separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the
purchaser; or
(B)
is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the
lower tax rate from the books and records the seller keeps in the seller's regular
course of business.
(ii)
For purposes of Subsection
(2)(h)(i)
, books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in
the regular course of business for nontax purposes.
(i)
Subject to Subsections
(2)(j)
and
(k)
, a tax rate repeal or tax rate change for a tax rate
imposed under the following shall take effect on the first day of a calendar quarter:
(i)
Subsection
(2)(a)(i)(A)
;
(ii)
Subsection
(2)(a)(i)(B)
;
(iii)
Subsection
(2)(b)(i)
;
(iv)
Subsection
(2)(c)(i)
; or
(v)
Subsection
(2)(f)(i)(A)
.
(j)
(i)
A tax rate increase takes effect on the first day of the first billing period that
begins on or after the effective date of the tax rate increase if the billing period for
the transaction begins before the effective date of a tax rate increase imposed
under:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(ii)
The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is rendered on or after the effective date of the
repeal of the tax or the tax rate decrease imposed under:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(k)
(i)
For a tax rate described in Subsection
(2)(k)(ii)
, if a tax due on a catalogue sale
is computed on the basis of sales and use tax rates published in the catalogue, a
tax rate repeal or change in a tax rate takes effect:
(A)
on the first day of a calendar quarter; and
(B)
beginning 60 days after the effective date of the tax rate repeal or tax rate
change.
(ii)
Subsection
(2)(k)(i)
applies to the tax rates described in the following:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(iii)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(l)
(i)
For a location described in Subsection
(2)(l)(ii)
, the commission shall determine
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
fuel at the location.
(ii)
Subsection
(2)(l)(i)
applies to a location where gas, electricity, heat, coal, fuel oil,
or other fuel is furnished through a single meter for two or more of the following
uses:
(A)
a commercial use;
(B)
an industrial use; or
(C)
a residential use.
(3)
(a)
The commission shall deposit the following state taxes into the General Fund:
(i)
the tax imposed by Subsection
(2)(a)(i)(A)
;
(ii)
the tax imposed by Subsection
(2)(b)(i)
;
(iii)
the tax imposed by Subsection
(2)(c)(i)
;
(iv)
the tax imposed by Subsection
(2)(d)
; and
(v)
the tax imposed by Subsection
(2)(f)(i)(A)
.
(b)
The commission shall distribute the following local taxes to a county, city, or town
as provided in this chapter:
(i)
the tax imposed by Subsection
(2)(a)(ii)
;
(ii)
the tax imposed by Subsection
(2)(b)(ii)
;
(iii)
the tax imposed by Subsection
(2)(c)(ii)
; and
(iv)
the tax imposed by Subsection
(2)(f)(i)(B)
.
(4)
(a)
Notwithstanding Subsection
(3)(a)
, for each fiscal year the commission shall make
the deposits described in Subsections
(4)(b)
through
(4)(h)
from the revenue from the
taxes imposed by:
(i)
Subsection
(2)(a)(i)(A)
;
(ii)
Subsection
(2)(b)(i)
;
(iii)
Subsection
(2)(c)(i)
; and
(iv)
Subsection
(2)(f)(i)(A)
.
(b)
The commission shall deposit 15% of the difference between 1.4543% of the
revenue described in Subsection
(4)(a)
and the deposits made under Subsection
(5)(b)
,
into the Water Rights Restricted Account created in Section
73-2-1.6
.
(c)
The commission shall deposit 85% of the difference between 1.4543% of the revenue
described in Subsection
(4)(a)
and the deposits made under Subsection
(5)(b)
, into
the Water Resources Conservation and Development Fund created in Section
73-10-24
for use by the Division of Water Resources for:
(i)
preconstruction costs:
(A)
as defined in Subsection
73-26-103(6)
for projects authorized by Title 73,
Chapter 26, Bear River Development Act; and
(B)
as defined in Subsection
73-28-103(8)
for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii)
the cost of employing a civil engineer to oversee any project authorized by Title
73, Chapter 26, Bear River Development Act;
(iii)
the cost of employing a civil engineer to oversee the Lake Powell Pipeline
project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
Act; and
(iv)
other uses authorized under Sections
73-10-24
,
73-10-25.1
, and
73-10-30
, and
Subsection
(5)(b)(iv)(B)
after funding the uses specified in Subsections
(4)(c)(i)
through (iii).
(d)
The commission shall deposit 1.4543% of the revenue described in Subsection
(4)(a)
into the Water Infrastructure Restricted Account created in Section
73-10g-103
.
(e)
(i)
Subject to Subsection
(4)(e)(ii)
, the commission shall deposit 26.24% of the
revenue described in Subsection
(4)(a)
into the Transportation Investment Fund of
2005 created in Section
72-2-124
.
(ii)
The commission shall annually reduce the deposit described in Subsection
(4)(e)(i)
by the sum of:
(A)
$1,813,400;
(B)
the earmark described in Subsection
(5)(c)
; and
(C)
an amount equal to 35% of the revenue generated in the current fiscal year by
the portion of the tax imposed on motor and special fuel that is sold, used, or
received in the state that exceeds 29.4 cents per gallon.
(iii)
The amount described in Subsection
(4)(e)(ii)(C)
shall be annually deposited into
the Transit Transportation Investment Fund created in Section
72-2-124
.
(f)
The commission shall deposit .44% of the revenue described in Subsection
(4)(a)
into
the Cottonwood Canyons Transportation Investment Fund created in Section
72-2-124
.
(g)
The commission shall deposit 1% of the revenue described in Subsection
(4)(a)
into
the Commuter Rail Subaccount created in Section
72-2-124
.
(h)
The commission shall deposit 1% of the revenue described in Subsection
(4)(a)
into
the Outdoor Adventure Infrastructure Restricted Account created in Section
51-9-902
as follows:
(i)
into the Outdoor Adventure Infrastructure Restricted Account created in Section
51-9-902
, an amount equal to the amount that was deposited into the Outdoor
Adventure Infrastructure Restricted Account in fiscal year 2025; and
(ii)
for any amount exceeding the amount described in Subsection
(4)(h)(i)
, 50% into
the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah
Fairpark Area Investment and Restoration District created in Section
11-70-201
.
(5)
(a)
Notwithstanding Subsection
(3)(a)
, each fiscal year the commission shall make
the deposits described in this Subsection
(5)
.
(b)
(i)
(A)
The commission shall deposit $500,000 to the Department of Natural
Resources to be used for watershed rehabilitation or restoration.
(B)
At the end of each fiscal year, 100% of any unexpended amount described in
Subsection
(5)(b)(i)(A)
shall lapse into the Water Resources Conservation and
Development Fund created in Section
73-10-24
.
(ii)
The commission shall deposit $150,000 to the Division of Water Resources for
cloud-seeding projects authorized by Title 73, Chapter 15, Modification of
Weather.
(iii)
The commission shall deposit $525,000 into the Division of Conservation
created in Section
4-46-401
to implement water related programs.
(iv)
The commission shall deposit $7,175,000 into the Water Resources Conservation
and Development Fund created in Section
73-10-24
for use by the Division of
Water Resources:
(A)
for the uses allowed of the Water Resources Conservation and Development
Fund under Section
73-10-24
;
(B)
to conduct hydrologic and geotechnical investigations by the Division of
Water Resources in a cooperative effort with other state, federal, or local
entities, for the purpose of quantifying surface and ground water resources and
describing the hydrologic systems of an area in sufficient detail so as to enable
local and state resource managers to plan for and accommodate growth in
water use without jeopardizing the resource;
(C)
to fund state required dam safety improvements; and
(D)
to protect the state's interest in interstate water compact allocations, including
the hiring of technical and legal staff.
(v)
The commission shall deposit $3,587,500 into the Utah Wastewater Loan
Program Subaccount created in Section
73-10c-5
for use by the Water Quality
Board to fund wastewater projects.
(vi)
The commission shall deposit $3,587,500 into the Drinking Water Loan Program
Subaccount created in Section
73-10c-5
for use by the Division of Drinking Water
to:
(A)
provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section
19-4-102
;
(B)
develop underground sources of water, including springs and wells; and
(C)
develop surface water sources.
(vii)
The commission shall deposit $2,450,000 to the Division of Wildlife Resources
to:
(A)
implement the measures described in Subsections
23A-3-214(3)(a)
through
(d) to protect sensitive plant and animal species; or
(B)
award grants, up to the amount authorized by the Legislature in an
appropriations act, to political subdivisions of the state to implement the
measures described in Subsections
23A-3-214(3)(a)
through (d) to protect
sensitive plant and animal species.
(viii)
Funds transferred to the Division of Wildlife Resources under Subsection
(5)(b)(vii)(A)
may not be used to assist the United States Fish and Wildlife
Service or any other person to list or attempt to have listed a species as threatened
or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et
seq.
(ix)
At the end of each fiscal year, any unexpended amounts described in Subsections
(5)(b)(vii)(A)
and
(B)
shall lapse:
(A)
50% into the Water Resources Conservation and Development Fund created
in Section
73-10-24
;
(B)
25% into the Utah Wastewater Loan Program Subaccount created in Section
73-10c-5
; and
(C)
25% into the Drinking Water Loan Program Subaccount created in Section
73-10c-5
.
(x)
The commission shall allocate $175,000 to the Division of Water Rights to cover
the costs incurred in hiring legal and technical staff for the adjudication of water
rights.
(xi)
At the end of each fiscal year, any unexpended amounts described in Subsection
(5)(b)(x)
shall lapse:
(A)
50% into the Water Resources Conservation and Development Fund created
in Section
73-10-24
;
(B)
25% into the Utah Wastewater Loan Program Subaccount created in Section
73-10c-5
; and
(C)
25% into the Drinking Water Loan Program Subaccount created in Section
73-10c-5
.
(c)
The commission shall deposit $45,000,000 into the Active Transportation Investment
Fund created in Section
72-2-124
.
(d)
The commission shall deposit $533,750 into the Qualified Emergency Food
Agencies Fund created by and expended in accordance with Section
35A-8-1009
.
(e)
The commission shall deposit $200,000 into the General Fund as a dedicated credit
for the sole use of the Search and Rescue Financial Assistance Program created by
and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and
Rescue Act.
(6)
(a)
The rate specified in this Subsection
(6)
is 0.15%.
(b)
Notwithstanding Subsection
(3)(a)
, the commission shall, for a fiscal year beginning
on or after July 1, 2019, annually transfer the amount of revenue collected from the
rate described in Subsection
(6)(a)
on the transactions that are subject to the sales and
use tax under Subsection
(2)(a)(i)(B)
into the Medicaid ACA Fund created in Section
26B-1-315
.
(7)
(a)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
,
(12), and (13), and as described in Section
63N-3-610
63N-23-206
, beginning the
first day of a calendar quarter one year after the sales and use tax boundary for a
housing and transit reinvestment zone is established under
Title 63N, Chapter 3, Part
6, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 2,
Housing and Transit Reinvestment Zone
, the commission, at least annually, shall
transfer an amount equal to 15% of the sales and use tax increment from the sales and
use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate, on transactions occurring
within an established sales and use tax boundary, as defined in Section
63N-3-602
63N-23-101
, into the Transit Transportation Investment Fund created in Section
72-2-124
.
(b)
Beginning no sooner than January 1, 2026, notwithstanding Subsection
(3)(a)
, and
except as provided in Subsections
(11)
, (12), and (13), and as described in Section
63N-3-610.1
63N-3-406
, beginning the first day of a calendar quarter after the year
set in the proposal and after the sales and use tax boundary for a convention center
reinvestment zone is established in a capital city under
Title 63N, Chapter 3, Part 6,
Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 4,
Convention Center Reinvestment Zone in a Capital City
, the commission, at least
annually, shall transfer an amount equal to 50% of the sales and use tax increment as
defined in Section
63N-3-602
63N-23-101
from the sales and use tax imposed by
Subsection
(2)(a)(i)(A)
at a 4.7% rate, on transactions occurring within an established
sales and use tax boundary, as defined in Section
63N-3-602
63N-23-101
, to a
convention center public infrastructure district created in accordance with Section
17D-4-202.1
and specified in the convention center reinvestment zone proposal
submitted
pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act
in accordance with Title 63N, Chapter 23, Part 4,
Convention Center Reinvestment Zone in a Capital City
.
(8)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
, (12), and
(13), beginning October 1, 2024
,
the commission shall transfer to the Utah Fairpark
Area Investment and Restoration District, created in Section
11-70-201
, the revenue
from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
, on transactions occurring
within the district sales tax area, as defined in Section
11-70-101
.
(9)
(a)
As used in this Subsection
(9)
:
(i)
"Additional land" means point of the mountain state land described in Subsection
11-59-102(6)(b)
that the point of the mountain authority acquires after the point of
the mountain authority provides the commission a map under Subsection
(9)(c)
.
(ii)
"Point of the mountain authority" means the Point of the Mountain State Land
Authority, created in Section
11-59-201
.
(iii)
"Point of the mountain state land" means the same as that term is defined in
Section
11-59-102
.
(b)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
, (12),
and (13), the commission shall distribute to the point of the mountain authority 50%
of the revenue from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
, on
transactions occurring on the point of the mountain state land.
(c)
The distribution under Subsection
(9)(b)
shall begin the next calendar quarter that
begins at least 90 days after the point of the mountain authority provides the
commission a map that:
(i)
accurately describes the point of the mountain state land; and
(ii)
the point of the mountain authority certifies as accurate.
(d)
A distribution under Subsection
(9)(b)
with respect to additional land shall begin the
next calendar quarter that begins at least 90 days after the point of the mountain
authority provides the commission a map of point of the mountain state land that:
(i)
accurately describes the point of the mountain state land, including the additional
land; and
(ii)
the point of the mountain authority certifies as accurate.
(e)
(i)
Upon the payment in full of bonds secured by the sales and use tax revenue
distributed to the point of the mountain authority under Subsection
(9)(b)
, the
point of the mountain authority shall immediately notify the commission in
writing that the bonds are paid in full.
(ii)
The commission shall discontinue distributions of sales and use tax revenue under
Subsection
(9)(b)
at the beginning of the calendar quarter that begins at least 90
days after the date that the commission receives the written notice under
Subsection
(9)(e)(i)
.
(10)
Notwithstanding Subsection
(3)(a)
, the amount of state sales tax revenues described in
Section
63N-2-503.5
is deposited into the Convention Incentive Fund created in Section
63N-2-503.5
.
(11)
(a)
As used in this Subsection
(11)
:
(i)
"Applicable percentage" means:
(A)
for a housing and transit reinvestment zone created under
Title 63N, Chapter
3, Part 6, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23,
Part 2, Housing and Transit Reinvestment Zone
, 15% of the revenue from the
sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales
occurring within the qualified development zone described in Subsection
(11)(a)(ii)(A)
;
(B)
for the Utah Fairpark Area Investment and Restoration District created in
Section
11-70-201
, the revenue from the sales and use tax imposed by
Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the qualified
development zone described in Subsection
(11)(a)(ii)(B)
; and
(C)
for the Point of the Mountain State Land Authority created in Section
11-59-201
, 50% of the revenue from sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the qualified development
zone described in Subsection
(11)(a)(ii)(C)
.
(ii)
"Qualified development zone" means:
(A)
the sales and use tax boundary of a housing and transit reinvestment zone
created under
Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment
Act
Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone
;
(B)
the district sales tax boundary as defined in Section
11-70-101
for the Utah
Fairpark Area Investment and Restoration District, created in Section
11-70-201
; or
(C)
the sales and use tax boundary of point of the mountain state land, as defined
in Section
11-59-102
, under the Point of the Mountain State Land Authority
created in Section
11-59-201
.
(iii)
"Schedule J sale" means a sale reported on State Tax Commission Form
TC-62M, Schedule J or a substantially similar form as designated by the
commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be deposited into the General Fund.
(12)
(a)
As used in Subsections
(12)
and
(13)
:
(i)
"Applicable percentage" means, for a convention center reinvestment zone created
in a capital city under
Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act
Title 63N, Chapter 23, Part 4, Convention Center
Reinvestment Zone in a Capital City
, an amount equal to 50% of the sales and use
tax increment, as that term is defined in Section
63N-3-602
63N-23-101
, from
the sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales
occurring within the qualified development zone described in Subsection
(12)(a)(ii)
.
(ii)
"Qualified development zone" means the sales and use tax boundary of a
convention center reinvestment zone created in a capital city under
Title 63N,
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter
23, Part 4, Convention Center Reinvestment Zone in a Capital City
.
(iii)
"Qualifying construction materials" means construction materials that are:
(A)
delivered to a delivery outlet within a qualified development zone; and
(B)
intended to be permanently attached to real property within the qualified
development zone.
(b)
For a sale of qualifying construction materials, the commission shall distribute the
product calculated in Subsection
(12)(c)
to a qualified development zone if the seller
of the construction materials:
(i)
establishes a delivery outlet with the commission within the qualified development
zone;
(ii)
reports the sales of the construction materials to the delivery outlet described in
Subsection
(12)(b)(i)
; and
(iii)
does not report the sales of the construction materials on a simplified electronic
return.
(c)
For the purposes of Subsection
(12)(b)
, the product is equal to:
(i)
the sales price or purchase price of the qualifying construction materials; and
(ii)
the applicable percentage.
(13)
(a)
As used in this Subsection
(13)
, "Schedule J sale" means a sale reported on State
Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
designated by the commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be distributed into the General Fund.
Section 21. Section
59-12-205
is amended to read:
59-12-205
Effective
05/06/26
. Ordinances to conform with statutory
amendments -- Distribution of tax revenue -- Determination of population.
(1)
To maintain in effect sales and use tax ordinances adopted
pursuant to
in accordance
with
Section
59-12-204
, a county, city, or town shall adopt amendments to the county's,
city's, or town's sales and use tax ordinances:
(a)
within 30 days of the day on which the state makes an amendment to an applicable
provision of Part 1, Tax Collection; and
(b)
as required to conform to the amendments to Part 1, Tax Collection.
(2)
(a)
Except as provided in Subsections
(3)
, (4), and (5) and subject to Subsection
(6)
:
(i)
50% of each dollar collected from the sales and use tax authorized by this part
shall be distributed to each county, city, and town on the basis of the percentage
that the population of the county, city, or town bears to the total population of all
counties, cities, and towns in the state; and
(ii)
(A)
except as provided in Subsections
(2)(a)(ii)(B)
, (C), (D), (E), and (F), 50%
of each dollar collected from the sales and use tax authorized by this part shall
be distributed to each county, city, and town on the basis of the location of the
transaction as determined under Sections
59-12-211
through
59-12-215
;
(B)
except as provided in Subsections
(10)
through
(13)
, 50% of each dollar
collected from the sales and use tax authorized by this part within a project
area described in a project area plan adopted by the military installation
development authority under Title 63H, Chapter 1, Military Installation
Development Authority Act, shall be distributed to the military installation
development authority created in Section
63H-1-201
;
(C)
except as provided in Subsections
(10)
through
(13)
, beginning July 1, 2024,
20% of each dollar collected from the sales and use tax authorized by this part
within a project area under Title 11, Chapter 58, Utah Inland Port Authority
Act, shall be distributed to the Utah Inland Port Authority, created in Section
11-58-201
;
(D)
except as provided in Subsections
(10)
through
(13)
, 50% of each dollar
collected from the sales and use tax authorized by this part within the lake
authority boundary, as defined in Section
11-65-101
, shall be distributed to the
Utah Lake Authority, created in Section
11-65-201
, beginning the next full
calendar quarter following the creation of the Utah Lake Authority;
and
(E)
except as provided in Subsections
(10)
through
(13)
, beginning January 1,
2026, 50% of each dollar collected from the sales and use tax authorized by
this part within the boundary of an eligible basic special district, as that term is
defined in Section
17B-1-1405
, and if applicable, the boundary of a public
infrastructure district created by the eligible basic special district, shall be
distributed to the eligible basic special district
.
; and
(F)
except as provided in Subsections
(10)
through
(13)
, beginning the first day of
a calendar quarter after the sales and use tax boundary for a major sporting
event venue zone is established, the commission, at least annually, shall
transfer an amount equal to 50% of the sales and use tax increment, as defined
in Section
63N-3-1701
, from the sales and use tax imposed under this part on
transactions occurring within a sales and use tax boundary, as
described in
Section
63N-3-1710
, to the creating entity of the major sporting event venue
zone.
(b)
Subsection
(2)(a)(ii)(C)
does not apply to sales and use tax revenue collected before
July 1, 2022.
(3)
Beginning no sooner than January 1, 2026, and before application of Subsections
(2)
,
(4)
,
(5), and (6), and except as provided in Subsections
(8)
and
(9)
, and as described in
Section
63N-3-610.1
63N-23-306
, beginning the first day of a calendar quarter after the
year set in the proposal and after the sales and use tax boundary for a convention center
reinvestment zone is established under
Title 63N, Chapter 3, Part 6, Housing and
Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 3, Convention Center
Reinvestment Zone
, the commission, at least annually, shall transfer an amount equal to
100% of the sales and use tax increment, as defined in Section
63N-3-602
63N-23-101
,
from the sales and use tax imposed under this part on transactions occurring within an
established sales and use tax boundary, as defined in Section
63N-3-602
63N-23-101
,
to the entity specified in the convention center reinvestment zone proposal submitted
pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
in
accordance with Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone
.
(4)
(a)
As used in this Subsection
(4)
:
(i)
"Eligible county, city, or town" means a county, city, or town that:
(A)
for fiscal year 2012-13, received a tax revenue distribution under Subsection
(4)(b)
equal to the amount described in Subsection
(4)(b)(ii)
; and
(B)
does not impose a sales and use tax under Section
59-12-2103
on or before
July 1, 2016.
(ii)
"Minimum tax revenue distribution" means the total amount of tax revenue
distributions an eligible county, city, or town received from a tax imposed in
accordance with this part for fiscal year 2004-05.
(b)
An eligible county, city, or town shall receive a tax revenue distribution for a tax
imposed in accordance with this part equal to the greater of:
(i)
the payment required by Subsection
(2)
; or
(ii)
the minimum tax revenue distribution.
(c)
For an eligible county, city, or town that qualifies to receive a distribution described
in this Subsection
(4)
, the commission shall apply the provisions of this Subsection
(4)
after the commission applies the provisions of Subsection
(3)
.
(5)
(a)
For purposes of this Subsection
(5)
:
(i)
"Annual local contribution" means the lesser of $275,000 or an amount equal to
2.55% of the participating local government's tax revenue distribution amount
under Subsection
(2)(a)(i)
for the previous fiscal year.
(ii)
"Participating local government" means a county or municipality, as defined in
Section
10-1-104
, that is not an eligible municipality certified in accordance with
Section
35A-16-404
.
(b)
For revenue collected from the tax authorized by this part that is distributed on or
after January 1, 2019, the commission, before making a tax revenue distribution
under Subsection
(2)(a)(i)
to a participating local government, shall:
(i)
adjust a participating local government's tax revenue distribution under Subsection
(2)(a)(i)
by:
(A)
subtracting an amount equal to one-twelfth of the annual local contribution for
each participating local government from the participating local government's
tax revenue distribution; and
(B)
if applicable, reducing the amount described in Subsection
(5)(b)(i)(A)
by an
amount equal to one-twelfth of $250 for each bed that is available at all
homeless shelters located within the boundaries of the participating local
government, as reported to the commission by the Office of Homeless Services
in accordance with Section
35A-16-405
; and
(ii)
deposit the resulting amount described in Subsection
(5)(b)(i)
into the Homeless
Shelter Cities Mitigation Restricted Account created in Section
35A-16-402
.
(c)
For a participating local government that qualifies to receive a distribution described
in Subsection
(4)
, the commission shall apply the provisions of this Subsection
(5)
after the commission applies the provisions of Subsections
(3)
and (4).
(6)
(a)
As used in this Subsection
(6)
:
(i)
"Annual dedicated sand and gravel sales tax revenue" means an amount equal to
the total revenue an establishment described in NAICS Code 327320, Ready-Mix
Concrete Manufacturing, of the 2022 North American Industry Classification
System of the federal Executive Office of the President, Office of Management
and Budget, collects and remits under this part for a calendar year.
(ii)
"Sand and gravel" means sand, gravel, or a combination of sand and gravel.
(iii)
"Sand and gravel extraction site" means a pit, quarry, or deposit that:
(A)
contains sand and gravel; and
(B)
is assessed by the commission in accordance with Section
59-2-201
.
(iv)
"Ton" means a short ton of 2,000 pounds.
(v)
"Tonnage ratio" means the ratio of:
(A)
the total amount of sand and gravel, measured in tons, sold during a calendar
year from all sand and gravel extraction sites located within a county, city, or
town; to
(B)
the total amount of sand and gravel, measured in tons, sold during the same
calendar year from sand and gravel extraction sites statewide.
(b)
For purposes of calculating the ratio described in Subsection
(6)(a)(v)
, the
commission shall:
(i)
use the gross sales data provided to the commission as part of the commission's
property tax valuation process; and
(ii)
if a sand and gravel extraction site operates as a unit across municipal or county
lines, apportion the reported tonnage among the counties, cities, or towns based on
the percentage of the sand and gravel extraction site located in each county, city,
or town, as approximated by the commission.
(c)
(i)
Each July, the commission shall distribute from total collections under this part
an amount equal to the annual dedicated sand and gravel sales tax revenue for the
preceding calendar year to each county, city, or town in the same proportion as the
county's, city's, or town's tonnage ratio for the preceding calendar year.
(ii)
The commission shall ensure that the revenue distributed under this Subsection
(6)(c)
is drawn from each jurisdiction's collections in proportion to the
jurisdiction's share of total collections for the preceding 12-month period.
(d)
A county, city, or town shall use revenue described in Subsection
(6)(c)
for class B
or class C roads.
(7)
(a)
Population figures for purposes of this section shall be based on, to the extent not
otherwise required by federal law:
(i)
the most recent estimate from the Utah Population Committee created in Section
63C-20-103
; or
(ii)
if the Utah Population Committee estimate is not available for each municipality
and unincorporated area, the adjusted sub-county population estimate provided by
the Utah Population Committee in accordance with Section
63C-20-104
.
(b)
The population of a county for purposes of this section shall be determined only
from the unincorporated area of the county.
(8)
(a)
As used in Subsections
(8)
and
(9)
:
(i)
"Applicable percentage" means, for a convention center reinvestment zone created
under
Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone
, for sales
occurring within the qualified development zone described in Subsection
(8)(a)(ii)
,
100% of the sales and use tax increment, as that term is defined in Section
63N-3-602
63N-23-101
, from the sales and use tax:
(A)
imposed by a city of the first class in a county of the first class under this part;
(B)
imposed by a city of the first class in a county of the first class under Section
59-12-402.1
;
(C)
imposed by a county of the first class under Section
59-12-1102
; and
(D)
imposed by a county of the first class under Part 22, Local Option Sales and
Use Taxes for Transportation Act.
(ii)
"Qualified development zone" means the sales and use tax boundary of a
convention center reinvestment zone created under
Title 63N, Chapter 3, Part 6,
Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 3,
Convention Center Reinvestment Zone
.
(iii)
"Qualifying construction materials" means construction materials that are:
(A)
delivered to a delivery outlet within a qualified development zone; and
(B)
intended to be permanently attached to real property within the qualified
development zone.
(b)
For a sale of qualifying construction materials, the commission shall distribute the
product calculated in Subsection
(8)(c)
to a qualified development zone if the seller
of the construction materials:
(i)
establishes a delivery outlet with the commission within the qualified development
zone;
(ii)
reports the sales of the construction materials to the delivery outlet described in
Subsection
(8)(b)(i)
; and
(iii)
does not report the sales of the construction materials on a simplified electronic
return.
(c)
For the purposes of Subsection
(8)(b)
, the product is equal to:
(i)
the sales price or purchase price of the qualifying construction materials; and
(ii)
the applicable percentage.
(9)
(a)
As used in this Subsection
(9)
, "Schedule J sale" means a sale reported on State
Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
designated by the commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be distributed into the jurisdiction that would have
received the revenue in the absence of the qualified development zone.
(10)
(a)
As used in this Subsection
(10)
:
(i)
"Applicable percentage" means:
(A)
for a project area adopted by the military installation development authority
under Title 63H, Chapter 1, Military Installation Development Authority Act,
for sales occurring within a qualified development zone described in
Subsection
(10)(a)(iii)(A)
:
(I)
50% of the revenue from the sales and use tax imposed under this part;
(II)
100% of the revenue from the sales and use tax imposed by the military
installation development authority under Section
59-12-401
; and
(III)
100% of the revenue from the sales and use tax imposed by the military
installation development authority under Section
59-12-402
;
and
(B)
for a project area under Title 11, Chapter 58, Utah Inland Port Authority Act,
for sales occurring within a qualified development zone described in
Subsection
(10)(a)(iii)(B)
, 20% of the revenue from the sales and use tax under
this part;
(C)
for the lake authority boundary, as defined in Section
11-65-101
, for sales
occurring within the qualified development zone described in Subsection
(10)(a)(ii)(C)
, 50% of the revenue from the sales and use tax under this part;
(D)
for the Utah Fairpark Area Investment and Restoration District, created in
Section
11-70-201
, for sales occurring within the qualified development zone
described in Subsection
(10)(a)(iii)(D)
, 100% of the revenue from the sales and
use tax imposed by the Utah Fairpark Area Investment and Restoration District
under Sections
59-12-401
and
59-12-402
;
and
(E)
for an eligible basic special district created under Title 17B, Chapter 1, Part 14,
Basic Special District, for sales occurring within a qualified development zone
described in Subsection
(10)(a)(iii)(E)
, 50% of the revenue from the sales and
use tax imposed under this part
;
.
(ii)
"Eligible basic special district" means the same as that term is defined in Section
17B-1-1405
.
(iii)
"Qualified development zone" means the sales and use tax boundary of:
(A)
a project area adopted by the military installation development authority under
Title 63H, Chapter 1, Military Installation Development Authority Act;
(B)
a project area under Title 11, Chapter 58, Utah Inland Port Authority Act;
(C)
the lake authority boundary, as defined in Section
11-65-101
;
(D)
the Utah Fairpark Investment and Restoration District, created in Section
11-70-201
; or
(E)
the area within the boundary of an eligible basic special district, and if
applicable, the boundary of a public infrastructure district created by the basic
special district
;
.
(iv)
"Qualifying construction materials" means construction materials that are:
(A)
delivered to a delivery outlet within a qualified development zone; and
(B)
intended to be permanently attached to real property within the qualified
development zone.
(b)
For a sale of qualifying construction materials, the commission shall distribute the
product calculated in Subsection
(10)(c)
to a qualified development zone if the seller
of the construction materials:
(i)
establishes a delivery outlet with the commission within the qualified development
zone;
(ii)
reports the sales of the construction materials to the delivery outlet described in
Subsection
(10)(b)(i)
; and
(iii)
does not report the sales of the construction materials on a simplified electronic
return; or
(c)
For the purposes of Subsection
(10)(b)
, the product is equal to:
(i)
the sales price or purchase price of the qualifying construction materials; and
(ii)
the applicable percentage.
(11)
(a)
As used in this Subsection
(11)
:
(i)
"Applicable percentage" means the same as that term is defined in Subsection
(10)
.
(ii)
"Qualified development zone" means the same as that term is defined in
Subsection
(10)
.
(iii)
"Schedule J sale" means a sale reported on State Tax Commission Form
TC-62M, Schedule J or a substantially similar form as designated by the
commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be distributed to the jurisdiction that would have
received the revenue in the absence of the qualified development zone.
(12)
(a)
As used in this Subsection
(12)
:
(i)
"Applicable percentage" means, for a major sporting event venue zone created
under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for
sales occurring within the qualified development zone described in Subsection
(12)(a)(ii)
:
(A)
50% of the sales and use tax increment, as that term is defined in Section
63N-3-601
63N-23-101
, from the sales and use tax imposed under this part;
(B)
100% of the revenue from the sales and use tax imposed by the creating entity
of a major sporting event venue zone under Section
59-12-401
; and
(C)
100% of the revenue from the sales and use tax imposed by the creating entity
of a major sporting event venue zone under Section
59-12-402
.
(ii)
"Qualified development zone" means the sales and use tax boundary, as described
in Section
63N-3-1710
, of a major sporting event venue zone created under Title
63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
(iii)
"Qualifying construction materials" means construction materials that are:
(A)
delivered to a delivery outlet within a qualified development zone; and
(B)
intended to be permanently attached to real property within the qualified
development zone.
(b)
For a sale of qualifying construction materials, the commission shall distribute the
product calculated in Subsection
(12)(c)
to the creating entity of a qualified
development zone if the seller of the construction materials:
(i)
establishes a delivery outlet with the commission within the qualified development
zone;
(ii)
reports the sales of the construction materials to the delivery outlet described in
Subsection
(12)(b)(i)
; and
(iii)
does not report the sales of the construction materials on a simplified electronic
return
; or
.
(c)
For the purposes of Subsection
(12)(b)
, the product is equal to:
(i)
the sales price or purchase price of the qualifying construction materials; and
(ii)
the applicable percentage.
(13)
(a)
As used in this Subsection
(13)
:
(i)
"Applicable percentage" means the same as that term is defined in Subsection
(12)
.
(ii)
"Qualified development zone" means the same as that term is defined in
Subsection
(12)
.
(iii)
"Schedule J sale" means a sale reported on State Tax Commission Form
TC-62M, Schedule J or a substantially similar form as designated by the
commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be distributed to the jurisdiction that would have
received the revenue in the absence of the qualified development zone.
Section 22. Section
59-12-402.1
is amended to read:
59-12-402.1
Effective
05/06/26
. State correctional facility sales and use tax --
Base -- Rate -- Collection fees -- Imposition -- Prohibition of military installation
development authority imposition of tax.
(1)
As used in this section, "new state correctional facility" means a new prison in the state:
(a)
that is operated by the Department of Corrections;
(b)
the construction of which begins on or after May 12, 2015; and
(c)
that provides a capacity of 2,500 or more inmate beds.
(2)
Subject to the other provisions of this part, a city or town legislative body may impose a
tax under this section if the construction of a new state correctional facility has begun
within the boundaries of the city or town.
(3)
For purposes of this section, the tax rate may not exceed .5%.
(4)
Except as provided in Subsection
(5)
, a tax under this section shall be imposed on the
transactions described in Subsection
59-12-103(1)
within the city or town.
(5)
A city or town may not impose a tax under this section on:
(a)
the sale of:
(i)
a motor vehicle;
(ii)
an aircraft;
(iii)
a watercraft;
(iv)
a modular home;
(v)
a manufactured home; or
(vi)
a mobile home;
(b)
the sales and uses described in Section
59-12-104
to the extent the sales and uses are
exempt under Section
59-12-104
; and
(c)
except as provided in Subsection
(7)
, amounts paid or charged for food and food
ingredients.
