Housing and Transit Reinvestment Zone Amendments

58
59-2-924
63N-3-602
63N-3-603
63N-3-603.1
63N-3-604
63N-3-604.1
63N-3-605
63N-3-607
63N-3-608
63N-3-611
63N-3-1601
63N-3-1603
63N-3-1609
SB0221
SB0039
59-2-924 (05/06/26)
63N-3-602 (05/06/26)
63N-3-602 (05/06/26)
63N-3-603.1 (05/06/26)
8
Housing and Transit Reinvestment Zone Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Wayne A. Harper
House Sponsor: James A. Dunnigan
LONG TITLE
General Description:
This bill amends provisions relating to a housing and transit reinvestment zone.
Highlighted Provisions:
This bill:
redefines the term "base year";
defines the term "extraterritorial affordable housing";
amends terms;
amends certain requirements and exceptions for boundary adjustments for certain
investment zones;
modifies provisions regarding approval of certain investment zone proposals;
amends certain provisions regarding an existing community reinvestment project;
makes technical and conforming changes; and
includes a coordination clause to coordinate changes in this bill with S.B. 39, Investment
Zones Amendments.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
59-2-924
, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
63N-3-602
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-603
, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
63N-3-603.1
, as enacted by Laws of Utah 2025, Chapter 29
63N-3-604
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-604.1
, as enacted by Laws of Utah 2025, Chapter 29
63N-3-605
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-607
, as last amended by Laws of Utah 2025, Chapter 404
63N-3-608
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-611
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-1601
, as last amended by Laws of Utah 2025, Chapter 440
63N-3-1603
, as enacted by Laws of Utah 2024, Chapter 537
63N-3-1609
, as enacted by Laws of Utah 2024, Chapter 537
Utah Code Sections Affected by Coordination Clause:
59-2-924 (05/06/26)
, as last amended by Laws of Utah 2025, First Special Session,
Chapter 15

63N-3-602 (05/06/26)
, as last amended by Laws of Utah 2025, Chapter 29
63N-3-603.1 (05/06/26)
, as enacted by Laws of Utah 2025, Chapter 29
Be it enacted by the Legislature of the state of Utah:
The following section is affected by a coordination clause at the end of this bill.
Section 1. Section
59-2-924
is amended to read:
59-2-924
. Definitions -- Report of valuation of property to county auditor and
commission -- Transmittal by auditor to governing bodies -- Calculation of certified tax
rate -- Rulemaking authority -- Adoption of tentative budget -- Notice provided by the
commission.
(1)
As used in this section:
(a)
(i)
"Ad valorem property tax revenue" means revenue collected in accordance with
this chapter.
(ii)
"Ad valorem property tax revenue" does not include:
(A)
interest;
(B)
penalties;
(C)
collections from redemptions; or
(D)
revenue received by a taxing entity from personal property that is
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment.
(b)
"Adjusted tax increment" means the same as that term is defined in Section
17C-1-102
.
(c)
(i)
"Aggregate taxable value of all property taxed" means:
(A)
the aggregate taxable value of all real property a county assessor assesses in
accordance with Part 3, County Assessment, for the current year;
(B)
the aggregate taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current
year; and
(C)
the aggregate year end taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, contained on the prior
year's tax rolls of the taxing entity.
(ii)
"Aggregate taxable value of all property taxed" does not include the aggregate
year end taxable value of personal property that is:
(A)
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B)
contained on the prior year's tax rolls of the taxing entity.
(d)
"Base taxable value" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
the same as that term is defined in Section
11-59-207
11-59-208
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(v)
for an authority created under Section
63H-1-201
, the same as that term is defined
in Section
63H-1-102
;
(vi)
for a host local government, the same as that term is defined in Section
63N-2-502
;
(vii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(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)
"Centrally assessed benchmark value" means an amount equal to the average year
end taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous three calendar
years, adjusted for taxable value attributable to:
(i)
an annexation to a taxing entity;
(ii)
an incorrect allocation of taxable value of real or personal property the
commission assesses in accordance with Part 2, Assessment of Property; or
(iii)
a change in value as a result of a change in the method of apportioning the value
prescribed by the Legislature, a court, or the commission in an administrative rule
or administrative order.
