Tax Amendments

101
10-21-101
10-21-504
11-58-803
11-59-208
11-70-401
17-80-101
17-80-504
17C-1-603
17C-1-606
17D-4-205
59-1-1901
59-1-1902
59-2-306.5
59-2-307
59-2-308
59-2-704
59-2-919.1
59-2-919.1
59-2-924
59-2-924.2
59-2-1601
59-2-1602
59-2-1603
59-2-1605
59-2-1606
59-2-2001
59-2-2002
59-35-101
59-35-201
59-35-202
59-35-203
59-35-204
59-35-301
59-35-302
63H-1-501
63I-1-259
63N-3-602
63N-3-603.1
63N-3-607
63N-3-609
63N-3-1601
63N-3-1606
63N-3-1608
63N-3-1701
63N-3-1708
9
3
Tax Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: R. Neil Walter
LONG TITLE
General Description:
This bill modifies provisions relating to tax.
Highlighted Provisions:
This bill:
creates the Statewide Tax Administration and Technology Solutions program, which
includes the following services:
maintenance and enhancement of the statewide property tax system, including
statewide web portals;
provision of property valuation services;
valuation of personal property of telecommunications service providers;
participation in a study on the rate of a recovery fee for rentals of heavy equipment;
and
collation of information from county auditors on project areas and from entities that
seek to receive and receive tax increment financing;
establishes the program manager;
transfers responsibilities from the Multicounty Appraisal Trust (MCAT) to the program
manager;
transfers existing MCAT personal property and unexpended revenue to the program
manager;
imposes accounting and reporting obligations on the program manager;
grants rulemaking authority to the State Tax Commission to establish the requirements for
the statewide property tax system and for a county to comply with a factoring order;
provides the conditions for a county to opt out of use of the statewide property tax
system;
beginning July 1, 2026, requires an
entity intending to use tax increment to first:
conduct a public meeting; and
s
ubmit
information to the program manager and notice to the taxing entities providing
tax increment and the entities distributing tax increment;
requires most types of entities that receive more revenue from tax increment than
anticipated to use the revenue to pay off debt;
requires an entity that receives tax increment to report annually to the program manager;
excludes certain property valuation increases from the calculation of locally assessed new
growth;
excludes increases to the value of tangible personal property from the calculation of
project area new growth;
modifies definitions relating to public service districts to reflect the transition of land
within the public service districts from unincorporated county to incorporated cities or
towns since the public service districts formed; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
10-21-101
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 15
10-21-504
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 15
11-58-803
Effective
05/06/26
, as last amended by Laws of Utah 2018, Second Special
Session, Chapter 1
11-59-208
Effective
05/06/26
Repealed
01/01/29
, as enacted by Laws of Utah 2022,
Chapter 237
11-70-401
Effective
05/06/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 16
17-80-101
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 14
17-80-504
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 14
17C-1-606
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 480
17D-4-205
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2021,
Chapter 314
59-2-306.5
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2024, Chapter 315
59-2-307
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2022, Chapter 239
59-2-308
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2022, Chapter 239
59-2-704
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2025, Chapter 337
59-2-919.1
Effective
05/06/26
Superseded
07/01/26
Applies beginning
01/01/26
, as
last amended by Laws of Utah 2025, Chapter 518
59-2-919.1
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapter 518
59-2-924
Effective
01/01/27
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
59-2-924.2
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2025, Chapter 29
59-2-1601
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2024, Chapter 263
59-2-1602
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2025, Chapters 337, 484
59-2-1605
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2014, Chapter 270
59-2-1606
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws
of Utah 2025, Chapter 337
59-2-2001
Effective
05/06/26
Applies beginning
01/01/26
, as enacted by Laws of
Utah 2025, Chapter 432
59-2-2002
Effective
05/06/26
Applies beginning
01/01/26
, as enacted by Laws of
Utah 2025, Chapter 432
63H-1-501
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 514
63I-1-259
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 270
63N-3-602
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-603.1
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 29
63N-3-607
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 404
63N-3-609
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-1601
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 440
63N-3-1606
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 537
63N-3-1608
Effective
05/06/26
, as enacted by Laws of Utah 2024, Chapter 537
63N-3-1701
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 495
63N-3-1708
Effective
05/06/26
, as enacted by Laws of Utah 2025, Chapter 495
ENACTS:
59-1-1901
Effective
05/06/26
, Utah Code Annotated 1953
59-1-1902
Effective
05/06/26
, Utah Code Annotated 1953
59-35-101
Effective
05/06/26
, Utah Code Annotated 1953
59-35-201
Effective
05/06/26
, Utah Code Annotated 1953
59-35-202
Effective
05/06/26
, Utah Code Annotated 1953
59-35-203
Effective
05/06/26
, Utah Code Annotated 1953
59-35-204
Effective
05/06/26
, Utah Code Annotated 1953
59-35-301
Effective
05/06/26
, Utah Code Annotated 1953
59-35-302
Effective
05/06/26
, Utah Code Annotated 1953
REPEALS AND REENACTS:
17C-1-603
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 480
REPEALS:
59-2-1603
Effective
05/06/26
Repealed
07/01/30
, as last amended by Laws of Utah
2022, Chapter 451
Be it enacted by the Legislature of the state of Utah:
Section 1. 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.
(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)
;
(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)
for the station area in
which the development is proposed, subject to Subsection
10-21-203(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
:
a multicounty assessing
and collecting levy or a county additional property tax described in Section
59-2-1602
.
(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 2. Section
10-21-504
is amended to read:
10-21-504
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
distribute
, in accordance with Section
59-2-1365
,
distribute
60%
of the tax increment
collected
the county collects
from property within the home
ownership promotion zone to the municipality over the home ownership promotion zone
to
be used
use
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.
An
agency created by the municipality within which the home ownership promotion
zone is located may administer home ownership promotion zone funds.
(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
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
use
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
use
the home ownership promotion zone funds to guarantee the
payment of public infrastructure bonds issued by a public infrastructure district.
(9)
A municipality, agency, or public infrastructure district that intends to receive or
receives tax increment, as defined in Section
59-35-101
, shall comply with the
requirements described in Title 59, Chapter 35, Tax Increment Financing Reporting.
Section 3. Section
11-58-803
is amended to read:
11-58-803
Effective
05/06/26
. Port authority reporting.
(1)
(a)
On or before November 1 of each year, the authority shall prepare and file a report
with the county auditor of each county in which the authority jurisdictional land is
located, the State Tax Commission, the State Board of Education, and each taxing
entity that levies a tax on property from which the authority collects property tax
differential.
(b)
The requirement of Subsection
(1)(a)
to file a copy of the report with the state as a
taxing entity is met if the authority files a copy with the State Tax Commission and
the state auditor.
(2)
Each report under Subsection
(1)
shall contain:
(a)
an estimate of the property tax differential to be paid to the authority for the calendar
year ending December 31; and
(b)
an estimate of the property tax differential to be paid to the authority for the calendar
year beginning the next January 1.
(3)
Before November 30 of each year, the board shall present a report to the Executive
Appropriations Committee of the Legislature, as the Executive Appropriations
Committee directs, that includes:
(a)
an accounting of how authority funds have been spent, including funds spent on the
environmental sustainability component of the authority business plan under
Subsection
11-58-202(1)(a)
;
(b)
an update about the progress of the development and implementation of the authority
business plan under Subsection
11-58-202(1)(a)
, including the development and
implementation of the environmental sustainability component of the plan; and
(c)
an explanation of the authority's progress in achieving the policies and objectives
described in Subsection
11-58-203(1)
.
(4)
The authority shall comply with the requirements described in Title 59, Chapter 35, Tax
Increment Financing Reporting.
Section 4. Section
11-59-208
is amended to read:
11-59-208
Effective
05/06/26
Repealed
01/01/29
. Portion of property tax
augmentation to be paid to authority -- Reporting.
(1)
As used in this section:
(a)
"Base taxable value" means the taxable value in the year before the transfer date.
(b)
"Property tax augmentation":
(i)
means the amount of property tax that is the difference between:
(A)
the amount of property tax revenues generated each tax year by all taxing
entities from a transferred parcel, using the current assessed value of the
property; and
(B)
the amount of property tax revenues that would be generated from that same
transferred parcel using the base taxable value of the property; and
(ii)
does not include property tax revenue from:
(A)
a county additional property tax or multicounty assessing and collecting levy
imposed in accordance with Section
59-2-1602
;
(B)
a judgment levy imposed by a taxing entity under Section
59-2-1328
or
59-2-1330
; or
(C)
a levy imposed by a taxing entity under Section
11-14-310
to pay for a general
obligation bond.
(c)
"Transfer date" means the date that fee title to land that is part of the point of the
mountain state land is transferred to a private person.
(d)
"Transferred parcel" means a parcel of land:
(i)
that is part of the point of the mountain state land; and
(ii)
the fee title to which has been transferred to a private person.
(2)
Beginning January 1, 2023, the authority shall be paid 75% of property tax
augmentation from a transferred parcel:
(a)
for a period of 25 years beginning January 1 of the year immediately following the
transfer date for the transferred parcel; and
(b)
for a period of an additional 15 years beyond the period stated in Subsection
(2)(a)
if:
(i)
the board determines by resolution that the additional years will produce a
significant benefit to the authority; and
(ii)
the resolution is adopted before the end of the 25-year period under Subsection
(2)(a)
.
(3)
A county that collects property tax on property within the county in which the point of
the mountain state land is located shall pay and distribute to the authority the amount of
property tax augmentation that the authority is entitled to collect under Subsection
(2)
, in
the manner and at the time provided in Section
59-2-1365
.
(4)
The authority shall comply with the requirements described in Title 59, Chapter 35, Tax
Increment Financing Reporting.
Section 5. Section
11-70-401
is amended to read:
11-70-401
Effective
05/06/26
. Enhanced property tax revenue to be paid to
fairpark district -- Reporting.
(1)
Subject to Subsection
(5)
, the fairpark district shall be paid 90% of enhanced property
tax revenue generated from each parcel of privately owned land within the fairpark
district boundary:
(a)
beginning the tax year that begins on January 1, 2025; and
(b)
until the transition date for that parcel.
(2)
Subject to Subsection
(5)
, during the payment period the fairpark district shall be paid
up to 100% of enhanced property tax revenue:
(a)
generated from designated parcels of privately owned land within a project area; and
(b)
as the board specifies in a designation resolution adopted in consultation with a
qualified owner.
(3)
For purposes of the payment of enhanced property tax revenue under this section, a
payment period shall begin, as specified in the designation resolution, on January 1 of a
year that begins after the designation resolution is adopted.
(4)
(a)
For purposes of this section, the fairpark district may designate an improved
portion of a parcel in a project area as a separate parcel.
(b)
A fairpark district designation of an improved portion of a parcel as a separate parcel
under Subsection
(4)(a)
does not constitute a subdivision, as defined in Section
10-20-102
or Section
17-79-102
.
(c)
A county recorder shall assign a separate tax identification number to the improved
portion of a parcel designated by the fairpark district as a separate parcel under
Subsection
(4)(a)
.
(5)
A host municipality shall be paid a minimum of 25% of the enhanced property tax
revenue generated by a property tax imposed by the host municipality to reimburse the
host municipality for services the host municipality provides to a project area in
accordance with Subsection
11-70-206(6)(c)
, with the exact amount determined in an
agreement between the host municipality and the fairpark district.
(6)
The fairpark district shall comply with the requirements described in Title 59, Chapter
35, Tax Increment Financing Reporting.
Section 6. 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.
(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
:
a multicounty assessing
and collecting levy or a county additional property tax described in Section
59-2-1602
.
(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 7. Section
17-80-504
is amended to read:
17-80-504
Effective
05/06/26
. Payment, use, and administration of revenue
from a home ownership promotion zone -- Reporting.
(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
retain
, in accordance with Section
59-2-1365
,
retain
60% of the
tax increment
collected
the county collects
from property within the home ownership
promotion zone to
be used
use
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.
An
agency created by the county within which the home ownership promotion zone is
located may administer home ownership promotion zone funds.
(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
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
use
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
use
the home ownership promotion zone funds to guarantee the
payment of public infrastructure bonds issued by a public infrastructure district.
(9)
A county, an agency, or the public infrastructure district that intends to receive or
receives tax increment, as defined in Section
59-35-101
, shall comply with the
requirements described in Title 59, Chapter 35, Tax Increment Financing Reporting.
Section 8. Section
17C-1-603
is repealed and reenacted to read:
17C-1-603
Effective
05/06/26
. Reporting requirements.
An agency shall comply with the requirements described in Title 59, Chapter 35, Tax
Increment Financing Reporting.
Section 9. Section
17C-1-606
is amended to read:
17C-1-606
Effective
05/06/26
. County auditor report on project areas.
(1)
(a)
On or before March 31 of each year, the auditor of each county in which an
agency is located shall prepare a report on the project areas within each agency.
(b)
The county auditor shall send a copy of each report under Subsection
(1)(a)
to the
agency that is the subject of the report, the State Tax Commission, the State Board of
Education, and each taxing entity from which the agency receives tax increment.
(c)
On or before March 31 of each year, the county auditor shall submit a copy of each
report under Subsection
(1)(a)
to the Governor's Office of Economic Opportunity for
inclusion in the database described in Section
17C-1-603
.
(c)
On or before March 31 of each year, the county auditor shall submit a copy of each
report under Subsection
(1)(a)
to the program manager, as defined in Section
59-2-1601
, for inclusion in the database described in Title 59, Chapter 35, Tax
Increment Financing Reporting.