(6)
For purposes of this section, the location of a transaction shall be determined in
accordance with Sections
59-12-211
through
59-12-215
.
(7)
A city or town that imposes a tax under this section shall impose the tax on the purchase
price or sales price for amounts paid or charged for food and food ingredients if the food
and food ingredients are sold as part of a bundled transaction attributable to food and
food ingredients and tangible personal property other than food and food ingredients.
(8)
Beginning no sooner than January 1, 2026, and subject to Section
59-12-205
, before
distribution of a sales and use tax imposed under this section, and as described in
Section
63N-3-610
.1
63N-23-306
, beginning the first day of a calendar quarter after the
year set in the proposal and after the sales and use tax boundary for a convention center
reinvestment zone is established under
Title 63N, Chapter 3, Part 6, Housing and
Transit Reinvestment Zone Act
Title 63N, Chapter 23, Part 3, Convention Center
Reinvestment Zone
, the commission, at least annually, shall transfer an amount equal to
100% of the sales and use tax increment as defined in Section
63N-3-602
63N-23-101
,
from the sales and use tax imposed under this section on transactions occurring within
an established sales and use tax boundary, as defined in Section
63N-3-602
63N-23-101
, to a convention center public infrastructure district created in accordance
with Section
17D-4-202.1
.
(9)
A city or town may impose a tax under this section by majority vote of the members of
the city or town legislative body.
(10)
A city or town that imposes a tax under this section is not subject to Section
59-12-405
.
(11)
A military installation development authority may not impose a tax under this section.
Section 23. Section
59-12-402.5
is amended to read:
59-12-402.5
Effective
05/06/26
. Capital city revitalization sales and use tax --
Deadline -- Rate -- Collection fees -- Imposition.
(1)
As used in this section:
(a)
"Local government" means a first class city located within a first class county.
(b)
"Project area" means the same as that term is defined in Section
63N-3-1401
63N-23-801
.
(2)
The legislative body of the local government may impose a sales and use tax under this
section if the legislative body, on or before December 31, 2024:
(a)
complies with the requirements of
Title 63N, Chapter 3, Part 14, Capital City
Revitalization Zone
Title 63N, Chapter 23, Part 8, Capital City Revitalization Zone
;
(b)
gives final approval to an application by giving final approval of a project zone and a
participation agreement as provided in Section
63N-3-1406
63N-23-806
; and
(c)
imposes the tax according to the procedures and requirements of Section
63N-3-1406
63N-23-806
.
(3)
(a)
The tax rate may not exceed .5%.
(b)
The tax imposed under this section may not be imposed for a period greater than 30
years, beginning on the date of the first imposition of the tax.
(4)
Except as provided in Subsection
(5)
, the local government shall impose a tax under this
section on the transactions described in Subsection
59-12-103(1)
.
(5)
A local government may not impose a tax under this section on:
(a)
the sale of:
(i)
a motor vehicle;
(ii)
an aircraft;
(iii)
a watercraft;
(iv)
a modular home;
(v)
a manufactured home; or
(vi)
a mobile home;
(b)
the sales and uses described in Section
59-12-104
to the extent the sales and uses are
exempt from taxation under Section
59-12-104
; and
(c)
except as provided in Subsection
(7)
, amounts paid or charged for food and food
ingredients.
(6)
For purposes of this section, the location of a transaction is determined in accordance
with Sections
59-12-211
through
59-12-215
.
(7)
A local government that imposes a tax under this section shall impose the tax on the
purchase price or the sales price for amounts paid or charged for food and food
ingredients if the food and food ingredients are sold as part of a bundled transaction
attributable to food and food ingredients and tangible personal property other than food
and food ingredients.
(8)
A local government may impose a tax under this section by majority vote of the
members of the local government's legislative body in compliance with the procedures
and requirements of
Title 63N, Chapter 3, Part 14, Capital City Revitalization Zone
Title 63N, Chapter 23, Part 8, Capital City Revitalization Zone
.
(9)
A military installation development authority may not impose a tax under this section.
(10)
(a)
The commission shall distribute the revenue collected from the tax under this
section on transactions occurring within the district sales tax area as defined in
Section
11-70-101
to the Utah Fairpark Area Investment and Restoration District
created in Section
11-70-201
.
(b)
The commission shall distribute the revenue collected outside of the district sales tax
area referenced in Subsection
(10)(a)
to the local government.
(11)
A local government shall use revenue referenced in Subsection
(10)(b)
only:
(a)
within the project area defined in Section
63N-3-1401
63N-23-801
; and
(b)
for the allowable uses under Section
63N-3-1403
63N-23-803
.
Section 24. Section
59-12-1102
is amended to read:
59-12-1102
Effective
05/06/26
. Base -- Rate -- Imposition of tax -- Distribution
of revenue -- Administration -- Administrative charge -- Commission requirement to
retain an amount to be deposited into the Qualified Emergency Food Agencies Fund --
Enactment or repeal of tax -- Effective date -- Notice requirements.
(1)
(a)
(i)
Subject to Subsections
(2)
through (7), and in addition to any other tax
authorized by this chapter, a county may impose by ordinance a county option
sales and use tax of .25% upon the transactions described in Subsection
59-12-103(1)
.
(ii)
Notwithstanding Subsection
(1)(a)(i)
, a county may not impose a tax under this
section on the sales and uses described in Section
59-12-104
to the extent the sales
and uses are exempt from taxation under Section
59-12-104
.
(b)
For purposes of this Subsection
(1)
, the location of a transaction shall be determined
in accordance with Sections
59-12-211
through
59-12-215
.
(c)
The county option sales and use tax under this section shall be imposed:
(i)
upon transactions that are located within the county, including transactions that are
located within municipalities in the county; and
(ii)
except as provided in Subsection
(1)(d)
or (6), beginning on the first day of
January:
(A)
of the next calendar year after adoption of the ordinance imposing the tax if
the ordinance is adopted on or before May 25; or
(B)
of the second calendar year after adoption of the ordinance imposing the tax if
the ordinance is adopted after May 25.
(d)
The county option sales and use tax under this section shall be imposed:
(i)
beginning January 1, 1998, if an ordinance adopting the tax imposed on or before
September 4, 1997; or
(ii)
beginning January 1, 1999, if an ordinance adopting the tax is imposed during
1997 but after September 4, 1997.
(2)
(a)
Before imposing a county option sales and use tax under Subsection
(1)
, a county
shall hold two public hearings on separate days in geographically diverse locations in
the county.
(b)
(i)
At least one of the hearings required by Subsection
(2)(a)
shall have a starting
time of no earlier than 6 p.m.
(ii)
The earlier of the hearings required by Subsection
(2)(a)
shall be no less than
seven days after the day the first advertisement required by Subsection
(2)(c)
is
published.
(c)
(i)
Before holding the public hearings required by Subsection
(2)(a)
, the county
shall advertise:
(A)
its
the county's
intent to adopt a county option sales and use tax;
(B)
the date, time, and location of each public hearing; and
(C)
a statement that the purpose of each public hearing is to obtain public
comments regarding the proposed tax.
(ii)
The advertisement shall be published:
(A)
in a newspaper of general circulation in the county once each week for the
two weeks preceding the earlier of the two public hearings; and
(B)
for the county, as a class A notice under Section
63G-30-102
, for two weeks
before the day on which the first of the two public hearings is held.
(iii)
The advertisement described in Subsection
(2)(c)(ii)(A)
shall be no less than
1/8
one-eighth
page in size, and the type used shall be no smaller than 18 point and
surrounded by a
1/4-inch
one-quarter inch
border.
(iv)
The advertisement described in Subsection
(2)(c)(ii)(A)
may not be placed in that
portion of the newspaper where legal notices and classified advertisements appear.
(v)
In accordance with Subsection
(2)(c)(ii)(A)
, whenever possible:
(A)
the advertisement shall appear in a newspaper that is published at least five
days a week, unless the only newspaper in the county is published less than
five days a week; and
(B)
the newspaper selected shall be one of general interest and readership in the
community, and not one of limited subject matter.
(d)
The adoption of an ordinance imposing a county option sales and use tax is subject to
a local referendum election and shall be conducted as provided in
Title 20A, Chapter
7, Part 6, Local Referenda - Procedures
.
(3)
Beginning no sooner than January 1, 2026, and subject to Section
59-12-205
, before
application of Subsections
(4)
through
(7)
, and as described in Section
63N-3-610.1
63N-3-306
, beginning the first day of a calendar quarter after the year set in the proposal
and after the sales and use tax boundary for a convention center reinvestment zone is
established under
Title
63N, Chapter 3, Part 6
, Housing and Transit Reinvestment Zone
Act
Title 63N, Chapter 23, Part 3, Convention Center Reinvestment Zone
, the
commission, at least annually, shall transfer an amount equal to 100% of the sales and
use tax increment as defined in Section
63N-3-602
63N-23-101
, from the sales and use
tax imposed under this part on transactions occurring within an established sales and use
tax boundary, as defined in Section
63N-3-602
63N-23-101
, to a convention center
public infrastructure district created in accordance with Section
17D-4-202.1
.
(4)
(a)
Subject to Subsection
(6)
, if the aggregate population of the counties imposing a
county option sales and use tax under Subsection
(1)
is less than 75% of the state
population, the tax levied under Subsection
(1)
shall be distributed to the county in
which the tax was collected.
(b)
Subject to Subsection
(6)
, if the aggregate population of the counties imposing a
county option sales and use tax under Subsection
(1)
is greater than or equal to 75%
of the state population:
(i)
50% of the tax collected under Subsection
(1)
in each county shall be distributed
to the county in which the tax was collected; and
(ii)
except as provided in Subsection
(4)(c)
, 50% of the tax collected under
Subsection
(1)
in each county shall be distributed proportionately among all
counties imposing the tax, based on the total population of each county.
(c)
Except as provided in Subsection
(6)
, the amount to be distributed annually to a
county under Subsection
(4)(b)(ii)
, when combined with the amount distributed to the
county under Subsection
(4)(b)(i)
, does not equal at least $75,000, then:
(i)
the amount to be distributed annually to that county under Subsection
(4)(b)(ii)
shall be increased so that, when combined with the amount distributed to the
county under Subsection
(4)(b)(i)
, the amount distributed annually to the county is
$75,000; and
(ii)
the amount to be distributed annually to all other counties under Subsection
(4)(b)(ii)
shall be reduced proportionately to offset the additional amount
distributed under Subsection
(4)(c)(i)
.
(d)
The commission shall establish rules to implement the distribution of the tax under
Subsections
(4)(a)
,
(b)
, and
(c)
.
(e)
Population for each county for purposes of this Subsection
(4)
shall be based on, to
the extent not otherwise required by federal law:
(i)
the estimate of the Utah Population Committee created in Section
63C-20-103
; or
(ii)
if the Utah Population Committee estimate is not available, the most recent
census or census estimate of the United States Bureau of the Census.
(5)
(a)
Except as provided in Subsection
(5)(b)
or
(c)
, a tax authorized under this part
shall be administered, collected, enforced, and interpreted in accordance with:
(i)
the same procedures used to administer, collect, enforce, and interpret the tax
under:
(A)
Part 1, Tax Collection
; or
(B)
Part 2, Local Sales and Use Tax Act
; and
(ii)
Chapter 1, General Taxation Policies
.
(b)
A tax under this part is not subject to Subsections
59-12-205(2)
and (4) through (6).
(c)
(i)
Subject to Subsection
(5)(c)(ii)
, the commission shall retain and deposit an
administrative charge in accordance with Section
59-1-306
from the revenue the
commission collects from a tax under this part.
(ii)
Notwithstanding Section
59-1-306
, the administrative charge described in
Subsection
(5)(c)(i)
shall be calculated by taking a percentage described in
Section
59-1-306
of the distribution amounts resulting after:
(A)
the applicable distribution calculations under Subsection
(4)
have been made;
and
(B)
the commission retains the amount required by Subsection
(6)
.
(6)
(a)
Beginning on July 1, 2009, the commission shall calculate and retain a portion of
the sales and use tax collected under this part as provided in this Subsection
(6)
.
(b)
For a county that imposes a tax under this part, the commission shall calculate a
percentage each month by dividing the sales and use tax collected under this part for
that month within the boundaries of that county by the total sales and use tax
collected under this part for that month within the boundaries of all of the counties
that impose a tax under this part.
(c)
For a county that imposes a tax under this part, the commission shall retain each
month an amount equal to the product of:
(i)
the percentage the commission determines for the month under Subsection
(6)(b)
for the county; and
(ii)
$6,354.
(d)
The commission shall deposit an amount the commission retains in accordance with
this Subsection
(6)
into the Qualified Emergency Food Agencies Fund created by
Section
35A-8-1009
.
(e)
An amount the commission deposits into the Qualified Emergency Food Agencies
Fund shall be expended as provided in Section
35A-8-1009
.
(7)
(a)
For purposes of this Subsection
(7)
:
(i)
"Annexation" means an annexation to a county under Title
17, Chapter 61, Part 2
,
Consolidation of Counties, or Part 3, County Annexation.
(ii)
"Annexing area" means an area that is annexed into a county.
(b)
(i)
Except as provided in Subsection
(7)(c)
or
(d)
, if, on or after July 1, 2004, a
county enacts or repeals a tax under this part:
(A)
(I)
the enactment shall take effect as provided in Subsection
(1)(c)
; or
(II)
the repeal shall take effect on the first day of a calendar quarter; and
(B)
after a 90-day period beginning on the date the commission receives notice
meeting the requirements of Subsection
(7)(b)(ii)
from the county.
(ii)
The notice described in Subsection
(7)(b)(i)(B)
shall state:
(A)
that the county will enact or repeal a tax under this part;
(B)
the statutory authority for the tax described in Subsection
(7)(b)(ii)(A)
;
(C)
the effective date of the tax described in Subsection
(7)(b)(ii)(A)
; and
(D)
if the county enacts the tax described in Subsection
(7)(b)(ii)(A)
, the rate of
the tax.
(c)
(i)
If the billing period for a transaction begins before the effective date of the
enactment of the tax under Subsection
(1)
, the enactment of the tax takes effect on
the first day of the first billing period that begins on or after the effective date of
the enactment of the tax.
(ii)
The repeal of a tax applies to a billing period if the billing statement for the
billing period is produced on or after the effective date of the repeal of the tax
imposed under Subsection
(1)
.
(d)
(i)
If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax
described in Subsection
(7)(b)(i)
takes effect:
(A)
on the first day of a calendar quarter; and
(B)
beginning 60 days after the effective date of the enactment or repeal under
Subsection
(7)(b)(i)
.
(ii)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
,
the commission may by rule define the term "catalogue sale."
(e)
(i)
Except as provided in Subsection
(7)(f)
or
(g)
, if, for an annexation that occurs
on or after July 1, 2004, the annexation will result in the enactment or repeal of a
tax under this part for an annexing area, the enactment or repeal shall take effect:
(A)
on the first day of a calendar quarter; and
(B)
after a 90-day period beginning on the date the commission receives notice
meeting the requirements of Subsection
(7)(e)(i)
from the county that annexes
the annexing area.
(ii)
The notice described in Subsection
(7)(e)(i)(B)
shall state:
(A)
that the annexation described in Subsection
(7)(b)(i)
will result in an
enactment or repeal of a tax under this part for the annexing area;
(B)
the statutory authority for the tax described in Subsection
(7)(e)(ii)(A)
;
(C)
the effective date of the tax described in Subsection
(7)(e)(ii)(A)
; and
(D)
the rate of the tax described in Subsection
(7)(e)(ii)(A)
.
(f)
(i)
If the billing period for a transaction begins before the effective date of the
enactment of the tax under Subsection
(1)
, the enactment of the tax takes effect on
the first day of the first billing period that begins on or after the effective date of
the enactment of the tax.
(ii)
The repeal of a tax applies to a billing period if the billing statement for the
billing period is produced on or after the effective date of the repeal of the tax
imposed under Subsection
(1)
.
(g)
(i)
If a tax due under this chapter on a catalogue sale is computed on the basis of
sales and use tax rates published in the catalogue, an enactment or repeal of a tax
described in Subsection
(7)(e)(i)
takes effect:
(A)
on the first day of a calendar quarter; and
(B)
beginning 60 days after the effective date of the enactment or repeal under
Subsection
(7)(e)(i)
.
(ii)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
,
the commission may by rule define the term "catalogue sale."
Section 25. Section
59-12-2206
is amended to read:
59-12-2206
Effective
05/06/26
. Administration, collection, and enforcement of a
sales and use tax under this part -- Transmission of revenue monthly by electronic funds
transfer -- Transfer of revenue to a public transit district or eligible political subdivision.
(1)
Except as provided in Subsection
(2)
, the commission shall administer, collect, and
enforce a sales and use tax imposed under this part.
(2)
The commission shall administer, collect, and enforce a sales and use tax imposed under
this part in accordance with:
(a)
the same procedures used to administer, collect, and enforce a tax under:
(i)
Part 1, Tax Collection
; or
(ii)
Part 2, Local Sales and Use Tax Act
; and
(b)
Chapter 1, General Taxation Policies
.
(3)
A sales and use tax under this part is not subject to Subsections
59-12-205(2)
and (4)
through (6).
(4)
Subject to Section
59-12-2207
and except as provided in Subsections
(5)
and
(6)
or
another provision of this part, the state treasurer shall transmit revenue collected within a
county, city, or town from a sales and use tax under this part to the county, city, or town
legislative body monthly by electronic funds transfer.
(5)
Beginning no sooner than January 1, 2026, and subject to Section
59-12-205
, before
transmitting revenue as described in Subsection
(4)
, and before application of
Subsection
(6)
, and as described in Section
63N-3-610.1
63N-23-306
, beginning the
first day of a calendar quarter after the year set in the proposal and after the sales and use
tax boundary for a convention center reinvestment zone is established under
Title 63N,
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
Title 63N, Chapter 23,
Part 3, Convention Center Reinvestment Zone
, the commission, at least annually, shall
transfer an amount equal to 100% of the sales and use tax increment, as that term is
defined in Section
63N-3-602
63N-23-101
, from a sales and use tax on transactions
occurring within an established sales and use tax boundary, as that term is defined in
Section
63N-3-602
63N-23-101
, to a convention center public infrastructure district
created in accordance with Section
17D-4-202.1
for sales and use taxes imposed by a
county of the first class
pursuant to
in accordance with
:
(a)
Section
59-12-2213
;
(b)
Section
59-12-2214
;
(c)
Section
59-12-2217
;
(d)
Section
59-12-2219
; and
(e)
Section
59-12-2220
.
(6)
(a)
Subject to Section
59-12-2207
, and except as provided in Subsection
(6)(b)
, the
state treasurer shall transfer revenue collected within a county, city, or town from a
sales and use tax under this part directly to a public transit district organized under
Title 17B, Chapter 2a, Part 8, Public Transit District Act
, or an eligible political
subdivision as defined in Section
59-12-2202
, if the county, city, or town legislative
body:
(i)
provides written notice to the commission and the state treasurer requesting the
transfer; and
(ii)
designates the public transit district or eligible political subdivision to which the
county, city, or town legislative body requests the state treasurer to transfer the
revenue.
(b)
The commission shall transmit a portion of the revenue collected within a county,
city, or town from a sales and use tax under this part that would be transferred to a
public transit district or an eligible political subdivision under Subsection
(6)(a)
to
the county, city, or town to fund public transit fixed guideway safety oversight under
Section
72-1-214
if the county, city, or town legislative body:
(i)
provides written notice to the commission and the state treasurer requesting the
transfer; and
(ii)
specifies the amount of revenue required to be transmitted to the county, city, or
town.
Section 26. Section
59-12-2220
is amended to read:
59-12-2220
Effective
05/06/26
. County option sales and use tax to fund
highways or a system for public transit -- Base -- Rate.
(1)
Subject to the other provisions of this part and subject to the requirements of this
section, the following counties may impose a sales and use tax under this section:
(a)
a county legislative body may impose the sales and use tax on the transactions
described in Subsection
59-12-103(1)
located within the county, including the cities
and towns within the county if:
(i)
the entire boundary of a county is annexed into a large public transit district; and
(ii)
the maximum amount of sales and use tax authorizations allowed in accordance
with Section
59-12-2203
and authorized under the following sections has been
imposed:
(A)
Section
59-12-2213
;
(B)
Section
59-12-2214
;
(C)
Section
59-12-2215
;
(D)
Section
59-12-2216
;
(E)
Section
59-12-2217
;
(F)
Section
59-12-2218
; and
(G)
Section
59-12-2219
;
(b)
if the county is not annexed into a large public transit district, the county legislative
body may impose the sales and use tax on the transactions described in Subsection
59-12-103(1)
located within the county, including the cities and towns within the
county if:
(i)
the county is an eligible political subdivision; or
(ii)
a city or town within the boundary of the county is an eligible political
subdivision; or
(c)
a county legislative body of a county not described in Subsection
(1)(a)
or
(1)(b)
may
impose the sales and use tax on the transactions described in Subsection
59-12-103(1)
located within the county, including the cities and towns within the county.
(2)
For purposes of Subsection
(1)
and subject to the other provisions of this section, a
county legislative body that imposes a sales and use tax under this section may impose
the tax at a rate of .2%.
(3)
(a)
The commission shall distribute sales and use tax revenue collected under this
section as determined by a county legislative body as described in Subsection
(3)(b)
.
(b)
If a county legislative body imposes a sales and use tax as described in this section,
the county legislative body may elect to impose a sales and use tax revenue
distribution as described in Subsection
(4)
, (5), (6), or (7), depending on the class of
county, and presence and type of a public transit provider in the county.
(4)
Subject to Subsection
(11)
, and after application of Subsection
59-12-2206(5)
, if a
county legislative body imposes a sales and use tax as described in this section, and the
entire boundary of the county is annexed into a large public transit district, and the
county is a county of the first class, the commission shall distribute the sales and use tax
revenue as follows:
(a)
.10% to a public transit district as described in Subsection
(11)
;
(b)
.05% to the cities and towns as provided in Subsection
(8)
; and
(c)
.05% to the county legislative body.
(5)
Subject to Subsection
(11)
, if a county legislative body imposes a sales and use tax as
described in this section and the entire boundary of the county is annexed into a large
public transit district, and the county is a county not described in Subsection
(4)
, the
commission shall distribute the sales and use tax revenue as follows:
(a)
.10% to a public transit district as described in Subsection
(11)
;
(b)
.05% to the cities and towns as provided in Subsection
(8)
; and
(c)
.05% to the county legislative body.
(6)
(a)
Except as provided in Subsection
(14)(c)
, if the entire boundary of a county that
imposes a sales and use tax as described in this section is not annexed into a single
public transit district, but a city or town within the county is annexed into a single
public transit district, or if the city or town is an eligible political subdivision, the
commission shall distribute the sales and use tax revenue collected within the county
as provided in Subsection
(6)(b)
or
(c)
.
(b)
For a city, town, or portion of the county described in Subsection
(6)(a)
that is
annexed into the single public transit district, or an eligible political subdivision, the
commission shall distribute the sales and use tax revenue collected within the portion
of the county that is within a public transit district or eligible political subdivision as
follows:
(i)
.05% to a public transit provider as described in Subsection
(11)
;
(ii)
.075% to the cities and towns as provided in Subsection
(8)
; and
(iii)
.075% to the county legislative body.
(c)
Except as provided in Subsection
(14)(c)
, for a city, town, or portion of the county
described in Subsection
(6)(a)
that is not annexed into a single public transit district
or eligible political subdivision in the county, the commission shall distribute the
sales and use tax revenue collected within that portion of the county as follows:
(i)
.08% to the cities and towns as provided in Subsection
(8)
; and
(ii)
.12% to the county legislative body.
(7)
For a county without a public transit service that imposes a sales and use tax as
described in this section, the commission shall distribute the sales and use tax revenue
collected within the county as follows:
(a)
.08% to the cities and towns as provided in Subsection
(8)
; and
(b)
.12% to the county legislative body.
(8)
(a)
Subject to Subsections
(8)(b)
and
(c)
, the commission shall make the distributions
required by Subsections
(4)(b)
, (5)(b), (6)(b)(ii), (6)(c)(i), and (7)(a) as follows:
(i)
50% of the total revenue collected under Subsections
(4)(b)
, (5)(b), (6)(b)(ii),
(6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections
(4)
through
(7)
shall be distributed to the unincorporated areas, cities, and towns
within those counties on the basis of the percentage that the population of each
unincorporated area, city, or town bears to the total population of all of the
counties that impose a tax under this section; and
(ii)
50% of the total revenue collected under Subsections
(4)(b)
, (5)(b), (6)(b)(ii),
(6)(c)(i), and (7)(a) within the counties that impose a tax under Subsections
(4)
through
(7)
shall be distributed to the unincorporated areas, cities, and towns
within those counties on the basis of the location of the transaction as determined
under Sections
59-12-211
through
59-12-215
.
(b)
(i)
Population for purposes of this Subsection
(8)
shall be based on, to the extent
not otherwise required by federal law:
(A)
the most recent estimate from the Utah Population Committee created in
Section
63C-20-103
; or
(B)
if the Utah Population Committee estimate is not available for each
municipality and unincorporated area, the adjusted sub-county population
estimate provided by the Utah Population Committee in accordance with
Section
63C-20-104
.
(ii)
If a needed population estimate is not available from the United States Census
Bureau, population figures shall be derived from an estimate from the Utah
Population Estimates Committee created by executive order of the governor.
(c)
(i)
Beginning on January 1, 2024, if the Housing and Community Development
Division within the Department of Workforce Services determines that a city or
town is ineligible for funds in accordance with Subsection
10-21-202(6)
,
beginning the first day of the calendar quarter after receiving 90 days' notice, the
commission shall distribute the distribution that city or town would have received
under Subsection
(8)(a)
to cities or towns to which Subsection
10-21-202(6)
does
not apply.
(ii)
Beginning on January 1, 2024, if the Housing and Community Development
Division within the Department of Workforce Services determines that a county is
ineligible for funds in accordance with Subsection
17-80-202(6)
, beginning the
first day of the calendar quarter after receiving 90 days' notice, the commission
shall distribute the distribution that county would have received under Subsection
(8)(a)
to counties to which Subsection
17-80-202(6)
does not apply.
(9)
If a public transit service is organized after the date a county legislative body first
imposes a tax under this section, a change in a distribution required by this section may
not take effect until the first distribution the commission makes under this section after a
90-day period that begins on the date the commission receives written notice from the
public transit provider that the public transit service has been organized.
(10)
(a)
Except as provided in Subsections
(10)(b)
and
(c)
, a county, city, or town that
received distributions described in Subsections
(4)(b)
, (4)(c), (5)(b), (5)(c), (6)(b)(ii),
(6)(b)(iii), (6)(c), and (7) may only expend those funds for a purpose described in
Section
59-12-2212.2
.
(b)
If a county described in Subsection
(1)(a)
that is a county of the first class imposes
the sales and use tax authorized in this section, the county may also use funds
distributed in accordance with Subsection
(4)(c)
for public safety purposes.
(c)
In addition to the purposes described in Subsections
(10)(a)
and
(b)
, for a city
relevant to a project area, as that term is defined in Section
63N-3-1401
63N-23-801
,
an allowable use of revenue from a sales and use tax under this section includes the
revitalization of a convention center owned by the county within a city of the first
class and surrounding revitalization projects related to the convention center.
(11)
(a)
Subject to Subsections
(11)(b)
, (c), and (d), revenue designated for public transit
as described in this section may be used for capital expenses and service delivery
expenses of:
(i)
a public transit district;
(ii)
an eligible political subdivision; or
(iii)
another entity providing a service for public transit or a transit facility within the
relevant county, as those terms are defined in Section
17B-2a-802
.
(b)
(i)
(A)
If a county of the first class imposes a sales and use tax described in this
section, beginning on the date on which the county imposes the sales and use
tax under this section, and for a three-year period after at least three counties
described in Subsections
(4)
and
(5)
have imposed a tax under this section, or
until June 30, 2030, whichever comes first, revenue designated for public
transit within a county of the first class as described in Subsection
(4)(a)
shall
be transferred to the County of the First Class Highway Projects Fund created
in Section
72-2-121
.
(B)
Revenue deposited into the County of the First Class Highway Projects Fund
created in Section
72-2-121
as described in Subsection
(11)(b)(i)(A)
may be
used for public transit innovation grants as provided in Title 72, Chapter 2, Part
4, Public Transit Innovation Grants.
(ii)
If a county of the first class imposes a sales and use tax described in this section,
beginning on the day three years after the date on which at least three counties
described in Subsections
(4)
and
(5)
have imposed a tax under this section, or
beginning on July 1, 2030, whichever comes first, for revenue designated for
public transit as described in Subsection
(4)(a)
:
(A)
50% of the revenue from a sales and use tax imposed under this section in a
county of the first class shall be transferred to the County of the First Class
Highway Projects Fund created in Section
72-2-121
; and
(B)
50% of the revenue from a sales and use tax imposed under this section in a
county of the first class shall be transferred to the Transit Transportation
Investment Fund created in Subsection
72-2-124(9)
.
(c)
(i)
If a county that is not a county of the first class for which the entire boundary of
the county is annexed into a large public transit district imposes a sales and use
tax described in this section, beginning on the date on which the county imposes
the sales and use tax under this section, and for a three-year period following the
date on which at least three counties described in Subsections
(4)
and
(5)
have
imposed a tax under this section, or until June 30, 2030, whichever comes first,
revenue designated for public transit as described in Subsection
(5)(a)
shall be
transferred to the relevant county legislative body to be used for a purpose
described in Subsection
(11)(a)
.
(ii)
If a county that is not a county of the first class for which the entire boundary of
the county is annexed into a large public transit district imposes a sales and use
tax described in this section, beginning on the day three years after the date on
which at least three counties described in Subsections
(4)
and
(5)
have imposed a
tax under this section, or beginning on July 1, 2030, whichever comes first, for the
revenue that is designated for public transit in Subsection
(5)(a)
:
(A)
50% shall be transferred to the Transit Transportation Investment Fund
created in Subsection
72-2-124(9)
; and
(B)
50% shall be transferred to the relevant county legislative body to be used for
a purpose described in Subsection
(11)(a)
.
(d)
Except as provided in Subsection
(13)(c)
(14)(c)
, for a county that imposes a sales
and use tax under this section, for revenue designated for public transit as described
in Subsection
(6)(b)(i)
, the revenue shall be transferred to the relevant county
legislative body to be used for a purpose described in Subsection
(11)(a)
.
(12)
A large public transit district shall send notice to the commission at least 90 days
before the earlier of:
(a)
the date that is three years after the date on which at least three counties described in
Subsections
(4)
and
(5)
have imposed a tax under this section; or
(b)
June 30, 2030.
(13)
For a city described in Subsection
(10)(c)
, during the bondable term of a revitalization
project described in Subsection
(10)(c)
, the city shall transfer at least 50%, and may
transfer up to 100%, of any revenue the city receives from a distribution under
Subsection
(4)(b)
to a convention center public infrastructure district created in
accordance with Section
17D-4-202.1
for revitalization of a convention center owned by
the county within a city of the first class and surrounding revitalization projects related
to the convention center as permitted in Subsection
(10)(c)
.
(14)
(a)
Notwithstanding Section
59-12-2208
, a county legislative body may, but is not
required to, submit an opinion question to the county's registered voters in
accordance with Section
59-12-2208
to impose a sales and use tax under this section.
(b)
If a county passes an ordinance to impose a sales and use tax as described in this
section, the sales and use tax shall take effect on the first day of the calendar quarter
after a 90-day period that begins on the date the commission receives written notice
from the county of the passage of the ordinance.
(c)
A county that imposed the local option sales and use tax described in this section
before January 1, 2023, may maintain that county's distribution allocation in place as
of January 1, 2023.
(15)
(a)
Revenue collected from a sales and use tax under this section may not be used to
supplant existing General Fund appropriations that a county, city, or town budgeted
for transportation or public transit as of the date the tax becomes effective for a
county, city, or town.
(b)
The limitation under Subsection
(15)(a)
does not apply to a designated transportation
or public transit capital or reserve account a county, city, or town established before
the date the tax becomes effective.
Section 27. Section
63N-23-101
, which is renumbered from Section 63N-3-602 is renumbered
and amended to read:
23. Housing Investment and Opportunity Act
1. General Provisions
63N-3-602
63N-23-101
Effective
05/06/26
. Definitions.
As used in this
part
chapter
:
(1)
"Affordable housing" means housing occupied or reserved for occupancy by households
with a gross household income:
(a)
equal to or less than 80% of the county median gross income for households of the
same size, in certain circumstances as provided in this part; or
(b)
equal to or less than 60% of the county median gross income for households of the
same size, in certain circumstances as provided in this part.
(2)
"Agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Base taxable value" means a property's taxable value as shown upon the assessment
roll last equalized during the base year.
(4)
"Base year" means, for each property tax increment collection period triggered within a
proposed housing and transit reinvestment zone
or
,
convention center reinvestment
zone project area,
or home ownership promotion zone,
the calendar year
prior to
before
the calendar year the property tax increment begins to be collected for the parcels that
are in a project that is triggered for that collection period.
(5)
"Bus rapid transit" means a high-quality bus-based transit system that delivers fast and
efficient service that may include dedicated lanes, busways, traffic signal priority,
off-board fare collection, elevated platforms, and enhanced stations.
(6)
"Bus rapid transit station" means an existing station, stop, or terminal, or a proposed
station, stop, or terminal that is specifically identified as needed in phase one of a
metropolitan planning organization's adopted long-range transportation plan and in
phase one of the relevant public transit district's adopted long-range transit plan:
(a)
along an existing bus rapid transit line; or
(b)
along an extension to an existing bus rapid transit line or new bus rapid transit line.
(7)
"Capital city" means the same as that term is defined in Section
17D-4-102
.
(8)
(a)
"Commuter rail" means a regional passenger rail transit facility operated by a
large public transit district.
(b)
"Commuter rail" does not include a light-rail passenger rail facility of a large public
transit district.
(9)
"Commuter rail station" means an existing station, stop, or terminal, or a proposed
station, stop, or terminal, which has been specifically identified as needed in phase one
of a metropolitan planning organization's adopted long-range transportation plan and in
phase one of the relevant public transit district's adopted long-range transit plan:
(a)
along an existing commuter rail line;
(b)
along an extension to an existing commuter rail line or new commuter rail line;
(c)
along a fixed guideway extension from an existing commuter rail line; or
(d)
at the landing point of a pedestrian bridge or vehicle bridge extending from an
existing commuter rail station.