(f)
"Centrally assessed industry" means the following industry classes the commission
assesses in accordance with Part 2, Assessment of Property:
(i)
air carrier;
(ii)
coal;
(iii)
coal load out property;
(iv)
electric generation;
(v)
electric rural;
(vi)
electric utility;
(vii)
gas utility;
(viii)
ground access property;
(ix)
land only property;
(x)
liquid pipeline;
(xi)
metalliferous mining;
(xii)
nonmetalliferous mining;
(xiii)
oil and gas gathering;
(xiv)
oil and gas production;
(xv)
oil and gas water disposal;
(xvi)
railroad;
(xvii)
sand and gravel; and
(xviii)
uranium.
(g)
(i)
"Centrally assessed new growth" means the greater of:
(A)
for each centrally assessed industry, zero; or
(B)
the amount calculated by subtracting the centrally assessed benchmark value
for each centrally assessed industry, adjusted for prior year end incremental
value, from the taxable value of real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for each centrally
assessed industry for the current year, adjusted for current year incremental
value.
(ii)
"Centrally assessed new growth" does not include a change in value for a
centrally assessed industry as a result of a change in the method of apportioning
the value prescribed by the Legislature, a court, or the commission in an
administrative rule or administrative order.
(h)
"Certified tax rate" means a tax rate that will provide the same ad valorem property
tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
(i)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(j)
"Eligible new growth" means the greater of:
(i)
zero; or
(ii)
the sum of:
(A)
locally assessed new growth;
(B)
centrally assessed new growth; and
(C)
project area new growth or hotel property new growth.
(k)
"Host local government" means the same as that term is defined in Section
63N-2-502
.
(l)
"Hotel property" means the same as that term is defined in Section
63N-2-502
.
(m)
"Hotel property new growth" means an amount equal to the incremental value that is
no longer provided to a host local government as incremental property tax revenue.
(n)
"Incremental property tax revenue" means the same as that term is defined in Section
63N-2-502
.
(o)
"Incremental value" means:
(i)
for an authority created under Section
11-58-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a project area and on which property tax
differential is collected; and
(B)
the number that represents the percentage of the property tax differential that
is paid to the authority;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount calculated by multiplying:
(A)
the difference between the current assessed value of the property and the base
taxable value; and
(B)
the number that represents the percentage of the property tax augmentation, as
defined in Section
11-59-207
11-59-208
, that is paid to the Point of the
Mountain State Land Authority;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the amount calculated by multiplying:
(A)
the difference between the taxable value for the current year and the base
taxable value of the property that is located within a project area; and
(B)
the number that represents the percentage of enhanced property tax revenue,
as defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which tax increment is collected;
and
(B)
the number that represents the adjusted tax increment from that project area
that is paid to the agency;
(v)
for an authority created under Section
63H-1-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which property tax allocation is
collected; and
(B)
the number that represents the percentage of the property tax allocation from
that project area that is paid to the authority;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, 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
in accordance with

Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount
calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a qualified development zone for a major sporting
event venue zone and upon which property tax increment is collected; and
(B)
the number that represents the percentage of tax increment that is paid to the
major sporting event venue zone, as approved by a major sporting event venue
zone committee described in Section
63N-1a-1706
; or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the electrical energy developmental zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
community reinvestment agency and the Electrical Energy Development
Investment Fund created in Section
79-6-1105
.
(p)
(i)
"Locally assessed new growth" means the greater of:
(A)
zero; or
(B)
the amount calculated by subtracting the year end taxable value of real
property the county assessor assesses in accordance with Part 3, County
Assessment, for the previous year, adjusted for prior year end incremental
value from the taxable value of real property the county assessor assesses in
accordance with Part 3, County Assessment, for the current year, adjusted for
current year incremental value.