(2)
Each report under Subsection
(1)(a)
shall report:
(a)
the total assessed property value within each project area for the previous tax year;
(b)
the base taxable value of each project area for the previous tax year;
(c)
the tax increment available to be paid to the agency for the previous tax year;
(d)
the tax increment requested by the agency for the previous tax year; and
(e)
the tax increment paid to the agency for the previous tax year.
(3)
Within 30 days after a request by an agency, the State Tax Commission, the State Board
of Education, or any taxing entity from which the agency receives tax increment, the
county auditor or the county assessor shall provide access to:
(a)
the county auditor's method and calculations used to make adjustments under Section
17C-1-408
;
(b)
the unequalized assessed valuation of an existing or proposed project area, or any
parcel or parcels within an existing or proposed project area, if the equalized assessed
valuation has not yet been determined for that year;
(c)
the most recent equalized assessed valuation of an existing or proposed project area
or any parcel or parcels within an existing or proposed project area; and
(d)
the tax rate of each taxing entity adopted as of November 1 for the previous tax year.
(4)
Each report described in Subsection
(1)(a)
shall include:
(a)
sufficient detail regarding the calculations performed by a county auditor so that an
agency or other interested party could repeat and verify the calculations; and
(b)
a detailed explanation of any adjustments made to the base taxable value of each
project area.
Section 10. Section
17D-4-205
is amended to read:
17D-4-205
Effective
05/06/26
. Reporting.
(1)
A public infrastructure district shall file annual reports with the creating entity
regarding the public infrastructure district's actions as provided in the governing
document.
(2)
A public infrastructure district shall comply with the requirements described in Title 59,
Chapter 35, Tax Increment Financing Reporting.
Section 11. Section
59-1-1901
is enacted to read:
19. Statewide Tax Administration and Technology Solutions
59-1-1901
Effective
05/06/26
. Definitions.
(1)
"Agency" means a community reinvestment agency, as defined in Section
17C-1-102
.
(2)
"Database" means a collection of electronic data to track the information that each TIF
entity is required to submit, or the program manager collects, in accordance with
Chapter 35, Tax Increment Financing Reporting.
(3)
"Program manager" means the same as that term is defined in Section
59-2-1601
.
(4)
"STATS" means the Statewide Tax Administration and Technology Solutions program,
created in Section
59-1-1902
.
(5)
(a)
"TIF
entity" means a political subdivision of the state that intends to receive,
receives, or is authorized to receive tax increment for an approved project area.
(b)
"TIF entity" includes an agency.
Section 12. Section
59-1-1902
is enacted to read:
59-1-1902
Effective
05/06/26
. Statewide Tax Administration and Technology
Solutions -- Duties of program manager.
(1)
There is created the "Statewide Tax Administration and Technology Solutions"
program, administered by the program manager.
(2)
STATS
services are:
(a)
subject to Subsection
(3)
, the hiring of one or more professional appraisers to provide
property valuation services within a county of the third, fourth, fifth, or sixth class, as
classified in Section
17-60-104
;
(b)
the performance of the duties related to telecommunications service providers
described in Sections
59-2-306.5
and
59-2-307
;
(c)
the maintenance and enhancement of the statewide property tax system in accordance
with Section
59-2-1606
;
(d)
the coordination with the commission to conduct a study to determine the need for
adjustment to the rate of the recovery fee as required by Section
59-2-2002
; and
(e)
the collation and distribution of the information regarding tax increment financing
that a TIF entity provides, or the program manager collects, in accordance with Part
35, Tax Increment Financing Reporting, and a county auditor submits in accordance
with Section
17C-1-606
.
(3)
A professional appraiser hired to provide property valuation services under Subsection
(2)
shall hold an appraiser's certificate or license from the Division of Real Estate in
accordance with Title 61, Chapter 2g, Real Estate Appraiser Licensing and Certification
Act.
(4)
(a)
The commission shall approve a professional appraiser before the program
manager hires the professional appraiser.
(b)
The program manager shall determine that hiring a professional appraiser to provide
property valuation services promotes the objectives described in Subsection
59-2-1601(1)(a)
before hiring a professional appraiser.
(5)
(a)
The program manager shall:
(i)
create and maintain a database;
(ii)
summarize and provide analysis of the electronic data within the database; and
(iii)
make the database publicly accessible from the STATS
website.
(b)
The program manager may:
(i)
contract with a third party to create and maintain the database; and
(ii)
charge a fee to a TIF entity to cover the program manager's cost of complying
with Subsection
(5)(a)
.
(c)
The program manager shall determine the amount of the fee described in Subsection
(5)(b)(ii)
, provided that the combined fees charged to all TIF entities may not exceed
the actual cost of complying with Subsection
(5)(a)
.
Section 13. Section
59-2-306.5
is amended to read:
59-2-306.5
Effective
05/06/26
Applies beginning
01/01/26
. Valuation of
personal property of telecommunications service provider -- Reporting information to
counties.
(1)
As used in this section,
"Multicounty Appraisal Trust"
"program manager"
means the
same as that term is defined in Section
59-2-1601
.
(2)
A telecommunications service provider shall provide to the
Multicounty Appraisal
Trust
program manager
a signed statement setting forth all of the personal property that
the telecommunications service provider owns, possesses, manages, or has under the
telecommunications service provider's control in the state.
(3)
The signed statement:
(a)
may be requested by the
Multicounty Appraisal Trust:
program manager on or
before January 31 of each year;
(i)
each year; and
(ii)
if requested, on or before January 31;
(b)
shall itemize each item of personal property that the telecommunications service
provider owns, possesses, manages, or has under the telecommunications service
provider's control:
(i)
by county and by tax area; and
(ii)
for the tax year that began on January 1; and
(c)
shall be submitted:
(i)
annually on or before March 31; and
(ii)
electronically in a form
approved by
the commission
approves
.
(4)
(a)
Except where an estimate is made in accordance with Subsection
59-2-307
(3)(b)(i)(C)
59-2-307(4)(b)(i)(C)
, the
Multicounty Appraisal Trust
program manager

shall value each item of personal property of a telecommunications service provider
according to the personal property valuation guides and schedules
established by
the commission
establishes
.
(b)
(i)
Between March 31 and May 31 of each year:
(A)
the
Multicounty Appraisal Trust
program manager
may communicate with a
telecommunications service provider to address any inconsistency or error in
the filed signed statement; and
(B)
the telecommunications service provider may file an amended signed
statement with the
Multicounty Appraisal Trust
program manager
regarding
the items agreed to by the
Multicounty Appraisal Trust
program manager
and
the telecommunications service provider.
(ii)
The communication described in this Subsection
(4)(b)
is in addition to the audit
authority provided by this chapter.
(c)
On or before May 31 of each year, the
Multicounty Appraisal Trust
program
manager
shall:
(i)
forward to each county information about the total value of personal property of
each telecommunications service provider within the county, by tax area,
including a listing of personal property that is exempt; and
(ii)
issue a tax notice to each telecommunications service provider listing the tax due
to each county, by tax area.
(d)
On or before June 30 of each year, a telecommunications service provider shall pay
to the county the tax due on the tax notice.
(e)
A telecommunications service provider may appeal the valuation of personal
property to the county on or before the later of:
(i)
July 30 of the year the
Multicounty Appraisal Trust
program manager
requests a
statement described in Subsection
(3)(a)
; or
(ii)
60 days after mailing of a tax notice.
(5)
The
Multicounty Appraisal Trust
program manager
shall forward to each county
information about the total value of personal property of each telecommunications
service provider within the county.
(6)
If a signed statement filed in accordance with this section discloses real property, the
Multicounty Appraisal Trust
program manager
shall send a copy of the signed statement
to the county in which the property is located.
Section 14. Section
59-2-307
is amended to read:
59-2-307
Effective
05/06/26
Applies beginning
01/01/26
. Refusal by taxpayer
to file signed statement -- Estimation of value -- Penalty.
(1)
As used in this section, "program manager" means the same as that term is defined in
Section
59-2-1601
.
(a)
(2)
(a)
Each person that fails to file the signed statement required by Section
59-2-306
or Section
59-2-306.5
, fails to file the signed statement with respect to
name and place of residence, or fails to appear and testify when requested by the
county
assessor
,
shall pay a penalty equal to 10% of the estimated tax due, but not
less than $25 for each failure to file a signed and completed statement.
(b)
The
Multicounty Appraisal Trust
program manager
shall notify the county assessor
of a telecommunications service provider's failure to file the signed statement.
(c)
The
county
assessor shall collect each penalty under Subsection
(1)(a)
(2)(a)
in the
manner provided by Sections
59-2-1302
and
59-2-1303
, except as otherwise provided
for in this section, or by a judicial proceeding brought in the name of the
county
assessor.
(d)
The
county
assessor shall pay all money recovered under this section into the county
treasury.
(2)
(3)
(a)
Upon a showing of reasonable cause, a county may waive or reduce a penalty
imposed under Subsection
(1)(a)
(2)(a)
.
(b)
(i)
Except as provided in Subsection
(2)(b)(ii)
(3)(b)(ii)
, a county assessor may
impose a penalty under Subsection
(1)(a)
(2)(a)
on or after May 16 of the year
the county assessor requests the statement described in Section
59-2-306
or is due
under Section
59-2-306.5
.
(ii)
A county assessor may not impose a penalty under Subsection
(1)(a)
(2)(a)
until
30 days after the postmark date of mailing of a subsequent notice if the signed
statement described in Section
59-2-306
is requested:
(A)
on or after March 16; or
(B)
by a county assessor of a county of the first class
, as classified in Section
17-60-104
.
(3)
(4)
(a)
If an owner neglects or refuses to file a signed statement
requested by an
assessor
as required under Section
59-2-306
after the county assessor makes a
request
:
(i)
the
county
assessor shall:
(A)
make a record of the failure to file; and
(B)
make an estimate of the value of the property of the owner based on known
facts and circumstances; and
(ii)
the
county
assessor of a county of the first class
, as classified in Section
17-60-104
:
(A)
shall make a subsequent request by mail for the signed statement, informing
the owner of the consequences of not filing a signed statement; and
(B)
may impose a fee for the actual and necessary expenses of the mailing under
this
Subsection
(3)(a)(ii)(A)
(4)(a)
.
(b)
(i)
If a telecommunications service provider neglects or refuses to file a signed
statement in accordance with Section
59-2-306.5
, the
Multicounty Appraisal Trust
program manager
shall make:
(A)
a record of the failure to file;
(B)
a request by mail for the signed statement, informing the telecommunications
service provider of the consequences of not filing a signed statement; and
(C)
an estimate of the value of the personal property of the telecommunications
service provider based on known facts and circumstances.
(ii)
The
Multicounty Appraisal Trust
program manager
may impose a fee for the
actual and necessary expenses of the mailing under
this
Subsection
(3)(b)(i)(B)
(4)(b)
.
(c)
A county board of equalization or the commission may not reduce the value fixed by
the
county
assessor in accordance with Subsection
(3)(a)(i)
(4)(a)(i)
or the
Multicounty Appraisal Trust
program manager
in accordance with Subsection
(3)(b)(i)
(4)(b)(i)
.
Section 15. Section
59-2-308
is amended to read:
59-2-308
Effective
05/06/26
Applies beginning
01/01/26
. Assessment in name
of representative -- Assessment of property of decedents -- Assessment of property in
litigation -- Assessment of personal property valued by program manager.
(1)
If a person is assessed as agent, trustee, bailee, guardian, executor, or administrator, a
county shall:
(a)
add the representative designation to the name; and
(b)
enter the assessment separately from the individual assessment.
(2)
A county may assess the undistributed or unpartitioned property of a deceased
individual to an heir, guardian, executor, or administrator, and the payment of taxes
binds all the parties in interest.
(3)
Property in litigation, which is in the possession of a court or receiver, shall be assessed
to the court clerk or receiver, and the taxes shall be paid under the direction of the court.
(4)
A county shall add the valuation the
Multicounty Appraisal Trust
program manager, as
that term is defined in Section
59-2-1601
,
gives to personal property of a
telecommunications service provider to the valuation of any real property of the
telecommunications service provider within the county before making an assessment in
accordance with this part.
Section 16. Section
59-2-704
is amended to read:
59-2-704
Effective
05/06/26
Applies beginning
01/01/26
. Assessment studies --
Sharing of data -- Factoring assessment rates -- Rulemaking.
(1)
(a)
Each year, to assist in the evaluation of appraisal performance of taxable real
property, the commission shall conduct and publish studies to determine the
relationship between the market value shown on the assessment roll and the market
value of real property in each county.
(b)
The studies conducted under this Subsection
(1)
shall include measurements of
uniformity within counties and use statistical methods established by the commission.
(c)
County assessors may provide sales information to the commission for purposes of
the studies conducted under this Subsection
(1)
.
(d)
The commission shall make the sales and appraisal information related to the studies
conducted under this Subsection
(1)
available to the
county
assessors upon request.
(2)
(a)
The
Each year, the
commission shall
, each year,
order each county to adjust or
factor
its
the county's
assessment rates using the most current studies so that the
assessment rate in each county is in accordance with
that prescribed in
Section
59-2-103
.
(b)
The adjustment or factoring ordered under this Subsection
(2)
may include an entire
county, geographical areas within a county, and separate classes of properties.
(3)
If the commission determines that sales data in any county is insufficient to perform the
studies required under Subsection
(1)
, the commission may conduct appraisals of
property within
that
the
county.
(4)
If a county fails to implement factoring
ordered
the commission orders
under
Subsection
(2)
, the commission shall:
(a)
implement the factoring; and
(b)
charge an amount equal to the reasonable implementation costs of the factoring to
that county.