(10)
"Convention center" means a convention center owned by a county of the first class
within a city of the first class.
(11)
"Convention center revitalization project" means a project within a city of the first
class within a county of the first class for the revitalization, activation, and
modernization of a convention center and the surrounding area, including projects
meeting the objectives described in
Section
63N-3-603.1
Section
63N-23-301
or
63N-23-401
.
(12)
"Convention center reinvestment zone" means a convention center reinvestment zone
created under
this part
Part 3, Convention Center Reinvestment Zone
.
(13)
"Convention center reinvestment zone in a capital city" means a convention center
reinvestment zone in a capital city created under Part 4, Convention Center
Reinvestment Zone in a Capital City.
(13)
(14)
(a)
"Developable area" means the portion of land within a housing and transit
reinvestment zone available for development and construction of business and
residential uses.
(b)
"Developable area" does not include portions of land within a housing and transit
reinvestment zone that are allocated to:
(i)
parks;
(ii)
recreation facilities;
(iii)
open space;
(iv)
trails;
(v)
publicly-owned roadway facilities; or
(vi)
other public facilities.
(14)
(15)
"Dwelling unit" means one or more rooms arranged for the use of one or more
individuals living together, as a single housekeeping unit normally having cooking,
living, sanitary, and sleeping facilities.
(15)
(16)
"Eligible municipality" means a city that:
(a)
(i)
is the county seat of a county of the first class; or
(ii)
a city of the first class located in a county of the first class; and
(b)
has a convention center within the boundary of the city.
(16)
(17)
"Enhanced development" means the construction of mixed uses including
housing, commercial uses, and related facilities.
(17)
(18)
"Enhanced development costs" means extra costs associated with structured
parking costs, vertical construction costs, horizontal construction costs, life safety costs,
structural costs, conveyor or elevator costs, and other costs incurred due to the increased
height of buildings or enhanced development.
(18)
(19)
"First home investment zone" means the same as that term is defined in Section
63N-3-1601
63N-23-701
.
(19)
(20)
"Fixed guideway" means the same as that term is defined in Section
59-12-102
.
(20)
(21)
"Horizontal construction costs" means the additional costs associated with
earthwork, over excavation, utility work, transportation infrastructure, and landscaping
to achieve enhanced development in the housing and transit reinvestment zone.
(21)
(22)
"Housing and transit reinvestment zone" means a housing and transit
reinvestment zone created
pursuant to this part
under Section
63N-23-202
.
(22)
(23)
"Housing and transit reinvestment zone committee" means a housing and transit
reinvestment zone committee created
pursuant to Section
63N-3-605
in accordance
with Section
63N-23-102
.
(23)
(24)
"Large public transit district" means the same as that term is defined in Section
17B-2a-802
.
(24)
(25)
"Light rail" means a passenger rail public transit system with right-of-way and
fixed rails:
(a)
dedicated to exclusive use by light-rail public transit vehicles;
(b)
that may cross streets at grade; and
(c)
that may share parts of surface streets.
(25)
(26)
"Light rail station" means an existing station, stop, or terminal or a proposed
station, stop, or terminal, which has been specifically identified as needed in phase one
of a metropolitan planning organization's adopted long-range transportation plan and in
phase one of the relevant public transit district's adopted long-range plan:
(a)
along an existing light rail line; or
(b)
along an extension to an existing light rail line or new light rail line.
(26)
(27)
"Metropolitan planning organization" means the same as that term is defined in
Section
72-1-208.5
.
(27)
(28)
"Mixed use development" means development with a mix of:
(a)
multi-family residential use; and
(b)
at least one additional land use, which shall be a significant part of the overall
development.
(28)
(29)
"Municipality" means the same as that term is defined in Section
10-1-104
.
(29)
(30)
"Participant" means the same as that term is defined in Section
17C-1-102
.
(30)
(31)
"Participation agreement" means the same as that term is defined in Section
17C-1-102
, except that the agency may not provide and the person may not receive a
direct subsidy.
(31)
(32)
"Project" means a housing and transit reinvestment zone or convention center
reinvestment zone created under this part.
(33)
"Project area" means the same as that term is defined in Section
17C-1-102
.
(32)
(34)
(a)
"Property tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a housing and transit reinvestment zone or convention center
reinvestment zone designated in the applicable reinvestment zone proposal as the
area from which tax increment is to be collected, using the current assessed value
and each taxing entity's current certified tax rate as defined in Section
59-2-924
;
and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Property tax increment" does not include property tax revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
; or
(iii)
a public library fund levy described in Subsection
9-7-501(2)
.
(33)
(35)
"Public transit county" means a county that has created a small public transit
district.
(34)
(36)
"Public transit hub" means a public transit depot or station where four or more
routes serving separate parts of the county-created transit district stop to transfer riders
between routes.
(35)
(37)
"Sales and use tax base year" means:
(a)
for a housing and transit reinvestment zone, a sales and use tax year determined by
the first year pertaining to the tax imposed in Section
59-12-103
after the sales and
use tax boundary for a housing and transit reinvestment zone is established; or
(b)
for a convention center reinvestment zone, a sales and use tax year determined by the
year specified in the approved proposal for a convention center reinvestment zone,
pertaining to the taxes:
(i)
imposed under Section
59-12-103
;
(ii)
imposed by a city of the first class in a county of the first class under Title 59,
Chapter 12, Part 2, Local Sales and Use Tax Act;
(iii)
imposed by a city of the first class in a county of the first class under Section
59-12-402.1
;
(iv)
imposed by a county of the first class under Section
59-12-1102
; and
(v)
imposed by a county of the first class under Title 59, Chapter 12, Part 22, Local
Option Sales and Use Taxes for Transportation Act.
(36)
(38)
"Sales and use tax boundary" means:
(a)
for a housing and transit reinvestment zone, a boundary created as described in
Section
63N-3-604
63N-23-202
, based on state sales and use tax collection
boundaries that correspond as closely as reasonably practicable to the housing and
transit reinvestment zone boundary; or
(b)
for a convention center reinvestment zone, a boundary created as described in
Section
63N-3-604.1
63N-23-302
, based on state sales and use tax collection
boundaries that correspond as closely as reasonably practicable to the convention
center reinvestment zone boundary.
(37)
(39)
"Sales and use tax increment" means:
(a)
for a housing and transit reinvestment zone, the difference between:
(i)
the amount of state sales and use tax revenue generated each year following the
sales and use tax base year by the sales and use tax from the area within a housing
and transit reinvestment zone designated in the housing and transit reinvestment
zone proposal as the area from which sales and use tax increment is to be
collected; and
(ii)
the amount of state sales and use tax revenue that was generated from that same
area during the sales and use tax base year; or
(b)
for a convention center reinvestment zone, the difference between:
(i)
the amount of sales and use tax revenue generated each year following the sales
and use tax base year by the sales and use tax from the area within a convention
center reinvestment zone designated in the convention center reinvestment zone
proposal as the area from which sales and use tax increment is to be collected; and
(ii)
the amount of sales and use tax revenue that was generated from that same area
during the sales and use tax base year.
(38)
(40)
"Sales and use tax revenue" means:
(a)
for a housing and transit reinvestment zone, revenue that is generated from the tax
imposed under Section
59-12-103
; or
(b)
for a convention center reinvestment zone, revenue that is generated from:
(i)
the sales and use taxes imposed under Section
59-12-103
; and
(ii)
the sales and use taxes:
(A)
imposed by a city of the first class in a county of the first class under Title 59,
Chapter 12, Part 2, Local Sales and Use Tax Act;
(B)
imposed by a city of the first class in a county of the first class under Section
59-12-402.1
;
(C)
imposed by a county of the first class under Section
59-12-1102
; and
(D)
imposed by a county of the first class under Title 59, Chapter 12, Part 22,
Local Option Sales and Use Taxes for Transportation Act.
(39)
(41)
"Small public transit district" means the same as that term is defined in Section
17B-2a-802
.
(42)
(a)
"Station area" means:
(i)
for a fixed guideway public transit station that provides rail services, the area
within a one-half mile radius of the center of the fixed guideway public transit
station platform; or
(ii)
for a fixed guideway public transit station that provides bus services only, the
area within a one-fourth mile radius of the center of the fixed guideway public
transit station platform.
(b)
"Station area" includes any parcel bisected by the radius limitation described in
Subsection
(42)
(a)(i)
or
(ii)
.
(43)
"Station area plan" means a plan that:
(a)
establishes a vision, and the actions needed to implement that vision, for the
development of land within a station area; and
(b)
is developed and adopted in accordance with Section
63N-23-104
.
(40)
(44)
"Tax Commission" means the State Tax Commission created in Section
59-1-201
.
(41)
(45)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
(46)
"Transportation reinvestment zone" means a transportation reinvestment zone created
under Section
63N-23-901
.
(42)
(47)
"Vertical construction costs" means the additional costs associated with
construction above four stories and structured parking to achieve enhanced development
in the housing and transit reinvestment zone.
Section 28. Section
63N-23-102
, which is renumbered from Section 63N-3-605 is renumbered
and amended to read:
63N-3-605
63N-23-102
Effective
05/06/26
. Housing and transit reinvestment
zone committee -- Creation.
(1)
For any housing and transit reinvestment zone
proposed under this part
, convention
center reinvestment zone, convention center reinvestment zone in a capital city
, or for a
first home investment zone proposed
in accordance with Part 16, First Home
Investment Zone Act,
under this chapter,
there is created a housing and transit
reinvestment zone committee with membership described in Subsection
(2)
.
(2)
Each housing and transit reinvestment zone committee shall consist of the following
members:
(a)
one representative from the Governor's Office of Economic Opportunity, designated
by the executive director of the Governor's Office of Economic Opportunity;
(b)
one representative from each municipality that is a party to the proposed housing and
transit reinvestment zone or first home investment zone, designated by the chief
executive officer of each respective municipality;
(c)
a member of the Transportation Commission created in Section
72-1-301
;
(d)
a member of the board of trustees of a large public transit district;
(e)
one individual from the Office of the State Treasurer, designated by the state
treasurer;
(f)
two members designated by the president of the Senate;
(g)
two members designated by the speaker of the House of Representatives;
(h)
one member designated by the chief executive officer of each county affected by the
housing and transit reinvestment zone or first home investment zone;
(i)
two representatives designated by the school superintendent from the school district
affected by the housing and transit reinvestment zone or first home investment zone;
and
(j)
one representative, representing the largest participating local taxing entity, after the
municipality, county, and school district.
(3)
The individual designated by the Governor's Office of Economic Opportunity as
described in Subsection
(2)(a)
shall serve as chair of the housing and transit
reinvestment zone committee.
(4)
(a)
A majority of the members of the housing and transit reinvestment zone
committee constitutes a quorum of the housing and transit reinvestment zone
committee.
(b)
An action by a majority of a quorum of the housing and transit reinvestment zone
committee is an action of the housing and transit reinvestment zone committee.
(5)
(a)
After the Governor's Office of Economic Opportunity receives the results of the
analysis described in Section
63N-3-604
63N-23-202
, and after the Governor's
Office of Economic Opportunity has received a request from the submitting
municipality or public transit county to submit the housing and transit reinvestment
zone proposal to the housing and transit reinvestment zone committee, the Governor's
Office of Economic Opportunity shall notify each of the entities described in
Subsection
(2)
of the formation of the housing and transit reinvestment zone
committee.
(b)
For a first home investment zone, the housing and transit reinvestment zone
committee shall follow the procedures described in Section
63N-3-1604
63N-23-704
.
(6)
(a)
The chair of the housing and transit reinvestment zone committee shall convene a
public meeting to consider the proposed housing and transit reinvestment zone.
(b)
A meeting of the housing and transit reinvestment zone committee is subject to Title
52, Chapter 4, Open and Public Meetings Act.
(7)
(a)
The proposing municipality or public transit county shall present the housing and
transit reinvestment zone proposal to the housing and transit reinvestment zone
committee in a public meeting.
(b)
The housing and transit reinvestment zone committee shall, for a housing and transit
reinvestment zone proposal:
(i)
evaluate and verify whether the elements of a housing and transit reinvestment
zone described in Subsections
63N-3-603(2) and (4)
63N-23-201(2)
and
(4)
have been met; and
(ii)
evaluate the proposed housing and transit reinvestment zone relative to the
analysis described in Subsection
63N-3-604
(2)
63N-23-202(2)
.
(c)
The housing and transit reinvestment zone committee shall, for a convention center
reinvestment zone proposal, evaluate and verify whether the objectives of a
convention center reinvestment zone described in Section
63N-3-603.1
63N-23-301
have been met.
(d)
The housing and transit reinvestment zone committee shall, for a convention center
reinvestment zone in a capital city proposal, evaluate and verify whether the
objectives of a convention center reinvestment zone in a capital city described in
Section
63N-23-401
have been met.
(8)
(a)
Subject to Subsection
(8)(b)
, the housing and transit reinvestment zone committee
may:
(i)
(A)
for a housing and transit reinvestment zone, request changes to the housing
and transit reinvestment zone proposal based on the analysis, characteristics,
and criteria described in Section
63N-3-604
63N-23-202
;
or
(B)
for a convention center reinvestment zone, request changes to the convention
center reinvestment zone proposal based on the characteristics and criteria
described in Sections
63N-3-603.1
63N-23-301
and
63N-3-604.1
63N-23-302
;
or
(C)
for a convention center reinvestment zone in a capital city, request changes to
the convention center reinvestment zone proposal based on the characteristics
and criteria described in Sections
63N-23-401
and
63N-23-402
;
or
(ii)
vote to approve or deny the proposal.
(b)
Before the housing and transit reinvestment zone committee may approve the
housing and transit reinvestment zone proposal, the municipality or public transit
county proposing the housing and transit reinvestment zone shall ensure that the area
of the proposed housing and transit reinvestment zone is zoned in such a manner to
accommodate the requirements of a housing and transit reinvestment zone described
in this section and the proposed development.
(9)
If a housing and transit reinvestment zone is approved by the committee:
(a)
the proposed housing and transit reinvestment zone is established according to the
terms of the housing and transit reinvestment zone proposal;
(b)
affected local taxing entities are required to participate according to the terms of the
housing and transit reinvestment zone proposal; and
(c)
each affected taxing entity is required to participate at the same rate.
(10)
A housing and transit reinvestment zone proposal may be amended by following the
same procedure as approving a housing and transit reinvestment zone proposal.
(11)
(a)
The approval for a convention center reinvestment zone in a capital city may be
completed with a condition that the relevant municipality also create a public
infrastructure district as provided in
Subsection
63N-3-607(8)(b)
Section
63N-23-403
.
(b)
The approval described in Subsection
(11)(a)
shall verify that the requirements and
limitations on use of funds is limited to the conditions described under
Subsections
63N-3-604.1(2)(b)
and (c)
Section
63N-23-403
.
Section 29. Section
63N-23-103
, which is renumbered from Section 63N-3-606 is renumbered
and amended to read:
63N-3-606
63N-23-103
Effective
05/06/26
. Notice requirements.
(1)
In approving a housing and transit reinvestment zone or convention center reinvestment
zone proposal, the housing and transit reinvestment zone committee shall follow the
hearing and notice requirements for creating a housing and transit reinvestment zone or
convention center reinvestment zone area proposal.
(2)
Within 30 days after the housing and transit reinvestment zone committee approves a
proposed housing and transit reinvestment zone, the municipality or public transit
county, or for a convention center reinvestment zone, the Governor's Office of
Economic Opportunity, shall:
(a)
record with the recorder of the county in which the housing and transit reinvestment
zone or convention center reinvestment zone is located a document containing:
(i)
a description of the land within the housing and transit reinvestment zone or
convention center reinvestment zone;
(ii)
a statement that the proposed housing and transit reinvestment zone or convention
center reinvestment zone has been approved; and
(iii)
the date of adoption;
(b)
transmit a copy of the description of the land within the housing and transit
reinvestment zone or convention center reinvestment zone and an accurate map or
plat indicating the boundaries of the housing and transit reinvestment zone or
convention center reinvestment zone to the Utah Geospatial Resource Center created
under Section
63A-16-505
; and
(c)
transmit a copy of the approved housing and transit reinvestment zone or convention
center reinvestment zone proposal, map, and description of the land within the
housing and transit reinvestment zone or convention center reinvestment zone, to:
(i)
the auditor, recorder, attorney, surveyor, and assessor of the county in which any
part of the housing and transit reinvestment zone or convention center
reinvestment zone is located;
(ii)
the officer or officers performing the function of auditor or assessor for each
taxing entity that does not use the county assessment roll or collect the taxing
entity's taxes through the county;
(iii)
the legislative body or governing board of each taxing entity;
(iv)
the State Tax Commission; and
(v)
the State Board of Education.
Section 30. Section
63N-23-104
, which is renumbered from Section 10-21-203 is renumbered
and amended to read:
10-21-203
63N-23-104
Effective
05/06/26
. Station area plan requirements --
Contents -- Review and certification by applicable metropolitan planning organization.
(1)
(a)
Subject to the requirements of this section, a municipality that has a fixed
guideway public transit station located within the municipality's boundaries shall, for
the station area:
(i)
develop and adopt a station area plan; and
(ii)
adopt any appropriate land use regulations to implement the station area plan.
(b)
The requirements of Subsection
(1)(a)
shall be considered satisfied if:
(i)
(A)
the municipality has already adopted plans or ordinances, approved land use
applications, approved agreements or financing, or investments have been
made, before June 1, 2022, that substantially promote each of the objectives in
Subsection
(6)(a)
within the station area, and can demonstrate that such plans,
ordinances, approved land use applications, approved agreements or financing,
or investments are still relevant to making meaningful progress towards
achieving such objectives; and
(B)
the municipality adopts a resolution finding that the objectives of Subsection
(6)(a)
have been substantially promoted; or
(ii)
(A)
the municipality has determined that conditions exist that make satisfying a
portion or all of the requirements of Subsection
(1)(a)
for a station area
impracticable, including conditions that relate to existing development,
entitlements, land ownership, land uses that make opportunities for new
development and long-term redevelopment infeasible, environmental
limitations, market readiness, development impediment conditions, or other
similar conditions; and
(B)
the municipality adopts a resolution describing the conditions that exist to
make satisfying the requirements of Subsection
(1)(a)
impracticable.
(c)
To the extent that previous actions by a municipality do not satisfy the requirements
of Subsection
(1)(a)
for a station area, the municipality shall take the actions
necessary to satisfy those requirements.
(2)
(a)
A municipality that has a new fixed guideway public transit station located within
the municipality's boundaries shall satisfy the requirements of Subsection
(1)(a)
for
the station area surrounding the new fixed guideway public transit station before the
new fixed guideway public transit station begins transit services.
(b)
Except as provided in Subsections
(2)(c)
and
(d)
, a municipality that has an existing
fixed guideway public transit station located within the municipality's boundaries
shall satisfy the requirements of Subsection
(1)(a)
for the station area surrounding the
existing fixed guideway public transit station on or before December 31, 2025.
(c)
If a municipality has more than four existing fixed guideway public transit stations
located within the municipality's boundaries, the municipality shall:
(i)
on or before December 31, 2025, satisfy the requirements of Subsection
(1)(a)
for
four or more station areas located within the municipality; and
(ii)
on or before December 31 of each year thereafter, satisfy the requirements of
Subsection
(1)(a)
for no less than two station areas located within the municipality
until the municipality has satisfied the requirements of Subsection
(1)(a)
for each
station area located within the municipality.
(d)
(i)
Subject to Subsection
(2)(d)(ii)
:
(A)
if a municipality receives a complete qualifying land use petition on or before
July 1, 2022, the municipality shall satisfy the requirements of Subsection
(1)(a)
for the station area in which the development is proposed on or before
July 1, 2023; and
(B)
if a municipality receives a complete qualifying land use petition after July 1,
2022, the municipality shall satisfy the requirements of Subsection
(1)(a)
for
the station area in which the development is proposed within a 12-month
period beginning on the first day of the month immediately following the
month in which the qualifying land use petition is submitted to the
municipality, and shall notify the applicable metropolitan planning
organization of the receipt of the qualified land use petition within 45 days of
the date of receipt.
(ii)
(A)
A municipality is not required to satisfy the requirements of Subsection
(1)(a)
for more than two station areas under Subsection
(2)(d)(i)
within any
12-month period.
(B)
If a municipality receives more than two complete qualifying land use
petitions on or before July 1, 2022, the municipality shall select two station
areas for which the municipality will satisfy the requirements of Subsection
(1)(a)
in accordance with Subsection
(2)(d)(i)(A)
.
(iii)
A municipality shall process on a first priority basis a land use application,
including an application for a building permit, if:
(A)
the land use application is for a residential use within a station area for which
the municipality has not satisfied the requirements of Subsection
(1)(a)
; and
(B)
the municipality would be required to change a zoning designation for the
land use application to be approved.
(e)
Notwithstanding Subsections
(2)(a)
through
(d)
, the time period for satisfying the
requirements of Subsection
(1)(a)
for a station area may be extended once for a
period of 12 months if:
(i)
the municipality demonstrates to the applicable metropolitan planning
organization that conditions exist that make satisfying the requirements of
Subsection
(1)(a)
within the required time period infeasible, despite the
municipality's good faith efforts; and
(ii)
the applicable metropolitan planning organization certifies to the municipality in
writing that the municipality satisfied the demonstration in Subsection
(2)(e)(i)
.
(3)
(a)
Except as provided in Subsection
(3)(b)
, if a station area is included within the
boundaries of more than one municipality, each municipality with jurisdiction over
the station area shall satisfy the requirements of Subsection
(1)(a)
for the portion of
the station area over which the municipality has jurisdiction.
(b)
Two or more municipalities with jurisdiction over a station area may coordinate to
develop a shared station area plan for the entire station area.
(4)
A municipality that has more than one fixed guideway public transit station located
within the municipality may, through an integrated process, develop station area plans
for multiple station areas if the station areas are within close proximity of each other.
(5)
(a)
A municipality that is required to develop and adopt a station area plan under this
section may request technical assistance from the applicable metropolitan planning
organization.
(b)
An applicable metropolitan planning organization that receives funds from the
Governor's Office of Economic Opportunity under Section
63N-3-113
shall, when
utilizing the funds, give priority consideration to requests for technical assistance for
station area plans required under Subsection
(2)(d)
.
(6)
(a)
A station area plan shall promote the following objectives within the station area:
(i)
increasing the availability and affordability of housing, including moderate
income housing;
(ii)
promoting sustainable environmental conditions;
(iii)
enhancing access to opportunities; and
(iv)
increasing transportation choices and connections.
(b)
(i)
To promote the objective described in Subsection
(6)(a)(i)
, a municipality may
consider implementing the following actions:
(A)
aligning the station area plan with the moderate income housing element of
the municipality's general plan;
(B)
providing for densities necessary to facilitate the development of moderate
income housing;
(C)
providing for affordable costs of living in connection with housing,
transportation, and parking; or
(D)
any other similar action that promotes the objective described in Subsection
(6)(a)(i)
.
(ii)
To promote the objective described in Subsection
(6)(a)(ii)
, a municipality may
consider implementing the following actions:
(A)
conserving water resources through efficient land use;
(B)
improving air quality by reducing fuel consumption and motor vehicle trips;
(C)
establishing parks, open spaces, and recreational opportunities; or
(D)
any other similar action that promotes the objective described in Subsection
(6)(a)(ii)
.
(iii)
To promote the objective described in Subsection
(6)(a)(iii)
, a municipality may
consider the following actions:
(A)
maintaining and improving the connections between housing, transit,
employment, education, recreation, and commerce;
(B)
encouraging mixed-use development;
(C)
enabling employment and educational opportunities within the station area;
(D)
encouraging and promoting enhanced broadband connectivity; or
(E)
any other similar action that promotes the objective described in Subsection
(6)(a)(iii)
.
(iv)
To promote the objective described in Subsection
(6)(a)(iv)
, a municipality may
consider the following:
(A)
supporting investment in infrastructure for all modes of transportation;
(B)
increasing utilization of public transit;
(C)
encouraging safe streets through the designation of pedestrian walkways and
bicycle lanes;
(D)
encouraging manageable and reliable traffic conditions;
(E)
aligning the station area plan with the regional transportation plan of the
applicable metropolitan planning organization; or
(F)
any other similar action that promotes the objective described in Subsection
(6)(a)(iv)
.
(7)
A station area plan shall include the following components:
(a)
a station area vision that:
(i)
is consistent with Subsection
(6)
; and
(ii)
describes the following:
(A)
opportunities for the development of land within the station area under
existing conditions;
(B)
constraints on the development of land within the station area under existing
conditions;
(C)
the municipality's objectives for the transportation system within the station
area and the future transportation system that meets those objectives;
(D)
the municipality's objectives for land uses within the station area and the
future land uses that meet those objectives;
(E)
the municipality's objectives for public and open spaces within the station area
and the future public and open spaces that meet those objectives; and
(F)
the municipality's objectives for the development of land within the station
area and the future development standards that meet those objectives;
(b)
a map that depicts:
(i)
the station area;
(ii)
the area within the station area to which the station area plan applies, provided
that the station area plan may apply to areas outside the station area, and the
station area plan is not required to apply to the entire station area; and
(iii)
the area where each action is needed to implement the station area plan;
(c)
an implementation plan that identifies and describes each action needed within the
next five years to implement the station area plan, and the party responsible for
taking each action, including any actions to:
(i)
modify land use regulations;
(ii)
make infrastructure improvements;
(iii)
modify deeds or other relevant legal documents;
(iv)
secure funding or develop funding strategies;
(v)
establish design standards for development within the station area; or
(vi)
provide environmental remediation;
(d)
a statement that explains how the station area plan promotes the objectives described
in Subsection
(6)(a)
; and
(e)
as an alternative or supplement to the requirements of Subsection
(6)
or this
Subsection
(7)
, and for purposes of Subsection
(1)(b)(ii)
, a statement that describes
any conditions that would make the following impracticable:
(i)
promoting the objectives described in Subsection
(6)(a)
; or
(ii)
satisfying the requirements of this Subsection
(7)
.
(8)
A municipality shall develop a station area plan with the involvement of all relevant
stakeholders that have an interest in the station area through public outreach and
community engagement, including:
(a)
other impacted communities;
(b)
the applicable public transit district;
(c)
the applicable metropolitan planning organization;
(d)
the Department of Transportation;
(e)
owners of property within the station area; and
(f)
the municipality's residents and business owners.
(9)
(a)
A municipality that is required to develop and adopt a station area plan for a
station area under this section shall submit to the applicable metropolitan planning
organization and the applicable public transit district documentation evidencing that
the municipality has satisfied the requirement of Subsection
(1)(a)(i)
for the station
area, including:
(i)
a station area plan; or
(ii)
a resolution adopted under Subsection
(1)(b)(i)
or
(ii)
.
(b)
The applicable metropolitan planning organization, in consultation with the
applicable public transit district, shall:
(i)
review the documentation submitted under Subsection
(9)(a)
to determine the
municipality's compliance with this section; and
(ii)
provide written certification to the municipality if the applicable metropolitan
planning organization determines that the municipality has satisfied the
requirement of Subsection
(1)(a)(i)
for the station area.
(c)
The municipality shall include the certification described in Subsection
(9)(b)(ii)
in
the municipality's report to the Department of Workforce Services under Section
10-21-202
.
(10)
(a)
Following certification by a metropolitan planning organization of a
municipality's station area plan under Subsection
(9)(b)(ii)
, the municipality shall
provide a report to the applicable metropolitan planning organization on or before
December 31 of the fifth year after the year in which the station area plan was
certified, and every five years thereafter for a period not to exceed 15 years.
(b)
The report described in Subsection
(10)(a)
shall:
(i)
contain the status of advancing the station area plan objectives, including, if
applicable, actions described in the implementation plan required in Subsection
(7)(c)
; and
(ii)
identify potential actions over the next five years that would advance the station
area plan objectives.
(c)
If a municipality has multiple certified station area plans, the municipality may
consolidate the reports required in Subsection
(10)(a)
for the purpose of submitting
reports to the metropolitan planning organization.
Section 31. Section
63N-23-201
, which is renumbered from Section 63N-3-603 is renumbered
and amended to read:
2. Housing and Transit Reinvestment Zone
63N-3-603
63N-23-201
Effective
05/06/26
. Applicability, requirements, and
limitations on a housing and transit reinvestment zone.
(1)
A housing and transit reinvestment zone proposal created under this part shall
demonstrate how the proposal addresses the following objectives:
(a)
higher utilization of public transit;
(b)
increasing availability of housing, including affordable housing, and fulfillment of
moderate income housing plans;
(c)
promoting and encouraging development of owner-occupied housing;
(d)
improving efficiencies in parking and transportation, including walkability of
communities near public transit facilities;
(e)
overcoming development impediments and market conditions that render a
development cost prohibitive absent the proposal and incentives;
(f)
conserving water resources through efficient land use;
(g)
improving air quality by reducing fuel consumption and motor vehicle trips;
(h)
encouraging transformative mixed-use development and investment in transportation
and public transit infrastructure in strategic areas;
(i)
strategic land use and municipal planning in major transit investment corridors as
described in Subsection
10-20-404(2)
;
(j)
increasing access to employment and educational opportunities; and
(k)
increasing access to child care.
(2)
(a)
In order to accomplish the objectives described in Subsection
(1)
, a municipality
or public transit county that initiates the process to create a housing and transit
reinvestment zone as described in this part shall ensure that the proposal for a
housing and transit reinvestment zone includes:
(i)
except as provided in Subsection
(3)
, at least 12% of the proposed dwelling units
within the housing and transit reinvestment zone are affordable housing units,
with:
(A)
up to 9% of the proposed dwelling units occupied or reserved for occupancy
by households with a gross household income equal to or less than 80% of the
county median gross income for households of the same size; and
(B)
at least 3% of the proposed dwelling units occupied or reserved for occupancy
by households with a gross household income equal to or less than 60% of the
county median gross income for households of the same size;
(ii)
except as provided in Subsection
(2)(c)
, a housing and transit reinvestment zone
shall include:
(A)
at least 51% of the developable area within a housing and transit reinvestment
zone as residential uses; and
(B)
an average of at least 50 dwelling units per acre within the acreage of the
housing and transit reinvestment zone dedicated to residential uses;
(iii)
mixed-use development; and
(iv)
a mix of dwelling units to ensure that at least 25% of the dwelling units have
more than one bedroom.
(b)
(i)
If a housing and transit reinvestment zone is phased, a municipality or public
transit county shall ensure that a housing and transit reinvestment zone is phased
and developed to provide the required 12% of affordable housing units in each
phase of development.
(ii)
A municipality or public transit county may allow a housing and transit
reinvestment zone to be phased and developed in a manner to provide more of the
required affordable housing units in early phases of development.
(iii)
A municipality or public transit county shall include in a housing and transit
reinvestment zone proposal an affordable housing plan, which may include deed
restrictions, to ensure the affordable housing required in the proposal will continue
to meet the definition of affordable housing at least throughout the entire term of
the housing and transit reinvestment zone.
(c)
For a housing and transit reinvestment zone proposed by a public transit county at a
public transit hub, or for a housing and transit reinvestment zone proposed by a
municipality at a bus rapid transit station, the housing and transit reinvestment zone
shall include:
(i)
at least 51% of the developable area within a housing and transit reinvestment
zone as residential uses; and
(ii)
an average of at least 39 dwelling units per acre within the acreage of the housing
and transit reinvestment zone dedicated to residential uses.
(3)
A municipality or public transit county that, at the time the housing and transit
reinvestment zone proposal is approved by the housing and transit reinvestment zone
committee, meets the affordable housing guidelines of the United States Department of
Housing and Urban Development at 60% area median income is exempt from the
requirement described in Subsection
(2)(a)
.
(4)
(a)
A municipality may only propose a housing and transit reinvestment zone at a
commuter rail station, and a public transit county may only propose a housing and
transit reinvestment zone at a public transit hub, that:
(i)
subject to Subsection
(5)(a)
:
(A)
(I)
except as provided in Subsection
(4)(a)(i)(A)(II)
, for a municipality,
does not exceed a
1/3
one-third
mile radius of a commuter rail station;
(II)
for a municipality that is a city of the first or second class
, as classified
under Section
10-2-301
,
that is within a county of the first or second class,
as classified under Section
17-60-104
,
with an opportunity zone created in
accordance with Section 1400Z-1, Internal Revenue Code, does not exceed
a
1/2
one-half
mile radius of a commuter rail station located within the
opportunity zone; or
(III)
for a public transit county, does not exceed a
1/3
one-third
mile radius of
a public transit hub; and
(B)
has a total area of no more than 125 noncontiguous acres;
(ii)
subject to Section
63N-3-607
63N-23-203
, proposes the capture of a maximum
of 80% of each taxing entity's property tax increment above the base year for a
term of no more than 25 consecutive years on each parcel within a 45-year period
not to exceed the property tax increment amount approved in the housing and
transit reinvestment zone proposal; and
(iii)
the commencement of collection of property tax increment, for all or a portion of
the housing and transit reinvestment zone project area, shall be triggered by
providing notice as described in Subsection
(6)
, but a housing and transit
reinvestment zone proposal may not propose or include triggering more than three
property tax increment collection periods for the same project during the
applicable 45-year period.
(b)
A municipality or public transit county may only propose a housing and transit
reinvestment zone at a light rail station or bus rapid transit station that:
(i)
subject to Subsection
(5)
:
(A)
does not exceed:
(I)
except as provided in Subsection
(4)(b)(i)(A)(II)
, (III), or (4)(e), a
1/4
one-quarter
mile radius of a bus rapid transit station or light rail station;
(II)
for a municipality that is a city of the first class
, as classified under Section
10-2-301
,
with
a population greater than 150,000 that is within a county of the first class,
as classified under
Section
17-60-104
,
a
1/2
one-half
mile radius of a light rail station located in an opportunity
zone created in accordance with Section
1400Z-1, Internal Revenue Code; or
1400Z-1, Internal Revenue Code; or
(III)
a
1/2
one-half
mile radius of a light rail station located within a
master-planned development of 500 acres or more; and
(B)
has a total area of no more than 100 noncontiguous acres;
(ii)
subject to Subsection
(4)(c)
and Section
63N-3-607
63N-23-203
, proposes the
capture of a maximum of 80% of each taxing entity's property tax increment
above the base year for a term of no more than 15 consecutive years on each
parcel within a 30-year period not to exceed the property tax increment amount
approved in the housing and transit reinvestment zone proposal; and
(iii)
the commencement of collection of property tax increment, for all or a portion of
the housing and transit reinvestment zone project area, shall be triggered by
providing notice as described in Subsection
(6)
, but a housing and transit
reinvestment zone proposal may not propose or include triggering more than three
property tax increment collection periods for the same project during the
applicable 30-year period.