(ii)
"Locally assessed new growth" does not include a change in:
(A)
value as a result of factoring in accordance with Section
59-2-704
, reappraisal,
or another adjustment;
(B)
assessed value based on whether a property is allowed a residential exemption
for a primary residence under Section
59-2-103
;
(C)
assessed value based on whether a property is assessed under Part 5, Farmland
Assessment Act; or
(D)
assessed value based on whether a property is assessed under Part 17, Urban
Farming Assessment Act.
(q)
"Project area" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iii)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(iv)
for an authority created under Section
63H-1-201
, the same as that term is
defined in Section
63H-1-102
;
(v)
for a housing and transit reinvestment zone
or convention center reinvestment
zone
created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the
same as that term is
housing and transit
reinvestment zone, as
defined in Section
63N-3-602
;
(vi)
for a convention center reinvestment zone created under Title 63N, Chapter 3,
Part 6, Housing and Transit Reinvestment Zone Act, the convention center
reinvestment zone, as defined in Section 63N-3-602;
(vi)
(vii)
for a home ownership promotion zone created under Title 10, Chapter 21,
Part 5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter
80, Part 5, Home Ownership Promotion Zone, the
same as that term is
the home
ownership promotion zone, as
defined in Section
10-21-101
or Section
17-80-101
;
(vii)
(viii)
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)
(ix)
for a major sporting event venue zone established under Title 63N,
Chapter 3, Part 17, Major Sporting Event Venue Zone Act, the qualified
development zone, as defined in Section
63N-3-1701
.
(r)
"Project area new growth" means:
(i)
for an authority created under Section
11-58-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
differential;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount equal to the incremental value that is no longer provided to the Point of
the Mountain State Land Authority as property tax augmentation, as defined in
Section
11-59-207
11-59-208
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, an amount equal to the incremental value that is no longer provided to
the Utah Fairpark Area Investment and Restoration District;
(iv)
for an agency created under Section
17C-1-201.5
, an amount equal to the
incremental value that is no longer provided to an agency as tax increment;
(v)
for an authority created under Section
63H-1-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
allocation;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount equal to the incremental value that is no
longer provided to a housing and transit reinvestment zone or convention center
reinvestment zone as tax increment;
(vii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, an amount equal to the incremental value
that is no longer provided to a home ownership promotion zone as tax increment;
(viii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, an amount equal to the incremental value that is
no longer provided to a first home investment zone as tax increment; or
(ix)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, an amount equal to the incremental
value that is no longer provided to the creating entity of a major sporting event
venue zone as property tax increment.
(s)
"Project area incremental revenue" means the same as that term is defined in Section
17C-1-1001
.
(t)
"Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(u)
"Property tax differential" means the same as that term is defined in Sections
11-58-102
and
79-6-1104
.
(v)
"Tax increment" means:
(i)
for a project created under Section
17C-1-201.5
, the same as that term is defined
in Section
17C-1-102
;
(ii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, 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)
.
The following section is affected by a coordination clause at the end of this bill.
Section 2. Section
63N-3-602
is amended to read:
63N-3-602
. 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)
(a)
"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
the calendar year immediately preceding the
calendar year in which the first year of property tax increment collection is triggered
.
(b)
"Base year" means, for a convention center reinvestment zone in a capital city,
December 31, 2023.
(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
in accordance with
this part.
(22)
"Housing and transit reinvestment zone committee" means a housing and transit
reinvestment zone committee created
pursuant to
in accordance with
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)
"Project area plan" means the same as that term is defined in Section 17C-1-102.
(32)
(33)
(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
, or convention center reinvestment zone in a capital city

designated in the applicable reinvestment zone proposal as the area from which
tax increment is to be collected, using the current assessed value and each taxing
entity's current certified tax rate as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Property tax increment" does not include property tax revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602(2)
;
(ii)
a county additional property tax described in Subsection
59-2-1602(4)
; or
(iii)
a public library fund levy described in Subsection
9-7-501(2)
.