(5)
If a county disputes the factoring ordered under Subsection
(2)
, the matter may be
mediated by the Multicounty Appraisal Trust as defined in Section
59-2-1601
.
(6)
(5)
(a)
The commission may change the factor for any county
which
that
, after a
hearing before the commission, establishes that the factor should properly be set at a
different level for
that
the
county.
(b)
The commission shall establish the method, procedure, and timetable for the hearings
authorized under this section, including access to information to ensure a fair hearing.
(7)
(6)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
commission may establish rules to implement this section
, including providing a means
for a county to cure noncompliance with a factoring order
.
Section 17. Section
59-2-919.1
is amended to read:
59-2-919.1
Effective
05/06/26
Superseded
07/01/26
Applies beginning
01/01/26
.
Notice of property valuation and tax changes.
(1)
In addition to the notice requirements of Section
59-2-919
, the county auditor, on or
before July 22 of each year,
On or before July 22 of each year, the county auditor, in
addition to the notice requirements of Section
59-2-919
,
shall notify each owner of real
estate who is listed on the assessment roll.
(2)
The notice described in Subsection
(1)
shall:
(a)
except as provided in Subsection
(5)
, be sent to all owners of real property by mail
10 or more days before the day on which:
(i)
the county board of equalization meets; and
(ii)
the taxing entity holds a public hearing on the proposed increase in the certified
tax rate;
(b)
be on a form that
is
:
(i)
approved by
the commission
approves
; and
(ii)
is
uniform in content in all counties in the state; and
(c)
contain for each property:
(i)
the assessor's determination of the value of the property;
(ii)
the taxable value of the property;
(iii)
for property assessed by the county assessor:
(A)
instructions on how the taxpayer may file an application with the county
board of equalization to appeal the valuation or equalization of the property
under Section
59-2-1004
, including instructions for filing an application
through electronic means; and
(B)
the deadline for the taxpayer to make an application to appeal the valuation or
equalization of the property under Section
59-2-1004
;
(iv)
for property assessed by the commission:
(A)
instructions on how the taxpayer may file an application with the commission
for a hearing on an objection to the valuation or equalization of the property
under Section
59-2-1007
;
(B)
the deadline for the taxpayer to apply to the commission for a hearing on an
objection to the valuation or equalization of the property under Section
59-2-1007
; and
(C)
a statement that the taxpayer may not appeal the valuation or equalization of
the property to the county board of equalization;
(v)
itemized tax information for all applicable taxing entities, including:
(A)
the dollar amount of the taxpayer's tax liability for the property in the prior
year; and
(B)
the dollar amount of the taxpayer's tax liability under the current rate;
(vi)
the following, stated separately:
(A)
the charter school levy described in Section
53F-2-703
;
(B)
the multicounty assessing and collecting levy described in
Subsection
59-2-1602(2)
Section
59-2-1602
;
(C)
the county assessing and collecting levy described in
Subsection
59-2-1602(4)
Section
59-2-1602
;
(D)
levies for debt service voted on by the public;
(E)
levies imposed for special purposes under Section
10-6-133.4
;
(F)
the combined basic rate as defined in Section
53F-2-301
; and
(G)
if applicable, the annual payment described in Subsection
63H-1-501(4)(a)
;
(vii)
the tax impact on the property;
(viii)
the date, time, and place of the required public hearing for each entity;
(ix)
property tax information pertaining to:
(A)
taxpayer relief; and
(B)
the residential exemption described in Section
59-2-103
;
(x)
information specifically authorized to be included on the notice under this chapter;
(xi)
the last property review date of the property as
described in Subsection
59-2-303.1(1)(c)
defined in Section
59-2-303.1
;
(xii)
instructions on how the taxpayer may obtain additional information regarding
the valuation of the property, including the characteristics and features of the
property, from:
(A)
a website maintained by the county; or
(B)
the statewide web portal developed and maintained
by the Multicounty
Appraisal Trust under
Subsection
59-2-1606
(5)(a)
in accordance with
Section
59-2-1606
for uniform access to property characteristics and features;
and
(xiii)
other information
approved by
the commission
approves
.
(3)
If a taxing entity that is subject to the notice and hearing requirements of Subsection
59-2-919(4)
proposes a tax increase, the notice described in Subsection
(1)
shall state, in
addition to the information required by Subsection
(2)
:
(a)
the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
(b)
the difference between the dollar amount of the taxpayer's tax liability if the
proposed increase is approved and the dollar amount of the taxpayer's tax liability
under the current rate, placed in close proximity to the information described in
Subsection
(2)(c)(viii)
;
(c)
the percentage increase that the dollar amount of the taxpayer's tax liability under the
proposed tax rate represents as compared to the dollar amount of the taxpayer's tax
liability under the current tax rate; and
(d)
for each taxing entity proposing a tax increase, the dollar amount of additional ad
valorem tax revenue, as defined in Section
59-2-919
, that would be generated each
year if the proposed tax increase is approved.
(4)
In addition to any other tax relief information required under Subsection
(2)(c)(ix)(A)
, a
notice sent to a residential property shall:
(a)
state, "If you are 65 years old or older, disabled, or experiencing extreme hardship,
and this property is your primary residence, you may be eligible to defer payment of
this property tax."; and
(b)
include a telephone number, or a website address on which a telephone number is
prominently listed, that the property owner may call to obtain additional information
about applying for a deferral.
(5)
(a)
Subject to the other provisions of this Subsection
(5)
, a county auditor may
provide, at the county auditor's discretion, the notice required by this section to a
taxpayer by electronic means if a taxpayer makes an election, according to
procedures determined by the county auditor, to receive the notice by electronic
means.
(b)
(i)
If a county auditor sends a notice required by this section by electronic means,
the county auditor shall attempt to verify whether a taxpayer receives the notice.
(ii)
If the county auditor cannot verify receipt of the notice sent by electronic means
14 days or more before the county board of equalization meets and the taxing
entity holds a public hearing on a proposed increase in the certified tax rate, the
county auditor shall send the notice required by this section by mail as provided in
Subsection
(2)
.
(c)
A taxpayer may revoke an election to receive the notice required by this section by
electronic means if the taxpayer provides written notice to the county auditor on or
before April 30.
(d)
An election or a revocation of an election under this Subsection
(5)
:
(i)
does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
before the due date for paying the tax; or
(ii)
does not alter the requirement that a taxpayer appealing the valuation or the
equalization of the taxpayer's real property submit the application for appeal
within the time period provided in Subsection
59-2-1004(3)
.
(e)
A county auditor shall provide the notice required by this section as provided in
Subsection
(2)
, until a taxpayer makes a new election in accordance with this
Subsection
(5)
, if:
(i)
the taxpayer revokes an election in accordance with Subsection
(5)(c)
to receive
the notice required by this section by electronic means; or
(ii)
the county auditor finds that the taxpayer's electronic contact information is
invalid.
(f)
A person is considered to be a taxpayer for purposes of this Subsection
(5)
regardless
of whether the property that is the subject of the notice required by this section is
exempt from taxation.
Section 18. Section
59-2-919.1
is amended to read:
59-2-919.1
Effective
07/01/26
. Notice of property valuation and tax changes.
(1)
In addition to the notice requirements of Section
59-2-919
, the county auditor, on or
before July 22 of each year,
On or before July 22 of each year, in addition to the notice
requirements of Section
59-2-919
, the county auditor
shall notify each owner of real
estate who is listed on the assessment roll.
(2)
The notice described in Subsection
(1)
shall:
(a)
except as provided in Subsection
(5)
, be sent to all owners of real property by mail
10 or more days before the day on which:
(i)
the county board of equalization meets; and
(ii)
the taxing entity holds a public hearing on the proposed increase in the certified
tax rate;
(b)
be on a form that
is
:
(i)
approved by
the commission
approves
; and
(ii)
is
uniform in content in all counties in the state; and
(c)
contain for each property:
(i)
the assessor's determination of the value of the property;
(ii)
the taxable value of the property;
(iii)
for property assessed by the county assessor:
(A)
instructions on how the taxpayer may file an application with the county
board of equalization to appeal the valuation or equalization of the property
under Section
59-2-1004
, including instructions for filing an application
through electronic means; and
(B)
the deadline for the taxpayer to make an application to appeal the valuation or
equalization of the property under Section
59-2-1004
;
(iv)
for property assessed by the commission:
(A)
instructions on how the taxpayer may file an application with the commission
for a hearing on an objection to the valuation or equalization of the property
under Section
59-2-1007
;
(B)
the deadline for the taxpayer to apply to the commission for a hearing on an
objection to the valuation or equalization of the property under Section
59-2-1007
; and
(C)
a statement that the taxpayer may not appeal the valuation or equalization of
the property to the county board of equalization;
(v)
itemized tax information for all applicable taxing entities, including:
(A)
the dollar amount of the taxpayer's tax liability for the property in the prior
year; and
(B)
the dollar amount of the taxpayer's tax liability under the current rate;
(vi)
the following, stated separately:
(A)
the charter school levy described in Section
53F-2-703
;
(B)
the multicounty assessing and collecting levy described in
Subsection
59-2-1602(2)
Section
59-2-1602
;
(C)
the county assessing and collecting levy described in Subsection
59-2-1602(4)
Section
59-2-1602
;
(D)
levies for debt service voted on by the public;
(E)
levies imposed for special purposes under Section
10-6-133.4
;
(F)
the minimum basic tax rate as defined in Section
53F-2-301
; and
(G)
if applicable, the annual payment described in Subsection
63H-1-501(4)(a)
;
(vii)
the tax impact on the property;
(viii)
the date, time, and place of the required public hearing for each entity;
(ix)
property tax information pertaining to:
(A)
taxpayer relief; and
(B)
the residential exemption described in Section
59-2-103
;
(x)
information specifically authorized to be included on the notice under this chapter;
(xi)
the last property review date of the property as described in
Subsection
59-2-303.1(1)(c)
Section
59-2-303.1
;
(xii)
instructions on how the taxpayer may obtain additional information regarding
the valuation of the property, including the characteristics and features of the
property, from:
(A)
a website maintained by the county; or
(B)
the statewide web portal developed and maintained
by the Multicounty
Appraisal Trust under Subsection
59-2-1606
(5)(a)
in accordance with Section
59-2-1606
for uniform access to property characteristics and features; and
(xiii)
other information approved by the commission.
(3)
If a taxing entity that is subject to the notice and hearing requirements of Subsection
59-2-919(4)
proposes a tax increase, the notice described in Subsection
(1)
shall state, in
addition to the information required by Subsection
(2)
:
(a)
the dollar amount of the taxpayer's tax liability if the proposed increase is approved;
(b)
the difference between the dollar amount of the taxpayer's tax liability if the
proposed increase is approved and the dollar amount of the taxpayer's tax liability
under the current rate, placed in close proximity to the information described in
Subsection
(2)(c)(viii)
;
(c)
the percentage increase that the dollar amount of the taxpayer's tax liability under the
proposed tax rate represents as compared to the dollar amount of the taxpayer's tax
liability under the current tax rate; and
(d)
for each taxing entity proposing a tax increase, the dollar amount of additional ad
valorem tax revenue, as defined in Section
59-2-919
, that would be generated each
year if the proposed tax increase is approved.
(4)
In addition to any other tax relief information required under Subsection
(2)(c)(ix)(A)
, a
notice sent to a residential property shall:
(a)
state, "If you are 65 years old or older, disabled, or experiencing extreme hardship,
and this property is your primary residence, you may be eligible to defer payment of
this property tax."; and
(b)
include a telephone number, or a website address on which a telephone number is
prominently listed, that the property owner may call to obtain additional information
about applying for a deferral.
(5)
(a)
Subject to the other provisions of this Subsection
(5)
, a county auditor may
provide, at the county auditor's discretion, the notice required by this section to a
taxpayer by electronic means if a taxpayer makes an election, according to
procedures determined by the county auditor, to receive the notice by electronic
means.
(b)
(i)
If a county auditor sends a notice required by this section by electronic means,
the county auditor shall attempt to verify whether a taxpayer receives the notice.
(ii)
If the county auditor cannot verify receipt of the notice sent by electronic means
14 days or more before the county board of equalization meets and the taxing
entity holds a public hearing on a proposed increase in the certified tax rate, the
county auditor shall send the notice required by this section by mail as provided in
Subsection
(2)
.
(c)
A taxpayer may revoke an election to receive the notice required by this section by
electronic means if the taxpayer provides written notice to the county auditor on or
before April 30.
(d)
An election or a revocation of an election under this Subsection
(5)
:
(i)
does not relieve a taxpayer of the duty to pay a tax due under this chapter on or
before the due date for paying the tax; or
(ii)
does not alter the requirement that a taxpayer appealing the valuation or the
equalization of the taxpayer's real property submit the application for appeal
within the time period provided in Subsection
59-2-1004(3)
.
(e)
A county auditor shall provide the notice required by this section as provided in
Subsection
(2)
, until a taxpayer makes a new election in accordance with this
Subsection
(5)
, if:
(i)
the taxpayer revokes an election in accordance with Subsection
(5)(c)
to receive
the notice required by this section by electronic means; or
(ii)
the county auditor finds that the taxpayer's electronic contact information is
invalid.
(f)
A person is considered to be a taxpayer for purposes of this Subsection
(5)
regardless
of whether the property that is the subject of the notice required by this section is
exempt from taxation.
Section 19. Section
59-2-924
is amended to read:
59-2-924
Effective
01/01/27
. 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
;
(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
;
(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, 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
or Section
17-80-101
;
(ix)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, 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
;
(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)
"Building area" means the total floor area of a structure measured from the exterior
dimensions of the structure's enclosing walls, including each level of finished or
unfinished space designed for occupancy or use.