(c)
For a housing and transit reinvestment zone proposed by a public transit county at a
public transit hub, or for a housing and transit reinvestment zone proposed by a
municipality at a bus rapid transit station, if the proposed housing density within the
housing and transit reinvestment zone is between 39 and 49 dwelling units per acre,
the maximum capture of each taxing entity's property tax increment above the base
year is 60%.
(d)
A municipality that is a city of the first class
, as classified under Section
10-2-301
,
with a population greater than 150,000 in a county of the first class
, as classified
under Section
17-60-104
,
as described in Subsections
(4)(a)(i)(A)(II)
and
(4)(b)(i)(A)(II)
may only propose one housing and transit reinvestment zone within
an opportunity zone.
(e)
(i)
Subject to Subsection
(4)(e)(ii)
, the radius restrictions described in Subsection
(4)(b)(i)
do not apply, and a housing and transit reinvestment zone may extend to
an area between two light rail stations located within a city of the third class if the
two light rail stations are within a .95 mile distance on the same light rail line.
(ii)
If a housing and transit reinvestment zone is extended to accommodate two light
rail stations as described in Subsection
(4)(e)(i)
:
(A)
the housing and transit reinvestment zone is limited to a total area not to
exceed 100 noncontiguous acres; and
(B)
the housing and transit reinvestment zone may not exceed a
1/4
one-quarter
mile radius from the light rail stations or any point on the light rail line
between the two stations.
(f)
If a parcel within the housing and transit reinvestment zone is included as an area that
is part of a project area, as that term is defined in Section
17C-1-102
, and created
under Title 17C, Chapter 1, Agency Operations, that parcel may not be triggered for
collection unless the project area funds collection period, as that term is defined in
Section
17C-1-102
, has expired.
(5)
(a)
For a housing and transit reinvestment zone for a commuter rail station, if a parcel
is intersected by the relevant radius limitation, the full parcel may be included as part
of the housing and transit reinvestment zone area and will not count against the
limitations described in Subsection
(4)(a)(i)
.
(b)
For a housing and transit reinvestment zone for a light rail or bus rapid transit
station, if a parcel is intersected by the relevant radius limitation, the full parcel may
be included as part of the housing and transit reinvestment zone area and will not
count against the limitations described in Subsection
(4)(b)(i)
.
(c)
A housing and transit reinvestment zone may not be smaller than 10 acres.
(6)
(a)
The notice of commencement of collection of property tax increment required in
Subsection
(4)(a)(iii)
or
(4)(b)(iii)
shall be sent by mail or electronically to the
following entities no later than December 31 of the year before the year for which the
property tax increment collection is proposed to commence:
(i)
the State Tax Commission;
(ii)
the State Board of Education;
(iii)
the state auditor;
(iv)
the auditor of the county in which the housing and transit reinvestment zone is
located;
(v)
each taxing entity affected by the collection of property tax increment from the
housing and transit reinvestment zone; and
(vi)
the Governor's Office of Economic Opportunity.
(b)
The notice described in Subsection
(4)(a)(iii)
or
(4)(b)(iii)
may not be triggered until
the date on which the housing and transit reinvestment zone proposal is approved by
the housing and transit reinvestment zone committee.
(7)
(a)
The maximum number of housing and transit reinvestment zones at light rail
stations, not including a convention center reinvestment zone, is eight in any given
county.
(b)
Within a county of the first class, the maximum number of housing and transit
reinvestment zones at bus rapid transit stations is three.
(c)
Within a county of the first class, the maximum total combined number of housing
and transit reinvestment zones described in Subsections
(7)(a)
and
(b)
and first home
investment zones created under
Part 16, First Home Investment Zone Act
Part 7,
First Home Investment Zone
, is 11.
(8)
(a)
For purposes of this Subsection
(8)
, "entitlement agreement" means:
(i)
a land use application;
(ii)
a rezone petition; or
(iii)
a request, petition, or application to:
(A)
enact or approve a development agreement; or
(B)
to amend or modify a development agreement.
(b)
This Subsection
(8)
applies to a specified county, as defined in Section
17-80-101
,
that has created a small public transit district on or before January 1, 2022.
(c)
To accomplish the objectives described in Subsection
(1)
, an owner of undeveloped
property within an unincorporated county shall have the right to develop and build a
mixed-use development if:
(i)
the owner has submitted an entitlement agreement to the county on or before
December 31, 2022, and is within a
1/3
one-third
mile radius of a public transit
hub in a county described in Subsection
(8)(b)
, including parcels that are
intersected by the
1/3
one-third
mile radius; and
(ii)
the county described in Subsection
(8)(b)
has failed to approve the entitlement
agreement described in Subsection
(8)(c)(i)
by ordinance before December 31,
2022.
(d)
The mixed use development described in Subsection
(8)(c)
shall include the
following:
(i)
(A)
(I)
a maximum number of dwelling units equal to 30 multiplied by the
total acres of developable area within the mixed-use development dedicated
exclusively to residential use; or
(II)
a maximum number of dwelling units equal to 15 multiplied by the total
acres of the mixed-use development; and
(B)
at least 33% of the dwelling units as affordable housing;
(ii)
commercial uses, including office, retail, educational, and healthcare in support of
the mixed-use development constituting no more than
1/3
one-third
of the total
planned gross building square footage of the subject parcels; and
(iii)
any other infrastructure element necessary or reasonable to support the
mixed-use development, including:
(A)
parking infrastructure;
(B)
streets;
(C)
sidewalks;
(D)
parks; and
(E)
trails.
(e)
(i)
The mixed-use development described in this Subsection
(8)
may qualify for a
housing and transit reinvestment zone described in Subsection
(4)(a)
.
(ii)
The county described in Subsection
(8)(b)
may propose a housing and transit
reinvestment zone in accordance with this part, if the housing and transit
reinvestment zone includes:
(A)
(I)
an average of at least 30 dwelling units per acre within the acreage of the
housing and transit reinvestment zone dedicated to residential use; or
(II)
a minimum number of 14 dwelling units per acre on average within the
acreage of the housing and transit reinvestment zone; and
(B)
at least 33% of the dwelling units as affordable housing units.
(f)
A county may not take an action or enforce an agreement, ordinance, regulation, or
requirement that prevents or creates development impediments to the development of
a mixed-use development as described in this Subsection
(8)
.
(g)
A county action to approve or implement the development of a mixed-use
development as described in this Subsection
(8)
shall constitute an administrative
action taken by the county and does not require county legislative action.
Section 32. Section
63N-23-202
, which is renumbered from Section 63N-3-604 is renumbered
and amended to read:
63N-3-604
63N-23-202
Effective
05/06/26
. Process for a proposal of a housing
and transit reinvestment zone -- Analysis.
(1)
Subject to approval of the housing and transit reinvestment zone committee as described
in Section
63N-3-605
63N-23-102
, in order to create a housing and transit reinvestment
zone, a municipality or public transit county that has general land use authority over the
housing and transit reinvestment zone area, shall:
(a)
prepare a proposal for the housing and transit reinvestment zone that:
(i)
demonstrates that the proposed housing and transit reinvestment zone will meet
the objectives described in Subsection
63N-3-603
(1)
63N-23-201(1)
;
(ii)
explains how the municipality or public transit county will achieve the
requirements of Subsection
63N-3-603
(2)(a)(i)
63N-23-201(2)(a)(i)
;
(iii)
defines the specific transportation infrastructure needs, if any, and proposed
improvements and estimated budgets;
(iv)
defines the boundaries of:
(A)
the housing and transit reinvestment zone; and
(B)
the sales and use tax boundary corresponding to the housing and transit
reinvestment zone boundary, as described in Section
63N-3-610
63N-23-206
;
(v)
includes maps of the proposed housing and transit reinvestment zone to illustrate:
(A)
the proposed boundary and radius from a public transit hub;
(B)
proposed housing density within the housing and transit reinvestment zone;
and
(C)
existing zoning and proposed zoning changes related to the housing and transit
reinvestment zone;
(vi)
identifies any development impediments that prevent the development from
being a market-rate investment, including proposed strategies and estimated
budgets for addressing each one;
(vii)
describes the proposed development plan and estimated budgets, including the
requirements described in Subsections
63N-3-603(2) and (4)
63N-23-201(2)
and
(4)
;
(viii)
establishes a base year and collection period to calculate the property tax
increment within the housing and transit reinvestment zone;
(ix)
establishes a sales and use tax base year to calculate the sales and use tax
increment within the housing and transit reinvestment zone in accordance with
Section
63N-3-610
63N-23-206
;
(x)
describes projected maximum revenues generated and the amount of property tax
increment capture from each taxing entity and proposed expenditures of revenue
derived from the housing and transit reinvestment zone;
(xi)
includes an analysis of other applicable or eligible incentives, grants, or sources
of revenue that can be used to reduce the finance gap;
(xii)
estimates budgets and evaluates possible benefits to active and public
transportation availability and impacts on air quality;
(xiii)
proposes a finance schedule to align expected revenue with required financing
costs and payments;
(xiv)
provides a pro-forma for the planned development that:
(A)
satisfies the requirements described in Subsections
63N-3-603
(2), (3), and (4)
63N-23-201(2)
through
(4)
;
(B)
includes data showing the cost difference between what type of development
could feasibly be developed absent the housing and transit reinvestment zone
property tax increment and the type of development that is proposed to be
developed with the housing and transit reinvestment zone property tax
increment; and
(C)
provides estimated budgets and construction costs, anticipated revenue,
financing, expenses, and other sources and uses of funds for the project area;
and
(xv)
for a housing and transit reinvestment zone at a commuter rail station, light rail
station, or bus rapid transit station that is proposed and not in public transit service
operation as of the date of submission of the proposal, demonstrates that the
proposed station is:
(A)
included as needed in phase one of a metropolitan planning organization's
adopted long-range transportation plan and in phase one of the relevant public
transit district's adopted long-range plan; and
(B)
reasonably anticipated to be constructed in the near future; and
(b)
submit the housing and transit reinvestment zone proposal to the Governor's Office
of Economic Opportunity.
(2)
As part of the proposal described in Subsection
(1)
, a municipality or public transit
county shall study and evaluate possible impacts of a proposed housing and transit
reinvestment zone on parking within the city and housing and transit reinvestment zone.
(3)
(a)
After receiving the proposal as described in Subsection
(1)(b)
, the Governor's
Office of Economic Opportunity shall:
(i)
within 14 days after the date on which the Governor's Office of Economic
Opportunity receives the proposal described in Subsection
(1)(b)
, provide notice
of the proposal to all affected taxing entities, including the Tax Commission,
cities, counties, school districts, metropolitan planning organizations, and the
county assessor and county auditor of the county in which the housing and transit
reinvestment zone is located; and
(ii)
at the expense of the proposing municipality or public transit county as described
in Subsection
(5)
, contract with an independent entity to perform the financial gap
analysis described in Subsection
(3)(b)
.
(b)
The gap analysis required in Subsection
(3)(a)(ii)
shall include:
(i)
a description of the planned development;
(ii)
a market analysis relative to other comparable project developments included in
or adjacent to the municipality or public transit county absent the proposed
housing and transit reinvestment zone;
(iii)
an evaluation of the proposal to and a determination of the adequacy and
efficiency of the proposal;
(iv)
an evaluation of the proposed increment capture needed to cover the enhanced
development costs associated with the housing and transit reinvestment zone
proposal and enable the proposed development to occur; and
(v)
based on the market analysis and other findings, an opinion relative to the
appropriate amount of potential public financing reasonably determined to be
necessary to achieve the objectives described in
Subsection
63N-3-603
(1)
Section
63N-23-201
.
(c)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed housing and transit reinvestment zone as described in Subsection
(3)(a)(i)
,
the State Tax Commission shall:
(i)
evaluate the feasibility of administering the tax implications of the proposal; and
(ii)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the Tax
Commission can feasibly administer the proposal.
(4)
After receiving the results from the analysis described in Subsection
(3)(b)
, the
municipality or public transit county proposing the housing and transit reinvestment
zone may:
(a)
amend the housing and transit reinvestment zone proposal based on the findings of
the analysis described in Subsection
(3)(b)
and request that the Governor's Office of
Economic Opportunity submit the amended housing and transit reinvestment zone
proposal to the housing and transit reinvestment zone committee; or
(b)
request that the Governor's Office of Economic Opportunity submit the original
housing and transit reinvestment zone proposal to the housing and transit
reinvestment zone committee.
(5)
(a)
The Governor's Office of Economic Opportunity may accept, as a dedicated
credit, up to $20,000 from a municipality or public transit county for the costs of the
gap analysis described in Subsection
(3)(b)
.
(b)
The Governor's Office of Economic Opportunity may expend funds received from a
municipality or public transit county as dedicated credits to pay for the costs
associated with the gap analysis described in Subsection
(3)(b)
.
Section 33. Section
63N-23-203
, which is renumbered from Section 63N-3-607 is renumbered
and amended to read:
63N-3-607
63N-23-203
Effective
05/06/26
. Payment, use, and administration
of revenue from a housing and transit reinvestment zone.
(1)
In accordance with this part
:
(a)
a municipality or public transit county may receive and use property tax increment
and housing and transit reinvestment zone funds
;
.
(b)
(i)
a public infrastructure district shall use the funds from a convention center
reinvestment zone in a capital city within or for the benefit of a convention center
reinvestment zone in a capital city; and
(ii)
funds from a convention center reinvestment zone in a capital city may be used
outside of the capital city convention center reinvestment zone if the use meets the
objectives described in Section
63N-3-603.1
and is determined by the board of the
public infrastructure district to be a direct benefit to the convention center
reinvestment zone in a capital city; and
(c)
a municipality or a public infrastructure district may receive and use property tax
increment and convention center reinvestment zone funds for a convention center
reinvestment zone that is not within a capital city.
(2)
(a)
Except as provided in Subsection
(3)
, a
A
county that collects property tax on
property located within a housing and transit reinvestment zone shall, in accordance
with Section
59-2-1365
, distribute to the municipality or public transit county any
property tax increment the municipality or public transit county is authorized to
receive up to the maximum approved by the housing and transit reinvestment zone
committee.
(b)
Property tax increment distributed to a municipality or public transit county in
accordance with Subsection
(2)(a)
is not revenue of the taxing entity or municipality
or public transit county.
(c)
(i)
Property tax increment paid to the municipality or public transit county are
housing and transit reinvestment zone funds and shall be administered by an
agency created by the municipality or public transit county within which the
housing and transit reinvestment zone is located.
(ii)
Before an agency may receive housing and transit reinvestment zone funds from
the municipality or public transit county, the municipality or public transit county
and the agency shall enter into an interlocal agreement with terms that:
(A)
are consistent with the approval of the housing and transit reinvestment zone
committee; and
(B)
meet the requirements of Section
63N-3-603
63N-23-201
or, for a
convention center reinvestment zone, the requirements of Section
63N-3-603.1
63N-23-301
.
(3)
(a)
A county that collects property tax on property located within a convention
center reinvestment zone shall, in accordance with Section
59-2-1365
, distribute to
the relevant public infrastructure district created by the eligible municipality any
property tax increment the public infrastructure district is authorized to receive up to
the amounts approved by the housing and transit reinvestment zone committee.
(b)
Property tax increment distributed to a public infrastructure district in accordance
with Subsection
(3)(a)
is not revenue of the taxing entity or municipality.
(c)
Property tax increment paid to the public infrastructure district are convention center
reinvestment zone funds and shall be administered by the public infrastructure district
within which the convention center reinvestment zone is located.
(4)
(3)
(a)
(i)
A municipality or public transit county and agency shall use housing
and transit reinvestment zone funds within, or for the direct benefit of, the housing
and transit reinvestment zone.
(ii)
A public infrastructure district shall use convention center reinvestment zone
funds within, or for the benefit of, the convention center reinvestment zone.
(b)
If any housing and transit reinvestment zone funds will be used outside of the
housing and transit reinvestment zone, there
must
shall
be a finding in the approved
proposal for a housing and transit reinvestment zone that the use of the housing and
transit reinvestment zone funds outside of the housing and transit reinvestment zone
will directly benefit the housing and transit reinvestment zone.
(5)
(4)
(a)
A municipality or public transit county shall use housing and transit
reinvestment zone funds to achieve the purposes described in Subsections
63N-3-603(1)
and
(2)
63N-23-201(1)
and
(2)
, by paying all or part of the costs of any
of the following:
(i)
income targeted housing costs;
(ii)
structured parking within the housing and transit reinvestment zone;
(iii)
enhanced development costs;
(iv)
horizontal construction costs;
(v)
vertical construction costs;
(vi)
property acquisition costs within the housing and transit reinvestment zone;
(vii)
the costs of the municipality or public transit county to create and administer the
housing and transit reinvestment zone, which may not exceed 2% of the total
housing and transit reinvestment zone funds, plus the costs to complete the gap
analysis described in Subsection
63N-3-604(2)
63N-23-202(2)
; or
(viii)
subject to Subsection
(5)(b)
(4)(b)
, costs for the construction or expansion of
child care facilities within the boundary of the housing and transit reinvestment
zone.
(b)
A municipality or public transit county may not use more than 1% of the total
housing and transit reinvestment zone funds to pay costs described in Subsection
(5)(a)(viii)
(4)(a)(viii)
.
(c)
A public infrastructure district shall use convention center reinvestment zone funds
to achieve the purposes described in Section
63N-3-603.1
.
(6)
(5)
Housing and transit reinvestment zone funds may be paid to a participant, if the
agency and participant enter into a participation agreement that requires the participant
to utilize the housing and transit reinvestment zone funds as allowed in this section.
(7)
(6)
(a)
Housing and transit reinvestment zone funds may be used to pay all of the
costs of bonds issued by the municipality or public transit county in accordance with
Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the
bonds including interest.
(b)
Convention center reinvestment zone funds may be used to pay all of the costs of
debt incurred by the public infrastructure district, including the cost to issue and
repay the debt including interest.
(8)
(7)
(a)
A municipality or public transit county may create one or more public
infrastructure districts within the housing and transit reinvestment zone under Title
17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the housing
and transit reinvestment zone funds to guarantee the payment of public infrastructure
bonds issued by a public infrastructure district.
(b)
An eligible municipality that is a capital city shall create one or more public
infrastructure districts within the convention center reinvestment zone under Title
17D, Chapter 4, Public Infrastructure District Act, and the convention center
reinvestment zone funds may be used to pay all or any portion of debt incurred by the
public infrastructure district, including the cost to issue and repay the debt including
interest.
Section 34. Section
63N-23-204
, which is renumbered from Section 63N-3-608 is renumbered
and amended to read:
63N-3-608
63N-23-204
Effective
05/06/26
. Applicability to an existing
community reinvestment project.
(1)
For a housing and transit reinvestment zone created under this part that overlaps any
portion of an existing inactive industrial site community reinvestment project area plan
created in accordance with
Title 17C, Limited Purpose Local Government Entities -
Community Reinvestment Agency Act
:
(a)
(1)
if the community reinvestment project area plan captures less than 80% of the
property tax increment from a taxing entity, or if a taxing entity is not participating in
the community reinvestment project area plan, the housing and transit reinvestment zone
may capture the difference between:
(i)
(a)
80%; and
(ii)
(b)
the percentage of property tax increment captured
pursuant to
in accordance
with
the community reinvestment project area plan; and
(b)
(2)
if a community reinvestment project area plan expires before the housing and
transit reinvestment zone, the housing and transit reinvestment zone may capture the
property tax increment allocated to the community reinvestment project area plan for
any remaining portion of the term of the housing and transit reinvestment zone and the
base year shall be updated in accordance with
Subsection
63N-3-602(4)
Subsection
63N-23-101(4)
.
(2)
For a convention center reinvestment zone created under this part that overlaps any
portion of an existing community reinvestment project area created in accordance with
Title 17C, Limited Purpose Local Government Entities - Community Reinvestment
Agency Act:
(a)
if the community reinvestment project area captures less than 100% of the property
tax increment from a taxing entity, or if a taxing entity is not participating in the
community reinvestment project area, the convention center reinvestment zone may
capture the difference between:
(i)
100%; and
(ii)
the percentage of property tax increment captured pursuant to the community
reinvestment project area for each taxing entity; and
(b)
if a community reinvestment project area plan expires before the convention center
reinvestment zone, the convention center reinvestment zone may capture the property
tax increment allocated to the community reinvestment project area for any
remaining portion of the term of the convention center reinvestment zone with the
base year relating back to the base year established by the community reinvestment
project area.
Section 35. Section
63N-23-205
, which is renumbered from Section 63N-3-609 is renumbered
and amended to read:
63N-3-609
63N-23-205
Effective
05/06/26
. Property tax increment protections.
(1)
Upon petition by a participating taxing entity or on the initiative of the housing and
transit reinvestment zone committee creating a housing and transit reinvestment zone
or
convention center reinvestment zone
, a housing and transit reinvestment zone
or
convention center reinvestment zone
may suspend or terminate the collection of
property tax increment in a housing and transit reinvestment zone
or convention center
reinvestment zone
if the housing and transit reinvestment zone committee determines,
by clear and convincing evidence, presented in a public meeting of the housing and
transit reinvestment zone committee, that:
(a)
a substantial portion of the property tax increment collected in the housing and transit
reinvestment zone
or convention center reinvestment zone
has not or will not be
used for the purposes provided in Section
63N-3-607
63N-23-203
; and
(b)
(i)
the housing and transit reinvestment zone
or convention center reinvestment
zone
and related public infrastructure district has no indebtedness secured by
funds provided for in this chapter; or
(ii)
the housing and transit reinvestment zone
or convention center reinvestment zone
and related public infrastructure district has no binding financial obligations
secured by this chapter.
(2)
A housing and transit reinvestment zone
or convention center reinvestment zone
may
not collect property tax increment in excess of the property tax increment projections or
limitations set forth in the housing and transit reinvestment zone
or convention center
reinvestment zone
proposal.
(3)
The agency administering the property tax increment collected in a housing and transit
reinvestment zone under Subsection
63N-3-607(2)(c)
or the public infrastructure
district administering the property tax increment collected in a convention center
reinvestment zone under Subsection
63N-3-607(3)(c)
63N-23-203(2)(c)
, shall have
standing in a court with proper jurisdiction to enforce provisions of the housing and
transit reinvestment zone
or convention center reinvestment zone proposal
,
participation agreements, and other agreements for the use of the property tax increment
collected.
(4)
The agency administering property tax increment from a housing and transit
reinvestment zone under Subsection
63N-3-607(2)(c)
or the public infrastructure
district administering the property tax increment collected in a convention center
reinvestment zone under Subsection
63N-3-607(3)(c)
which
63N-23-203(2)(c)
that
is
collecting property tax increment shall follow the reporting requirements described in
Section
17C-1-603
and the audit requirements described in Sections
17C-1-604
and
17C-1-605
.
(5)
For each housing and transit reinvestment zone
or convention center reinvestment zone
collecting tax increment within a county, the county auditor shall follow the reporting
requirement found in Section
17C-1-606
.
Section 36. Section
63N-23-206
, which is renumbered from Section 63N-3-610 is renumbered
and amended to read:
63N-3-610
63N-23-206
Effective
05/06/26
. Sales and use tax increment in a
housing and transit reinvestment zone.
(1)
A housing and transit reinvestment proposal shall, in consultation with the tax
commission:
(a)
create a sales and use tax boundary as described in Subsection
(2)
; and
(b)
establish a sales and use tax base year and collection period to calculate and transfer
the state sales and use tax increment within the housing and transit reinvestment
zone, which sales and use tax base year is established prospectively, 90 days after the
date of the notice described in Subsection
(4)
.
(2)
(a)
The municipality or public transit county, in consultation with the tax
commission, shall establish a sales and use tax boundary that:
(i)
is based on state sales and use tax collection boundaries, which are determined
using the ZIP Code as defined in Section
59-12-102
, including the four digit
delivery route extension;
(ii)
follows as closely as reasonably practicable the boundary of the housing and
transit reinvestment zone; and
(iii)
is one contiguous area that includes at least the entire boundary of the housing
and transit reinvestment zone.
(b)
If a state sales and use tax boundary is intersected by the boundary of the housing
and transit reinvestment zone, the housing and transit reinvestment zone may include
the entire state sales and use tax boundary.
(c)
The municipality or public transit county shall include the sales and use tax boundary
in the housing and transit reinvestment zone proposal as described in Section
63N-3-604
63N-23-202
.
(3)
(a)
Beginning the first day of a calendar quarter one year after the sales and use tax
boundary for a housing and transit reinvestment zone is established, the tax
commission shall, at least annually, transfer an amount equal to 15% of the sales and
use tax increment within an established sales and use tax boundary into the Transit
Transportation Investment Fund created in Section
72-2-124
.
(b)
A municipality or public transit county may only propose one sales and use tax
increment period and one sales and use tax base year for a housing and transit
reinvestment zone established under this part.
(4)
(a)
The establishment of a sales and use tax base year and the requirement described
in Subsection
(3)
to transfer incremental sales tax revenue shall take effect:
(i)
on the first day of a calendar quarter; and
(ii)
after a 90-day waiting period, beginning on the date the commission receives
notice from the municipality or public transit county meeting the requirements of
Subsection
(4)(b)
.
(b)
The notice described in Subsection
(4)(a)
shall include:
(i)
a statement that the housing and transit reinvestment zone will be established
under this part;
(ii)
the approval date and effective date of the housing and transit reinvestment zone;
and
(iii)
the definitions of the sales and use tax boundary and sales and use tax base year.
(5)
The State Tax Commission may retain and deposit an administrative charge in
accordance with Section
59-1-306
from sales and use tax increment the State Tax
Commission collects and administers under this section.
Section 37. Section
63N-23-207
, which is renumbered from Section 63N-3-611 is renumbered
and amended to read:
63N-3-611
63N-23-207
Effective
05/06/26
. Boundary adjustments.
If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a
housing and transit reinvestment zone
or a convention center reinvestment zone
, the
municipality administering the property tax increment collected in the housing and transit
reinvestment zone
, or for a convention center reinvestment zone, the Governor's Office of
Economic Opportunity
may make corresponding adjustments to the boundary of the housing
and transit reinvestment zone.
Section 38. Section
63N-23-301
, which is renumbered from Section 63N-3-603.1 is renumbered
and amended to read:
3. Convention Center Reinvestment Zone
63N-3-603.1
63N-23-301
Effective
05/06/26
. Applicability, requirements, and
limitations on a convention center reinvestment zone.
(1)
A convention center reinvestment zone proposal created under this part shall
demonstrate how the proposal addresses the following objectives:
(a)
redevelopment of a convention center and the surrounding area's infrastructure and
assets;
(b)
activation of unrealized economic opportunities related to the convention center and
surrounding infrastructure and assets;
(c)
modernization of infrastructure and design of the convention center and surrounding
area and related public spaces;
(d)
encouragement of transformative development and investment, including parking
improvements;
(e)
promotion of economic development and employment opportunities;
(f)
improvement of the aesthetic, functionality, and walkability of the convention center
and surrounding area;
(g)
enhancement of tourism opportunities; and
(h)
creation of outdoor event space to accommodate events or festivals open to the
public.
(2)
A convention center reinvestment zone in a capital city proposal created under this part
shall also demonstrate how the proposal addresses the following objectives:
(a)
redevelopment of a convention center and surrounding infrastructure and assets that
directly serve the convention center, including parking facilities;
(b)
modernization of infrastructure and design of the convention center; and
(c)
improvement of the aesthetic, functionality, and walkability of the convention center.
(3)
(2)
The Governor's Office of Economic Opportunity shall propose a convention center
reinvestment zone to accomplish the objectives described in
Subsections
(1)
and (2)
Subsection
(1)
.
(4)
(3)
(a)
(i)
A convention center reinvestment zone proposal may propose the
capture of 100% of the property tax increment and 100% of the sales and use tax
increment described in Subsection
63N-3-602(38)(b)(ii)
63N-23-101(40)(b)(ii)
for a period of 30 years.
(ii)
For a convention center reinvestment zone in a capital city, in addition to the
proposed capture of property tax increment and sales and use tax increment
described in Subsection
(4)(a)(i)
, the convention center reinvestment zone may
propose the capture of 50% of the sales and use tax increment described in
Subsection
63N-3-602(38)(b)(i)
.
(b)
The convention center reinvestment zone proposal shall include the respective start
date and base year date from which to calculate:
(i)
the 30-year period of property tax increment; and
(ii)
the 30-year period of the sales and use tax increment.
(c)
The convention center reinvestment zone proposal may not stagger the collection
periods for the parcels within the convention center reinvestment zone boundary and
the parcels within the convention center reinvestment zone boundary shall have the
same 30-year collection period.
(d)
The convention center reinvestment zone proposal start date for the 30-year period
described in this Subsection
(4)
(3)
, shall be no sooner than January 1 of the year of
the identified tax collection year.
(e)
(i)
For a convention center reinvestment zone in a capital city, revenue from the
property tax increment and sales and use tax increment shall be distributed
directly to a convention center public infrastructure district in a capital city created
as required in Subsection
63N-3-607(8)(b)
; and
(ii)
(e)
For a convention center reinvestment zone
in a city other than a capital city
,
revenue from the property tax increment and sales and use tax increment may be
distributed directly to the municipality or public infrastructure district as described in
the convention center reinvestment zone proposal.
(5)
(4)
The Governor's Office of Economic Opportunity may only propose a convention
center reinvestment zone:
(a)
within the boundary of the eligible municipality;
(b)
consisting of a total area:
(i)
not to exceed 50 acres; or
(ii)
if greater than 50 acres, approved by the relevant eligible municipality;
and
(c)
consisting only of contiguous parcels
; and
.
(d)
for a convention center reinvestment zone in a capital city, in an area that includes
any portion of an existing convention center and any city block that is bordered by an
existing convention center.
(6)
(a)
For a convention center reinvestment zone in a capital city, the Governor's
Office of Economic Opportunity shall propose a convention center reinvestment zone
on or before April 15, 2025.
(b)
For a convention center reinvestment zone that is not in a capital city, the
(5)
The
Governor's Office of Economic Opportunity shall propose a convention center
reinvestment zone within 60 days after receiving a petition from the relevant city.
(7)
(6)
A convention center reinvestment zone does not count toward the maximum of
eight housing and transit reinvestment zones in a given county as provided in Subsection
63N-3-603(7)(a)
63N-23-201(7)(a)
.
Section 39. Section
63N-23-302
, which is renumbered from Section 63N-3-604.1 is renumbered
and amended to read:
63N-3-604.1
63N-23-302
Effective
05/06/26
. Process for proposing a
convention center reinvestment zone.
(1)
To create a convention center reinvestment zone under this part, the Governor's Office
of Economic Opportunity shall, after consulting with and giving notice to the related
eligible municipality and county, provide a proposal for a convention center
reinvestment zone to the housing and transit reinvestment zone committee.
(2)
(a)
The Governor's Office of Economic Opportunity shall ensure that a proposal for
the creation of a convention center reinvestment zone includes the following
information and data that:
(i)
(a)
defines the boundary of the proposed convention center reinvestment zone;
(ii)
(b)
describes generally the proposed development plan;
(iii)
(c)
identifies a base year and collection period to calculate the property tax
increment within the convention center reinvestment zone;
(iv)
(d)
specifies a sales and use tax base year to calculate the sales and use tax
increment within the convention center reinvestment zone in accordance with Section
63N-3-610.1
63N-23-306
;
(v)
(e)
provides estimated project and investment objectives for the convention center
reinvestment zone; and
(vi)
(f)
outlines generally the impacts on transportation in and around the proposed
convention center reinvestment zone.
(b)
For a convention center reinvestment zone in a capital city, the proposal described
in Subsection
(2)(a)
shall also provide estimated budgets and construction costs,
anticipated revenue, financing, expenses, and other sources and uses of funds for the
project area.
(c)
The proposal described in Subsection (2)(b) shall limit the use of funds to:
(i)
a convention center;
(ii)
a publicly owned entertainment venue;
(iii)
parking; and
(iv)
infrastructure related to the project.
(3)
A proposal by the Governor's Office of Economic Opportunity for a convention center
reinvestment zone shall demonstrate how the information and data provided in the
proposal
pursuant to
described in
Subsection
(2)
furthers the objectives described in
Section
63N-3-603.1
63N-23-301
and is in the public interest.
(4)
After submitting the proposal as described in Subsection
(2)
, the Governor's Office of
Economic Opportunity shall provide notice of the proposal to all affected taxing entities,
including the State Tax Commission, cities, counties, school districts, metropolitan
planning organizations, and the county assessor and county auditor of the county in
which the convention center reinvestment zone is located.
(5)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed convention center reinvestment zone as described in Subsection
(4)
, the Tax
Commission shall, within 14 days:
(a)
evaluate the feasibility of administering the tax implications of the proposal; and
(b)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the State Tax
Commission can feasibly administer the proposal.
Section 40. Section
63N-23-303
is enacted to read:
63N-23-303
Effective
05/06/26
. Payment, use, and administration of revenue
from a convention center reinvestment zone.
(1)
In accordance with this part, a municipality or a public infrastructure district may
receive and use property tax increment and convention center reinvestment zone funds
for a convention center reinvestment zone that is not within a capital city.
(2)
(a)
A county that collects property tax on property located within a convention center
reinvestment zone shall, in accordance with Section
59-2-1365
, distribute to the
relevant public infrastructure district created by the eligible municipality any
property tax increment the public infrastructure district is authorized to receive up to
the amounts approved by the housing and transit reinvestment zone committee.
(b)
Property tax increment distributed to a public infrastructure district in accordance
with Subsection
(2)(a)
is not revenue of the taxing entity or municipality.
(c)
Property tax increment paid to the public infrastructure district are convention center
reinvestment zone funds and shall be administered by the public infrastructure district
within which the convention center reinvestment zone is located.
(3)
(a)
A public infrastructure district shall use convention center reinvestment zone
funds within, or for the benefit of the convention center reinvestment zone.
(b)
If any housing and transit reinvestment zone funds will be used outside of the
housing and transit reinvestment zone, there shall be a finding in the approved
proposal for a housing and transit reinvestment zone that the use of the housing and
transit reinvestment zone funds outside of the housing and transit reinvestment zone
will directly benefit the housing and transit reinvestment zone.
(4)
A public infrastructure district shall use convention center reinvestment zone funds to
achieve the purposes described in Section
63N-23-301
.
(5)
Convention center reinvestment zone funds may be used to pay all of the costs of debt
incurred by the public infrastructure district, including the cost to issue and repay the
debt including interest.