(33)
(34)
"Public transit county" means a county that has created a small public transit
district.
(34)
(35)
"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)
(36)
"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)
(37)
"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)
(38)
"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)
(39)
"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)
(40)
"Small public transit district" means the same as that term is defined in Section
17B-2a-802
.
(40)
(41)
"Tax Commission" means the State Tax Commission created in Section
59-1-201
.
(41)
(42)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
(42)
(43)
"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 3. Section
63N-3-603
is amended to read:
63N-3-603
. Applicability, requirements, and limitations on a housing and transit
reinvestment zone.
(1)
A housing and transit reinvestment zone proposal created under this part shall
demonstrate how the proposal addresses the following objectives:
(a)
higher utilization of public transit;
(b)
increasing availability of housing, including affordable housing, and fulfillment of
moderate income housing plans;
(c)
promoting and encouraging development of owner-occupied housing;
(d)
improving efficiencies in parking and transportation, including walkability of
communities near public transit facilities;
(e)
overcoming development impediments and market conditions that render a
development cost prohibitive absent the proposal and incentives;
(f)
conserving water resources through efficient land use;
(g)
improving air quality by reducing fuel consumption and motor vehicle trips;
(h)
encouraging transformative mixed-use development and investment in transportation
and public transit infrastructure in strategic areas;
(i)
strategic land use and municipal planning in major transit investment corridors as
described in Subsection
10-20-404(2)
;
(j)
increasing access to employment and educational opportunities; and
(k)
increasing access to child care.
(2)
(a)
In order to accomplish the objectives described in Subsection
(1)
, a municipality
or public transit county that initiates the process to create a housing and transit
reinvestment zone as described in this part shall ensure that the proposal for a
housing and transit reinvestment zone includes:
(i)
except as provided in Subsection
(3)
, at least 12% of the proposed dwelling units
within the housing and transit reinvestment zone are affordable housing units,
with:
(A)
up to 9% of the proposed dwelling units occupied or reserved for occupancy
by households with a gross household income equal to or less than 80% of the
county median gross income for households of the same size; and
(B)
at least 3% of the proposed dwelling units occupied or reserved for occupancy
by households with a gross household income equal to or less than 60% of the
county median gross income for households of the same size;
(ii)
except as provided in Subsection
(2)(c)
, a housing and transit reinvestment zone
shall include:
(A)
at least 51% of the developable area within a housing and transit reinvestment
zone as residential uses; and
(B)
an average of at least 50 dwelling units per acre within the acreage of the
housing and transit reinvestment zone dedicated to residential uses;
(iii)
mixed-use development; and
(iv)
a mix of dwelling units to ensure that at least 25% of the dwelling units have
more than one bedroom.
(b)
(i)
If a housing and transit reinvestment zone is phased, a municipality or public
transit county shall ensure that a housing and transit reinvestment zone is phased
and developed to provide the required 12% of affordable housing units in each
phase of development.
(ii)
A municipality or public transit county may allow a housing and transit
reinvestment zone to be phased and developed in a manner to provide more of the
required affordable housing units in early phases of development.
(iii)
A municipality or public transit county shall include in a housing and transit
reinvestment zone proposal an affordable housing plan, which may include deed
restrictions, to ensure the affordable housing required in the proposal will continue
to meet the definition of affordable housing at least throughout the entire term of
the housing and transit reinvestment zone.
(c)
For a housing and transit reinvestment zone proposed by a public transit county at a
public transit hub, or for a housing and transit reinvestment zone proposed by a
municipality at a bus rapid transit station, the housing and transit reinvestment zone
shall include:
(i)
at least 51% of the developable area within a housing and transit reinvestment
zone as residential uses; and
(ii)
an average of at least 39 dwelling units per acre within the acreage of the housing
and transit reinvestment zone dedicated to residential uses.
(3)
A municipality or public transit county that, at the time the housing and transit
reinvestment zone proposal is approved by the housing and transit reinvestment zone
committee, meets the affordable housing guidelines of the United States Department of
Housing and Urban Development at 60% area median income is exempt from the
requirement described in Subsection
(2)(a)
.