(e)
(f)
"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)
(g)
"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)
(h)
(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)
(i)
"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)
(j)
"Community reinvestment agency" means the same as that term is defined in
Section
17C-1-102
.
(j)
(k)
"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)
(l)
"Host local government" means the same as that term is defined in Section
63N-2-502
.
(l)
(m)
"Hotel property" means the same as that term is defined in Section
63N-2-502
.
(m)
(n)
"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)
(o)
"Incremental property tax revenue" means the same as that term is defined in
Section
63N-2-502
.
(o)
(p)
"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
, 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, 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, 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, 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 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)
(q)
(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
.
; or
(E)
subject to Subsection
(10)
, taxable value attributable to physical
improvements to an existing structure or the construction of a new structure
that does not add new building area related to residential or commercial use,
and excluding any increase in taxable value for property that was assessed in
the previous year as partially completed new growth.
(q)
(r)
"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, the same as that term is defined in Section
63N-3-602
;
(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, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(vii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; 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)
(s)
(i)
"Project area new growth" means:
(i)
(A)
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)
(B)
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
;
(iii)
(C)
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)
(D)
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)
(E)
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)
(F)
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, 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)
(G)
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, an amount equal to the
incremental value that is no longer provided to a home ownership promotion
zone as tax increment;
(viii)
(H)
for a first home investment zone created under Title 63N, Chapter 3,
Part 16, First Home Investment Zone Act, an amount equal to the incremental
value that is no longer provided to a first home investment zone as tax
increment; or
(ix)
(I)
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.
(ii)
"Project area new growth" does not include, for any entity listed under Subsection
(1)(s)(i)
, tangible personal property.
(s)
(t)
"Project area incremental revenue" means the same as that term is defined in
Section
17C-1-1001
.
(t)
(u)
"Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(u)
(v)
"Property tax differential" means the same as that term is defined in Sections
11-58-102
and
79-6-1104
.
(v)
(w)
"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, the same as the term "property tax increment" is defined
in Section
63N-3-602
;
(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, 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, the same as that term is defined in Section
63N-3-1601
; 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 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 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 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)
.
(10)
For purposes of Subsection
(1)(q)(ii)(E)
, a county assessor may not use permit value to
determine the market value of construction in progress as of January 1.
Section 20. Section
59-2-924.2
is amended to read:
59-2-924.2
Effective
05/06/26
Applies beginning
01/01/26
. Adjustments to the
calculation of a taxing entity's certified tax rate.
(1)
For purposes of this section, "certified
As used in this section:
(a)
"Annexing county" means a county for which the unincorporated area is included
within a public safety district by annexation.
(b)
"Annexing municipality" means a municipality that is included within a public safety
district by annexation.
(c)
"Certified
tax rate" means a certified tax rate calculated in accordance with Section
59-2-924
.
(d)
"Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service Area
Act:
(i)
created to provide fire protection, paramedic, and emergency services; and
(ii)
in the creation of which an election was not required under Subsection
17B-1-214(3)(d)
.
(e)
"Participating county" means a county that has the unincorporated area included
within a public safety district.
(f)
"Participating municipality" means a municipality that is included within a public
safety district.
(g)
"Police district" means a service area under Title 17B, Chapter 2a, Part 9, Service
Area Act, within a county of the first class:
(i)
created to provide law enforcement service; and
(ii)
in the creation of which an election was not required under Subsection
17B-1-214(3)(d)
.
(h)
"Public safety district" means a fire district or a police district.
(i)
"Public safety service" means:
(i)
in the case of a public safety district that is a fire district, fire protection,
paramedic, and emergency services; and
(ii)
in the case of a public safety district that is a police district, law enforcement
service
.
(2)
Beginning January 1, 1997, if
If
a taxing entity receives increased
revenues
revenue

from uniform fees on tangible personal property under Section
59-2-405
,
59-2-405.1
,
59-2-405.2
,
59-2-405.3
, or
72-10-110.5
as a result of any county imposing a sales and
use tax under Chapter 12, Part 11, County Option Sales and Use Tax, the taxing entity
shall decrease
its
the taxing entity's
certified tax rate to offset the increased
revenues
revenue
.
(3)
(a)
Beginning July 1, 1997, if
If
a county has imposed a sales and use tax under
Chapter 12, Part 11, County Option Sales and Use Tax, the county's certified tax rate
shall be:
(i)
decreased on a one-time basis by the amount of the estimated sales and use tax
revenue to be distributed to the county under Subsection
59-12-1102(4)
; and
(ii)
increased by the amount necessary to offset the county's reduction in revenue
from uniform fees on tangible personal property under Section
59-2-405
,
59-2-405.1
,
59-2-405.2
,
59-2-405.3
, or
72-10-110.5
as a result of the decrease in
the certified tax rate under Subsection
(3)(a)(i)
.
(b)
The commission shall determine estimates of sales and use tax distributions for
purposes of Subsection
(3)(a)
.
(4)
Beginning January 1, 1998, if
If
a municipality has imposed an additional resort
communities sales and use tax under Section
59-12-402
, the municipality's certified tax
rate shall be decreased on a one-time basis by the amount necessary to offset the first 12
months of estimated revenue from the additional resort communities sales and use tax
imposed under Section
59-12-402
.
(5)
(a)
This Subsection
(5)
applies to each county that:
(i)
establishes a countywide special service district under Title 17D, Chapter 1,
Special Service District Act, to provide jail service, as provided in Subsection
17D-1-201(10)
; and
(ii)
levies a property tax on behalf of the special service district under Section
17D-1-105
.
(b)
(i)
The certified tax rate of each county to which this Subsection
(5)
applies shall
be decreased by the amount necessary to reduce county
revenues
revenue
by the
same amount of
revenues
revenue
that will be generated by the property tax
imposed on behalf of the special service district.
(ii)
Each decrease under Subsection
(5)(b)(i)
shall occur contemporaneously with the
levy on behalf of the special service district under Section
17D-1-105
.
(6)
The equalized public safety tax rate is determined by:
(a)
calculating, for each participating county and each participating municipality, the
property tax revenue necessary:
(i)
in the case of a fire district, to cover all the costs associated with providing fire
protection, paramedic, and emergency services:
(A)
for a participating county, in the unincorporated area of the county; and
(B)
for a participating municipality, in the municipality; or
(ii)
in the case of a police district, to cover all the costs associated with providing law
enforcement service that the police district board designates to be funded by a
property tax:
(A)
for a participating county, in the unincorporated area of the county; or
(B)
for a participating municipality, in the municipality; and
(b)
adding all the amounts calculated under Subsection
(6)(a)
for all participating
counties and all participating municipalities and then dividing that sum by the
aggregate taxable value of the property, as adjusted in accordance with Section
59-2-913
:
(i)
for participating counties, in the unincorporated area of all participating counties;
and
(ii)
for participating municipalities, in all participating municipalities.
(6)
(7)
(a)
As used in this Subsection (6):
(i)
"Annexing county" means a county whose unincorporated area is included within
a public safety district by annexation.
(ii)
"Annexing municipality" means a municipality whose area is included within a
public safety district by annexation.
(iii)
"Equalized public safety protection tax rate" means the tax rate that results from:
(A)
calculating, for each participating county and each participating municipality,
the property tax revenue necessary:
(I)
in the case of a fire district, to cover all of the costs associated with
providing fire protection, paramedic, and emergency services:
(Aa)
for a participating county, in the unincorporated area of the county;
and
(Bb)
for a participating municipality, in the municipality; or
(II)
in the case of a police district, to cover all the costs:
(Aa)
associated with providing law enforcement service:
(Ii)
for a participating county, in the unincorporated area of the county;
and
(IIii)
for a participating municipality, in the municipality; and
(Bb)
that the police district board designates as the costs to be funded by a
property tax; and
(B)
adding all the amounts calculated under Subsection (6)(a)(iii)(A) for all
participating counties and all participating municipalities and then dividing that
sum by the aggregate taxable value of the property, as adjusted in accordance
with Section
59-2-913
:
(I)
for participating counties, in the unincorporated area of all participating
counties; and
(II)
for participating municipalities, in all the participating municipalities.
(iv)
"Fire district" means a service area under Title 17B, Chapter 2a, Part 9, Service
Area Act:
(A)
created to provide fire protection, paramedic, and emergency services; and
(B)
in the creation of which an election was not required under Subsection
17B-1-214(3)(d).
(v)
"Participating county" means a county whose unincorporated area is included
within a public safety district at the time of the creation of the public safety
district.
(vi)
"Participating municipality" means a municipality whose area is included within
a public safety district at the time of the creation of the public safety district.
(vii)
"Police district" means a service area under Title 17B, Chapter 2a, Part 9,
Service Area Act, within a county of the first class:
(A)
created to provide law enforcement service; and
(B)
in the creation of which an election was not required under Subsection
17B-1-214(3)(d).
(viii)
"Public safety district" means a fire district or a police district.
(ix)
"Public safety service" means:
(A)
in the case of a public safety district that is a fire district, fire protection,
paramedic, and emergency services; and
(B)
in the case of a public safety district that is a police district, law enforcement
service.
(b)
(a)
In the first year following creation of a public safety district, the certified tax
rate of each participating county and each participating municipality shall be
decreased by the amount of the equalized public safety tax rate
calculated in
accordance with Subsection
(6)
.
(c)
(b)
In the first budget year following annexation to a public safety district, the
certified tax rate of each annexing county and each annexing municipality shall be
decreased by an amount equal to the amount of revenue budgeted by the annexing
county or annexing municipality:
(i)
for public safety service; and
(ii)
in:
(A)
for a taxing entity operating under a January 1 through December 31 fiscal
year, the prior calendar year; or
(B)
for a taxing entity operating under a July 1 through June 30 fiscal year, the
prior fiscal year.
(d)
(c)
Each tax levied under this section by a public safety district shall be considered
to be levied by:
(i)
each participating county and each annexing county for purposes of the county's
tax limitation under Section
59-2-908
; and
(ii)
each participating municipality and each annexing municipality for purposes of
the municipality's tax limitation under Section
10-5-112
, for a town, or Section
10-6-133
, for a city.
(e)
(d)
The calculation of a public safety district's certified tax rate for the year of
annexation shall be adjusted to include an amount of revenue equal to one half of the
amount of revenue budgeted by the annexing entity for public safety service in the
annexing entity's prior fiscal year if:
(i)
the public safety district operates on a January 1 through December 31 fiscal year;
(ii)
the public safety district approves an annexation of an entity operating on a July 1
through June 30 fiscal year; and
(iii)
the annexation described in Subsection
(6)(e)(ii)
(7)(d)(ii)
takes effect on July 1.
(7)
(8)
(a)
The base taxable value as defined in Section
17C-1-102
shall be reduced for
any year to the extent necessary to provide a community reinvestment agency
established under Title 17C, Limited Purpose Local Government Entities -
Community Reinvestment Agency Act, with approximately the same amount of
money the agency would have received without a reduction in the county's certified
tax rate, calculated in accordance with Section
59-2-924
, if:
(i)
in that year there is a decrease in the certified tax rate under Subsection
(2)
or
(3)(a)
;
(ii)
the amount of the decrease is more than 20% of the county's certified tax rate of
the previous year; and
(iii)
the decrease results in a reduction of the amount to be paid to the agency under
Section
17C-1-403
or
17C-1-404
.
(b)
The base taxable value as defined in Section
17C-1-102
shall be increased in any
year to the extent necessary to provide a community reinvestment agency with
approximately the same amount of money as the agency would have received without
an increase in the certified tax rate that year if:
(i)
in that year the base taxable value as defined in Section
17C-1-102
is reduced due
to a decrease in the certified tax rate under Subsection
(2)
or (3)(a); and
(ii)
the certified tax rate of a city, school district, special district, or special service
district increases independent of the adjustment to the taxable value of the base
year.
(c)
Notwithstanding a decrease in the certified tax rate under Subsection
(2)
or
(3)(a)
, the
amount of money allocated and, when collected, paid each year to a community
reinvestment agency established under Title 17C, Limited Purpose Local
Government Entities - Community Reinvestment Agency Act, for the payment of
bonds or other contract indebtedness, but not for administrative costs, may not be less
than
that
the
amount would have been without a decrease in the certified tax rate
under Subsection
(2)
or
(3)(a)
.
(8)
(a)
For the calendar year beginning on January 1, 2014, the calculation of a county
assessing and collecting levy shall be adjusted by the amount necessary to offset:
(i)
any change in the certified tax rate that may result from amendments to Part 16,
Multicounty Assessing and Collecting Levy, in Laws of Utah 2014, Chapter 270,
Section 3; and
(ii)
the difference in the amount of revenue a taxing entity receives from or
contributes to the Property Tax Valuation Fund, created in Section
59-2-1602
, that
may result from amendments to Part 16, Multicounty Assessing and Collecting
Levy, in Laws of Utah 2014, Chapter 270, Section 3.
(b)
A taxing entity is not required to comply with the notice and public hearing
requirements in Section
59-2-919
for an adjustment to the county assessing and
collecting levy described in Subsection (8)(a).
(9)
If a taxing entity receives decreased revenues from uniform fees on tangible personal
property under Section
59-2-405
as a result of any error in applying uniform fees to
motor vehicle registration in the calendar year beginning on January 1, 2023, the
commission may, for the calendar year beginning on January 1, 2024, increase the
taxing entity's budgeted revenue to offset the decreased revenues.
Section 21. Section
59-2-1601
is amended to read:
59-2-1601
Effective
05/06/26
Applies beginning
01/01/26
. Definitions.