Section 41. Section
63N-23-304
is enacted to read:
63N-23-304
Effective
05/06/26
. Applicability to an existing community
reinvestment zone project.
For a convention center reinvestment zone created under this part that overlaps any
portion of an existing community reinvestment project area created in accordance with Title
17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act:
(1)
if the community reinvestment project area captures less than 100% of the property tax
increment from a taxing entity, or if a taxing entity is not participating in the community
reinvestment project area, the convention center reinvestment zone may capture the
difference between:
(a)
100%; and
(b)
the percentage of property tax increment captured in accordance with the community
reinvestment project area for each taxing entity; and
(2)
if a community reinvestment project area plan expires before the convention center
reinvestment zone, the convention center reinvestment zone may capture the property
tax increment allocated to the community reinvestment project area for any remaining
portion of the term of the convention center reinvestment zone with the base year
relating back to the base year established by the community reinvestment project area.
Section 42. Section
63N-23-305
is enacted to read:
63N-23-305
Effective
05/06/26
. Property tax increment protections.
(1)
Upon petition by a participating taxing entity or on the initiative of the housing and
transit reinvestment zone committee creating a convention center reinvestment zone, a
convention center reinvestment zone may suspend or terminate the collection of
property tax increment in a convention center reinvestment zone if the housing and
transit reinvestment zone committee determines, by clear and convincing evidence,
presented in a public meeting of the housing and transit reinvestment zone committee,
that:
(a)
a substantial portion of the property tax increment collected in the convention center
reinvestment zone has not or will not be used for the purposes provided in Section
63N-23-303
; and
(b)
(i)
the convention center reinvestment zone and related public infrastructure
district has no indebtedness secured by funds provided for in this chapter; or
(ii)
the convention center reinvestment zone and related public infrastructure district
has no binding financial obligations secured by this chapter.
(2)
A convention center reinvestment zone may not collect property tax increment in excess
of the property tax increment projections or limitations set forth in the convention center
reinvestment zone proposal.
(3)
The public infrastructure district administering the property tax increment collected in a
convention center reinvestment zone under Section
63N-23-303
, shall have standing in a
court with proper jurisdiction to enforce provisions of the convention center
reinvestment zone proposal, participation agreements, and other agreements for the use
of the property tax increment collected.
(4)
The public infrastructure district administering the property tax increment collected in a
convention center reinvestment zone under Section
63N-23-303
that is collecting
property tax increment shall follow the reporting requirements described in Section
17C-1-603
and the audit requirements described in Sections
17C-1-604
and
17C-1-605
.
(5)
For each convention center reinvestment zone collecting tax increment within a county,
the county auditor shall follow the reporting requirement found in Section
17C-1-606
.
Section 43. Section
63N-23-306
, which is renumbered from Section 63N-3-610.1 is renumbered
and amended to read:
63N-3-610.1
63N-23-306
Effective
05/06/26
. Sales and use tax increment in a
convention center reinvestment zone.
(1)
A convention center
revitalization
reinvestment
zone proposal shall, in consultation
with the State Tax Commission:
(a)
create a sales and use tax boundary as described in Subsection
(2)
; and
(b)
establish a sales and use tax base year to calculate and transfer the sales and use tax
increment within the convention center
revitalization
reinvestment
zone 90 days
after the date of the notice described in Subsection
(4)
(5)
.
(2)
(a)
The Governor's Office of Economic Opportunity, in consultation with the State
Tax Commission, shall establish a sales and use tax boundary that:
(i)
is based on state sales and use tax collection boundaries, which are determined
using the ZIP Code as defined in Section
59-12-102
, including the four digit
delivery route extension;
(ii)
follows as closely as reasonably practicable the boundary of the convention
center
revitalization
reinvestment
zone; and
(iii)
is one contiguous area that includes at least the entire boundary of the convention
center
revitalization
reinvestment
zone.
(b)
If a state sales and use tax boundary is intersected by the boundary of the convention
center
revitalization
reinvestment
zone, the convention center
revitalization
reinvestment
zone may include the entire state sales and use tax boundary.
(c)
The Governor's Office of Economic Opportunity shall include the sales and use tax
boundary in the convention center
revitalization
reinvestment
zone proposal as
described in Section
63N-3-603.1
63N-23-301
.
(3)
(a)
For a convention center reinvestment zone that is not located in a capital city,
beginning
Beginning
no sooner than January 1, 2026, and on the first day of a
calendar quarter after the year set in the proposal and after the sales and use tax
boundary for a convention center reinvestment zone is established, the State Tax
Commission shall, at least annually, transfer an amount equal to 100% of the local
sales and use tax increment within an established sales and use tax boundary to the
relevant municipality or public infrastructure district.
(b)
For a convention center reinvestment zone that is located in a capital city, beginning
no sooner than January 1, 2026, and on the first day of a calendar quarter after the
year set in the proposal and after the sales and use tax boundary for a convention
center reinvestment zone in a capital city is established, the State Tax Commission
shall, at least annually, transfer an amount equal to 50% of the state sales and use tax
increment and 100% of any local sales and use tax increment within an established
sales and use tax boundary to the public infrastructure district created pursuant to
Subsection
63N-3-607(8)(b)
.
(4)
The Governor's Office of Economic Opportunity may only propose one sales and use
tax increment period and one sales and use tax base year for a convention center
revitalization
reinvestment
zone established under this part.
(5)
(a)
The distribution of the sales and use tax increment shall begin:
(i)
on the first day of a calendar quarter;
(ii)
after a 90-day waiting period, beginning on the date the State Tax Commission
receives notice from the Governor's Office of Economic Opportunity meeting the
requirements of Subsection
(5)(b)
; and
(iii)
no earlier than January 1, 2026 after the year set in the proposal of the approved
convention center reinvestment zone.
(b)
The notice described in Subsection
(5)(a)
shall include:
(i)
a statement that the convention center
revitalization
reinvestment
zone will be
established under this part;
(ii)
the approval date and effective date of the convention center
revitalization
reinvestment
zone; and
(iii)
the definitions of the sales and use tax boundary and sales and use tax base year.
(6)
The State Tax Commission may retain and deposit an administrative charge in
accordance with Section
59-1-306
from sales and use tax revenues the State Tax
Commission collects and administers under this section.
Section 44. Section
63N-23-307
is enacted to read:
63N-23-307
Effective
05/06/26
. Boundary adjustments.
If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a
convention center reinvestment zone, the Governor's Office of Economic Opportunity may
make corresponding adjustments to the boundary of the convention center reinvestment zone.
Section 45. Section
63N-23-401
is enacted to read:
4. Convention Center Reinvestment Zone in a Capital City
63N-23-401
Effective
05/06/26
. Applicability, requirements, and limitations on
a convention center reinvestment zone in a capital city.
(1)
A convention center reinvestment zone in a capital city proposal created under this part
shall demonstrate how the proposal addresses the following objectives:
(a)
redevelopment of a convention center and the surrounding area's infrastructure and
assets;
(b)
activation of unrealized economic opportunities related to the convention center and
surrounding infrastructure and assets;
(c)
modernization of infrastructure and design of the convention center and surrounding
area and related public spaces;
(d)
encouragement of transformative development and investment, including parking
improvements;
(e)
promotion of economic development and employment opportunities;
(f)
improvement of the aesthetic, functionality, and walkability of the convention center
and surrounding area;
(g)
enhancement of tourism opportunities; and
(h)
creation of an outdoor event space to accommodate events or festivals open to the
public.
(2)
A convention center reinvestment zone in a capital city proposal created under this part
shall also demonstrate how the proposal addresses the following objectives:
(a)
redevelopment of a convention center and surrounding infrastructure and assets that
directly serve the convention center, including parking facilities;
(b)
modernization of infrastructure and design of the convention center; and
(c)
improvement of the aesthetic, functionality, and walkability of the convention center.
(3)
The Governor's Office of Economic Opportunity shall propose a convention center
reinvestment zone in a capital city to accomplish the objectives described in Subsections
(1)
and (2).
(4)
(a)
A convention center reinvestment zone in a capital city proposal may propose the
capture of 100% of the property tax increment and 100% of the sales and use tax
increment described in Subsection
63N-23-101(40)(b)(ii)
for a period of 30 years.
(b)
In addition to the proposed capture of property tax increment and sales and use tax
increment described in Subsection
(4)(a)
, the convention center reinvestment zone in
a capital city may propose the capture of 50% of the sales and use tax increment
described in Subsection
63N-23-101(40)(b)(i)
.
(c)
The convention center reinvestment zone in a capital city proposal shall include the
respective start date and base year date from which to calculate:
(i)
the 30-year period of property tax increment; and
(ii)
the 30-year period of the sales and use tax increment.
(d)
The convention center reinvestment zone in a capital city proposal may not stagger
the collection periods for the parcels within the convention center reinvestment zone
boundary and the parcels within the convention center reinvestment zone boundary
shall have the same 30-year collection period.
(e)
The convention center reinvestment zone in a capital city proposal start date for the
30-year period described in this Subsection
(4)
, shall be no sooner than January 1 of
the year of the identified tax collection year.
(f)
The revenue from the property tax increment and sales and use tax increment for a
convention center reinvestment zone in a capital city shall be distributed directly to a
convention center public infrastructure district in a capital city created under Section
63N-23-403
.
(g)
The convention center public infrastructure district described in Subsection
(4)(f)
shall be created by an eligible municipality that is a capital city infrastructure district.
(5)
The Governor's Office of Economic Opportunity may only propose a convention center
reinvestment zone:
(a)
within the boundary of the eligible municipality;
(b)
consisting of a total area:
(i)
not to exceed 50 acres; or
(ii)
if greater than 50 acres, approved by the relevant eligible municipality;
(c)
consisting only of contiguous parcels; and
(d)
in an area that includes any portion of an existing convention center and any city
block that is bordered by an existing convention center.
(6)
The Governor's Office of Economic Opportunity shall propose a convention center
reinvestment zone in a capital city on or before April 15, 2025.
(7)
A convention center reinvestment zone in a capital city does not count toward the
maximum of eight housing and transit reinvestment zones in a given county as provided
in Subsection
63N-23-201(7)(a)
.
Section 46. Section
63N-23-402
is enacted to read:
63N-23-402
Effective
05/06/26
. Process for proposing a convention center
reinvestment zone in a capital city.
(1)
To create a convention center reinvestment zone in a capital city under this part, the
Governor's Office of Economic Opportunity shall, after consulting with and giving
notice to the related eligible municipality and county, provide a proposal for a
convention center reinvestment zone in a capital city to the housing and transit
reinvestment zone committee.
(2)
(a)
The Governor's Office of Economic Opportunity shall ensure that a proposal for
the creation of a convention center reinvestment zone in a capital city includes the
following information and data that:
(i)
defines the boundary of the proposed convention center reinvestment zone in a
capital city;
(ii)
describes generally the proposed development plan;
(iii)
identifies a base year and collection period to calculate the property tax
increment within the convention center reinvestment zone in a capital city;
(iv)
specifies a sales and use tax base year to calculate the sales and use tax increment
within the convention center reinvestment zone in a capital city in accordance
with Section
63N-23-406
;
(v)
provides estimated project and investment objectives for the convention center
reinvestment zone in a capital city; and
(vi)
outlines generally the impacts on transportation in and around the proposed
convention center reinvestment zone in a capital city.
(b)
The proposal described in Subsection
(2)(a)
shall also provide estimated budgets and
construction costs, anticipated revenue, financing, expenses, and other sources and
uses of funds for the project area.
(c)
The proposal described in Subsection
(2)(b)
shall limit the use of funds to:
(i)
a convention center;
(ii)
a publicly owned entertainment venue;
(iii)
parking; and
(iv)
infrastructure related to the project.
(3)
A proposal by the Governor's Office of Economic Opportunity for a convention center
reinvestment zone in a capital city shall demonstrate how the information and data
provided in the proposal described in Subsection
(2)
furthers the objectives described in
Section
63N-23-401
and is in the public interest.
(4)
After submitting the proposal as described in Subsection
(2)
, the Governor's Office of
Economic Opportunity shall provide notice of the proposal to all affected taxing entities,
including the State Tax Commission, cities, counties, school districts, metropolitan
planning organizations, and the county assessor and county auditor of the county in
which the convention center reinvestment zone is located.
(5)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed convention center reinvestment zone in a capital city as described in
Subsection
(4)
, the State Tax Commission shall, within 14 days:
(a)
evaluate the feasibility of administering the tax implications of the proposal; and
(b)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the State Tax
Commission can feasibly administer the proposal.
Section 47. Section
63N-23-403
is enacted to read:
63N-23-403
Effective
05/06/26
. Payment, use, and administration of revenue
from a convention center reinvestment zone in a capital city.
(1)
In accordance with this part:
(a)
a public infrastructure district shall use the funds from a convention center
reinvestment zone in a capital city within or for the benefit of a convention center
reinvestment zone in a capital city; and
(b)
funds from a convention center reinvestment zone in a capital city may be used
outside of the capital city convention center reinvestment zone if the use meets the
objectives described in Section
63N-23-401
and is determined by the board of the
public infrastructure district to be a direct benefit to the convention center
reinvestment zone in a capital city.
(2)
(a)
A county that collects property tax on property located within a convention center
reinvestment zone shall, in accordance with Section
59-2-1365
, distribute to the
relevant public infrastructure district created by the eligible municipality any
property tax increment the public infrastructure district is authorized to receive up to
the amounts approved by the housing and transit reinvestment zone committee.
(b)
Property tax increment paid to the public infrastructure district are convention center
reinvestment zone funds and shall be administered by the public infrastructure district
within which the convention center reinvestment zone is located.
(c)
Property tax increment distributed to a public infrastructure district in accordance
with Subsection
(2)(a)
is not revenue of the taxing entity or municipality.
(d)
A public infrastructure district shall use convention center reinvestment zone funds
to achieve the purposes described in Section
63N-23-401
.
(3)
Convention center reinvestment zone funds may be used to pay all of the costs of debt
incurred by the public infrastructure district, including the cost to issue and repay the
debt including interest.
(4)
An eligible municipality that is a capital city shall create one or more public
infrastructure districts within the convention center reinvestment zone under Title 17D,
Chapter 4, Public Infrastructure District Act, and the convention center reinvestment
zone funds may be used to pay all or any portion of debt incurred by the public
infrastructure district, including the cost to issue and repay the debt including interest.
Section 48. Section
63N-23-404
is enacted to read:
63N-23-404
Effective
05/06/26
. Applicability to an existing community
reinvestment project.
For a convention center reinvestment zone in a capital city created under this part that
overlaps any portion of an existing community reinvestment project area created in accordance
with Title 17C, Limited Purpose Local Government Entities - Community Reinvestment
Agency Act:
(1)
if the community reinvestment project area captures less than 100% of the property tax
increment from a taxing entity, or if a taxing entity is not participating in the community
reinvestment project area, the convention center reinvestment zone in a capital city may
capture the difference between:
(a)
100%; and
(b)
the percentage of property tax increment captured in accordance with the community
reinvestment project area for each taxing entity; and
(2)
if a community reinvestment project area plan expires before the convention center
reinvestment zone, the convention center reinvestment zone may capture the property
tax increment allocated to the community reinvestment project area for any remaining
portion of the term of the convention center reinvestment zone with the base year
relating back to the base year established by the community reinvestment project area.
Section 49. Section
63N-23-405
is enacted to read:
63N-23-405
Effective
05/06/26
. Property tax increment protections.
(1)
Upon petition by a participating taxing entity or on the initiative of the housing and
transit reinvestment zone committee creating a housing and transit reinvestment zone or
convention center reinvestment zone, a housing and transit reinvestment zone or
convention center reinvestment zone may suspend or terminate the collection of
property tax increment in a housing and transit reinvestment zone or convention center
reinvestment zone if the housing and transit reinvestment zone committee determines,
by clear and convincing evidence, presented in a public meeting of the housing and
transit reinvestment zone committee, that:
(a)
a substantial portion of the property tax increment collected in the convention center
reinvestment zone has not or will not be used for the purposes provided in Section
63N-23-403
; and
(b)
(i)
the convention center reinvestment zone and related public infrastructure
district has no indebtedness secured by funds provided for in this chapter; or
(ii)
the convention center reinvestment zone and related public infrastructure district
has no binding financial obligations secured by this chapter.
(2)
A convention center reinvestment zone may not collect property tax increment in excess
of the property tax increment projections or limitations set forth in the convention center
reinvestment zone proposal.
(3)
The public infrastructure district administering the property tax increment collected in a
convention center reinvestment zone under Section
63N-23-403
, shall have standing in a
court with proper jurisdiction to enforce provisions of the convention center
reinvestment zone proposal, participation agreements, and other agreements for the use
of the property tax increment collected.
(4)
The public infrastructure district administering the property tax increment collected in a
convention center reinvestment zone under Section
63N-23-403
that is collecting
property tax increment shall follow the reporting requirements described in Section
17C-1-603
and the audit requirements described in Sections
17C-1-604
and
17C-1-605
.
(5)
For each convention center reinvestment zone collecting tax increment within a county,
the county auditor shall follow the reporting requirement found in Section
17C-1-606
.
Section 50. Section
63N-23-406
is enacted to read:
63N-23-406
Effective
05/06/26
. Sales and use tax increment in a convention
center reinvestment zone in a capital city.
(1)
A convention center reinvestment zone in a capital city proposal shall, in consultation
with the State Tax Commission:
(a)
create a sales and use tax boundary as described in Subsection
(2)
; and
(b)
establish a sales and use tax base year to calculate and transfer the sales and use tax
increment within the convention center reinvestment zone in a capital city 90 days
after the date of the notice described in Subsection
(5)
.
(2)
(a)
The Governor's Office of Economic Opportunity, in consultation with the State
Tax Commission, shall establish a sales and use tax boundary that:
(i)
is based on state sales and use tax collection boundaries, which are determined
using the ZIP Code as defined in Section
59-12-102
, including the four digit
delivery route extension;
(ii)
follows as closely as reasonably practicable the boundary of the convention
center reinvestment zone; and
(iii)
is one contiguous area that includes at least the entire boundary of the convention
center reinvestment zone.
(b)
If a state sales and use tax boundary is intersected by the boundary of the convention
center reinvestment zone, the convention center reinvestment zone may include the
entire state sales and use tax boundary.
(c)
The Governor's Office of Economic Opportunity shall include the sales and use tax
boundary in the convention center reinvestment zone proposal as described in Section
63N-23-401
.
(3)
Beginning no sooner than January 1, 2026, and on the first day of a calendar quarter
after the year set in the proposal and after the sales and use tax boundary for a
convention center reinvestment zone in a capital city is established, the State Tax
Commission shall, at least annually, transfer an amount equal to 50% of the state sales
and use tax increment and 100% of any local sales and use tax increment within an
established sales and use tax boundary to the public infrastructure district created in
accordance with Section
63N-23-403
.
(4)
The Governor's Office of Economic Opportunity may only propose one sales and use
tax increment period and one sales and use tax base year for a convention center
reinvestment zone established under this part.
(5)
(a)
The distribution of the sales and use tax increment shall begin:
(i)
on the first day of a calendar quarter;
(ii)
after a 90-day waiting period, beginning on the date the State Tax Commission
receives notice from the Governor's Office of Economic Opportunity meeting the
requirements of Subsection
(5)(b)
; and
(iii)
no earlier than January 1, 2026, after the year set in the proposal of the approved
convention center reinvestment zone.
(b)
The notice described in Subsection
(5)(a)
shall include:
(i)
a statement that the convention center reinvestment zone will be established under
this part;
(ii)
the approval date and effective date of the convention center reinvestment zone;
and
(iii)
the definitions of the sales and use tax boundary and sales and use tax base year.
(6)
The State Tax Commission may retain and deposit an administrative charge in
accordance with Section
59-1-306
from sales and use tax revenues the State Tax
Commission collects and administers under this section.
Section 51. Section
63N-23-407
is enacted to read:
63N-23-407
Effective
05/06/26
. Boundary adjustments.
If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a
convention center reinvestment zone in a capital city, the Governor's Office of Economic
Opportunity may make corresponding adjustments to the boundary of the convention center
reinvestment zone in a capital city.
Section 52. Section
63N-23-501
is enacted to read:
5. Home Ownership Promotion Zone for Municipalities
63N-23-501
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Affordable housing" means housing offered for sale at 80% or less of the median
county home price for housing of that type.
(2)
"Agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Base taxable value" means a property's taxable value as shown upon the assessment
roll last equalized during the base year.
(4)
"Base year" means, for a proposed home ownership promotion zone area, a year
beginning the first day of the calendar quarter determined by the last equalized tax roll
before the adoption of the home ownership promotion zone.
(5)
"Home ownership promotion zone" means a home ownership promotion zone created in
accordance with this part.
(6)
"Participant" means the same as that term is defined in Section
17C-1-102
.
(7)
"Participation agreement" means the same as that term is defined in Section
17C-1-102
.
(8)
"Project improvements" means the same as that term is defined in Section
11-36a-102
.
(9)
"System improvements" means the same as that term is defined in Section
11-36a-102
.
(10)
"Tax commission" means the State Tax Commission created in Section
59-1-201
.
(11)
(a)
"Tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a home ownership promotion zone, using the current assessed
value and each taxing entity's current certified tax rate as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Tax increment" does not include property revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
or
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
.
(c)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
Section 53. Section
63N-23-502
, which is renumbered from Section 10-21-501 is renumbered
and amended to read:
10-21-501
63N-23-502
Effective
05/06/26
. Municipal designation of a home
ownership promotion zone.
(1)
Subject to the requirements of Sections
10-21-502
63N-23-503
and
10-21-503
63N-23-504
, a municipality may create a home ownership promotion zone as described
in this section.
(2)
A home ownership promotion zone created under this section:
(a)
is an area of 10 contiguous acres or less located entirely within the boundaries of the
municipality, zoned for fewer than six housing units per acre before the creation of
the home ownership promotion zone;
(b)
shall be re-zoned for at least six housing units per acre; and
(c)
may not be encumbered by any residential building permits as of the day on which
the home ownership promotion zone is created.
(3)
(a)
The municipality shall designate the home ownership promotion zone by
resolution of the legislative body of the municipality, passed or adopted in a public
meeting of the legislative body of the municipality, following:
(i)
the recommendation of the municipality planning commission; and
(ii)
the notification requirements described in Section
10-21-503
63N-23-504
.
(b)
The resolution described in Subsection
(3)(a)
shall describe how the home ownership
promotion zone created in accordance with this section meets the objectives and
requirements in Section
10-21-502
63N-23-503
.
(c)
The home ownership promotion zone is created on the effective date of the resolution
described in Subsection
(3)(a)
.
(4)
If a home ownership promotion zone is created as described in this section:
(a)
affected local taxing entities are required to participate according to the requirements
of the home ownership promotion zone established by the municipality; and
(b)
each affected taxing entity is required to participate at the same rate.
(5)
A home ownership promotion zone may be modified by the same manner it is created as
described in Subsection
(3)
.
(6)
Within 30 days after the day on which the municipality creates the home ownership
promotion zone as described in Subsection
(3)
, the municipality shall:
(a)
record with the recorder of the county in which the home ownership promotion zone
is located a document containing:
(i)
a description of the land within the home ownership promotion zone; and
(ii)
the date of creation of the home ownership promotion zone;
(b)
transmit a copy of the description of the land within the home ownership promotion
zone and an accurate map or plat indicating the boundaries of the home ownership
promotion zone to the Utah Geospatial Resource Center created under Section
63A-16-505
; and
(c)
transmit a map and description of the land within the home ownership promotion
zone to:
(i)
the auditor, recorder, attorney, surveyor, and assessor of the county in which any
part of the home ownership promotion zone is located;
(ii)
the officer or officers performing the function of auditor or assessor for each
taxing entity that does not use the county assessment roll or collect the taxing
entity's taxes through the county;
(iii)
the legislative body or governing board of each taxing entity impacted by the
home ownership promotion zone;
(iv)
the tax commission; and
(v)
the State Board of Education.
(7)
A municipality may receive tax increment and use home ownership promotion zone
funds as described in Section
10-21-504
63N-23-505
.
Section 54. Section
63N-23-503
, which is renumbered from Section 10-21-502 is renumbered
and amended to read:
10-21-502
63N-23-503
Effective
05/06/26
. Applicability, requirements, and
limitations.
(1)
A home ownership promotion zone shall promote the following objectives:
(a)
increasing availability of housing, including affordable housing;
(b)
promotion of home ownership;
(c)
overcoming development impediments and market conditions that render an
affordable housing development cost prohibitive absent the incentives resulting from
a home ownership promotion zone; and
(d)
conservation of water resources through efficient land use.
(2)
In order to accomplish the objectives described in Subsection
(1)
, a municipality shall
ensure that:
(a)
land inside the proposed home ownership promotion zone is zoned as residential,
with at least six planned housing units per acre;
(b)
at least 60% of the proposed housing units within the home ownership promotion
zone are affordable housing units; and
(c)
all of the proposed housing units within the home ownership promotion zone are
deed restricted to require owner occupation for at least five years.
(3)
A municipality may restrict short term rentals in a home ownership promotion zone.
(4)
A municipality may not create a home ownership promotion zone if:
(a)
the proposed home ownership promotion zone would overlap with a school district
and:
(i)
(A)
the school district has more than one municipality within the school
district's boundaries; and
(B)
the school district already has 100 acres designated as home ownership
promotion zone within the school district's boundaries; or
(ii)
(A)
the school district has one municipality within the school district's
boundaries; and
(B)
the school district already has 50 acres designated as home ownership
promotion zone within the school district's boundaries; or
(b)
the area in the proposed home ownership zone would overlap with:
(i)
a project area, as that term is defined in Section
17C-1-102
, and created under
Title 17C, Chapter 1, Agency Operations, until the project area is dissolved in
accordance with Section
17C-1-702
; or
(ii)
an existing housing and transit reinvestment zone.
Section 55. Section
63N-23-504
, which is renumbered from Section 10-21-503 is renumbered
and amended to read:
10-21-503
63N-23-504
Effective
05/06/26
. Notification before creation of a
home ownership promotion zone.
(1)
(a)
As used in this section, "hearing" means a public meeting in which the legislative
body of a municipality:
(i)
considers a resolution creating a home ownership promotion zone; and
(ii)
takes public comment on a proposed home ownership promotion zone.
(b)
A hearing under this section may be combined with any other public meeting of a
legislative body of a municipality.
(2)
Before a municipality creates a home ownership promotion zone as described in Section
10-21-501
63N-23-502
, the municipality shall provide notice of a hearing as described
in this section.
(3)
The notice required by Subsection
(2)
shall be given by:
(a)
publishing notice for the municipality, as a class A notice under Section
63G-30-102
,
for at least 14 days before the day on which the legislative body of the municipality
intends to have a hearing;
(b)
at least 30 days before the hearing, mailing notice to:
(i)
each record owner of property located within the proposed home ownership
promotion zone;
(ii)
the State Tax Commission;
(iii)
the Governor's Office of Economic Opportunity;
(iii)
(iv)
the assessor and auditor of the county in which the proposed home
ownership promotion zone is located; and
(iv)
(v)
(A)
if the proposed home ownership promotion zone is subject to a taxing
entity committee, each member of the taxing entity committee and the State
Board of Education; or
(B)
if the proposed home ownership promotion zone is not subject to a taxing
entity committee, the legislative body or governing board of each taxing entity
within the boundaries of the proposed home ownership promotion zone.
(4)
The mailing of the notice to record property owners required under Subsection
(3)(b)
shall be conclusively considered to have been properly completed if:
(a)
the agency mails the notice to the property owners as shown in the records, including
an electronic database, of the county recorder's office and at the addresses shown in
those records; and
(b)
the county recorder's office records used by the agency in identifying owners to
whom the notice is mailed and
their
the property owners'
addresses were obtained or
accessed from the county recorder's office no earlier than 30 days before the mailing.
(5)
The municipality shall include in each notice required under this section:
(a)
(i)
a boundary description of the proposed home ownership promotion zone; or
(ii)
(A)
a mailing address or telephone number where a person may request that a
copy of the boundary description of the proposed home ownership promotion
zone be sent at no cost to the person by mail, email, or facsimile transmission;
and
(B)
if the agency or community has an
Internet
internet
website, an
Internet
internet
address where a person may gain access to an electronic, printable
copy of the boundary description of the proposed home ownership promotion
zone;
(b)
a map of the boundaries of the proposed home ownership promotion zone;
(c)
an explanation of the purpose of the hearing; and
(d)
a statement of the date, time, and location of the hearing.
(6)
The municipality shall include in each notice under Subsection
(3)(b)
:
(a)
a statement that property tax revenue resulting from an increase in valuation of
property within the proposed home ownership promotion zone will be paid to the
municipality for proposed home ownership promotion zone development rather than
to the taxing entity to which the tax revenue would otherwise have been paid; and
(b)
an invitation to the recipient of the notice to submit to the municipality comments
concerning the subject matter of the hearing before the date of the hearing.
(7)
A municipality may include in a notice under Subsection
(2)
any other information the
municipality considers necessary or advisable, including the public purpose achieved by
the proposed home ownership promotion zone.
Section 56. Section
63N-23-505
, which is renumbered from Section 10-21-504 is renumbered
and amended to read:
10-21-504
63N-23-505
Effective
05/06/26
. Payment, use, and administration
of revenue from a home ownership promotion zone.
(1)
(a)
A municipality may receive tax increment and use home ownership promotion
zone funds in accordance with this section.
(b)
The maximum amount of time that a municipality may receive and use tax increment
in accordance with a home ownership promotion zone is 15 consecutive years.
(2)
A county that collects property tax on property located within a home ownership
promotion zone shall, in accordance with Section
59-2-1365
, distribute 60% of the tax
increment collected from property within the home ownership promotion zone to the
municipality over the home ownership promotion zone to be used as described in this
section.
(3)
(a)
Tax increment distributed to a municipality in accordance with Subsection
(2)
is
not revenue of the taxing entity or municipality, but home ownership promotion zone
funds.
(b)
Home ownership promotion zone funds may be administered by an agency created
by the municipality within which the home ownership promotion zone is located.
(c)
Before an agency may receive home ownership promotion zone funds from a
municipality, the agency shall enter into an interlocal agreement with the
municipality.
(4)
(a)
A municipality or agency shall use home ownership promotion zone funds within,
or for the direct benefit of, the home ownership promotion zone.
(b)
If any home ownership promotion zone funds will be used outside of the home
ownership promotion zone, the legislative body of the municipality shall make a
finding that the use of the home ownership promotion zone funds outside of the home
ownership promotion zone will directly benefit the home ownership promotion zone.
(5)
A municipality or agency shall use home ownership promotion zone funds to achieve
the purposes described in Section
10-21-502
63N-23-503
by paying all or part of the
costs of any of the following:
(a)
project improvement costs;
(b)
systems improvement costs;
(c)
water exaction costs;
(d)
street lighting costs;
(e)
environmental remediation costs; or
(f)
the costs of the municipality or agency to create and administer the home ownership
promotion zone, which may not exceed 3% of the total home ownership promotion
zone funds.
(6)
Home ownership promotion zone funds may be paid to a participant, if the municipality
and participant enter into a participation agreement which requires the participant to
utilize the home ownership promotion zone funds as allowed in this section.
(7)
Home ownership promotion zone funds may be used to pay all of the costs of bonds
issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency
Bonds, including the cost to issue and repay the bonds including interest.
(8)
A municipality may:
(a)
create one or more public infrastructure districts within a home ownership promotion
zone under Title 17D, Chapter 4, Public Infrastructure District Act; and
(b)
pledge and utilize the home ownership promotion zone funds to guarantee the
payment of public infrastructure bonds issued by a public infrastructure district.
Section 57. Section
63N-23-601
is enacted to read:
6. Home Ownership Promotion Zone for Counties
63N-23-601
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Affordable housing" means housing offered for sale at 80% or less of the median
county home price for housing of that type.
(2)
"Agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Base taxable value" means a property's taxable value as shown upon the assessment
roll last equalized during the base year.
(4)
"Base year" means, for a proposed home ownership promotion zone area, a year
beginning the first day of the calendar quarter determined by the last equalized tax roll
before the adoption of the home ownership promotion zone.
(5)
"Home ownership promotion zone" means a home ownership promotion zone created in
accordance with this part.
(6)
"Participant" means the same as that term is defined in Section
17C-1-102
.
(7)
"Participation agreement" means the same as that term is defined in Section
17C-1-102
.
(8)
"Project improvements" means the same as that term is defined in Section
11-36a-102
.
(9)
"System improvements" means the same as that term is defined in Section
11-36a-102
.
(10)
"Tax commission" means the State Tax Commission created in Section
59-1-201
.
(11)
(a)
"Tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a home ownership promotion zone, using the current assessed
value and each taxing entity's current certified tax rate as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Tax increment" does not include property revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
or
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
.
(12)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
Section 58. Section
63N-23-602
, which is renumbered from Section 17-80-501 is renumbered
and amended to read:
17-80-501
63N-23-602
Effective
05/06/26
. County designation of a home
ownership promotion zone.
(1)
Subject to Sections
17-80-502
63N-23-603
and
17-80-503
63N-23-604
, a county may
create a home ownership promotion zone as described in this section.
(2)
A home ownership promotion zone created under this section:
(a)
is an area of 10 contiguous unincorporated acres or less located entirely within the
boundaries of the county, zoned for fewer than six housing units per acre before the
creation of the home ownership promotion zone;
(b)
shall be re-zoned for at least six housing units per acre; and
(c)
may not be encumbered by any residential building permits as of the day on which
the home ownership promotion zone is created.
(3)
(a)
The county shall designate the home ownership promotion zone by resolution of
the legislative body of the county following:
(i)
the recommendation of the county planning commission; and
(ii)
the notification requirements described in Section
17-80-503
63N-23-604
.
(b)
The resolution described in Subsection
(3)(a)
shall describe how the home ownership
promotion zone created in accordance with this section meets the objectives and
requirements of Section
17-80-502
63N-23-603
.
(c)
The home ownership promotion zone is created on the effective date of the resolution
described in Subsection
(3)(a)
.
(4)
If a home ownership promotion zone is created as described in this section:
(a)
affected local taxing entities are required to participate according to the requirements
of the home ownership promotion zone established by the county; and
(b)
each affected taxing entity is required to participate at the same rate.
(5)
A home ownership promotion zone may be modified by the same manner it is created as
described in Subsection
(3)
.