(4)
(a)
A municipality may only propose a housing and transit reinvestment zone at a
commuter rail station, and a public transit county may only propose a housing and
transit reinvestment zone at a public transit hub, that:
(i)
subject to Subsection
(5)(a)
:
(A)
(I)
except as provided in Subsection
(4)(a)(i)(A)(II)
, for a municipality,
does not exceed a
1/3
one-third
mile radius of a commuter rail station;
(II)
for a municipality that is a city of the first or second class that is within a
county of the first or second class, with an opportunity zone created in
accordance with Section 1400Z-1, Internal Revenue Code, does not exceed
a
1/2
one-half
mile radius of a commuter rail station located within the
opportunity zone; or
(III)
for a public transit county, does not exceed a
1/3
one-third
mile radius of
a public transit hub; and
(B)
has a total area of no more than 125 noncontiguous acres;
(ii)
subject to Section
63N-3-607
, proposes the capture of a maximum of 80% of each
taxing entity's property tax increment above the base year for a term of no more
than 25 consecutive years on each parcel within a 45-year period not to exceed the
property tax increment amount approved in the housing and transit reinvestment
zone proposal; and
(iii)
the commencement of collection of property tax increment, for all or a portion of
the housing and transit reinvestment zone project area, shall be triggered by
providing notice as described in Subsection
(6)
, but a housing and transit
reinvestment zone proposal may not propose or include triggering more than
three
five
property tax increment collection periods for the same project during the
applicable 45-year period.
(b)
A municipality or public transit county may only propose a housing and transit
reinvestment zone at a light rail station or bus rapid transit station that:
(i)
subject to Subsection
(5)
:
(A)
does not exceed:
(I)
except as provided in Subsection
(4)(b)(i)(A)(II)
, (III), or (4)(e), a
1/4
one-quarter
mile radius of a bus rapid transit station or light rail station;
(II)
for a municipality that is a city of the first class with a population greater than 150,000 that
is within a county of the first class, a
1/2
one-half
mile radius of a light rail station located in
an opportunity zone created in accordance with Section
1400Z-1, Internal Revenue Code; or

1400Z-1, Internal Revenue Code; or
(III)
a
1/2
one-half
mile radius of a light rail station located within a
master-planned development of 500 acres or more; and
(B)
has a total area of no more than 100 noncontiguous acres;
(ii)
subject to Subsection
(4)(c)
and Section
63N-3-607
, proposes the capture of a
maximum of 80% of each taxing entity's property tax increment above the base
year for a term of no more than 15 consecutive years on each parcel within a
30-year period not to exceed the property tax increment amount approved in the
housing and transit reinvestment zone proposal; and
(iii)
the commencement of collection of property tax increment, for all or a portion of
the housing and transit reinvestment zone project area, shall be triggered by
providing notice as described in Subsection
(6)
, but a housing and transit
reinvestment zone proposal may not propose or include triggering more than
three
five
property tax increment collection periods for the same project during
the applicable 30-year period.
(c)
For a housing and transit reinvestment zone proposed by a public transit county at a
public transit hub, or for a housing and transit reinvestment zone proposed by a
municipality at a bus rapid transit station, if the proposed housing density within the
housing and transit reinvestment zone is between 39 and 49 dwelling units per acre,
the maximum capture of each taxing entity's property tax increment above the base
year is 60%.
(d)
A municipality that is a city of the first class with a population greater than 150,000
in a county of the first class as described in Subsections
(4)(a)(i)(A)(II)
and
(4)(b)(i)(A)(II)
may only propose one housing and transit reinvestment zone within
an opportunity zone.
(e)
(i)
Subject to Subsection
(4)(e)(ii)
, the radius restrictions described in Subsection
(4)(b)(i)
do not apply, and a housing and transit reinvestment zone may extend to
an area between two
or three
light rail
or bus rapid transit
stations located within a
city of the third
or fourth
class if the two
or three
light rail
or bus rapid transit
stations are within a .95 mile distance
from the other light rail or bus rapid transit
stations
on the same light rail line
or dedicated offset bus lane
.