As used in this part:
(1)
"County additional property tax" means the property tax levy described in Subsection
59-2-1602(4).
(2)
(1)
"Database" means the same as that term is defined in Section
59-1-1901
.
(2)
"Fund" means the Property Tax Valuation Fund created in Section
59-2-1602
.
(3)
"Multicounty Appraisal Trust" means the Multicounty Appraisal Trust created by an
agreement:
(a)
entered into by all of the counties in the state; and
(b)
authorized by Title 11, Chapter 13, Interlocal Cooperation Act.
(4)
(3)
"Multicounty assessing and collecting levy" means a property tax
levied
the
counties levy
in accordance with Subsection
59-2-1602
(2)
59-2-1602(3)
.
(4)
"Program manager" means an association that represents at least two-thirds of the
counties in the state.
(5)
(a)
"Property valuation service" means
any
a
service or technology that promotes
uniform assessment levels for the valuation of personal property and real property in
accordance with Part 3, County Assessment.
(b)
"Property valuation service" includes statewide aerial imagery, change detection,
sketch validation, exception analysis, commercial valuation modeling, residential
valuation modeling, automated valuation modeling, and equity analysis.
(6)
"Statewide property tax system" means a computer assisted system for mass appraisal,
equalization, collection, distribution, and administration related to property tax
, created
by the Multicounty Appraisal Trust in accordance with Section
59-2-1606
.
(7)
"STATS" means the Statewide Tax Administration and Technology Solutions program,
created in Section
59-1-1902
.
Section 22. Section
59-2-1602
is amended to read:
59-2-1602
Effective
05/06/26
Applies beginning
01/01/26
. Property Tax
Valuation Fund -- Statewide levy -- Additional county levy.
(1)
(a)
There is created a custodial fund
in the Division of Finance
known as the
"Property Tax Valuation Fund."
(b)
The fund consists of:
(i)
deposits made and penalties received under Subsection
(3)
(4)
;
and
(ii)
interest on money deposited into the fund
.
;
(iii)
appropriations from the Legislature;
(iv)
the statewide property tax system and statewide web portals, including
intellectual property rights; and
(v)
the database.
(c)
(i)
Subject to Subsection
(1)(c)(ii)
, the Division of Finance shall allocate money in
the fund for the calendar year to the program manager:
(A)
after the Division of Finance determines that the budget submitted in
accordance with Section
59-2-1605
contains proposed expenses for a use
described in Subsection
59-2-1606(4)
; and
(B)
for revenue the Division of Finance receives after the Division of Finance
makes the determination in accordance with Subsection
(1)(c)(i)
(A), within 30
days after receipt of the money.
(ii)
The Division of Finance may retain an amount equal to the cost of making the
determination described in Subsection
(1)(c)(i)
(A) before making an allocation.
(d)
Subject to the requirements of this section, the program manager shall have:
(i)
sole authority to:
(A)
determine expenditure of revenue the Division of Finance allocates to the
program manager, including provision of property valuation services within
counties; and
(B)
oversee the maintenance and enhancement of a statewide property tax system,
including statewide web portals, that meets the requirements of this section; and
(ii)
control over the property described in Subsections
(1)(b)(iv)
, (1)(b)(v), and (2)
for the purpose and uses described in this section.
(e)
The program manager may spend money the Division of Finance allocates to the
program manager only for STATS.
(c)
Deposits, penalties, and interest described in Subsection
(1)(b)
shall be disbursed
and used as provided in Section
59-2-1603
.
(2)
The following assets are transferred to the program manager to use for STATS:
(a)
tangible personal property purchased, in whole or in part, with revenue from the
multicounty assessing and collecting levy, including property acquired before May 6,
2026; and
(b)
unexpended revenue that is:
(i)
obtained from the multicounty assessing and collecting levy or for the
performance of the duties described in this section, including revenue acquired
before May 6, 2026; and
(ii)
within the control of the program manager.
(3)
(a)
Each county shall annually impose a multicounty assessing and collecting levy as
provided in this Subsection
(2)
(3)
.
(b)
The tax rate of the multicounty assessing and collecting levy is the certified revenue
levy rounded up to the sixth decimal place.
(c)
The state treasurer shall allocate all revenue collected from the multicounty assessing
and collecting levy to the Multicounty Appraisal Trust.
(3)
(4)
(a)
The
county shall state separately the
multicounty assessing and collecting
levy
imposed under Subsection
(2)
shall be separately stated
on the tax notice as a
multicounty assessing and collecting levy.
(b)
The multicounty assessing and collecting levy is:
(i)
exempt from Sections
17C-1-403
through
17C-1-406
;
(ii)
in addition to and exempt from the maximum levies allowable under Section
59-2-908
; and
(iii)
exempt from the notice and public hearing requirements of Section
59-2-919
.
(c)
(i)
Each county shall transmit quarterly to the state treasurer the revenue
collected
the county collects
from the multicounty assessing and collecting levy.
(ii)
The
revenue transmitted under Subsection
(3)(c)(i)
shall be transmitted
county
shall transmit the revenue described in Subsection
(4)(c)(i)

no later than the tenth
day of the month following the end of the quarter in which
the county collects
the
revenue
is collected
.
(iii)
If revenue transmitted under Subsection
(3)(c)(i)
is transmitted after the tenth
day of the month following the end of the quarter in which the revenue is
collected, the county shall pay an interest penalty at the rate of 10% each year
until the revenue is transmitted.
(iii)
If a county transmits revenue described in Subsection
(4)(c)(i)
after the tenth day
of the month following the end of the quarter in which the county collects the
revenue, the county shall pay an interest penalty at the rate of 10% each year until
the county transmits the revenue.
(iv)
The state treasurer shall deposit the revenue and penalties described in this
Subsection
(4)
into the fund.
(d)
The state treasurer shall allocate the penalties received under this Subsection
(3)
in
the same manner as revenue is allocated under Subsection
(2)(c)
.
(4)
(5)
(a)
A county may levy a county additional property tax in accordance with this
Subsection
(4)
(5)
.
(b)
The county additional property tax:
(i)
shall be separately stated on the tax notice as a county assessing and collecting
levy;
(ii)
may not be incorporated into the rate of any other levy;
(iii)
is exempt from Sections
17C-1-403
through
17C-1-406
; and
(iv)
is in addition to and exempt from the maximum levies allowable under Section
59-2-908
.
(c)
Revenue
A county shall use revenue
collected from the county additional property
tax
shall be used
to:
(i)
promote the accurate valuation and uniform assessment levels of property as
required by Section
59-2-103
;
(ii)
promote the efficient administration of the property tax system, including the
costs of assessment, collection, and distribution of property taxes;
(iii)
fund state mandated actions to meet legislative mandates or judicial or
administrative orders that relate to promoting:
(A)
the accurate valuation of property; and
(B)
the establishment and maintenance of uniform assessment levels within and
among counties; and
(iv)
establish reappraisal programs that:
(A)
are adopted by a resolution or ordinance of the county legislative body; and
(B)
conform to rules the commission makes in accordance with
Title 63G,
Chapter 3, Utah Administrative Rulemaking Act
.
Section 23. Section
59-2-1605
is amended to read:
59-2-1605
Effective
05/06/26
Applies beginning
01/01/26
. Accounting records
for levies -- Records -- Report to Legislature, commission -- Budget to Division of Finance.
(1)
Each county shall separately budget and account for the use of any money
received or expended from a levy imposed under
the county receives or spends from a
levy the county imposes in accordance with
Section
59-2-1602
.
(2)
The program manager shall separately budget and account for the use of any revenue
received from the fund.
(3)
On or before October 1 of each year, the program manager shall submit an electronic
report to the Revenue and Taxation Interim Committee and the commission that
contains:
(a)
a financial report that includes:
(i)
the amount of revenue allocated to the program manager for the current calendar
year; and
(ii)
a summary of the uses of the revenue during the current calendar year; and
(b)
a status report on:
(i)
the development, enhancement, and implementation of the statewide property tax
system and the statewide web portals described in Section
59-2-1606
; and
(ii)
achievement of the performance metrics described in Section
59-2-1606
.
(4)
On or before December 31 of each year, the program manager shall submit a detailed
budget for the upcoming calendar year to the Division of Finance.
(5)
For the calendar year that begins on January 1, 2026, the program manager shall submit
a detailed budget for the current year to the Division of Finance on May 6, 2026.
Section 24. Section
59-2-1606
is amended to read:
59-2-1606
Effective
05/06/26
Applies beginning
01/01/26
. Statewide property
tax system funding for counties -- Disbursements to the program manager -- Use of funds.
(1)
The
funds deposited into the Multicounty Appraisal Trust in accordance with Section
59-2-1602
shall be used to provide funding for
purpose for creating the fund is to
provide the counties with
:
(a)
a statewide property tax system that will promote:
(i)
the accurate valuation of property;
(ii)
the establishment and maintenance of uniform assessment levels among counties
within the state;
(iii)
efficient administration of the property tax system, including the costs of
assessment, collection, and distribution of property taxes; and
(iv)
the uniform filing of a signed statement a county assessor requests under Section
59-2-306
, including implementation of a statewide electronic filing system; and
(b)
property valuation services
within the counties
.
(2)
(a)
The statewide property tax system shall comply with rules the commission
establishes in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act.
(b)
The fund manager, in conjunction with the commission, shall establish annual
performance metrics for the development of the statewide property tax system.
(3)
(a)
Except as described in Subsection
(3)(b)
, each county shall adopt the statewide
property tax system.
(b)
A county may adopt only part of the statewide property tax system or none of the
system if the county demonstrates to the commission that:
(i)
the county uses a property tax system that includes a computer assisted mass
appraisal system and complies with rules the commission establishes in
accordance with Subsection
(2)(a)
; and
(ii)
the county's overall system is able to exchange data with and make use of data
received from the statewide property tax system.
(2)
(a)
An association representing at least two-thirds of the counties in the state shall
appoint a trustee.
(b)
The trustee of the Multicounty Appraisal Trust shall:
(i)
determine which projects to fund, including property valuation services within
counties; and
(ii)
oversee the administration of a statewide property tax system that meets the
requirements of Subsection (1)(a).
(3)
(a)
Subject to Subsection (3)(b), the trustee of the Multicounty Appraisal Trust may,
in order to promote the objectives described in Subsection (1), use funds deposited
into the Multicounty Appraisal Trust to hire one or more professional appraisers to
provide property valuation services within a county of the third, fourth, fifth, or sixth
class.
(b)
A professional appraiser hired to provide property valuation services under this
Subsection
(3)
shall:
(i)
hold an appraiser's certificate or license from the Division of Real Estate in
accordance with Title 61, Chapter 2g, Real Estate Appraiser Licensing and
Certification Act; and
(ii)
be approved by:
(A)
the commission; and
(B)
an association representing two or more counties in the state.
(4)
(a)
Except as provided in Subsection (4)(b), each county shall adopt the statewide
property tax system on or before January 1, 2026.
(b)
A county is exempt from the requirement in Subsection (4)(a) if:
(i)
the county utilizes a computer assisted property tax system for mass appraisal
other than the statewide property tax system;
(ii)
the county demonstrates to the trustee of the Multicounty Appraisal Trust and to
the commission that the property tax system described in Subsection (4)(b)(i) is
interoperable with the statewide property tax system; and
(iii)
the trustee of the Multicounty Appraisal Trust and the commission approve the
county's exemption from the requirement in Subsection (4)(a).
(c)
The commission and an association that represents at least two-thirds of the counties
in the state shall assist any county adopting the statewide property tax system.
(5)
(4)
In order to promote the objectives described in Subsection
(1)
, the trustee of the
Multicounty Appraisal Trust shall use funds deposited into the Multicounty Appraisal
Trust to
To promote the purposes described in Subsection
(1)
, the program manager shall
:
(a)
maintain and enhance the statewide property tax system in accordance with
Subsection
(2)
;
(b)
subject to Subsection
(6)
(5)
, develop and maintain a statewide web portal for
uniform access to property characteristics and features relevant to the valuation of
real property;
(b)
(c)
subject to Subsection
(7)
(6)
, develop and maintain a statewide web portal for
the uniform electronic filing of an application to appeal the valuation or equalization
of real property with a county board of equalization under Section
59-2-1004
; and
(c)
(d)
assist counties with tracking and reporting appeals information to the
commission as required by Section
59-2-1018
.
(6)
(5)
(a)
The statewide web portal for uniform access to property characteristics and
features developed under Subsection
(5)(a)
(4)(b)
shall
specify
, at a minimum,
specify
the following property characteristics and features:
(i)
property owner's name;
(ii)
(i)
parcel or serial number;
(iii)
(ii)
situs address;
(iv)
mailing address;
(v)
(iii)
tax area;
(vi)
(iv)
the neighborhood;
(vii)
(v)
property type;
(viii)
(vi)
land type;
(ix)
(vii)
quality or condition;
(x)
(viii)
year of construction;
(xi)
(ix)
gross living area;
(xii)
(x)
acreage;
(xiii)
(xi)
market value; and
(xiv)
(xii)
taxable value.
(b)
In developing the statewide web portal for uniform access to property characteristics
and features under Subsection
(5)(a)
(4)(b)
, the
Multicounty Appraisal Trust
program manager
may link the statewide web portal to a web portal
maintained by
a county
maintains
for accessing property characteristics and features within the
county if the
Multicounty Appraisal Trust
program manager
determines that the
county web portal meets the requirements of Subsection
(6)(a)
(5)(a)
.