(6)
Within 30 days after the day on which the county creates the home ownership
promotion zone as described in Subsection
(3)
, the county shall:
(a)
record with the recorder a document containing:
(i)
a description of the land within the home ownership promotion zone; and
(ii)
the date of creation of the home ownership promotion zone;
(b)
transmit a copy of the description of the land within the home ownership promotion
zone and an accurate map or plat indicating the boundaries of the home ownership
promotion zone to the Utah Geospatial Resource Center created under Section
63A-16-505
; and
(c)
transmit a map and description of the land within the home ownership promotion
zone to:
(i)
the auditor, recorder, attorney, surveyor, and assessor of the county in which any
part of the home ownership promotion zone is located;
(ii)
the officer or officers performing the function of auditor or assessor for each
taxing entity that does not use the county assessment roll or collect the taxing
entity's taxes through the county;
(iii)
the legislative body or governing board of each taxing entity impacted by the
home ownership promotion zone;
(iv)
the tax commission; and
(v)
the State Board of Education.
(7)
A county may receive tax increment and use home ownership promotion zone funds as
described in Section
17-80-504
63N-23-605
.
Section 59. Section
63N-23-603
, which is renumbered from Section 17-80-502 is renumbered
and amended to read:
17-80-502
63N-23-603
Effective
05/06/26
. Applicability, requirements, and
limitations.
(1)
A home ownership promotion zone shall promote the following objectives:
(a)
increasing availability of housing, including affordable housing;
(b)
promotion of home ownership;
(c)
overcoming development impediments and market conditions that render an
affordable housing development cost prohibitive absent the incentives resulting from
a home ownership promotion zone; and
(d)
conservation of water resources through efficient land use.
(2)
In order to accomplish the objectives described in Subsection
(1)
, a county shall ensure
that:
(a)
land inside the proposed home ownership promotion zone is zoned as residential,
with at least six planned housing units per acre;
(b)
at least 60% of the proposed housing units within the home ownership promotion
zone are affordable housing units; and
(c)
all of the proposed housing units within the home ownership promotion zone are
deed restricted to require owner occupation for at least five years.
(3)
A county may restrict short term rentals in a home ownership promotion zone.
(4)
A county may not create a home ownership promotion zone if:
(a)
the proposed home ownership promotion zone would overlap with a school district
and:
(i)
(A)
the school district has more than one municipality within the school
district's boundaries; and
(B)
the school district already has 100 acres designated as home ownership
promotion zone within the school district's boundaries; or
(ii)
(A)
the school district has one municipality within the school district's
boundaries; and
(B)
the school district already has 50 acres designated as home ownership
promotion zone within the school district's boundaries; or
(b)
the area in the proposed home ownership promotion zone would overlap with:
(i)
a project area, as that term is defined in Section
17C-1-102
, and created under
Title
17C, Chapter 1
, Agency Operations, until the project area is dissolved in
accordance with Section
17C-1-702
; or
(ii)
an existing housing and transit reinvestment zone.
Section 60. Section
63N-23-604
, which is renumbered from Section 17-80-503 is renumbered
and amended to read:
17-80-503
63N-23-604
Effective
05/06/26
. Notification before creation of a
home ownership promotion zone.
(1)
(a)
As used in this section, "hearing" means a public meeting in which the legislative
body of a county:
(i)
considers a resolution creating a home ownership promotion zone; and
(ii)
takes public comment on a proposed home ownership promotion zone.
(b)
A hearing under this section may be combined with any other public meeting of a
legislative body of a county.
(2)
Before a county creates a home ownership promotion zone as described in Section
17-80-501
63N-23-602
, the county shall provide notice of a hearing as described in this
section.
(3)
The notice required by Subsection
(2)
shall be given by:
(a)
publishing notice for the county, as a class A notice under Section
63G-30-102
, for at
least 14 days before the day on which the legislative body of the county intends to
have a hearing;
(b)
at least 30 days before the hearing, mailing notice to:
(i)
each record owner of property located within the proposed home ownership
promotion zone;
(ii)
the State Tax Commission;
(iii)
the Governor's Office of Economic Opportunity;
and
(iii)
(iv)
(A)
if the proposed home ownership promotion zone is subject to a
taxing entity committee, each member of the taxing entity committee and the
State Board of Education; or
(B)
if the proposed home ownership promotion zone is not subject to a taxing
entity committee, the legislative body or governing board of each taxing entity
within the boundaries of the proposed home ownership promotion zone.
(4)
The mailing of the notice to record property owners required under Subsection
(3)(b)
shall be conclusively considered to have been properly completed if:
(a)
the county mails the notice to the property owners as shown in the records, including
an electronic database, of the county recorder's office and at the addresses shown in
those records; and
(b)
the county recorder's office records used by the agency in identifying owners to
whom the notice is mailed and their addresses were obtained or accessed from the
county recorder's office no earlier than 30 days before the mailing.
(5)
The county shall include in each notice required under this section:
(a)
(i)
a boundary description of the proposed home ownership promotion zone; or
(ii)
(A)
a mailing address or telephone number where a person may request that a
copy of the boundary description of the proposed home ownership promotion
zone be sent at no cost to the person by mail, email, or facsimile transmission;
and
(B)
if the agency or community has an Internet website, an Internet address where
a person may gain access to an electronic, printable copy of the boundary
description of the proposed home ownership promotion zone;
(b)
a map of the boundaries of the proposed home ownership promotion zone;
(c)
an explanation of the purpose of the hearing; and
(d)
a statement of the date, time, and location of the hearing.
(6)
The county shall include in each notice under Subsection
(3)(b)
:
(a)
a statement that property tax revenue resulting from an increase in valuation of
property within the proposed home ownership promotion zone will be paid to the
county for proposed home ownership promotion zone development rather than to the
taxing entity to which the tax revenue would otherwise have been paid; and
(b)
an invitation to the recipient of the notice to submit to the county comments
concerning the subject matter of the hearing before the date of the hearing.
(7)
A county may include in a notice under Subsection
(2)
any other information the county
considers necessary or advisable, including the public purpose achieved by the proposed
home ownership promotion zone.
Section 61. Section
63N-23-605
, which is renumbered from Section 17-80-504 is renumbered
and amended to read:
17-80-504
63N-23-605
Effective
05/06/26
. Payment, use, and administration
of revenue from a home ownership promotion zone.
(1)
(a)
A county may receive tax increment and use home ownership promotion zone
funds in accordance with this section.
(b)
The maximum amount of time that a county may receive and use tax increment
collected from a home ownership promotion zone is 15 consecutive years.
(2)
A county that collects property tax on property located within a home ownership
promotion zone shall, in accordance with Section
59-2-1365
, retain 60% of the tax
increment collected from property within the home ownership promotion zone to be
used as described in this section.
(3)
(a)
Tax increment retained by a county in accordance with Subsection
(2)
is not
revenue of the taxing entity or county, but home ownership promotion zone funds.
(b)
Home ownership promotion zone funds may be administered by an agency created
by the county within which the home ownership promotion zone is located.
(c)
Before an agency may receive home ownership promotion zone funds from a county,
the agency shall enter into an interlocal agreement with the county.
(4)
(a)
A county or agency shall use home ownership promotion zone funds within, or for
the direct benefit of, the home ownership promotion zone.
(b)
If any home ownership promotion zone funds will be used outside of the home
ownership promotion zone, the legislative body of the county shall make a finding
that the use of the home ownership promotion zone funds outside of the home
ownership promotion zone will directly benefit the home ownership promotion zone.
(5)
A county or agency shall use home ownership promotion zone funds to achieve the
purposes described in Section
17-80-502
63N-23-603
by paying all or part of the costs
of any of the following:
(a)
project improvement costs;
(b)
systems improvement costs;
(c)
water exaction costs;
(d)
street lighting costs;
(e)
environmental remediation costs; or
(f)
the costs of the county to create and administer the home ownership promotion zone,
which may not exceed 3% of the total home ownership promotion zone funds.
(6)
Home ownership promotion zone funds may be paid to a participant, if the county and
participant enter into a participation agreement which requires the participant to utilize
the home ownership promotion zone funds as allowed in this section.
(7)
Home ownership promotion zone funds may be used to pay all of the costs of bonds
issued by the county in accordance with Title
17C, Chapter 1, Part 5
, Agency Bonds,
including the cost to issue and repay the bonds including interest.
(8)
A county may:
(a)
create one or more public infrastructure districts within home ownership promotion
zone under Title
17D, Chapter 4
, Public Infrastructure District Act; and
(b)
pledge and utilize the home ownership promotion zone funds to guarantee the
payment of public infrastructure bonds issued by a public infrastructure district.
Section 62. Section
63N-23-701
, which is renumbered from Section 63N-3-1601 is renumbered
and amended to read:
7. First Home Investment Zone
63N-3-1601
63N-23-701
Effective
05/06/26
. Definitions.
(1)
As used in this part:
(1)
"Affordable housing" means:
(a)
for homes that are not owner occupied, housing occupied or reserved for occupancy
by households with a gross household income equal to or less than 80% of the county
median gross income for households of the same size; or
(b)
(i)
for homes that are owner occupied, housing that is priced at 80% of the county
median home price; or
(ii)
for homes that are owner occupied, housing that is priced at 80% of the zip code
median home price if:
(A)
the proposal described in Section
63N-3-1603
63N-23-703
demonstrates
that a deviation from the county median home price will achieve the objectives
described in Subsection
63N-3-1602(1)
63N-23-702(1)
; and
(B)
the
zip
ZIP
code median home price is based upon county property tax
assessment data.
(2)
"Agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Base taxable value" means the same as that term is defined in Section
63N-3-602
63N-23-101
.
(4)
"Base year" means, for each tax increment collection period triggered within a proposed
first home investment zone area, the calendar year
prior to
before
the calendar year the
tax increment begins to be collected for those parcels triggered for that collection period.
(5)
(a)
"Developable area" means the portion of land within a first home investment zone
available for development and construction of business and residential uses.
(b)
"Developable area" does not include portions of land within a first home investment
zone that are allocated to:
(i)
parks;
(ii)
recreation facilities;
(iii)
open spaces;
(iv)
trails;
(v)
parking;
(vi)
roadway facilities; or
(vii)
other public facilities.
(6)
"Dwelling unit" means the same as that term is defined in Section
63N-3-602
63N-23-101
.
(7)
"Extraterritorial home" means a dwelling unit that is included as part of the first home
investment zone proposal that:
(a)
is located within the municipality proposing the first home investment zone but
outside the boundary of the first home investment zone;
(b)
is part of a development with a density of at least six units per acre;
(c)
is not located within an existing housing and transit reinvestment zone or an area that
could be included in a housing and transit reinvestment zone;
(d)
has not been issued a building permit by the municipality as of the date of the
approval of the first home investment zone; and
(e)
is required to be owner occupied for no less than 25 years.
(8)
"First home investment zone" means a first home investment zone created in accordance
with this part.
(9)
"Home" means a dwelling unit.
(10)
"Housing and transit reinvestment zone" means the same as that term is defined in
Section
63N-3-602
63N-23-101
.
(11)
"Housing and transit reinvestment zone committee" means the housing and transit
reinvestment zone committee described in Section
63N-3-605
63N-23-102
.
(12)
"Metropolitan planning organization" means the same as that term is defined in
Section
72-1-208.5
.
(13)
"Mixed use development" means the same as that term is defined in Section
63N-3-603
63N-23-101
.
(14)
"Moderate income housing plan" means the same as that term is defined in Section
11-41-102
.
(15)
"Municipality" means the same as that term is defined in Section
10-1-104
.
(16)
"Owner occupied" means private real property that is:
(a)
used for a single-family residential purpose; and
(b)
required to be occupied by the owner of the real property for no less than 25 years.
(17)
"Project area" means the same as that term is defined in Section
17C-1-102
.
(18)
(a)
"Project improvements" means site improvements and facilities that are:
(i)
planned and designed to provide service for development resulting from a
development activity;
(ii)
necessary for the use and convenience of the occupants or users of development
resulting from a development activity; and
(iii)
not identified or reimbursed as a system improvement.
(b)
"Project improvements" does not mean system improvements.
(19)
"State Tax Commission" means the State Tax Commission created in Section
59-1-201
.
(20)
(a)
"System improvements" means existing and future public facilities that are
designed to provide services to service areas within the community at large.
(b)
"System improvements" does not mean project improvements.
(21)
(a)
"Tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a first home investment zone designated in the first home
investment zone proposal as the area from which tax increment is to be collected,
using the current assessed value and each taxing entity's current certified tax rate
as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Tax increment" does not include property tax revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
or
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
.
(22)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
(23)
"Unencumbered annual community reinvestment agency revenue" means tax
increment revenue received by the agency for purposes identified in Title 17C, Limited
Purpose Local Government Entities - Community Reinvestment Agency Act, that:
(a)
have not been designated or restricted for future qualified uses as approved by the
agency board related to a specific project area; and
(b)
do not have a date certain by which the tax increment revenues will be used.
Section 63. Section
63N-23-702
, which is renumbered from Section 63N-3-1602 is renumbered
and amended to read:
63N-3-1602
63N-23-702
Effective
05/06/26
. Applicability, requirements, and
limitations on a first home investment zone.
(1)
A first home investment zone created in accordance with this part shall promote the
following objectives:
(a)
encouraging efficient development and opportunities for home ownership by
providing a variety of housing options, including affordable housing and for sale,
owner-occupied housing;
(b)
improving availability of housing options;
(c)
overcoming development impediments and market conditions that render a
development cost prohibitive absent the proposal and incentives;
(d)
conserving water resources through efficient land use;
(e)
improving air quality by reducing fuel consumption and motor vehicle trips;
(f)
encouraging transformative mixed-use development;
(g)
strategic land use and municipal planning in major transit investment corridors as
described in Subsection
10-20-404(2)
;
(h)
increasing access to employment and educational opportunities;
(i)
increasing access to child care; and
(j)
improving efficiencies in parking and transportation, including walkability of
communities, street and path interconnectivity within the proposed development and
connections to surrounding communities, and access to roadways, public
transportation, and active transportation.
(2)
In order to accomplish the objectives described in Subsection
(1)
, a municipality or
county that initiates the process to create a first home investment zone as described in
this part shall ensure that the proposal for a first home investment zone includes:
(a)
subject to Subsection
(3)
, a minimum of 30 housing units per acre:
(i)
in at least 51% of the developable area within the first home investment zone; and
(ii)
of which 50%
must
shall
be owner occupied;
(b)
a mixed use development;
(c)
a requirement that at least 25% of homes within the first home investment zone
remain owner occupied for at least 25 years from the date of original purchase;
(d)
for homes inside the first home investment zone, a requirement that at least 12% of
the owner occupied homes and 12% of the homes that are not owner occupied are
affordable housing;
(e)
a requirement that at least 20% of the extraterritorial homes are affordable housing;
and
(f)
except for extraterritorial homes, the number of homes that result from multiplying
the number of housing units described in Subsection
(2)(a)
by the developable area
described in Subsection
(2)(a)(i)
may be intermingled with other mixed uses within
the first home investment zone.
(3)
(a)
Subject to Subsection
(3)(b)
, to satisfy the requirements described in Subsection
(2)(a)
, a first home investment zone may include an extraterritorial home to count
toward the required density and owner-occupancy of the first home investment zone
by:
(i)
adding the total number of extraterritorial homes related to the first home
investment zone to the total number of homes within the first home investment
zone; and
(ii)
dividing the sum described in Subsection
(3)(a)(i)
by a number equal to 51% of
the total number of developable acres within the first home investment zone.
(b)
Extraterritorial homes may account for no more than half of the total homes to
calculate density within a first home investment zone.
(4)
(a)
If a municipality proposes a first home investment zone, the proposal shall comply
with the limitations described in this Subsection
(4)
.
(b)
A first home investment zone may not be less than 10 acres and no more than 100
acres of developable area in size.
(c)
(i)
Except as provided in Subsection
(4)(c)(ii)
, a first home investment zone is
required to be one contiguous area.
(ii)
While considering a first home investment zone proposal as described in Section
63N-3-1605
63N-23-704
, the housing and transit reinvestment zone committee
may consider and approve a first home investment zone that is not one contiguous
area if:
(A)
the municipality provides evidence in the proposal showing that the deviation
from the contiguity requirement will enhance the ability of the first home
investment zone to achieve the objectives described in Subsection
(1)
; and
(B)
the housing and transit reinvestment zone committee determines that the
deviation is reasonable and circumstances justify deviation from the contiguity
requirement.
(iii)
The first home investment zone area contiguity is not affected by roads or other
rights-of-way.
(d)
(i)
A first home investment zone proposal may propose the capture of a maximum
of 60% of each taxing entity's tax increment above the base year for a term of no
more than 25 consecutive years within a 45-year period not to exceed the tax
increment amount approved in the first home investment zone proposal.
(ii)
A first home investment zone proposal may not propose or include triggering
more than three tax increment collection periods during the applicable 25-year
period.
(iii)
Subject to Subsection
(4)(d)(iv)
, a municipality shall ensure that the required
affordable housing units are included proportionally in each phase of the first
home investment zone development.
(iv)
A municipality may allow a first home investment zone to be phased and
developed in a manner to provide more of the required affordable housing units in
early phases of development.
(e)
If a municipality proposes a first home investment zone, commencement of the
collection of tax increment, for all or a portion of the first home investment zone, is
triggered by providing notice as described in Subsection
(5)
.
(f)
A municipality may restrict homes within a first home investment zone and related
extraterritorial homes from being used as a short-term rental.
(g)
A municipality shall ensure that affordable housing within a first home investment
zone and related extraterritorial homes that are reserved as affordable housing are
spread throughout the overall development.
(h)
A municipality shall ensure that at least 80% of extraterritorial homes included in a
first home investment zone proposal are single-family detached homes.
(i)
A municipality shall include in a first home investment zone proposal:
(i)
an affordable housing plan, which may include deed restrictions, to ensure the
affordable housing required in the proposal will continue to meet the definition of
affordable housing at least throughout the entire term of the first home investment
zone; and
(ii)
an owner occupancy plan, which may include deed restrictions, to ensure the
owner occupancy requirements in the proposal will continue to meet the definition
of owner occupancy at least throughout the entire term of the first home
investment zone.
(j)
A municipality shall include in the first home investment zone proposal evidence to
demonstrate how the first home investment zone proposal complies with the
municipality's moderate income housing plan and general plan.
(5)
Notice of commencement of collection of tax increment shall be sent by mail or
electronically to the following entities no later than January 1 of the year for which the
tax increment collection is proposed to commence:
(a)
the State Tax Commission;
(b)
the State Board of Education;
(c)
the state auditor;
(d)
the auditor of the county in which the first home investment zone is located;
(e)
each taxing entity affected by the collection of tax increment from the first home
investment zone;
(f)
the assessor of the county in which the first home investment zone is located; and
(g)
the Governor's Office of Economic Opportunity.
(6)
A first home investment zone proposal may not include a proposal to capture sales and
use tax increment.
(7)
A municipality may not propose a first home investment zone in a county of the first
class if the limitation described in Subsection
63N-3-603(7)(c)
63N-23-201(7)(c)
has
been reached.
(8)
A municipality may not propose a first home investment zone in a location that is
eligible for a housing and transit reinvestment zone.
(9)
A municipality may not propose a first home investment zone if the municipality's
community reinvestment agency, based on the most recent annual comprehensive
financial report, retains cash and cash equivalent assets of more than 20% of ongoing
and unencumbered annual community reinvestment agency revenue.
Section 64. Section
63N-23-703
, which is renumbered from Section 63N-3-1603 is renumbered
and amended to read:
63N-3-1603
63N-23-703
Effective
05/06/26
. Process for a proposal of a first
home investment zone.
(1)
Subject to approval of the housing and transit reinvestment zone committee as described
in Section
63N-3-1604
63N-23-704
, in order to create a first home investment zone, a
municipality that has general land use authority over the first home investment zone
area, shall:
(a)
prepare a proposal for the first home investment zone that:
(i)
demonstrates that the proposed first home investment zone will meet the
objectives described in Subsection
63N-3-1602
(1)
63N-23-702(1)
;
(ii)
explains how the municipality will achieve the requirements of Subsection
63N-3-1602
(2)
63N-23-702(2)
;
(iii)
defines the specific infrastructure needs, if any, and proposed improvements;
(iv)
demonstrates how the first home investment zone will ensure:
(A)
sufficient pedestrian access to schools and other areas of community; and
(B)
inclusion of child care facilities and access;
(v)
defines the boundaries of the first home investment zone;
(vi)
includes maps of the proposed first home investment zone to illustrate:
(A)
proposed housing density within the first home investment zone;
(B)
extraterritorial homes relevant to the first home investment zone, including
density of the development of extraterritorial homes; and
(C)
existing zoning and proposed zoning changes related to the first home
investment zone;
(vii)
identifies any development impediments that prevent the development from
being a market-rate investment and proposed strategies for addressing each one;
(viii)
describes the proposed development plan, including the requirements described
in Subsections
63N-3-1602(2) and (4)
63N-23-702(2)
and
(4)
;
(ix)
establishes the collection period or periods to calculate the tax increment;
(x)
describes projected maximum revenues generated and the amount of tax
increment capture from each taxing entity and proposed expenditures of revenue
derived from the first home investment zone;
(xi)
includes an analysis of other applicable or eligible incentives, grants, or sources
of revenue that can be used to reduce the finance gap;
(xii)
proposes a finance schedule to align expected revenue with required financing
costs and payments;
(xiii)
evaluates possible benefits to active transportation, public transportation
availability and utilization, street connectivity, and air quality; and
(xiv)
provides a pro forma for the planned development that:
(A)
satisfies the requirements described in Subsections
63N-3-1602(2) and (4)
63N-23-702(2)
and
(4)
; and
(B)
includes data showing the cost difference between what type of development
could feasibly be developed absent the first home investment zone tax
increment and the type of development that is proposed to be developed with
the first home investment zone tax increment;
(b)
submit the proposal to the relevant school district to discuss the requirements of the
proposal and whether the proposal provides the benefits and achieves the objectives
described in this part; and
(c)
submit the first home investment zone proposal to the Governor's Office of
Economic Opportunity.
(2)
As part of the proposal described in Subsection
(1)
, a municipality shall:
(a)
study and evaluate possible impacts of a proposed first home investment zone on
parking and efficient use of land within the municipality and first home investment
zone; and
(b)
include in the first home investment zone proposal the findings of the study
described in Subsection
(2)(a)
and proposed strategies to efficiently address parking
impacts.
(3)
(a)
After receiving the proposal as described in Subsection
(1)(c)
, the Governor's
Office of Economic Opportunity shall:
(i)
within 14 days after the date on which the Governor's Office of Economic
Opportunity receives the proposal described in Subsection
(1)(c)
, provide notice
of the proposal to all affected taxing entities, including the State Tax Commission,
cities, counties, school districts, metropolitan planning organizations, and the
county assessor and county auditor of the county in which the first home
investment zone is located; and
(ii)
at the expense of the proposing municipality as described in Subsection
(5)
,
contract with an independent entity to:
(A)
perform the gap analysis described in Subsection
(3)(b)
; and
(B)
perform an analysis of the pro-forma described in Subsection
(1)(a)(xiv)(B)
and the feasibility of the proposed development absent the tax increment.
(b)
The gap and pro-forma analysis required in Subsection
(3)(a)(ii)
shall include:
(i)
a description of the planned development;
(ii)
a market analysis relative to other comparable project developments included in
or adjacent to the municipality absent the proposed first home investment zone;
(iii)
an evaluation of the proposal and a determination of the adequacy and efficiency
of the proposal;
(iv)
an evaluation of the proposed tax increment capture needed to cover the system
improvements and project improvements associated with the first home
investment zone proposal and enable the proposed development to occur, and for
the benefit of affordable housing projects; and
(v)
based on the market analysis and other findings, an opinion relative to the
appropriate amount of potential public financing reasonably determined to be
necessary to achieve the objectives described in Subsection
63N-3-1602
(1)
63N-23-702(1)
.
(c)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed first home investment zone as described in Subsection
(3)(a)(i)
, the
municipality, in consultation with the county assessor and the State Tax Commission,
shall:
(i)
evaluate the feasibility of administering the tax implications of the proposal; and
(ii)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the county
assessor can feasibly administer the proposal.
(4)
After receiving the results from the analysis described in Subsection
(3)(b)
, the
municipality proposing the first home investment zone may:
(a)
amend the first home investment zone proposal based on the findings of the analysis
described in Subsection
(3)(b)
and request that the Governor's Office of Economic
Opportunity submit the amended first home investment zone proposal to the housing
and transit reinvestment zone committee; or
(b)
request that the Governor's Office of Economic Opportunity submit the original first
home investment zone proposal to the housing and transit reinvestment zone
committee.
(5)
(a)
The Governor's Office of Economic Opportunity may accept, as a dedicated
credit, up to $20,000 from a municipality for the costs of the gap analysis described
in Subsection
(3)(b)
.
(b)
The Governor's Office of Economic Opportunity may expend funds received from a
municipality as dedicated credits to pay for the costs associated with the gap analysis
described in Subsection
(3)(b)
.
Section 65. Section
63N-23-704
, which is renumbered from Section 63N-3-1604 is renumbered
and amended to read:
63N-3-1604
63N-23-704
Effective
05/06/26
. Consideration of proposals by
housing and transit reinvestment zone committee.
(1)
A first home investment zone proposed under this part is subject to approval by the
housing and transit reinvestment zone committee.
(2)
After the Governor's Office of Economic Opportunity receives the results of the analysis
described in Section
63N-3-1603
63N-23-703
, and after the Governor's Office of
Economic Opportunity has received a request from the submitting municipality to
submit the first home investment zone proposal to the housing and transit reinvestment
zone committee, the Governor's Office of Economic Opportunity shall notify each of the
relevant entities of the formation of the housing and transit reinvestment zone committee
as described in Section
63N-3-605
63N-23-102
.
(3)
(a)
The chair of the housing and transit reinvestment zone committee shall convene a
public meeting to consider the proposed first home investment zone in the same
manner as described in Section
63N-3-605
63N-23-102
.
(b)
A meeting of the housing and transit reinvestment zone committee is subject to Title
52, Chapter 4, Open and Public Meetings Act.
(4)
(a)
The proposing municipality shall present the first home investment zone proposal
to the housing and transit reinvestment zone committee in a public meeting.
(b)
The housing and transit reinvestment zone committee shall:
(i)
evaluate and verify whether the objectives and elements of a first home investment
zone described in Subsections
63N-3-1502
(1), (2), and (4)
63N-23-702(1)
, (2),
and (4)
have been met; and
(ii)
evaluate the proposed first home investment zone relative to the analysis
described in Subsection
63N-3-1603
(2)
63N-23-703(2)
.
(5)
(a)
Subject to Subsection
(5)(b)
, the housing and transit reinvestment zone committee
may:
(i)
request changes to the first home investment zone proposal based on the analysis,
characteristics, and criteria described in Section
63N-3-1603
63N-23-703
; or
(ii)
vote to approve or deny the proposal.
(b)
Before the housing and transit reinvestment zone committee may approve the first
home investment zone proposal, the municipality proposing the first home
investment zone shall ensure that the area of the proposed first home investment zone
is zoned in such a manner to accommodate the requirements of a first home
investment zone described in this section and the proposed development.
(6)
If a first home investment zone is approved by the committee:
(a)
the proposed first home investment zone is established according to the terms of the
first home investment zone proposal;
(b)
affected local taxing entities are required to participate according to the terms of the
first home investment zone proposal; and
(c)
each affected taxing entity is required to participate at the same rate.
(7)
A first home investment zone proposal may be amended by following the same
procedure as approving a first home investment zone proposal.
Section 66. Section
63N-23-705
, which is renumbered from Section 63N-3-1605 is renumbered
and amended to read:
63N-3-1605
63N-23-705
Effective
05/06/26
. Notice requirements.
(1)
In approving a first home investment zone proposal, the housing and transit
reinvestment zone committee shall follow the hearing and notice requirements for
proposing a first home investment zone as described in this section.
(2)
Within 30 days after the housing and transit reinvestment zone committee approves a
proposed first home investment zone, the municipality shall:
(a)
record with the recorder of the county in which the first home investment zone is
located a document containing:
(i)
a description of the land within the first home investment zone;
(ii)
a statement that the proposed first home investment zone has been approved; and
(iii)
the date of adoption;
(b)
transmit a copy of the description of the land within the first home investment zone
and an accurate map or plat indicating the boundaries of the first home investment
zone to the Utah Geospatial Resource Center created under Section
63A-16-505
; and
(c)
transmit a copy of the approved first home investment zone proposal, map, and
description of the land within the first home investment zone, to:
(i)
the auditor, recorder, attorney, surveyor, and assessor of the county in which any
part of the first home investment zone is located;
(ii)
the officer or officers performing the function of auditor or assessor for each
taxing entity that does not use the county assessment roll or collect the taxing
entity's taxes through the county;
(iii)
the legislative body or governing board of each taxing entity;
(iv)
the State Tax Commission; and
(v)
the State Board of Education.
Section 67. Section
63N-23-706
, which is renumbered from Section 63N-3-1606 is renumbered
and amended to read:
63N-3-1606
63N-23-706
Effective
05/06/26
. Payment, use, and administration
of tax increment from a first home investment zone.
(1)
A municipality may receive and use tax increment and first home investment zone funds
in accordance with this part.
(2)
(a)
A county that collects property tax on property located within a first home
investment zone shall, in accordance with Section
59-2-1365
, distribute to the
municipality any tax increment the municipality is authorized to receive up to the
maximum approved by the housing and transit reinvestment zone committee.
(b)
(i)
Except as provided in Subsection
(2)(b)(ii)
, tax increment paid to the
municipality are first home investment zone funds and shall be administered by
the municipality within which the first home investment zone is located.
(ii)
A municipality may contract with an agency, county, or a housing authority to
administer tax increment and the first home investment zone, ensure compliance
with first home investment zone requirements, and administer deed restrictions.
(iii)
Before an agency may receive first home investment zone funds from the
municipality, the municipality and the agency shall enter into an interlocal
agreement with terms that:
(A)
are consistent with the approval of the housing and transit reinvestment zone
committee; and
(B)
meet the requirements of Section
63N-3-1502
63N-23-702
.
(3)
(a)
A municipality and the agency shall use first home investment zone funds for the
benefit of the first home investment zone and related extraterritorial housing.
(b)
If any first home investment zone funds will be used outside of the first home
investment zone there
must
shall
be a finding in the approved proposal for a first
home investment zone that the use of the first home investment zone funds outside of
the first home investment zone will directly benefit the first home investment zone or
related extraterritorial homes.
(4)
In accordance with Subsection
63N-3-1502
(4)(e)
63N-23-702(4)(e)
, a municipality
shall use the first home investment zone funds to achieve the purposes described in
Subsections
63N-3-1502
(1) and (2)
63N-23-702(1)
and
(2)
, by paying all or part of the
costs associated with the first home investment zone and extraterritorial homes,
including:
(a)
project improvements;
(b)
system improvements; and
(c)
the costs of the municipality to create and administer the first home investment zone,
which may not exceed 2% of the total first home investment zone funds, plus the
costs to complete the gap analysis described in
Subsection
63N-3-1603
(2)
Section
63N-23-703
.
(5)
First home investment zone funds may be paid to a participant, if the agency and
participant enter into a participation agreement which requires the participant to utilize
the first home investment zone funds as allowed in this section.
(6)
First home investment zone funds may be used to pay all of the costs of bonds issued by
the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds,
including the cost to issue and repay the bonds including interest.
(7)
A municipality may create one or more public infrastructure districts within the city
under Title 17D, Chapter 4, Public Infrastructure District Act, and pledge and utilize the
first home investment zone funds to guarantee the payment of public infrastructure
bonds issued by a public infrastructure district.
Section 68. Section
63N-23-707
, which is renumbered from Section 63N-3-1607 is renumbered
and amended to read:
63N-3-1607
63N-23-707
Effective
05/06/26
. Applicability to an existing first
home investment zone or community reinvestment project.
If a parcel within a first home investment zone is included as an area that is part of a
project area, as that term is defined in Section
17C-1-102
, and created under Title 17C,
Chapter 1, Agency Operations, that parcel may not be triggered for collection unless the
project area funds collection period, as that term is defined in Section
17C-1-102
, has expired.
Section 69. Section
63N-23-708
, which is renumbered from Section 63N-3-1608 is renumbered
and amended to read:
63N-3-1608
63N-23-708
Effective
05/06/26
. Tax increment protections.
(1)
Upon petition by a participating taxing entity or on the initiative of the housing and
transit reinvestment zone committee creating a first home investment zone, a first home
investment zone may suspend or terminate the collection of tax increment in a first home
investment zone if the housing and transit reinvestment zone committee determines, by
clear and convincing evidence, presented in a public meeting of the housing and transit
reinvestment zone committee, that:
(a)
a substantial portion of the tax increment collected in the first home investment zone
has not or will not be used for the purposes provided in Section
63N-3-1606
63N-23-706
; and
(b)
(i)
the first home investment zone has no indebtedness; or
(ii)
the first home investment zone has no binding financial obligations.
(2)
A first home investment zone may not collect tax increment in excess of the tax
increment projections or limitations set forth in the first home investment zone proposal.
(3)
The agency administering the tax increment collected in a first home investment zone
under Subsection
63N-3-1606
(2)
63N-23-706(2)
, shall have standing in a court with
proper jurisdiction to enforce provisions of the first home investment zone proposal,
participation agreements, and other agreements for the use of the tax increment collected.
(4)
The agency administering tax increment from a first home investment zone under
Subsection
63N-3-1606
(2)
63N-23-706(2)
shall follow the reporting requirements
described in Section
17C-1-603
and the audit requirements described in Sections
17C-1-604
and
17C-1-605
.
(5)
For each first home investment zone collecting tax increment within a county, the
county auditor shall follow the reporting requirement found in Section
17C-1-606
.
Section 70. Section
63N-23-709
, which is renumbered from Section 63N-3-1609 is renumbered
and amended to read:
63N-3-1609
63N-23-709
Effective
05/06/26
. Boundary adjustments.
If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a
first home investment zone, the municipality administering the tax increment collected in the
first home investment zone may make corresponding adjustments to the boundary of the first
home investment zone.
Section 71. Section
63N-23-801
, which is renumbered from Section 63N-3-1401 is renumbered
and amended to read:
8. Capital City Revitalization Zone
63N-3-1401
63N-23-801
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Committee" means the Revitalization Zone Committee created in Section
63N-3-1407
63N-23-807
.
(2)
"Franchise agreement" means a legally binding and valid agreement under which:
(a)
a major professional sports league has awarded a franchise to a franchise recipient;
and
(b)
the major professional sports league team that is the subject of the agreement is
playing, or will play, home games in a qualified stadium that exists or will be
constructed within the project area.