(7)
(6)
In developing the statewide web portal for the uniform electronic filing of appeal
applications under Subsection
(5)(b)
(4)(c)
, the
Multicounty Appraisal Trust
program
manager
may link the statewide web portal to a web portal
maintained by
a county
maintains
for the uniform electronic filing of appeal applications if the
Multicounty
Appraisal Trust
program manager
determines that the county web portal provides
equivalent functions as the statewide web portal.
Section 25. Section
59-2-2001
is amended to read:
59-2-2001
Effective
05/06/26
Applies beginning
01/01/26
. Definitions.
As used in this part:
(1)
(a)
"Heavy equipment" means tangible personal property that:
(i)
is owned by a qualified rental business for purposes of renting;
(ii)
is utilized or designed for construction, earthmoving, or industrial operations; and
(iii)
is portable and transferable to the location in which the heavy equipment is used.
(b)
"Heavy equipment" includes:
(i)
lift equipment;
(ii)
material handling equipment;
(iii)
cranes;
(iv)
pumps;
(v)
generators;
(vi)
compressors;
(vii)
portable power equipment;
(viii)
heating, ventilation, and air conditioning equipment;
(ix)
portable worksite offices and containers;
(x)
tank trailers; and
(xi)
self-propelled equipment.
(2)
"Program manager" means the same as that term is defined in Section
59-2-1601
.
(2)
"Multicounty Appraisal Trust" means the same as that term is defined in Section
59-2-1601
.
(3)
"Qualified rental business" means a business entity located in this state:
(a)
that is classified within one of the following NAICS codes of the 2022 North
American Industry Classification System of the federal Executive Office of the
President, Office of Management and Budget:
(i)
NAICS Code 532310, General Rental Centers; or
(ii)
NAICS Code 532412, Construction, Mining, and Forestry Machinery and
Equipment Rental and Leasing; and
(b)
for which 51% or more of the business entity's total annual revenue is derived from
the rental of heavy equipment.
(4)
"Recovery fee" means the fee authorized in Subsection
59-2-2002(1)
.
(5)
"Rental" means the same as the terms "lease" or "rental" are defined in Section
59-12-102
.
(6)
(a)
"Rental charge" means the amount charged to a renter by a qualified rental
business for the rental of heavy equipment.
(b)
"Rental charge" does not include any additional charges separate from the actual cost
of the rental transaction, including costs required for delivery, insurance, or a waiver
of liability.
(7)
"Renter" means the person to which a qualified rental business rents heavy equipment.
Section 26. Section
59-2-2002
is amended to read:
59-2-2002
Effective
05/06/26
Applies beginning
01/01/26
. Recovery fee for
rental of heavy equipment -- Commission study and report.
(1)
A qualified rental business may charge to a renter a fee in an amount equal to 1.5% of
the rental charge for each item of heavy equipment rented in this state.
(2)
A recovery fee under Subsection
(1)
:
(a)
shall be separately stated on the invoice or receipt for the rental transaction; and
(b)
is not subject to a sales and use tax under Chapter 12, Sales and Use Tax Act.
(3)
A qualified rental business may not charge a recovery fee to a renter that is a
governmental entity as defined in Section
59-2-511
.
(4)
Any amount of recovery fees collected by a qualified rental business during a calendar
year shall be used as reimbursement for property taxes paid by the qualified rental
business on heavy equipment in the same calendar year.
(5)
(a)
The commission shall:
(i)
in coordination with county assessors and the
Multicounty Appraisal Trust
program manager
, conduct a study to determine the need for adjustment to the rate
authorized under Subsection
(1)
for purposes of property tax reimbursement; and
(ii)
on or before September 30, 2027, provide to the Revenue and Taxation Interim
Committee an electronic report of the results of the study required under
Subsection
(5)(a)
(i), including any recommendations, based on information
received by the commission, for legislative changes to the rate authorized under
Subsection
(1)
.
(b)
A
Upon request by the commission, a
county assessor or the
Multicounty
Appraisal Trust
program manager
shall
, upon request by the commission,
provide
to the commission any information necessary to complete the study required under
Subsection
(5)(a)(i)
.
Section 27. Section
59-35-101
is enacted to read:
35. Tax Increment Financing Reporting
1. General Provisions
59-35-101
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Agency" means a community reinvestment agency, as defined in Section
17C-1-102
.
(2)
"Authorization meeting" means a public meeting:
(a)
conducted by the governing body of a TIF entity;
(b)
for which the TIF entity provides class A notice under Section
63G-30-102
:
(i)
for a minimum of 10 calendar days before the public meeting; and
(ii)
with a link to the TIF entity's website where an explanation of each item listed in
Subsection
59-2-201(3)
may be found; and
(c)
in which the governing body of the TIF entity addresses each item listed in
Subsection
59-2-201(3)
.
(3)
"Approximated discount rate" means the assumed rate of return used to discount future
cash flows back to the cash's present value.
(4)
"But-for analysis" means information or data that demonstrates:
(a)
the benefits of a potential project to the public;
(b)
the existing impediments to the potential project;
(c)
that the potential project would be unable to overcome existing impediments and
proceed without the use of tax increment; and
(d)
that the impact of using tax increment to the public is less than the benefits of the
potential project to the public.
(5)
"Collecting entity" means:
(a)
for sales and use tax increment, the c
ommission; or
(b)
for property tax increment, the county auditor, county assessor, and county treasurer
of each county in which the TIF entity intends to use tax increment.
(6)
"Collection time period" means the maximum amount of time a TIF entity may collect
tax increment after engaging in a specified event.
(7)
"Database" means a collection of electronic data to track the information that:
(a)
each TIF entity is required to submit in accordance with this chapter; and
(b)
the program manager collects in accordance with Section
59-35-301
.
(8)
"Disclosure" means a written acknowledgment, made in a form and in a manner the
program manager establishes, that a TIF entity intending to engage in a specified event
submits.
(9)
"Established base year" means the year designated in a project area plan, a project area
budget, or an interlocal agreement for the purpose of calculating tax increment.
(10)
"Governing body" means:
(a)
for an agency, the community reinvestment agency board;
(b)
for a municipality, the municipal legislative body;
(c)
for a county, the county legislative body;
(d)
for a regional economic development authority, the regional economic development
authority's board;
(e)
for a public infrastructure district, the public infrastructure district's board of trustees;
and
(f)
for a special district, the special district's board of trustees.
(11)
"Local entity" means:
(a)
an agency;
(b)
a municipality;
(c)
a county;
(d)
a public infrastructure district; or
(e)
a special district.
(12)
"Post-designation parcel" means:
(a)
except as provided in Subsection
(12)(b)
, the same as that term is defined in Section
11-58-601
; or
(b)
for a project area created by the Military Installation Development Authority, a
parcel within the project area.
(13)
"Program manager" means the same as that term is defined in Section
59-2-1601
.
(14)
"Project area" means an area created and designated to receive tax increment according
to the terms of an adopted project area plan, project area budget, or interlocal agreement.
(15)
"Project area budget" means a multi-year projection of annual or cumulative revenue
and expenses and other fiscal matters pertaining to a project area that includes:
(a)
the start and end date for tax increment collection;
(b)
the number of years remaining that the TIF entity collects tax increment from the
project area;
(c)
the amount of tax increment the TIF entity is authorized to receive from the project
area, cumulatively and from each taxing entity, including:
(i)
the total dollar amount;
(ii)
the percentage of the total amount of tax increment generated within the project
area; and
(iii)
the remaining amount of tax increment the TIF entity is authorized to receive
from the project area, cumulatively and from each taxing entity; and
(d)
the amount of tax increment the TIF entity:
(i)
is authorized to use to pay for the TIF entity's administrative costs; and
(ii)
uses to pay for the TIF entity's administrative costs.
(16)
"Project area plan" means a written plan that, after the plan's effective date, guides and
controls the development within a project area.
(17)
(a)
"Property tax increment" means the amount of revenue a project area generates
from property tax that exceeds the amount of revenue from the property tax that was
generated in the project area:
(i)
in the year before the project area is created; or
(ii)
for a post-designation parcel, the 12 months before the trigger date.
(b)
"Property tax increment" includes:
(i)
enhanced property tax revenue;
(ii)
property tax allocation;
(iii)
property tax augmentation;
(iv)
property tax differential;
(v)
property tax increment; and
(vi)
tax increment revenue.
(18)
"Regional economic 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
.
(19)
"Sales and use tax increment" means the amount of revenue a project area generates
from sales and use tax that exceeds the amount of revenue from the sales and use tax
that was generated in the project area for the established base year.
(20)
"Specified event" means:
(a)
for a local entity, triggering tax increment; or
(b)
for a regional economic development authority, entering into a tax increment
agreement or approving a bond authorization.
(21)
"STATS" means the Statewide Tax Administration and Technology Solutions
program, created in Section
59-1-1902
.
(22)
"Tax increment" means property tax increment and sales and use tax increment.
(23)
"Taxing entity" means a government entity that:
(a)
imposes a tax on property located within a project area; or
(b)
imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act,
within a project area.
(24)
"TIF entity" means a political subdivision of the state that:
(a)
for purposes of Part 2, Pre-increment Disclosure and Reporting, intends to engage in
a specified event; and
(b)
for purposes of Part 3, Tax Increment Receipt Reporting, receives or is authorized to
receive tax increment for an approved project area.
(25)
"Trigger date" means:
(a)
except as provided in Subsections
(25)(b)
and
(c)
, the same as that term is defined in
Section
11-58-601
;
(b)
for a project area created by the Military Installation Development Authority, the day
on which the authority receives the first property tax allocation from the parcel; or
(c)
for a project area created by the Utah Fairpark Area Investment and Restoration
District, the same as the term "transition date" is defined in Section
11-70-101
.
Section 28. Section
59-35-201
is enacted to read:
2. Pre-increment Disclosure and Reporting
59-35-201
Effective
05/06/26
. Advance disclosure for use of tax increment.
(1)
Beginning July 1, 2026, a TIF entity intending to use tax increment shall, before each
specified event:
(a)
conduct an authorization meeting; and
(b)
submit the disclosure described in Subsection
(3)
.
(2)
An authorization meeting may be part of another public meeting of the TIF entity's
governing body if the disclosure and agenda for the public meeting clearly describe the
authorization meeting portion of the public meeting.
(3)
Within 30 days after the day on which a TIF entity holds an authorization meeting, a
TIF entity shall submit a disclosure to the program manager that includes:
(a)
a copy of the notice for and the minutes from the TIF entity's authorization meeting;
(b)
the public good to be addressed through the use of tax increment, including a
description of each project the TIF entity intends to pursue with the use of tax
increment;
(c)
the type of tax increment sought for use;
(d)
the amount of tax increment that a TIF entity is authorized to use as a result of a
specified event:
(i)
in total; and
(ii)
separately for property tax increment and sales and use tax increment, if the TIF
entity seeks to use more than one type of tax increment;
(e)
a cost analysis reflecting the administrative costs imposed on the commission and the
county to administer the collection, calculation, and distribution of the proposed tax
increment;
(f)
a but-for analysis of each project the TIF entity intends to pursue with the use of tax
increment; and
(g)
an explanation of how the benefit to residents or taxpayers near the project area is
proportionate to the benefit to any party benefiting from the TIF entity's use of tax
increment, as described in Section
59-35-202
.
(4)
A TIF entity shall comply with the requirements of this part every time the TIF entity
intends to engage in a specified event.
Section 29. Section
59-35-202
is enacted to read:
59-35-202
Effective
05/06/26
. Analyzing proportionate benefit.
In analyzing the proportionate benefit to residents or taxpayers near the project area, a
TIF entity shall prepare an estimate, in present value by using an approximated discount rate of
the following:
(1)
the amount of revenue that will be allocated to any party in the form of tax increment, or
bond financing secured by tax increment, each year over the collection time period or 40
years, whichever is greater; and
(2)
the amount of revenue expected to be received by each taxing entity each year over 40
years.
Section 30. Section
59-35-203
is enacted to read:
59-35-203
Effective
05/06/26
. Notifications -- Redisclosure -- Use of excess tax
increment -- Termination of tax increment.
(1)
A TIF entity that submits the required information under Section
59-35-201
may engage
in a specified event according to:
(a)
the statutory requirements governing the TIF entity; and
(b)
this section.
(2)
(a)
Except as provided in Subsection
(2)(b)
, a TIF entity described in Subsection
(1)

shall notify:
(i)
within 30 calendar days, all taxing entities that will be affected by a planned tax
increment area:
(A)
for which the TIF entity has submitted the information required under Section
59-35-201
; and
(B)
that the TIF entity intends to trigger tax increment;
(ii)
the collecting entities no later than December 31 the year before the TIF entity
intends to begin receiving property tax increment; and
(iii)
the commission no later than 180 days before the beginning of the fiscal quarter
during which the TIF entity intends to begin receiving sales and use tax increment.
(b)
If the TIF entity is required to comply with a different notification time period than
the time periods described in Subsection
(2)(a)
, the TIF entity shall comply with the
notification period that provides the greater amount of time for notification.
(3)
(a)
If a TIF entity does not engage in a specified event within five years after the day
on which the TIF entity submits the information required by Section
59-35-201
, the
TIF entity shall:
(i)
hold a new authorization meeting, with updated information if applicable; and
(ii)
submit the information required by Section
59-35-201
.
(b)
(i)
If a TIF entity's disclosure includes all the information required by this
Subsection
(3)
, the TIF entity may engage in a specified event.
(ii)
If the program manager notifies the TIF entity of a deficiency in the disclosure,
the TIF entity shall provide the requested additional disclosure information.
(iii)
A TIF entity that receives a request from the program manager under Subsection
(3)(b)(ii)
shall respond to the request.