(3)
"Local government" means the municipality in which the project area is located.
(4)
"Major professional sports league" means the National Basketball Association or the
National Hockey League.
(5)
"Project area" means the area created and designated to receive funds and revenue
according to the terms and requirements of this part.
(6)
"Project participant" means a person that is approved to participate in the use of public
funds in a project area according to the procedures and requirements of this part.
(7)
"Qualified stadium" means a sports facility that:
(a)
provides seating for spectators in a number that is reasonably consistent with the
capacity of other stadiums used by other teams in the major professional sports
league;
(b)
is located within the project area; and
(c)
(i)
is in active use as the home venue of a major professional sports league team; or
(ii)
in the case of a stadium that is proposed to be constructed or remodeled, will be
the home venue of a major professional sports league.
(8)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
Section 72. Section
63N-23-802
, which is renumbered from Section 63N-3-1402 is renumbered
and amended to read:
63N-3-1402
63N-23-802
Effective
05/06/26
. Project area.
(1)
A local government may, according to the requirements and procedures of this part,
create a project area for the use of revenue authorized under Section
59-12-402.5
, which
revenue shall be used only for the allowed purposes
under
described in
Section
63N-3-1403
63N-23-803
.
(2)
A project area created under this part shall:
(a)
be located entirely within the boundaries of the local government;
(b)
be no greater than 100 acres in area;
(c)
be roughly centered around, and include the entire property footprint of a currently
existing qualified stadium;
(d)
include the entire property footprint of any qualified stadium that is planned to be
built;
(e)
be contiguous; and
(f)
have boundaries that are reasonably compact in relation to
their
the project area
distance from the currently existing qualified stadium.
Section 73. Section
63N-23-803
, which is renumbered from Section 63N-3-1403 is renumbered
and amended to read:
63N-3-1403
63N-23-803
Effective
05/06/26
. Allowable uses of funds.
(1)
A local government shall use any funds or revenue provided under Section
59-12-402.5
within and for the direct benefit of the project area, and subject to the requirements of
this section.
(2)
In addition to the requirements of Subsection
(1)
, the allowable uses for the funds and
revenue collected as authorized under this part are:
(a)
costs for, including debt service or the costs of bonds issued by the local government
or state:
(i)
paid to or for the benefit of a project participant for the construction or remodel of
a qualified stadium within the project area in accordance with Title 17C, Chapter
1, Part 5, Agency Bonds, including the cost to issue and repay bonds and interest;
and
(ii)
the construction, demolition, modification, or realignment of infrastructure or
structures within the project area for the purpose of:
(A)
complementing a qualified stadium and
its
the qualified stadium's
associated
uses, including entertainment and recreational uses on land within the project
area; and
(B)
improvement, demolition, modification, realignment, or restoration of areas
within the project area for pedestrian and traffic flow, and for aesthetic,
entertainment, recreational, and safety purposes;
(b)
infrastructure and roads, including state roads, within the project area;
(c)
traffic mitigation costs within the project area;
(d)
law enforcement or public security needs within the project area;
(e)
land acquisition costs;
(f)
commercial development, housing development, and parking infrastructure within
the project area; and
(g)
costs of the local government to create a project area or participation agreement and
to administer the funds, which cost may not exceed 1% of the tax revenue collected
under Section
59-12-402.5
.
(3)
(a)
The amount of funds and revenue used for, or for the benefit of, the project
participant shall be limited to a maximum dollar amount that shall be explicitly stated
in the participation agreement.
(b)
A project participant may not receive the benefit of funds or revenue in an amount
greater than the maximum dollar amount referred to in Subsection
(3)(a)
.
Section 74. Section
63N-23-804
, which is renumbered from Section 63N-3-1404 is renumbered
and amended to read:
63N-3-1404
63N-23-804
Effective
05/06/26
. Application for approval as a
project participant in a project area.
A person that seeks to have a local government create a project area under this part, and
to be a project participant within that project area, shall provide a local government with a
written application that certifies that the applicant:
(1)
is a party to a franchise agreement;
(2)
is or will be operating the team that is subject to the franchise agreement:
(a)
in an existing qualified stadium located within the project area to be created; or
(b)
in a new qualified stadium that will be located within the project area;
(3)
shows the existing and, as applicable, the proposed location and footprint of the
qualified stadium;
(4)
lists any public funds that are currently being received by, or are authorized to be
received by:
(a)
the applicant; or
(b)
any major professional sports league team that is owned or operated by the applicant;
and
(5)
any proposals or information related to the application, including specific details about
the franchise agreement or plans for a qualified stadium, a proposed boundary for the
project area, proposals for land or stadium ownership arrangements or stadium
revenue-sharing arrangements, or plans or requests for urban renewal or reconstruction.
Section 75. Section
63N-23-805
, which is renumbered from Section 63N-3-1405 is renumbered
and amended to read:
63N-3-1405
63N-23-805
Effective
05/06/26
. Local government review --
Participation agreement requirements -- Proposed project area and proposed
participation agreement -- Zoning -- Deadline.
(1)
Upon receipt of an application described in Section
63N-3-1404
63N-23-804
, a local
government shall review the application and, if the application is complete, may
negotiate with the applicant to develop:
(a)
a description of a proposed project area that meets the requirements of Section
63N-3-1402
63N-23-802
; and
(b)
a proposed participation agreement with the applicant, which agreement shall
contain:
(i)
a map or description of the project area;
(ii)
a description of the type and extent of each type of tax or other revenue that
would be available to the applicant within the project area if the applicant is
approved as a project participant;
(iii)
the location and footprint of the qualified stadium, and if applicable, the location,
footprint, and design of any proposed future or remodeled qualified stadium;
(iv)
if a qualified stadium is to be constructed, remodeled, or replaced, requirements
and plans for the design, remodel, operation, and other terms related to the
existing or new qualified stadium;
(v)
a master plan that:
(A)
provides an overview of challenges and issues to be addressed within the
project area, including land use, infrastructure, economic issues, and public
safety issues;
(B)
provides a 30-year plan for the physical development and the ongoing
management of the project area, including maps, plats, charts, drawings, time
lines, and descriptive, explanatory, and other related information that supports
and demonstrates the plan; and
(C)
provides a specific plan for each of the following subject areas, each of which
shall include, to the extent possible, detailed and specific information on
projects and time lines for the named subject area, and where specific details
cannot be provided, provides a list of specific goals, planned outcomes, and
time lines for achieving those goals and outcomes:
(I)
a financial plan, including the planned sources, uses, distribution, and time
lines for the use of funds and revenue;
(II)
a land use plan, including designs, ownership, demolition, construction,
and time lines, including plans for modification of roads and infrastructure
layout, removal or construction of buildings, and creation of new spaces,
facilities, and landmarks;
(III)
a public asset plan, including plans for modifications, renovations, and use
scenarios for existing buildings and public assets within the project area,
including buildings owned by a city or county, features, and other public
assets that will be affected by revitalization of the project area;
(IV)
a public safety plan, including plans for mitigating crime and ensuring
safety and physical security within the project area;
(V)
a homelessness mitigation plan, including plans to provide resources for
homeless individuals and to mitigate and manage camping and other related
social issues within the project area;
(VI)
a transportation plan, including plans to enable access to and from, and
public transportation, vehicle, and pedestrian traffic flow within the project
area; and
(VII)
a parking plan, including estimates for parking needs and plans for
accommodating those needs within the project area;
(vi)
a provision that the local government may not provide, and that a project
participant may not receive, a direct subsidy;
(vii)
(A)
the maximum dollar amount that may be used for, or for the benefit of,
the project participant, as required under Subsection
63N-3-1403
(3)
63N-23-803(3)
; and
(B)
a clear description of what fund and revenue uses will or will not be
considered for the benefit of the project participant and therefore subject to the
limit required under Subsection
63N-3-1403
(3)
63N-23-803(3)
;
(viii)
terms, procedures, and remedies related to breach of a participation agreement,
which shall contain:
(A)
specific descriptions of what constitutes breach of the participation agreement;
(B)
a requirement that access to funds ceases and that a project participant shall
repay to the local government the full amount of revenue or funds received
subject to Subsection
63N-3-1403
(3)
63N-23-803(3)
if the major professional
sports league team leaves or ceases to use a qualified stadium as
its
the major
professional sports league team's
exclusive home stadium, subject to any
additional terms agreed to in the participation agreement;
(C)
a description of all remedies available to the local government in association
with a breach; and
(D)
designation of a guarantor, security interests, or other measures to ensure
repayment of revenue and funds
in the event of
if
a breach
occurs
;
(ix)
procedures and penalties that apply
in the event that
if
the local government or
project participant fails to meet
the
requirements, goals, or objectives
set
described
under Subsection
(1)(b)(v)
;
(x)
an acknowledgment that the parties to the agreement are subject to the
requirements of this part;
(xi)
any additional obligations, terms, or conditions mutually agreed upon by the
local government and the project participant; and
(xii)
may contain:
(A)
any terms and conditions that affect a project participant's ability to receive or
use project area funds;
(B)
any terms or agreements regarding the qualified stadium and
its
the qualified
stadium's
associated property, including ownership, management, maintenance,
operation, revenue sharing, or other agreements;
(C)
terms, procedures, or remedies related to breach of a participation agreement;
and
(D)
any other relevant agreement between the applicant and the local government.
(2)
Before finalizing a proposed project area under Subsection
(3)
, a local government shall
ensure that any zoning modifications or requirements within the project area are
complete.
(3)
If the applicant and the local government develop a proposed project area and a
proposed participation agreement as described in Subsection
(1)
, the local government
shall, no later than September 1, 2024, provide notice of the proposed agreement and
provide a copy of the application, the proposed project area, and the proposed
participation agreement to:
(a)
the legislative body of the local government; and
(b)
the Revitalization Zone Committee.
Section 76. Section
63N-23-806
, which is renumbered from Section 63N-3-1406 is renumbered
and amended to read:
63N-3-1406
63N-23-806
Effective
05/06/26
. Local government endorsement --
Revitalization Zone Committee approval -- Final approval by local government --
Imposition of tax.
(1)
(a)
The legislative body of the local government shall, no later than
the date that is
14 calendar days after the date
that
on which a
notice of a proposed project area and
proposed participation agreement is provided under Subsection
63N-3-1405(2)
63N-23-805(3)
, in a public meeting by a majority vote:
(i)
endorse the application by:
(A)
endorsing the proposed project area, with or without amendment; and
(B)
endorsing the proposed participation agreement, with or without amendment;
or
(ii)
reject the application.
(b)
If the legislative body of the local government endorses the application, the
legislative body shall provide notice of the endorsement to the Revitalization Zone
Committee, and provide the committee with any amended project area or amended
participation agreement.
(c)
If the legislative body of the local government rejects the application:
(i)
the legislative body shall provide notice of the rejection to the mayor of the local
government; and
(ii)
the applicant and the local government may develop another proposed project
area and proposed participation agreement and present those documents according
to the procedures and requirements of Section
63N-3-1405
63N-23-805
.
(2)
(a)
If the legislative body of the local government endorses the application under
Subsection
(1)
:
,
(a)
The
the
Revitalization Zone Committee shall, no later than 30 calendar days after
the date
that
on which a
notice of the local government's endorsement of an
application is provided under Subsection
(1)(b)
, in a public meeting by a majority
vote:
(i)
approve or reject the endorsed project area; and
(ii)
approve or reject the endorsed project participation agreement.
(b)
If the committee approves the endorsed project area and the endorsed participation
agreement:
(i)
the committee shall give notice of the approval to the mayor and the legislative
body of the local government; and
(ii)
the legislative body of the local government may meet to consider final approval
as provided under Subsection
(3)
.
(c)
If the committee fails to approve the endorsed project area, the endorsed participation
agreement, or both the project area and participation agreement:
(i)
the committee may adopt a statement or findings as to why the committee failed to
provide
its
the committee's
approval;
(ii)
the committee shall give notice of the failure to approve to the mayor and the
legislative body of the local government; and
(iii)
the local government may:
(A)
develop another proposed project area and proposed participation agreement
according to the procedures and requirements of Section
63N-3-1405
63N-23-805
;
(B)
in a public meeting of the legislative body of the local government, review,
amend, or endorse another project area or participation agreement according to
the procedures and requirements of Subsection
(1)
; or
(C)
take no further action on the application.
(3)
If the Revitalization Zone Committee approves the endorsed project area and the
endorsed
public
project
participation agreement under Subsection
(2)
, the legislative
body of the local government may, by a majority vote in a public meeting:
(a)
give final approval to the application by:
(i)
approving the project area in the form approved by the committee;
(ii)
approving the proposed participation agreement in the form approved by the
committee; and
(iii)
designating the applicant as a project participant; or
(b)
reject the application.
(4)
After giving final approval to the application, the local government shall:
(a)
impose taxes or revenue sources that may be used within the project area, including
taxes or funds authorized under Section
59-12-402.5
; and
(b)
provide reports to the committee as required under
Subsection
63N-3-1408(2)
Section
63N-23-808
.
Section 77. Section
63N-23-807
, which is renumbered from Section 63N-3-1407 is renumbered
and amended to read:
63N-3-1407
63N-23-807
Effective
05/06/26
. Revitalization Zone Committee --
Creation -- Membership -- Staff.
(1)
There is created the Revitalization Zone Committee to review the activities of, and
advise a local government and project participants in a project area created under this
part.
(2)
The committee consists of the following members:
(a)
two members of the Senate, appointed by the president of the Senate;
(b)
two members of the House of Representatives, appointed by the speaker of the House
of Representatives
; and
(c)
one individual appointed by the governor.
(3)
(a)
The president of the Senate shall designate a member of the Senate appointed
under Subsection
(2)
as cochair of the committee.
(b)
The speaker of the House of Representatives shall designate a member of the House
of Representatives appointed under Subsection
(2)
as cochair of the committee.
(4)
(a)
A majority of the members of the committee constitutes a quorum.
(b)
The action of a majority of a quorum constitutes action of the Revitalization Zone
Committee.
(5)
The committee shall meet to review an endorsed application as provided under Section
63N-3-1406
63N-23-806
.
(6)
The committee may meet, upon the agreement of both cochairs:
(a)
to review a report provided under
Subsection
63N-3-1408
(2)
Section
63N-23-808
;
(b)
at the discretion of the cochairs; and
(c)
at the request of a local government.
(7)
A legislative member of the committee shall be paid salary and expenses in accordance
with Section
36-2-2
and Legislative Joint Rules, Title 5, Chapter 3,
Legislative
Legislator
Compensation.
(8)
A member who is not a legislator may not receive compensation or benefits for the
member's service, but may receive per diem and travel expenses as allowed in:
(a)
Section
63A-3-106
;
(b)
Section
63A-3-107
; and
(c)
rules made by the Division of Finance according to Sections
63A-3-106
and
63A-3-107
.
(9)
The Office of Legislative Research and General Counsel shall:
(a)
provide staff support to the committee; and
(b)
consult with the Office of the Legislative Fiscal Analyst on fiscal issues reviewed by
the committee.
Section 78. Section
63N-23-808
, which is renumbered from Section 63N-3-1408 is renumbered
and amended to read:
63N-3-1408
63N-23-808
Effective
05/06/26
. Revitalization Zone Committee --
Duties -- Reporting requirements of local government -- Executive Appropriations
Committee.
(1)
The Revitalization Zone Committee shall have the following duties:
(a)
to approve or reject an endorsed project area and an endorsed project participation
agreement according to the procedures and requirements of Section
63N-3-1406
63N-23-806
;
(b)
to review reports that are issued by a local government in accordance with
Subsection
(2)
;
(c)
to review the financial activities of a local government and project participants in
relation to a project area; and
(d)
to make recommendations to the Legislature regarding a project area and
participation agreement, requirements or procedures related to a project area, taxes or
public funds, or other matters relating to a project area or participation agreement.
(2)
A local government shall, after giving final approval to an application under Section
63N-3-1406
63N-23-806
, and each six months thereafter, or upon a request of the
committee, provide a report to the committee that contains:
(a)
a summary of the projects and uses that are currently underway or planned in relation
to the project area;
(b)
if not previously provided, or if modified, a copy of the project area and participation
agreement;
(c)
a detailed accounting of:
(i)
all public funds collected within the project area since the last report;
(ii)
all public funds provided to each project participant since the last report; and
(iii)
all public funds committed or spent, and a description of
their
the public funds'
use, since the last report;
(d)
the projected budget and time line for each project or use that is currently underway
or planned in relation to the project area; and
(e)
an accounting or a detailed summary of the financial impact of the project area on the
state and
its
the project area's
residents.
(3)
At the discretion of the Executive Appropriations Committee of the Legislature, the
local government and the Revitalization Zone Committee shall provide an in-person
report to the Executive Appropriations Committee:
(a)
at least once per calendar year, that shall contain at least the following information:
(i)
a summary of the projects and uses that are currently underway or planned in
relation to the project area;
(ii)
a detailed accounting of:
(A)
all public funds collected within the project area since the last report;
(B)
all public funds provided to each project participant since the last report; and
(C)
all public funds committed or spent, and a description of
their
the public
funds'
use, since the last report;
(iii)
the projected budget and time line for each project or use that is currently
underway or planned in relation to the project area;
(iv)
an accounting or a detailed summary of the financial impact of the project area
on the state and
its
the project area's
residents;
(v)
any recommendations or requests from the local government; and
(vi)
any recommendations or requests form the Revitalization Zone Committee;
(b)
after the local government provides a proposed project area and proposed
participation agreement under Section
63N-3-1405
63N-23-805
; and
(c)
after the local government gives final approval to an application under Section
63N-3-1406
63N-23-806
.
(4)
(a)
As used in this Subsection
(4)
, "replacement prosecutor" means a prosecutor pro
tempore that the Utah Supreme Court is authorized to appoint under Utah
4-109
Constitution, Article VIII, Section 16.
(b)
The committee may, by majority vote in a public meeting, adopt a recommendation
to the Utah Supreme Court that the Utah Supreme Court appoint a replacement
prosecutor in a county of the first class to prosecute crimes within the project area in
the place of the district attorney if the committee determines that the district attorney
has failed or refused to adequately prosecute crimes within the project area.
(c)
If the Utah Supreme Court appoints a replacement prosecutor in response to a
recommendation under this Subsection
(4)
, the temporary prosecutor shall prosecute
crimes within the project area in the place of the district attorney until the temporary
prosecutor's appointment expires.
Section 79. Section
63N-23-901
, which is renumbered from Section 11-13-227 is renumbered
and amended to read:
9. Transportation Reinvestment Zone
11-13-227
63N-23-901
Effective
05/06/26
. Transportation reinvestment zones.
(1)
Subject to the provisions of this part, any two or more public agencies may enter into an
agreement
with one another
to create a transportation reinvestment zone as described
in this section.
(2)
To create a transportation reinvestment zone, two or more public agencies, at least one
of which has land use authority over the transportation reinvestment zone area, shall:
(a)
define the transportation infrastructure need and proposed improvement;
(b)
define the boundaries of the zone;
(c)
establish terms for sharing sales tax revenue among the members of the agreement;
(d)
establish a base year to calculate the increase of property tax revenue within the zone;
(e)
establish terms for sharing any increase in property tax revenue within the zone; and
(f)
before an agreement is approved as required in Section
11-13-202.5
, hold a public
hearing regarding the details of the proposed transportation reinvestment zone.
(3)
Any agreement to establish a transportation reinvestment zone is subject to the
requirements of Sections
11-13-202
,
11-13-202.5
,
11-13-206
, and
11-13-207
.
(4)
(a)
Each public agency that is party to an agreement under this section shall annually
publish a report including a statement of the increased tax revenue and the
expenditures made in accordance with the agreement.
(b)
Each public agency that is party to an agreement under this section shall transmit a
copy of the report described in Subsection
(4)(a)
to the state auditor.
(5)
If any surplus revenue remains in a tax revenue account created as part of a
transportation reinvestment zone agreement, the parties may use the surplus for other
purposes as determined by agreement of the parties.
(6)
(a)
An action taken under this section is not subject to:
(i)
Section
10-8-2
;
(ii)
Title 10, Chapter 20, Municipal Land Use, Development, and Management Act;
(iii)
Title 17, Chapter 79, County Land Use, Development, and Management Act; or
(iv)
Section
17-78-103
.
(b)
An ordinance, resolution, or agreement adopted under this title is not a land use
regulation as defined in Sections
10-20-102
and
17-79-102
.
Section 80. Section
72-1-102
is amended to read:
72-1-102
Effective
05/06/26
. Definitions.
As used in this title:
(1)
"Circulator alley" means a publicly owned passageway:
(a)
with a right-of-way width of 20 feet or greater;
(b)
located within a master planned community;
(c)
established by the city having jurisdictional authority as part of the street network for
traffic circulation that may also be used for:
(i)
garbage collection;
(ii)
access to residential garages; or
(iii)
access rear entrances to a commercial establishment; and
(d)
constructed with a bituminous or concrete pavement surface.
(2)
"Commission" means the Transportation Commission created under Section
72-1-301
.
(3)
"Construction" means the construction, reconstruction, replacement, and improvement
of the highways, including the acquisition of rights-of-way and material sites.
(4)
"Department" means the Department of Transportation created in Section
72-1-201
.
(5)
"Executive director" means the executive director of the department appointed under
Section
72-1-202
.
(6)
"Farm tractor"
has the meaning set forth
means the same as that term is defined
in
Section
41-1a-102
.
(7)
"Federal aid primary highway" means that portion of connected main highways located
within this state officially designated by the department and approved by the United
States Secretary of Transportation under
Title 23
, Highways, U.S.C.
(8)
"Fixed guideway" means the same as that term is defined in Section
59-12-102
.
(9)
(a)
"Fixed guideway capital development" means a project to construct or reconstruct
a public transit fixed guideway facility that will add capacity to a fixed guideway
public transit facility.
(b)
"Fixed guideway capital development" includes:
(i)
a project to strategically double track commuter rail lines; and
(ii)
a project to develop and construct public transit facilities and related
infrastructure pertaining to the Point of the Mountain State Land Authority created
in Section
11-59-201
.
(10)
"Greenfield" means the same as that term is defined in Section
17C-1-102
.
(11)
"Highway" means any public road, street, alley, lane, court, place, viaduct, tunnel,
culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned
to the public, or made public in an action for the partition of real property, including the
entire area within the right-of-way.
(12)
"Highway authority" means the department or the legislative, executive, or governing
body of a county or municipality.
(13)
"Housing and transit reinvestment zone" means the same as that term is defined in
Section
63N-3-602
63N-23-101
.
(14)
"Implement of husbandry"
has the meaning set forth
means the same as that term is
defined
in Section
41-1a-102
.
(15)
"Interstate system" means any highway officially designated by the department and
included as part of the national interstate and defense highways, as provided in the
Federal Aid Highway Act of 1956 and any supplemental acts or amendments.
(16)
"Large public transit district" means the same as that term is defined in Section
17B-2a-802
.
(17)
"Limited-access facility" means a highway especially designated for through traffic,
and over, from, or to which neither owners nor occupants of abutting lands nor other
persons have any right or easement, or have only a limited right or easement of access,
light, air, or view.
(18)
"Master planned community" means a land use development:
(a)
designated by the city as a master planned community; and
(b)
comprised of a single development agreement for a development larger than 500
acres.
(19)
"Motor vehicle"
has the same meaning set forth
means the same as that term is defined
in Section
41-1a-102
.
(20)
"Municipality"
has the same meaning set forth
means the same as that term is defined
in Section
10-1-104
.
(21)
"National highway systems highways" means that portion of connected main highways
located within this state officially designated by the department and approved by the
United States Secretary of Transportation under
Title 23
, Highways, U.S.C.
(22)
(a)
"Port-of-entry" means a fixed or temporary facility constructed, operated, and
maintained by the department where drivers, vehicles, and vehicle loads are checked
or inspected for compliance with state and federal laws as specified in Section
72-9-501
.
(b)
"Port-of-entry" includes inspection and checking stations and weigh stations.
(23)
"Port-of-entry agent" means a person employed at a port-of-entry to perform the duties
specified in Section
72-9-501
.
(24)
"Public transit" means the same as that term is defined in Section
17B-2a-802
.
(25)
"Public transit facility" means a fixed guideway, transit vehicle, transit station, depot,
passenger loading or unloading zone, parking lot, or other facility:
(a)
leased by or operated by or on behalf of a public transit district; and
(b)
related to the public transit services provided by the district, including:
(i)
railway or other right-of-way;
(ii)
railway line; and
(iii)
a reasonable area immediately adjacent to a designated stop on a route traveled
by a transit vehicle.
(26)
"Right-of-way" means real property or an interest in real property, usually in a strip,
acquired for or devoted to state transportation purposes.
(27)
"Sealed" does not
preclude
prevent the
acceptance of electronically sealed and
submitted bids or proposals in addition to bids or proposals manually sealed and
submitted.
(28)
"Semitrailer"
has the meaning set forth
means the same as that term is defined
in
Section
41-1a-102
.
(29)
"SR" means state route and has the same meaning as state highway
,
as
that term is
defined in this section.
(30)
"State highway" means those highways designated as state highways in
Title 72,
Chapter 4, Designation of State Highways Act
Chapter 4, Designation of State
Highways Act
.
(31)
"State transportation purposes"
has the meaning set forth
means the same as that term
is defined
in Section
72-5-102
.
(32)
"State transportation systems" means all streets, alleys, roads, highways, pathways, and
thoroughfares of any kind, including connected structures, airports, aerial corridor
infrastructure, spaceports, public transit facilities, and all other modes and forms of
conveyance used by the public.
(33)
"Trailer"
has the meaning set forth
means the same as that term is defined
in Section
41-1a-102
.
(34)
(a)
"Transportation corridor" means the path or proposed path of a transportation
facility that exists or that may exist in the future.
(b)
"Transportation corridor" may include:
(i)
the land occupied or that may be occupied by a transportation facility; and
(ii)
any other land that may be needed for expanding, operating, or controlling access
to the transportation facility.
(35)
"Transportation facility" means:
(a)
a highway; or
(b)
a fixed guideway.
(36)
"Transportation reinvestment zone" means a transportation reinvestment zone created
pursuant to Section
11-13-227
in accordance with Section
63N-23-901
.
(37)
"Truck tractor"
has the meaning set forth
means the same as that term is defined
in
Section
41-1a-102
.
(38)
"UDOT" means the Utah Department of Transportation.
(39)
"Vehicle"
has the same meaning set forth
means the same as that term is defined
in
Section
41-1a-102
.
Section 81. Section
72-1-304
is amended to read:
72-1-304
Effective
05/06/26
. Written project prioritization process for new
transportation capacity projects -- Rulemaking.
(1)
(a)
The Transportation Commission, in consultation with the department and the
metropolitan planning organizations as defined in Section
72-1-208.5
, shall develop a
written prioritization process for the prioritization of:
(i)
new transportation capacity projects that are or will be part of the state highway
system under Chapter 4, Part 1, State Highways;
(ii)
paved pedestrian or paved nonmotorized transportation projects described in
Section
72-2-124
;
(iii)
public transit projects that directly add capacity to the public transit systems
within the state, not including facilities ancillary to the public transit system; and
(iv)
pedestrian or nonmotorized transportation projects that provide connection to a
public transit system.
(b)
(i)
A local government or public transit district may nominate a project for
prioritization in accordance with the process established by the commission in rule.
(ii)
If a local government or public transit district nominates a project for
prioritization by the commission, the local government or public transit district
shall provide data and evidence to show that:
(A)
the project will advance the purposes and goals described in Section
72-1-211
;
(B)
for a public transit project, the local government or public transit district has
an ongoing funding source for operations and maintenance of the proposed
development; and
(C)
the local government or public transit district will provide the percentage of
the costs for the project as required by Subsection
72-2-124(4)(a)(viii)
or
72-2-124(10)(e)
.
(2)
The following shall be included in the written prioritization process under Subsection
(1)
:
(a)
a description of how the strategic initiatives of the department adopted under Section
72-1-211
are advanced by the written prioritization process;
(b)
a definition of the type of projects to which the written prioritization process applies;
(c)
specification of a weighted criteria system that is used to rank proposed projects and
how it will be used to determine which projects will be prioritized;
(d)
specification of the data that is necessary to apply the weighted ranking criteria; and
(e)
any other provisions the commission considers appropriate, which may include
consideration of:
(i)
regional and statewide economic development impacts, including improved local
access to:
(A)
employment;
(B)
educational facilities;
(C)
recreation;
(D)
commerce; and
(E)
residential areas, including moderate income housing as demonstrated in the
local government's or public transit district's general plan in accordance with
Section
10-20-404
or
17-79-403
;
(ii)
the extent to which local land use plans relevant to a project support and
accomplish the strategic initiatives adopted under Section
72-1-211
; and
(iii)
any matching funds provided by a political subdivision or public transit district
in addition to the percentage of costs required by Subsections
72-2-124(4)(a)(viii)
and
72-2-124(10)(e)
.
(3)
(a)
When prioritizing a public transit project that increases capacity, the commission:
(i)
may give priority consideration to projects that are part of a transit-oriented
development or transit-supportive development as defined in Section
17B-2a-802
;
and
(ii)
shall give priority consideration to projects that are within the boundaries of a
housing and transit reinvestment zone created in accordance with Title 63N,
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
(b)
When prioritizing a transportation project that increases capacity, the commission
may give priority consideration to projects that are:
(i)
part of a transportation reinvestment zone created under Section
11-13-227
63N-23-901
if:
(A)
the state is a participant in the transportation reinvestment zone; or
(B)
the commission finds that the transportation reinvestment zone provides a
benefit to the state transportation system; or
(ii)
within the boundaries of a housing and transit reinvestment zone created
pursuant to Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone
Act
in accordance with Title 63N, Chapter 23, Part 2, Housing and Transit
Reinvestment Zone
.
(c)
If the department receives a notice of prioritization for a municipality as described in
Subsection
10-21-202(5)
, or a notice of prioritization for a county as described in
Subsection
17-80-202(5)
, the commission may give priority consideration to
transportation projects that are within the boundaries of the municipality or the
unincorporated areas of the county until the department receives notification from the
Housing and Community Development Division within the Department of Workforce
Services that the municipality or county no longer qualifies for prioritization under
this Subsection
(3)(c)
.
(d)
When prioritizing a transportation project described in Subsection
(1)(a)(ii)
or
(iv)
,
the commission may give priority consideration to projects that improve connectivity
in accordance with Section
10-8-87
.
(4)
In developing the written prioritization process, the commission:
(a)
shall seek and consider public comment by holding public meetings at locations
throughout the state; and
(b)
may not consider local matching dollars as provided under Section
72-2-123
unless
the state provides an equal opportunity to raise local matching dollars for state
highway improvements within each county.
(5)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
Transportation Commission, in consultation with the department, shall make rules
establishing the written prioritization process under Subsection
(1)
.
(6)
The commission shall submit the proposed rules under this section to the Transportation
Interim Committee for review before taking final action on the proposed rules or any
proposed amendment to the rules described in Subsection
(5)
.
Section 82. Section
72-2-124
is amended to read:
72-2-124
Effective
05/06/26
Superseded
07/01/26
. Transportation Investment
Fund of 2005.
(1)
There is created a capital projects fund entitled the Transportation Investment Fund of
2005.
(2)
The fund consists of money generated from the following sources:
(a)
any voluntary contributions received for the maintenance, construction,
reconstruction, or renovation of state and federal highways;
(b)
appropriations made to the fund by the Legislature;
(c)
registration fees designated under Section
41-1a-1201
;
(d)
the sales and use tax revenues deposited into the fund in accordance with Section
59-12-103
;
(e)
revenues transferred to the fund in accordance with Section
72-2-106
;
(f)
revenues transferred into the fund in accordance with Subsection
72-2-121(4)(l)
; and
(g)
revenue from bond proceeds described in Section
63B-34-101
.
(3)
(a)
The fund shall earn interest.
(b)
All interest earned on fund money shall be deposited into the fund.
(4)
(a)
Except as provided in Subsection
(4)(b)
, the executive director may only use fund
money to pay:
(i)
the costs of maintenance, construction, reconstruction, or renovation to state and
federal highways prioritized by the Transportation Commission through the
prioritization process for new transportation capacity projects adopted under
Section
72-1-304
;
(ii)
the costs of maintenance, construction, reconstruction, or renovation to the
highway projects described in Subsections
63B-18-401(2)
,
(3)
, and
(4)
;
(iii)
subject to Subsection
(9)
, costs of corridor preservation, as that term is defined in
Section
72-5-401
;
(iv)
principal, interest, and issuance costs of bonds authorized by Section
63B-18-401
minus the costs paid from the County of the First Class Highway Projects Fund in
accordance with Subsection
72-2-121(4)(e)
;
(v)
for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
Lake County Revenue Bond Sinking Fund created by Section
72-2-121.3
the
amount certified by Salt Lake County in accordance with Subsection
72-2-121.3(4)(c)
as necessary to pay the debt service on $30,000,000 of the
revenue bonds issued by Salt Lake County;
(vi)
principal, interest, and issuance costs of bonds authorized by Section
63B-16-101
for projects prioritized in accordance with Section
72-2-125
;
(vii)
for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
Class Highway Projects Fund created in Section
72-2-121
to be used for the
purposes described in Section
72-2-121
;
(viii)
if a political subdivision provides a contribution equal to or greater than 40% of
the costs needed for construction, reconstruction, or renovation of paved
pedestrian or paved nonmotorized transportation for projects that:
(A)
mitigate traffic congestion on the state highway system;
(B)
are part of an active transportation plan approved by the department; and
(C)
are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section
72-1-304
;
(ix)
$705,000,000 for the costs of right-of-way acquisition, construction,
reconstruction, or renovation of or improvement to the following projects:
(A)
the connector road between Main Street and 1600 North in the city of
Vineyard;
(B)
Geneva Road from University Parkway to 1800 South;
(C)
the SR-97 interchange at 5600 South on I-15;
(D)
subject to Subsection
(4)(c)
, two lanes on U-111 from Herriman Parkway to
South Jordan Parkway;
(E)
widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
(F)
improvements to 1600 North in Orem from 1200 West to State Street;
(G)
widening I-15 between mileposts 6 and 8;
(H)
widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
(I)
widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
in Spanish Fork Canyon;
(J)
I-15 northbound between mileposts 43 and 56;
(K)
a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
43 and 45.1;
(L)
east Zion SR-9 improvements;
(M)
Toquerville Parkway;
(N)
an environmental study on Foothill Boulevard in the city of Saratoga Springs;
(O)
using funds allocated in this Subsection
(4)(a)(ix)
, and other sources of funds,
for construction of an interchange on Bangerter Highway at 13400 South; and
(P)
an environmental impact study for Kimball Junction in Summit County;
(x)
$28,000,000 as pass-through funds, to be distributed as necessary to pay project
costs based upon a statement of cash flow that the local jurisdiction where the
project is located provides to the department demonstrating the need for money
for the project, for the following projects in the following amounts:
(A)
$5,000,000 for Payson Main Street repair and replacement;
(B)
$8,000,000 for a Bluffdale 14600 South railroad bypass;
(C)
$5,000,000 for improvements to 4700 South in Taylorsville; and
(D)
$10,000,000 for improvements to the west side frontage roads adjacent to U.S.