(4)
(a)
A local entity that receives more tax increment than projected is required to use
the additional or excess revenue to defease any bond the local entity issued or
accelerate repayment of any debts the local entity incurred if the bond or debt does
not have any penalty or prohibition on defeasance of the bond or acceleration of the
debt repayment.
(b)
A TIF entity may not use tax increment for any purpose other than the purpose
described in the disclosure.
(c)
(i)
A TIF entity is responsible for monitoring the TIF entity's receipt of tax
increment and notifying taxing entities and collecting entities when the TIF entity
is approaching, has met, or has exceeded the amount of tax increment stated in the
disclosure.
(ii)
A TIF entity that receives more than the amount of tax increment stated in the
disclosure:
(A)
shall immediately inform the county auditor, the county assessor, and the
commission;
(B)
shall be responsible for ensuring the excess tax increment is returned to the
appropriate taxing entities; and
(C)
may request assistance from the county and the commission in fulfilling the
duty described in Subsection
(4)(c)(ii)(B)
.
(5)
At the end of a collection time period, or upon receipt of the amount of tax increment
stated in a disclosure, the TIF entity may not receive tax increment.
(6)
A TIF entity shall comply with the requirements of this part for any additional or
subsequent specified event.
Section 31. Section
59-35-204
is enacted to read:
59-35-204
Effective
05/06/26
. Transparency.
The program manager shall coordinate with the collecting entities to recommend
processes for the responsible and transparent receipt of property tax increment, sales and use
tax increment, and tax increment, including by implementing processes to ensure a TIF entity
stops receiving tax increment once the TIF entity receives the amount of tax increment stated
in the disclosure under Section
59-35-201
.
Section 32. Section
59-35-301
is enacted to read:
3. Tax Increment Receipt Reporting
59-35-301
Effective
05/06/26
. TIF entity reporting requirements.
(1)
On or before January 1, 2027, a TIF entity shall submit to the program manager for each
project area:
(a)
the project area plan;
(b)
the project area budget;
(c)
applicable interlocal agreements; and
(d)
a map of each project area.
(2)
A TIF entity shall submit the information described in Subsection
(1)
for a new project
area created after January 1, 2027, before January 1 of the year after the year in which
the project area is created.
(3)
On January 1, 2028, and on each January 1 thereafter, a TIF entity shall submit to the
program manager a summary of the progress of each project area.
(4)
The program manager shall establish the manner in which a TIF entity shall submit the
information described in Subsections
(1)
through
(3)
.
(5)
Annually, the program manager shall collect, with input from the county and the TIF
entities:
(a)
an assessment of the change in the project area's value, including:
(i)
the taxable value from the established base year;
(ii)
the estimated current assessed value; and
(iii)
the percentage change between the base taxable value and the estimated current
assessed value;
(b)
(i)
if the TIF entity has received tax increment from a project area, the amount of
tax increment by calendar year, including:
(A)
a comparison of the actual tax increment received for each year to the
forecasted tax increment for each year when the TIF entity created the project
area;
(B)
the TIF entity's historical receipts and expenditures of tax increment for each
project area budget;
(C)
a list of each taxing entity that imposes a tax within the project area;
(D)
a description of the benefits that each taxing entity receives from the project
area; and
(E)
the percentage of additional value that each taxing entity provides to the
project area;
or
(ii)
if the TIF entity has not yet received tax increment from an approved project area:
(A)
the year in which the TIF entity expects to begin receiving tax increment for
the project area;
(B)
a list of each taxing entity that imposes a tax within the project area;
(C)
a description of the benefits that each taxing entity is expected to receive from
the project area; and
(D)
the percentage of additional value that each taxing entity provides to the
project area;
(c)
the total amount of tax increment a TIF entity may receive from the project area
cumulatively and from each taxing entity;
(d)
the total amount of tax increment the TIF entity pays to a taxing entity, if applicable;
(e)
a TIF entity's outstanding principal on bonds or loans for project area costs;
(f)
a description of current and anticipated project area development, including:
(i)
any significant infrastructure development, site development, participation
agreements, or vertical construction within the project area; and
(ii)
other details of TIF entity action and development within the project area,
including:
(A)
the total acreage developed after the TIF entity established the project area;
(B)
the total undeveloped acreage the TIF entity expects to develop before the
project area is dissolved;
(C)
the percentage of residential development, if applicable; and
(D)
the total number of housing units authorized, if applicable;
(g)
a summary of the portions of the project area plan and the budget that include:
(i)
the number of years remaining that the TIF entity may receive tax increment from
the project area;
(ii)
the estimated amount of tax increment that the TIF entity is authorized to receive
from the project area for the current calendar year; and
(iii)
the estimated amount of tax increment to be paid to the TIF entity for the next
calendar year; and
(h)
a description of how the receipt of tax increment during the previous year furthered
the goals, policies, and purposes of the project area.
(6)
The provisions of this section apply regardless of when the project area is created.
(7)
Any information a TIF entity submits in accordance with this section is for
informational purposes only.
Section 33. Section
59-35-302
is enacted to read:
59-35-302
Effective
05/06/26
. Program manager report to Legislature, county
auditor, county treasurer -- Auditing.
(1)
At or before the October interim meeting of the Political Subdivisions Interim
Committee, the program manager shall present:
(a)
annually, a written report of the information in the database that includes:
(i)
a list of TIF entities that failed to comply with the requirements of Sections
59-35-201
,
59-35-203
, and
59-35-301
during the preceding reporting period;
(ii)
a statewide summary of:
(A)
the number of project areas receiving tax increment; and
(B)
the total acres included in project areas receiving tax increment;
(iii)
for each county, a summary of:
(A)
the number of project areas receiving tax increment;
(B)
the total acres included in project areas;
(C)
the total acres included in project areas compared to the total taxable acres in
the county;
(D)
the percentage of property tax for all taxing entities within the county that is
allocated as tax increment;
(E)
the total amount of tax increment projected in all project area budgets;
(F)
the estimated tax increment from project area budgets that has not yet been
received;
(G)
a description of any project area that is approved but has not received tax
increment; and
(H)
project areas dissolved during the previous year;
(iv)
information about the benefits that project areas provide to each county and the
state, which shall include information relating to two or more of the following:
(A)
the average percentage change in assessed value for each county within
project areas during the reporting period;
(B)
the percentage change in assessed value within a county, excluding project
areas, during the reporting period;
(C)
a comparison of the growth rate between project areas and areas of the county
that are not within a project area;
(D)
public infrastructure paid for with tax increment;
(E)
publicly accessible parks, trails, plazas, or other public amenities paid for with
tax increment;
(F)
affordable housing units tax increment creates, preserves, or supports; and
(G)
new jobs created with tax increment; and
(v)
any recommendation for legislation; and
(b)
every three years, beginning in 2030, a copy of the results of the independent audit
described in Subsection
(3)
.
(2)
(a)
If the program manager does not receive, on or before April 1 of the year the
information is due, the information that a TIF entity is required to provide under
Section
59-35-301
, the program manager shall:
(i)
refer the noncompliant TIF entity to the state auditor for review; and
(ii)
post a notice on the STATS website identifying the noncompliant TIF entity and
describing the TIF entity's noncompliance.
(b)
If, for two consecutive years, the program manager does not receive information a
TIF entity is required to provide under Section
59-35-301
:
(i)
the program manager shall notify, no later than April 1 of the second consecutive
year, the county auditor and the county treasurer of the county in which the
noncompliant TIF entity is located of the TIF entity's noncompliance; and
(ii)
upon receiving the notice described in Subsection
(2)(b)(i)
, the county treasurer
shall withhold from the TIF entity 20% of the amount of tax increment the TIF
entity is entitled to receive.
(c)
(i)
Subject to Subsection
(2)(c)(ii)
, the county treasurer may not withhold funds as
described in Subsection
(2)(b)(ii)
if the disbursement of tax increment is necessary
to meet contractual or debt service obligations.
(ii)
The TIF entity shall submit to the county treasurer evidence of the contractual or
debt service obligation and the need for tax increment to serve the contract or debt.
(d)
If, after having funds withheld under Subsection
(2)(b)(ii)
, a TIF entity complies
with Section
59-35-301
:
(i)
the program manager shall notify the county auditor and the county treasurer that
the TIF entity complied with Section
59-35-301
; and
(ii)
the county treasurer shall disburse the withheld funds to the TIF entity.
(3)
Every three years, beginning in 2030, the program manager shall obtain an independent
audit of the database and the information reported to the Political Subdivisions Interim
Committee in accordance with Subsection
(1)
.
(4)
(a)
The database, reporting, and auditing requirements of this part are a supplement to
the state auditor's authority to audit TIF entities.
(b)
The program manager is not subject to audit by the state auditor for any reason
beyond the audit of the program manager's receipt of government funds to administer
STATS.
Section 34. Section
63H-1-501
is amended to read:
63H-1-501
Effective
05/06/26
. Authority receipt and use of property tax
allocation -- Contractual annual payment -- Distribution of property tax allocation.
(1)
(a)
The authority may:
(i)
subject to Subsection
(1)(b)
:
(A)
receive up to 75% of the property tax allocation for up to 25 years, as
provided in this part; and
(B)
after the time period described in Subsection
(1)(a)(i)(A)
expires, receive up
to 75% of the property tax allocation for up to 15 years, if the board determines
the additional years will produce significant benefit; and
(ii)
use the property tax allocation before, during, and after the period described in
Subsection
(1)(a)(i)
.
(b)
With respect to a parcel located within a project area, the 25-year period described in
Subsection
(1)(a)(i)(A)
begins on the day on which the authority receives the first
property tax allocation from that parcel.
(2)
(a)
For purposes of Subsection
(1)(b)
, the authority may designate an improved
portion of a parcel in a project area as a separate parcel.
(b)
An authority designation of an improved portion of a parcel as a separate parcel
under Subsection
(2)(a)
is for purposes of Subsection
(1)(b)
only and does not
constitute a subdivision for any other purpose.
(c)
A county recorder shall assign a separate tax identification number to the improved
portion of a parcel designated by the authority as a separate parcel under Subsection
(2)(a)
.
(3)
Improvements on a parcel within a project area become subject to property tax on
January 1 immediately following the day on which the authority or an entity designated
by the authority issues a certificate of occupancy with respect to those improvements.
(4)
(a)
If the authority or an entity designated by the authority has not issued a certificate
of occupancy for a private parcel within a project area, the private parcel owner shall
make an annual payment to the authority:
(i)
that is equal to 1.2% of the taxable value of the parcel above the base taxable
value of the parcel; and
(ii)
until the parcel becomes subject to the property tax described in Subsection
(3)
.
(b)
The authority may use the revenue from payments described in Subsection
(4)(a)
for
any purpose described in Subsection
63H-1-502(1)
.
(c)
The authority may submit for recording to the office of the recorder of the county in
which a private parcel described in Subsection
(4)(a)
is located:
(i)
a copy of an agreement between the authority and the private parcel owner that
memorializes the payment obligation under Subsection
(4)(a)
; or
(ii)
a notice that describes the payment obligation under Subsection
(4)(a)
.
(d)
An owner of a private parcel described in Subsection
(4)(a)
may not be required to
make a payment that exceeds or is in addition to the payment described in Subsection
(4)(a)(i)
until the private parcel becomes subject to the property tax described in
Subsection
(3)
.
(e)
Upon the transfer of title of a private parcel described in Subsection
(4)(a)
, the
amount of the annual payment required under Subsection
(4)(a)
shall be:
(i)
treated the same as a property tax; and
(ii)
prorated between the previous owner and the owner who acquires title from the
previous owner.
(f)
A person who fails to pay or is delinquent in paying an annual payment described in
Subsection
(4)(a)
is subject to the same penalties and interest as the failure or
delinquent payment of a property tax in accordance with Title 59, Chapter 2, Property
Tax Act.
(g)
A county treasurer shall:
(i)
include the annual payment described in Subsection
(4)(a)
on a county property
tax notice in accordance with Section
59-2-1317
; and
(ii)
collect the annual payment as part of the property tax collection.
(h)
A county auditor shall include the annual payment described in Subsection
(4)(a)
on
the notice of property valuation in accordance with Subsection
59-2-919.1(1)
.
(5)
Each county that collects property tax on property within a project area shall pay and
distribute to the authority the property tax allocation and dedicated tax collections that
the authority is entitled to collect under this title, in the manner and at the time provided
in Section
59-2-1365
.
(6)
(a)
The board shall determine by resolution when the entire project area or an
individual parcel within a project area is subject to property tax allocation.
(b)
The board shall amend the project area budget to reflect whether a parcel within a
project area is subject to property tax allocation.
(7)
The following property owned by the authority is not subject to any property tax under
Title 59, Chapter 2, Property Tax Act, or any privilege tax under Title 59, Chapter 4,
Privilege Tax, regardless of whether the authority enters into a long-term operating
agreement with a privately owned entity under which the privately owned entity agrees
to operate the property:
(a)
a hotel;
(b)
a hotel condominium unit in a condominium project, as defined in Section
57-8-3
;
and
(c)
a commercial condominium unit in a condominium project, as defined in Section
57-8-3
.
(8)
If the authority intends to receive or receives tax increment, as defined in Section
59-35-101
, the authority shall comply with the reporting requirements described in Title
59, Chapter 35, Tax Increment Financing Reporting.
Section 35. Section
63I-1-259
is amended to read:
63I-1-259
Effective
05/06/26
. Repeal dates: Title 59.
(1)
Subsection
59-1-403(4)(aa)
, regarding a requirement for the State Tax Commission to
inform the Department of Workforce Services whether an individual claimed a federal
earned income tax credit, is repealed July 1, 2029.
(2)
Section
59-2-1603
, Allocation of money in the Property Tax Valuation Fund -- Use of
funds, is repealed July 1, 2030.
(3)
(2)
Section
59-5-304
, Tax credit for mining exploration, is repealed July 1, 2037.
(4)
(3)
Section
59-7-618.1
, Tax credit related to alternative fuel heavy duty vehicles, is
repealed July 1, 2029.
(5)
(4)
Section
59-9-102.5
, Offset for occupational health and safety related donations, is
repealed December 31, 2030.
(6)
(5)
Section
59-10-1033.1
, Tax credit related to alternative fuel heavy duty vehicles, is
repealed July 1, 2029.
(7)
(6)
Subsection
59-28-103(5)
, regarding a tax rate on certain transactions that take place
within a county of the first class, is repealed July 1, 2047.
Section 36. Section
63N-3-602
is amended to read:
63N-3-602
Effective
05/06/26
. Definitions.
As used in this part:
(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, the calendar year prior to 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
.
(12)
"Convention center reinvestment zone" means a convention center reinvestment zone
created under this part.
(13)
(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)
"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)
"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)
"Enhanced development" means the construction of mixed uses including housing,
commercial uses, and related facilities.
(17)
"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)
"First home investment zone" means the same as that term is defined in Section
63N-3-1601
.
(19)
"Fixed guideway" means the same as that term is defined in Section
59-12-102
.
(20)
"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)
"Housing and transit reinvestment zone" means a housing and transit reinvestment
zone created pursuant to this part.
(22)
"Housing and transit reinvestment zone committee" means a housing and transit
reinvestment zone committee created pursuant to Section
63N-3-605
.
(23)
"Large public transit district" means the same as that term is defined in Section
17B-2a-802
.
(24)
"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)
"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)
"Metropolitan planning organization" means the same as that term is defined in
Section
72-1-208.5
.
(27)
"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)
"Municipality" means the same as that term is defined in Section
10-1-104
.
(29)
"Participant" means the same as that term is defined in Section
17C-1-102
.
(30)
"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)
"Project" means a housing and transit reinvestment zone or convention center
reinvestment zone created under this part.
(32)
(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)
Section
59-2-1602
;
(ii)
a county additional property tax described in
Subsection
59-2-1602(4)
Section
59-2-1602
; or
(iii)
a public library fund levy described in Subsection
9-7-501(2)
.
(33)
"Public transit county" means a county that has created a small public transit district.
(34)
"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)
"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)
"Sales and use tax boundary" means:
(a)
for a housing and transit reinvestment zone, a boundary created as described in
Section
63N-3-604
, 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
, based on state sales and use tax collection boundaries that
correspond as closely as reasonably practicable to the convention center reinvestment
zone boundary.
(37)
"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)
"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)
"Small public transit district" means the same as that term is defined in Section
17B-2a-802
.
(40)
"Tax Commission" means the State Tax Commission created in Section
59-1-201
.
(41)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
(42)
"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 37. Section
63N-3-603.1
is amended to read:
63N-3-603.1
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)
The Governor's Office of Economic Opportunity shall propose a convention center
reinvestment zone to accomplish the objectives described in Subsections
(1)
and (2).
(4)
(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)
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)
, 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)
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)
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)
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 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)
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)
.
(8)
A municipality or public infrastructure district that intends to receive or receives tax
increment, as defined in Section
59-35-101
, shall comply with the requirements
described in Title 59, Chapter 35, Tax Increment Financing Reporting.
Section 38. Section
63N-3-607
is amended to read:
63N-3-607
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 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
or, for a convention center
reinvestment zone, the requirements of Section
63N-3-603.1
.
(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)
(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)
(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)
,
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)
; or
(viii)
subject to Subsection
(5)(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)
.
(c)
A public infrastructure district shall use convention center reinvestment zone funds
to achieve the purposes described in Section
63N-3-603.1
.
(6)
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)
(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)
(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.
(9)
A municipality, public transit county, or public infrastructure district that intends to
receive or receives tax increment, as defined in Section
59-35-101
, shall comply with
the requirements described in Title 59, Chapter 35, Tax Increment Financing Reporting.
Section 39. Section
63N-3-609
is amended to read:
63N-3-609
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
; 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
and disclosed in accordance with Title 59, Chapter 35, Part 2,
Pre-increment Disclosure and Reporting
.
(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)
, 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 is collecting property tax increment shall
follow the
reporting
requirements described in
Section
17C-1-603
Title 59, Chapter 35,
Tax Increment Financing Reporting,
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 40. Section
63N-3-1601
is amended to read:
63N-3-1601
Effective
05/06/26
. Definitions.
(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
demonstrates that a deviation
from the county median home price will achieve the objectives described in
Subsection
63N-3-1602(1)
; and
(B)
the 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
.
(4)
"Base year" means, for each tax increment collection period triggered within a proposed
first home investment zone area, the calendar year prior to 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
.
(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
.
(11)
"Housing and transit reinvestment zone committee" means the housing and transit
reinvestment zone committee described in Section
63N-3-605
.
(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-3-602
.
(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
:
a multicounty
assessing and collecting levy or a county additional property tax described in Section
59-2-1602
.
(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
revenue
will be used.
Section 41. Section
63N-3-1606
is amended to read:
63N-3-1606
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
.
(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)
, a municipality shall use the first home
investment zone funds to achieve the purposes described in Subsections
63N-3-1502(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)
.
(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.
(8)
A municipality, agency, or public infrastructure district that intends to receive or
receives tax increment, as defined in Section
59-35-101
, shall comply with the
requirements described in Title 59, Chapter 35, Tax Increment Financing Reporting.
Section 42. Section
63N-3-1608
is amended to read:
63N-3-1608
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
; 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

and disclosed in accordance with Title 59, Chapter 35, Part 2, Pre-increment Disclosure
and Reporting
.
(3)
The agency administering the tax increment collected in a first home investment zone
under Subsection
63N-3-1606(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)
shall follow the
reporting
requirements described in
Section
17C-1-603
Title 59, Chapter 35, Tax Increment Financing Reporting,
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 43. Section
63N-3-1701
is amended to read:
63N-3-1701
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Base taxable value" means the taxable value of land within a qualified development
zone as shown upon the assessment roll last equalized during the property tax base year.
(2)
"Committee" means a major sporting event venue zone committee described in Section
63N-3-1706
.
(3)
"Creating entity" means a municipality or a county.
(4)
"Impacted primary area" means the land outside a major sporting event venue zone but
within one mile of the boundary of the major sporting event venue zone.
(5)
(a)
"Major sporting event venue" means a venue that has been or is proposed to be
used for the Olympic Games, as confirmed by the Salt Lake City-Utah Committee for
the Games, a site, arena, or facility along with supporting or adjacent structures
so
long as
if
the expected expenditures to construct, demolish, reconstruct, modify,
upgrade, or expand the site, arena, or facility exceeds $100,000,000.
(b)
"Major sporting event venue" includes structures where an international competition
or professional athletic event is not taking place directly but where media, athletes,
spectators, organizers, and officials associated with the international competition or
professional athletic event are hosted in direct connection with the international
competition or professional athletic event taking place at a location described in
Subsection
(5)(a)
.
(6)
"Major sporting event venue zone" means the land, as described in a proposal to create a
major sporting event venue zone or a proposal to amend a major sporting event venue
zone, or as approved by a committee for a major sporting event venue zone, upon which
there are one or more major sporting event venues.
(7)
"Major sporting event venue zone revenue" means all the revenue captured by a creating
entity for an area described in a major sporting event venue zone and if applicable the
secondary project area, including:
(a)
property tax increment;
(b)
if applicable, local sales and use tax increment;
(c)
if applicable, accommodations tax;
(d)
if applicable, transient room tax; and
(e)
if applicable, resort communities sales and use tax and additional resort communities
sales and use tax.
(8)
"Property tax base year" means, for each property tax increment collection period
triggered within a qualified development zone or a proposed qualified development
zone, the calendar year before the calendar year in which the property tax increment
begins to be collected for the parcels triggered for that collection period.
(9)
(a)
"Property tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity
within a qualified development zone, or proposed qualified development zone,
from which property 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 the area
described in Subsection
(9)(a)(i)
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
:
a
multicounty assessing and collecting levy or a county additional property tax
described in Section
59-2-1602
.
(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)
.
(10)
"Proposal" means a document, physical or electronic, developed by a creating entity:
(a)
outlining the need for a major sporting event venue zone;
(b)
describing the impacted primary area of a proposed major sporting event venue zone;
(c)
describing the proposed secondary project area of a proposed major sporting event
venue zone, if any; and
(d)
submitted to a major sporting event venue zone committee.
(11)
"Qualified development zone" means the property within a major sporting event venue
zone, and, if applicable, the secondary project area, as approved by the committee as
described in this part.
(12)
"Sales and use tax base year" means 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 major sporting event venue zone is established.
(13)
(a)
"Sales and use tax boundary" means a boundary established as described in
Sections
63N-3-1707
and
63N-3-1710
, based on sales and use tax collection that
corresponds as closely as reasonably practicable to the boundary of the major
sporting event venue zone.
(b)
"Sales and use tax boundary" does not include land described in a secondary project
area.
(14)
"Sales and use tax increment" means the difference between:
(a)
the amount of local sales and use tax revenue generated each year following the sales
and use tax base year by the local sales and use tax from the area within a sales and
use tax boundary from which local sales and use tax increment is to be collected; and
(b)
the amount of local sales and use tax revenue that was generated from within the
sales and use tax boundary during the sales and use tax base year.
(15)
(a)
"Secondary project area" means land, as described in a proposal to create a major
sporting event venue zone or a proposal to amend a major sporting event venue zone,
or as approved by a committee for a major sporting event venue zone:
(i)
located in the same jurisdiction as the creating entity for the major sporting event
venue zone;
(ii)
located no more than two miles from the boundary of the major sporting event
venue zone;
(iii)
connected to a major sporting event venue zone by a transportation system; and
(iv)
not exceeding 50 acres.
(b)
"Secondary project area" may include:
(i)
land that is not contiguous to the major sporting event venue zone, if the land
designated in the secondary project area is the only or primary point of transit by
which an individual may begin to access the major sporting event venue zone; and
(ii)
the land on which a connecting transportation system sits if the transportation
system requires infrastructure that is permanently affixed to the land.
(16)
"Transportation system" means:
(a)
a street, alley, road, highway, pathway, or thoroughfares of any kind, including
connected structures;
(b)
an airport or aerial transit infrastructure;
(c)
a public transit facility; or
(d)
any other modes or form of conveyance used by the public.
Section 44. Section
63N-3-1708
is amended to read:
63N-3-1708
Effective
05/06/26
. Major sporting event venue zone boundaries --
Reporting requirements.
(1)
After a major sporting event venue zone is approved by the committee, as described in
Section
63N-3-1706
, the committee shall provide notice to the State Tax Commission,
no later than 90 days after the day on which the committee approves the proposal:
(a)
of the creation of the major sporting event venue zone, including the information
described in Subsection
(2)
;
(b)
if the committee approves the creating entity to receive local sales and use tax
increment, the information described in Subsection
(3)
; and
(c)

any information to the State Tax Commission required by the State Tax
Commission.
(2)
The notice described in Subsection
(1)(a)
shall include:
(a)
a statement that the major sporting event venue zone will be established under this
part;
(b)
the approval date and effective date of the major sporting event venue zone;
(c)
the boundary of the qualified development zone;
(d)
the sales and use tax base year, if applicable; and
(e)
the sales and use tax boundary, if applicable.
(3)
After the effective date of a major sporting event venue zone, as described in Section
63N-3-1707
, the creating entity shall provide a written report, no later than August 1, on
the creating entity's activities to implement the objectives of the major sporting event
venue zone to the executive director.
(4)
If the creating entity intends to receive or receives tax increment, as defined in Section
59-35-101
, the creating entity shall comply with the requirements described in Title 59,
Chapter 35, Tax Increment Financing Reporting.
(4)
(5)
(a)
The executive director shall annually provide a written report, no later than
October 1, summarizing all reports received by the executive director under
Subsection
(3)
, to the:
(i)
Revenue and Taxation Interim Committee;
(ii)
Political Subdivisions Interim Committee; and
(iii)
Economic Development and Workforce Services Interim Committee.
(b)
The executive director shall include with the written report described in Subsection
(4)(a)
any recommendations to the Legislature for statutory changes to this chapter or
Title 11, Chapter 71, Major Sporting Event Venue Zones.
Section 45.
Repealer.
Allocation of money in the Property Tax Valuation Fund -- Use of
funds.
Section 46.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect May 6, 2026.
(2)
(a)
The actions affecting Section 59-2-919.1 (Effective 07/01/26) take effect on July
1, 2026.
(b)
The actions affecting Section 59-2-924 take effect on January 1, 2027.
Section 47.
Retrospective operation.
The actions affecting the following sections have retrospective operation to January 1,
2026:
(1)
Section 59-2-306.5;
(2)
Section 59-2-307;
(3)
Section 59-2-308;
(4)
Section 59-2-704;
(5)
Section 59-2-919.1 (Superseded 07/01/26);
(6)
Section 59-2-924.2;
(7)
Section 59-2-1601;
(8)
Section 59-2-1602;
(9)
Section 59-2-1603;
(10)
Section 59-2-1605;
(11)
Section 59-2-1606;
(12)
Section 59-2-2001; and
(13)
Section 59-2-2002.
3-11-26 3:13 PM