40 between mile markers 7 and 10;
(xi)
$13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
over the railroad and to U.S. Highway 6;
(xii)
for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
revenue deposited into the fund in accordance with Section
59-12-103
, for the
following projects:
(A)
$3,000,000 for the department to perform an environmental study for the I-15
Salem and Benjamin project; and
(B)
$2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
Dunes Road project; and
(xiii)
for a fiscal year beginning on July 1, 2025, up to $300,000,000 for the costs of
right-of-way acquisition and construction for improvements on SR-89 in a county
of the first class.
(b)
The executive director may use fund money to exchange for an equal or greater
amount of federal transportation funds to be used as provided in Subsection
(4)(a)
.
(c)
(i)
Construction related to the project described in Subsection
(4)(a)(ix)(D)
may
not commence until a right-of-way not owned by a federal agency that is required
for the realignment and extension of U-111, as described in the department's 2023
environmental study related to the project, is dedicated to the department.
(ii)
Notwithstanding Subsection
(4)(c)(i)
, if a right-of-way is not dedicated for the
project as described in Subsection
(4)(c)(i)
on or before October 1, 2024, the
department may proceed with the project, except that the project will be limited to
two lanes on U-111 from Herriman Parkway to 11800 South.
(5)
(a)
Except as provided in Subsection
(5)(b)
, if the department receives a notice of
ineligibility for a municipality as described in Subsection
10-21-202(8)
, the executive
director may not program fund money to a project prioritized by the commission
under Section
72-1-304
, including fund money from the Transit Transportation
Investment Fund, within the boundaries of the municipality until the department
receives notification from the Housing and Community Development Division within
the Department of Workforce Services that ineligibility under this Subsection
(5)
no
longer applies to the municipality.
(b)
Within the boundaries of a municipality described in Subsection
(5)(a)
, the executive
director:
(i)
may program fund money in accordance with Subsection
(4)(a)
for a
limited-access facility or interchange connecting limited-access facilities;
(ii)
may not program fund money for the construction, reconstruction, or renovation
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the
construction, reconstruction, or renovation of a station that is part of a fixed
guideway public transportation project.
(c)
Subsections
(5)(a)
and
(b)
do not apply to a project programmed by the executive
director before July 1, 2022, for projects prioritized by the commission under Section
72-1-304
.
(6)
(a)
Except as provided in Subsection
(6)(b)
, if the department receives a notice of
ineligibility for a county as described in Subsection
17-80-202(8)
, the executive
director may not program fund money to a project prioritized by the commission
under Section
72-1-304
, including fund money from the Transit Transportation
Investment Fund, within the boundaries of the unincorporated area of the county until
the department receives notification from the Housing and Community Development
Division within the Department of Workforce Services that ineligibility under this
Subsection
(6)
no longer applies to the county.
(b)
Within the boundaries of the unincorporated area of a county described in Subsection
(6)(a)
, the executive director:
(i)
may program fund money in accordance with Subsection
(4)(a)
for a
limited-access facility to a project prioritized by the commission under Section
72-1-304
;
(ii)
may not program fund money for the construction, reconstruction, or renovation
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the
construction, reconstruction, or renovation of a station that is part of a fixed
guideway public transportation project.
(c)
Subsections
(6)(a)
and
(b)
do not apply to a project programmed by the executive
director before July 1, 2022, for projects prioritized by the commission under Section
72-1-304
.
(7)
(a)
Before bonds authorized by Section
63B-18-401
or
63B-27-101
may be issued in
any fiscal year, the department and the commission shall appear before the Executive
Appropriations Committee of the Legislature and present the amount of bond
proceeds that the department needs to provide funding for the projects identified in
Subsections
63B-18-401(2)
,
(3)
, and
(4)
or Subsection
63B-27-101(2)
for the current
or next fiscal year.
(b)
The Executive Appropriations Committee of the Legislature shall review and
comment on the amount of bond proceeds needed to fund the projects.
(8)
The Division of Finance shall, from money deposited into the fund, transfer the amount
of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
Section
63B-18-401
or
63B-27-101
in the current fiscal year to the appropriate debt
service or sinking fund.
(9)
The executive director may only use money in the fund for corridor preservation as
described in Subsection
(4)(a)(iii)
:
(a)
if the project has been prioritized by the commission, including the use of fund
money for corridor preservation; or
(b)
for a project that has not been prioritized by the commission, if the commission:
(i)
approves the use of fund money for the corridor preservation; and
(ii)
finds that the use of fund money for corridor preservation will not result in any
delay to a project that has been prioritized by the commission.
(10)
(a)
There is created in the Transportation Investment Fund of 2005 the Transit
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
contributions deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
deposits of sales and use tax increment related to a housing and transit
reinvestment zone as described in Section
63N-3-610
63N-23-206
;
(iv)
transfers of local option sales and use tax revenue as described in Subsection
59-12-2220(11)(b)
or
(c)
;
(v)
private contributions; and
(vi)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
Subject to Subsection
(10)(e)
, the commission may prioritize money from the fund:
(i)
for public transit capital development of new capacity projects and fixed guideway
capital development projects to be used as prioritized by the commission through
the prioritization process adopted under Section
72-1-304
;
(ii)
to the department for oversight of a fixed guideway capital development project
for which the department has responsibility; or
(iii)
up to $500,000 per year, to be used for a public transit study.
(e)
(i)
Subject to Subsections
(10)(g)
,
(h)
, and
(i)
, the commission may only prioritize
money from the fund for a public transit capital development project or pedestrian
or nonmotorized transportation project that provides connection to the public
transit system if the public transit district or political subdivision provides funds of
equal to or greater than 30% of the costs needed for the project.
(ii)
A public transit district or political subdivision may use money derived from a
loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
all or part of the 30% requirement described in Subsection
(10)(e)(i)
if:
(A)
the loan is approved by the commission as required in
Part 2, State
Infrastructure Bank Fund; and
(B)
the proposed capital project has been prioritized by the commission
pursuant
to
in accordance with
Section
72-1-303
.
(f)
Before July 1, 2022, the department and a large public transit district shall enter into
an agreement for a large public transit district to pay the department $5,000,000 per
year for 15 years to be used to facilitate the purchase of zero emissions or low
emissions rail engines and trainsets for regional public transit rail systems.
(g)
For any revenue transferred into the fund in accordance with Subsection
59-12-2220(11)(b)
:
(i)
the commission may prioritize money from the fund for public transit projects,
operations, or maintenance within the county of the first class; and
(ii)
Subsection
(10)(e)
does not apply.
(h)
For any revenue transferred into the fund in accordance with Subsection
59-12-2220(11)(c)
:
(i)
the commission may prioritize public transit projects, operations, or maintenance
in the county from which the revenue was generated; and
(ii)
Subsection
(10)(e)
does not apply.
(i)
The requirement to provide funds equal to or greater than 30% of the costs needed for
the project described in Subsection
(10)(e)
does not apply to a public transit capital
development project or pedestrian or nonmotorized transportation project that the
department proposes.
(j)
In accordance with Part 4, Public Transit Innovation Grants, the commission may
prioritize money from the fund for public transit innovation grants, as defined in
Section
72-2-401
, for public transit capital development projects requested by a
political subdivision within a public transit district.
(11)
(a)
There is created in the Transportation Investment Fund of 2005 the Cottonwood
Canyons Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The Legislature may appropriate money from the fund for public transit or
transportation projects in the Cottonwood Canyons of Salt Lake County.
(e)
The department may use up to 2% of the revenue deposited into the account under
Subsection
59-12-103(7)(b)
to contract with local governments as necessary for
public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
(f)
Beginning with fiscal year beginning on July 1, 2025, the department shall use any
sales and use tax growth over sales and use tax collections during the 2025 fiscal year
to fund projects to provide ingress and egress for a public transit hub, including
construction of the public transit hub, in the Big Cottonwood Canyon area.
(12)
(a)
There is created in the Transportation Investment Fund of 2005 the Active
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature; and
(iii)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The executive director may only use fund money to pay the costs needed for:
(i)
the planning, design, construction, maintenance, reconstruction, or renovation of
paved pedestrian or paved nonmotorized trail projects that:
(A)
are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section
72-1-304
;
(B)
serve a regional purpose; and
(C)
are part of an active transportation plan approved by the department or the
plan described in Subsection
(12)(d)(ii)
;
(ii)
the development of a plan for a statewide network of paved pedestrian or paved
nonmotorized trails that serve a regional purpose; and
(iii)
the administration of the fund, including staff and overhead costs.
(13)
(a)
As used in this Subsection
(13)
, "commuter rail" means the same as that term is
defined in Section
63N-3-602
63N-23-101
.
(b)
There is created in the Transit Transportation Investment Fund the Commuter Rail
Subaccount.
(c)
The subaccount shall be funded by:
(i)
contributions deposited into the subaccount in accordance with Section
59-12-103
;
(ii)
appropriations into the subaccount by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(d)
(i)
The subaccount shall earn interest.
(ii)
All interest earned on money in the subaccount shall be deposited into the
subaccount.
(e)
As prioritized by the commission through the prioritization process adopted under
Section
72-1-304
or as directed by the Legislature, the department may only use
money from the subaccount for projects that improve the state's commuter rail
infrastructure, including the building or improvement of grade-separated crossings
between commuter rail lines and public highways.
(f)
Appropriations made in accordance with this section are nonlapsing in accordance
with Section
63J-1-602.1
.
Section 83. Section
72-2-124
is amended to read:
72-2-124
Effective
07/01/26
. Transportation Investment Fund of 2005.
(1)
There is created a capital projects fund entitled the Transportation Investment Fund of
2005.
(2)
The fund consists of money generated from the following sources:
(a)
any voluntary contributions received for the maintenance, construction,
reconstruction, or renovation of state and federal highways;
(b)
appropriations made to the fund by the Legislature;
(c)
registration fees designated under Section
41-1a-1201
;
(d)
the sales and use tax revenues deposited into the fund in accordance with Section
59-12-103
;
(e)
revenues transferred to the fund in accordance with Section
72-2-106
;
(f)
revenues transferred into the fund in accordance with Subsection
72-2-121(4)(l)
; and
(g)
revenue from bond proceeds described in Section
63B-34-201
.
(3)
(a)
The fund shall earn interest.
(b)
All interest earned on fund money shall be deposited into the fund.
(4)
(a)
Except as provided in Subsection
(4)(b)
, the executive director may only use fund
money to pay:
(i)
the costs of maintenance, construction, reconstruction, or renovation to state and
federal highways prioritized by the Transportation Commission through the
prioritization process for new transportation capacity projects adopted under
Section
72-1-304
;
(ii)
the costs of maintenance, construction, reconstruction, or renovation to the
highway projects described in Subsections
63B-18-401(2)
,
(3)
, and
(4)
;
(iii)
subject to Subsection
(9)
, costs of corridor preservation, as that term is defined in
Section
72-5-401
;
(iv)
principal, interest, and issuance costs of bonds authorized by Section
63B-18-401
minus the costs paid from the County of the First Class Highway Projects Fund in
accordance with Subsection
72-2-121(4)(e)
;
(v)
for a fiscal year beginning on or after July 1, 2013, to transfer to the 2010 Salt
Lake County Revenue Bond Sinking Fund created by Section
72-2-121.3
the
amount certified by Salt Lake County in accordance with Subsection
72-2-121.3(4)(c)
as necessary to pay the debt service on $30,000,000 of the
revenue bonds issued by Salt Lake County;
(vi)
principal, interest, and issuance costs of bonds authorized by Section
63B-16-101
for projects prioritized in accordance with Section
72-2-125
;
(vii)
for fiscal year 2015-16 only, to transfer $25,000,000 to the County of the First
Class Highway Projects Fund created in Section
72-2-121
to be used for the
purposes described in Section
72-2-121
;
(viii)
if a political subdivision provides a contribution equal to or greater than 40% of
the costs needed for construction, reconstruction, or renovation of paved
pedestrian or paved nonmotorized transportation for projects that:
(A)
mitigate traffic congestion on the state highway system;
(B)
are part of an active transportation plan approved by the department; and
(C)
are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section
72-1-304
;
(ix)
$705,000,000 for the costs of right-of-way acquisition, construction,
reconstruction, or renovation of or improvement to the following projects:
(A)
the connector road between Main Street and 1600 North in the city of
Vineyard;
(B)
Geneva Road from University Parkway to 1800 South;
(C)
the SR-97 interchange at 5600 South on I-15;
(D)
subject to Subsection
(4)(c)
, two lanes on U-111 from Herriman Parkway to
South Jordan Parkway;
(E)
widening I-15 between mileposts 10 and 13 and the interchange at milepost 11;
(F)
improvements to 1600 North in Orem from 1200 West to State Street;
(G)
widening I-15 between mileposts 6 and 8;
(H)
widening 1600 South from Main Street in the city of Spanish Fork to SR-51;
(I)
widening US 6 from Sheep Creek to Mill Fork between mileposts 195 and 197
in Spanish Fork Canyon;
(J)
I-15 northbound between mileposts 43 and 56;
(K)
a passing lane on SR-132 between mileposts 41.1 and 43.7 between mileposts
43 and 45.1;
(L)
east Zion SR-9 improvements;
(M)
Toquerville Parkway;
(N)
an environmental study on Foothill Boulevard in the city of Saratoga Springs;
(O)
using funds allocated in this Subsection
(4)(a)(ix)
, and other sources of funds,
for construction of an interchange on Bangerter Highway at 13400 South; and
(P)
an environmental impact study for Kimball Junction in Summit County;
(x)
$28,000,000 as pass-through funds, to be distributed as necessary to pay project
costs based upon a statement of cash flow that the local jurisdiction where the
project is located provides to the department demonstrating the need for money
for the project, for the following projects in the following amounts:
(A)
$5,000,000 for Payson Main Street repair and replacement;
(B)
$8,000,000 for a Bluffdale 14600 South railroad bypass;
(C)
$5,000,000 for improvements to 4700 South in Taylorsville; and
(D)
$10,000,000 for improvements to the west side frontage roads adjacent to U.S.
40 between mile markers 7 and 10;
(xi)
$13,000,000 as pass-through funds to Spanish Fork for the costs of right-of-way
acquisition, construction, reconstruction, or renovation to connect Fingerhut Road
over the railroad and to U.S. Highway 6;
(xii)
for a fiscal year beginning on July 1, 2025, only, as pass-through funds from
revenue deposited into the fund in accordance with Section
59-12-103
, for the
following projects:
(A)
$3,000,000 for the department to perform an environmental study for the I-15
Salem and Benjamin project; and
(B)
$2,000,000, as pass-through funds, to Kane County for the Coral Pink Sand
Dunes Road project; and
(xiii)
for a fiscal year beginning on July 1, 2025, up to $300,000,000 for the costs of
right-of-way acquisition and construction for improvements on SR-89 in a county
of the first class.
(b)
The executive director may use fund money to exchange for an equal or greater
amount of federal transportation funds to be used as provided in Subsection
(4)(a)
.
(c)
(i)
Construction related to the project described in Subsection
(4)(a)(ix)(D)
may
not commence until a right-of-way not owned by a federal agency that is required
for the realignment and extension of U-111, as described in the department's 2023
environmental study related to the project, is dedicated to the department.
(ii)
Notwithstanding Subsection
(4)(c)(i)
, if a right-of-way is not dedicated for the
project as described in Subsection
(4)(c)(i)
on or before October 1, 2024, the
department may proceed with the project, except that the project will be limited to
two lanes on U-111 from Herriman Parkway to 11800 South.
(5)
(a)
Except as provided in Subsection
(5)(b)
, if the department receives a notice of
ineligibility for a municipality as described in Subsection
10-21-202(8)
, the executive
director may not program fund money to a project prioritized by the commission
under Section
72-1-304
, including fund money from the Transit Transportation
Investment Fund, within the boundaries of the municipality until the department
receives notification from the Housing and Community Development Division within
the Department of Workforce Services that ineligibility under this Subsection
(5)
no
longer applies to the municipality.
(b)
Within the boundaries of a municipality described in Subsection
(5)(a)
, the executive
director:
(i)
may program fund money in accordance with Subsection
(4)(a)
for a
limited-access facility or interchange connecting limited-access facilities;
(ii)
may not program fund money for the construction, reconstruction, or renovation
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the
construction, reconstruction, or renovation of a station that is part of a fixed
guideway public transportation project.
(c)
Subsections
(5)(a)
and
(b)
do not apply to a project programmed by the executive
director before July 1, 2022, for projects prioritized by the commission under Section
72-1-304
.
(6)
(a)
Except as provided in Subsection
(6)(b)
, if the department receives a notice of
ineligibility for a county as described in Subsection
17-80-202(8)
, the executive
director may not program fund money to a project prioritized by the commission
under Section
72-1-304
, including fund money from the Transit Transportation
Investment Fund, within the boundaries of the unincorporated area of the county until
the department receives notification from the Housing and Community Development
Division within the Department of Workforce Services that ineligibility under this
Subsection
(6)
no longer applies to the county.
(b)
Within the boundaries of the unincorporated area of a county described in Subsection
(6)(a)
, the executive director:
(i)
may program fund money in accordance with Subsection
(4)(a)
for a
limited-access facility to a project prioritized by the commission under Section
72-1-304
;
(ii)
may not program fund money for the construction, reconstruction, or renovation
of an interchange on a limited-access facility;
(iii)
may program Transit Transportation Investment Fund money for a
multi-community fixed guideway public transportation project; and
(iv)
may not program Transit Transportation Investment Fund money for the
construction, reconstruction, or renovation of a station that is part of a fixed
guideway public transportation project.
(c)
Subsections
(6)(a)
and (b) do not apply to a project programmed by the executive
director before July 1, 2022, for projects prioritized by the commission under Section
72-1-304
.
(7)
(a)
Before bonds authorized by Section
63B-18-401
or
63B-27-101
may be issued in
any fiscal year, the department and the commission shall appear before the Executive
Appropriations Committee of the Legislature and present the amount of bond
proceeds that the department needs to provide funding for the projects identified in
Subsections
63B-18-401(2)
,
(3)
, and
(4)
or Subsection
63B-27-101(2)
for the current
or next fiscal year.
(b)
The Executive Appropriations Committee of the Legislature shall review and
comment on the amount of bond proceeds needed to fund the projects.
(8)
The Division of Finance shall, from money deposited into the fund, transfer the amount
of funds necessary to pay principal, interest, and issuance costs of bonds authorized by
Section
63B-18-401
or
63B-27-101
in the current fiscal year to the appropriate debt
service or sinking fund.
(9)
The executive director may only use money in the fund for corridor preservation as
described in Subsection
(4)(a)(iii)
:
(a)
if the project has been prioritized by the commission, including the use of fund
money for corridor preservation; or
(b)
for a project that has not been prioritized by the commission, if the commission:
(i)
approves the use of fund money for the corridor preservation; and
(ii)
finds that the use of fund money for corridor preservation will not result in any
delay to a project that has been prioritized by the commission.
(10)
(a)
There is created in the Transportation Investment Fund of 2005 the Transit
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
contributions deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
deposits of sales and use tax increment related to a housing and transit
reinvestment zone as described in Section
63N-3-610
63N-23-206
;
(iv)
transfers of local option sales and use tax revenue as described in Subsection
59-12-2220(11)(b)
or
(c)
;
(v)
private contributions; and
(vi)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
Subject to Subsection
(10)(e)
, the commission may prioritize money from the fund:
(i)
for public transit capital development of new capacity projects and fixed guideway
capital development projects to be used as prioritized by the commission through
the prioritization process adopted under Section
72-1-304
;
(ii)
to the department for oversight of a fixed guideway capital development project
for which the department has responsibility; or
(iii)
up to $500,000 per year, to be used for a public transit study.
(e)
(i)
Subject to Subsections
(10)(g)
,
(h)
, and
(i)
, the commission may only prioritize
money from the fund for a public transit capital development project or pedestrian
or nonmotorized transportation project that provides connection to the public
transit system if the public transit district or political subdivision provides funds of
equal to or greater than 30% of the costs needed for the project.
(ii)
A public transit district or political subdivision may use money derived from a
loan granted in accordance with Part 2, State Infrastructure Bank Fund, to provide
all or part of the 30% requirement described in Subsection
(10)(e)(i)
if:
(A)
the loan is approved by the commission as required in Part 2, State
Infrastructure Bank Fund; and
(B)
the proposed capital project has been prioritized by the commission
pursuant
to
in accordance with
Section
72-1-303
.
(f)
Before July 1, 2022, the department and a large public transit district shall enter into
an agreement for a large public transit district to pay the department $5,000,000 per
year for 15 years to be used to facilitate the purchase of zero emissions or low
emissions rail engines and trainsets for regional public transit rail systems.
(g)
For any revenue transferred into the fund in accordance with Subsection
59-12-2220(11)(b)
:
(i)
the commission may prioritize money from the fund for public transit projects,
operations, or maintenance within the county of the first class; and
(ii)
Subsection
(10)(e)
does not apply.
(h)
For any revenue transferred into the fund in accordance with Subsection
59-12-2220(11)(c)
:
(i)
the commission may prioritize public transit projects, operations, or maintenance
in the county from which the revenue was generated; and
(ii)
Subsection
(10)(e)
does not apply.
(i)
The requirement to provide funds equal to or greater than 30% of the costs needed for
the project described in Subsection
(10)(e)
does not apply to a public transit capital
development project or pedestrian or nonmotorized transportation project that the
department proposes.
(j)
In accordance with Part 4, Public Transit Innovation Grants, the commission may
prioritize money from the fund for public transit innovation grants, as defined in
Section
72-2-401
, for public transit capital development projects requested by a
political subdivision within a public transit district.
(11)
(a)
There is created in the Transportation Investment Fund of 2005 the Cottonwood
Canyons Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The Legislature may appropriate money from the fund for public transit or
transportation projects in the Cottonwood Canyons of Salt Lake County.
(e)
The department may use up to 2% of the revenue deposited into the account under
Subsection
59-12-103(4)(f)
to contract with local governments as necessary for
public safety enforcement related to the Cottonwood Canyons of Salt Lake County.
(f)
Beginning with fiscal year beginning on July 1, 2025, the department shall use any
sales and use tax growth over sales and use tax collections during the 2025 fiscal year
to fund projects to provide ingress and egress for a public transit hub, including
construction of the public transit hub, in the Big Cottonwood Canyon area.
(12)
(a)
There is created in the Transportation Investment Fund of 2005 the Active
Transportation Investment Fund.
(b)
The fund shall be funded by:
(i)
money deposited into the fund in accordance with Section
59-12-103
;
(ii)
appropriations into the account by the Legislature; and
(iii)
donations or grants from public or private entities.
(c)
(i)
The fund shall earn interest.
(ii)
All interest earned on fund money shall be deposited into the fund.
(d)
The executive director may only use fund money to pay the costs needed for:
(i)
the planning, design, construction, maintenance, reconstruction, or renovation of
paved pedestrian or paved nonmotorized trail projects that:
(A)
are prioritized by the commission through the prioritization process for new
transportation capacity projects adopted under Section
72-1-304
;
(B)
serve a regional purpose; and
(C)
are part of an active transportation plan approved by the department or the
plan described in Subsection
(12)(d)(ii)
;
(ii)
the development of a plan for a statewide network of paved pedestrian or paved
nonmotorized trails that serve a regional purpose; and
(iii)
the administration of the fund, including staff and overhead costs.
(13)
(a)
As used in this Subsection
(13)
, "commuter rail" means the same as that term is
defined in Section
63N-3-602
63N-23-101
.
(b)
There is created in the Transit Transportation Investment Fund the Commuter Rail
Subaccount.
(c)
The subaccount shall be funded by:
(i)
contributions deposited into the subaccount in accordance with Section
59-12-103
;
(ii)
appropriations into the subaccount by the Legislature;
(iii)
private contributions; and
(iv)
donations or grants from public or private entities.
(d)
(i)
The subaccount shall earn interest.
(ii)
All interest earned on money in the subaccount shall be deposited into the
subaccount.
(e)
As prioritized by the commission through the prioritization process adopted under
Section
72-1-304
or as directed by the Legislature, the department may only use
money from the subaccount for projects that improve the state's commuter rail
infrastructure, including the building or improvement of grade-separated crossings
between commuter rail lines and public highways.
(f)
Appropriations made in accordance with this section are nonlapsing in accordance
with Section
63J-1-602.1
.
Section 84. Section
72-2-201
is amended to read:
72-2-201
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Fund" means the State Infrastructure Bank Fund created under Section
72-2-202
.
(2)
"Infrastructure assistance" means any use of fund money, except an infrastructure loan,
to provide financial assistance for transportation projects or publicly owned
infrastructure projects, including:
(a)
capital reserves and other security for bond or debt instrument financing; or
(b)
any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by a
public entity to finance transportation projects.
(3)
"Infrastructure loan" means a loan of fund money to finance a transportation project or
publicly owned infrastructure project.
(4)
"Public entity" means a state agency, county, municipality, special district, special
service district, an intergovernmental entity organized under state law, or the military
installation development authority created in Section
63H-1-201
.
(5)
"Publicly owned infrastructure project" means a project to improve sewer or water
infrastructure that is owned by a public entity.
(6)
"Transportation project":
(a)
means a project:
(i)
to improve a state or local highway;
(ii)
to improve a public transportation facility or nonmotorized transportation facility;
(iii)
to construct or improve parking facilities;
(iv)
that is subject to a transportation reinvestment zone agreement
pursuant to
Section
11-13-227
in accordance with Section
63N-23-901
if the state is party to
the agreement; or
(v)
that is part of a housing and transit reinvestment zone created
pursuant to
Title
63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
in
accordance with Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment
Zone
;
(b)
includes the costs of acquisition, construction, reconstruction, rehabilitation,
equipping, and fixturing; and
(c)
may only include a project if the project is part of:
(i)
the statewide long range plan;
(ii)
a regional transportation plan of the area metropolitan planning organization if a
metropolitan planning organization exists for the area; or
(iii)
a local government general plan or economic development initiative.
Section 85. Section
72-2-301
is amended to read:
72-2-301
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Fund" means the County of the First Class Infrastructure Bank Fund created under
Section
72-2-402
.
(2)
"Infrastructure assistance" means any use of fund money, except an infrastructure loan,
to provide financial assistance for transportation projects or publicly owned
infrastructure projects, including:
(a)
capital reserves and other security for bond or debt instrument financing; or
(b)
any letters of credit, lines of credit, bond insurance, or loan guarantees obtained by a
public entity to finance transportation projects.
(3)
"Infrastructure loan" means a loan of fund money to finance a transportation project or
publicly owned infrastructure project.
(4)
"Public entity" means a county of the first class or any of the following located within a
county of the first class:
(a)
a municipality;
(b)
a special district;
(c)
a special service district; or
(d)
an intergovernmental entity organized under state law.
(5)
"Publicly owned infrastructure project" means a project to improve sewer or water
infrastructure that is owned by a public entity.
(6)
"Transportation project" means a project:
(a)
to improve a state or local highway;
(b)
to improve a public transportation facility or nonmotorized transportation facility;
(c)
to construct or improve parking facilities;
(d)
that is subject to a transportation reinvestment zone agreement
pursuant to Section
11-13-227
in accordance with Section
63N-23-901
if the state is party to the
agreement; or
(e)
that is part of a housing and transit reinvestment zone created
pursuant to Title 63N,
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act
in accordance with
Title 63N, Chapter 23, Part 2, Housing and Transit Reinvestment Zone
.
(7)
"Transportation project" includes the costs of acquisition, construction, reconstruction,
rehabilitation, equipping, and fixturing.
(8)
"Transportation project" may only include a project if the project is part of:
(a)
the statewide long range plan;
(b)
a regional transportation plan of the area metropolitan planning organization if a
metropolitan planning organization exists for the area; or
(c)
a local government general plan or economic development initiative.
Section 86. Section
72-5-117
is amended to read:
72-5-117
Effective
05/06/26
. Rulemaking for sale of real property -- Licensed
or certified appraisers -- Exceptions.
(1)
In accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act
, if the
department buys, sells, or exchanges real property, the department shall make rules to
ensure that the value of the real property is congruent with the proposed price and other
terms of the purchase, sale, or exchange.
(2)
The rules:
(a)
shall establish procedures for determining the value of the real property;
(b)
may provide that an appraisal, as defined under Section
61-2g-102
, demonstrates the
real property's value;
(c)
may require that the appraisal be completed by a state-certified general appraiser, as
defined under Section
61-2g-102
;
(d)
may provide for the sale or exchange of real property, with or without charge, to a
large public transit district if the executive director enters into an agreement with the
large public transit district and determines that the real property:
(i)
is within the boundaries of a station area that has a station area plan certified by a
metropolitan planning organization in accordance with Section
10-21-203
63N-23-104
;
(ii)
is part of a transit-oriented development or transit-supportive development as
defined in Section
17B-2a-802
;
(iii)
is adjacent to a completed fixed guideway capital development that was overseen
by the department; or
(iv)
will only be used by the large public transit district in a manner that the executive
director determines will provide a benefit to the state transportation system; and
(e)
may provide for a sale of surplus real property to a state agency or an independent
entity, as defined in Section
63E-1-102
, that administers public interests in housing
for a pre-entitlement appraised value the payment of which may be deferred until
after the development of owner-occupied housing.
(3)
Subsection
(1)
does not apply to the purchase, sale, or exchange of real property, or to
an interest in real property:
(a)
that is under a contract or other written agreement before May 5, 2008; or
(b)
with a value of less than $100,000, as estimated by the state agency.
Section 87. Section
72-6-112.5
is amended to read:
72-6-112.5
Effective
05/06/26
. Definitions -- Nighttime highway construction
noise -- Exemptions -- Permits.
(1)
As used in this section:
(a)
"Commuter rail" means the same as that term is defined in Section
63N-3-602
63N-23-101
.
(b)
(i)
"Front row receptor" means a noise-sensitive residential receptor that is:
(A)
immediately adjacent to a transportation facility; or
(B)
within 800 feet of a transportation facility that is within a commercial or
industrialized area.
(ii)
"Front row receptor" includes a residence that is contiguous to a property
immediately adjacent to a transportation facility in a residential area.
(c)
"Nighttime construction" means highway or public transit facility construction
occurring between the hours of 10:00 p.m. and 7:00 a.m.
(d)
"Nuisance" means the same as that term is defined in Section
78B-6-1101
.
(e)
(i)
"Permitted activities" means activities occurring between the hours of 7:00 p.m.
and 7:00 a.m. that are related to and necessary for nighttime construction, whether
occurring at the construction site or at a gravel pit or other site for production of
raw materials, and includes:
(A)
loading and unloading of trucks;
(B)
asphalt mixing and hauling; and
(C)
concrete mixing and hauling.
(ii)
"Permitted activities" does not include:
(A)
blasting; or
(B)
crushing.
(2)
The following projects are exempt from any noise ordinance, regulation, or standard of
a local jurisdictional authority:
(a)
a state highway construction project conducted on a road where the normal posted
speed limit is 55 miles per hour or greater; or
(b)
a commuter rail construction project.
(3)
Except for a project described in Subsection
(2)
, a state highway or a public transit
facility construction project is exempt from any noise ordinance, regulation, or standard
of a local jurisdictional authority if the department:
(a)
provides reasonable written notice at least 48 hours in advance of any required
nighttime construction to each residential dwelling located within front row receptors
of the activity;
(b)
determines a net community, including traveler community, benefit exists to conduct
nighttime highway construction after considering the following:
(i)
public health;
(ii)
project completion time;
(iii)
air quality;
(iv)
traffic;
(v)
economics;
(vi)
safety; and
(vii)
local jurisdiction concerns; and
(c)
institutes best management noise reduction practices, as determined by the
department, for front row receptors, in consultation with local government or the
local jurisdictional authority for all nighttime construction, which may include:
(i)
equipment maintenance;
(ii)
noise shielding;
(iii)
scheduling the most noise intrusive activities during the day; and
(iv)
other noise mitigation methods.
(4)
(a)
Subject to Subsection
(2)
or
(3)
, a state highway project or public transit facility
construction shall secure required noise permits from the local jurisdictional authority
to conduct nighttime construction.
(b)
To the extent practical, the department shall coordinate with the local jurisdictional
authority during the pre-construction phase of a project to address noise exemption
conditions.
(5)
A local jurisdictional authority shall issue a nighttime construction permit limited to
permitted activities if:
(a)
the applicant provides evidence that the permitted activities are directly related to and
necessary for a nighttime construction project for which the department has obtained
a noise permit from a local jurisdictional authority
pursuant to
in accordance with
Subsection
(4)
; and
(b)
the local jurisdictional authority determines that any nuisance that may be caused by
the nighttime construction may be reasonably mitigated.
(6)
A local jurisdictional authority shall issue a nighttime construction noise permit without
additional requirements to the department at the request of the department or the
department's designated project agent if the requirements of Subsection
(2)
or
(3)
are
met.
(7)
(a)
A local jurisdictional authority may request adjustments to a nighttime
construction permit to mitigate unreasonable noise disturbances caused by nighttime
construction or permitted activities.
(b)
If adjustments are requested as described in Subsection
(7)(a)
, the nighttime
construction permit holder shall use best management noise reduction practices to
mitigate unreasonable noise disturbances.
(8)
(a)
For the exemption provided in Subsection
(3)
and in accordance with
Title 63G,
Chapter 3, Utah Administrative Rulemaking Act
, the department shall make rules
establishing procedures:
(i)
for a local jurisdictional authority or local government to appeal the decision of
the department to conduct nighttime construction; and
(ii)
for the local jurisdictional authority to request that the department enforce the
terms of a noise permit.
(b)
After review and upon receiving a written notice from a local jurisdictional authority
that the conditions for the noise exemption permit are not met, the department shall
take corrective action to ensure nighttime construction activities meet requirements
of the local permit.
Section 88.
Repealer.
Title.
Section 89.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect on May 6, 2026.
(2)
The actions affecting the following sections take effect on July 1, 2026:
(a)
Section 59-12-103(Effective 07/01/26); and
(b)
Section 72-2-124(Effective 07/01/26).
3-4-26 8:19 PM