(ii)
If a housing and transit reinvestment zone is extended to accommodate two light
rail
or bus rapid transit
stations as described in Subsection
(4)(e)(i)
:
(A)
the housing and transit reinvestment zone is limited to a total area not to
exceed 100 noncontiguous acres; and
(B)
the housing and transit reinvestment zone may not exceed a
1/4
one-quarter

mile radius from the light rail
or bus rapid transit
stations or any point on the
light rail line
or dedicated offset bus line
between the two stations.
(iii)
If a housing and transit reinvestment zone is extended to accommodate three
light rail or bus rapid transit stations as described in Subsection
(4)(e)(i)
:
(A)
the housing and transit reinvestment zone is limited to a total area not to
exceed 250 noncontiguous acres; and
(B)
the housing and transit reinvestment zone may not exceed a one-quarter mile
radius from the light rail or bus rapid transit stations or any point on the light
rail line or dedicated offset bus line between the three stations.
(f)
If a parcel within the housing and transit reinvestment zone is included as an area that
is part of a project area, as that term is defined in Section
17C-1-102
, and created
under Title 17C, Chapter 1, Agency Operations, that parcel may not be triggered for
collection unless the project area funds collection period, as that term is defined in
Section
17C-1-102
, has expired.
(5)
(a)
For a housing and transit reinvestment zone for a commuter rail station, if a parcel
is intersected by the relevant radius limitation, the full parcel may be included as part
of the housing and transit reinvestment zone area and will not count against the
limitations described in Subsection
(4)(a)(i)
.
(b)
For a housing and transit reinvestment zone for a light rail or bus rapid transit
station, if a parcel is intersected by the relevant radius limitation, the full parcel may
be included as part of the housing and transit reinvestment zone area and will not
count against the limitations described in Subsection
(4)(b)(i)
.
(c)
A housing and transit reinvestment zone may not be smaller than 10 acres.
(6)
(a)
The notice of commencement of collection of property tax increment required in
Subsection
(4)(a)(iii)
or
(4)(b)(iii)
shall be sent by mail or electronically to the
following entities no later than December 31 of the year before the year for which the
property tax increment collection is proposed to commence:
(i)
the State Tax Commission;
(ii)
the State Board of Education;
(iii)
the state auditor;
(iv)
the auditor of the county in which the housing and transit reinvestment zone is
located;
(v)
each taxing entity affected by the collection of property tax increment from the
housing and transit reinvestment zone; and
(vi)
the Governor's Office of Economic Opportunity.
(b)
The notice described in Subsection
(4)(a)(iii)
or
(4)(b)(iii)
may not be triggered until
the date on which the housing and transit reinvestment zone proposal is approved by
the housing and transit reinvestment zone committee.
(c)
(i)
For a convention center reinvestment zone in a capital city, a municipality or
public infrastructure district may submit a notice of commencement of collection
of property tax increment for each separate parcel or subarea within the
convention center reinvestment zone in a capital city.
(ii)
The collection of property tax increment described in Subsection (6)(a)(i) shall
commence no later than five years from the day the convention center
reinvestment zone in a capital city proposal is approved.
(7)
(a)
The maximum number of housing and transit reinvestment zones at light rail
stations, not including a convention center reinvestment zone, is eight in any given
county.
(b)
Within a county of the first class, the maximum number of housing and transit
reinvestment zones at bus rapid transit stations is three.
(c)
Within a county of the first class, the maximum total combined number of housing
and transit reinvestment zones described in Subsections
(7)(a)
and
(b)
and first home
investment zones created under Part 16, First Home Investment Zone Act, is 11.
(8)
(a)
For purposes of this Subsection
(8)
, "entitlement agreement" means:
(i)
a land use application;
(ii)
a rezone petition; or
(iii)
a request, petition, or application to:
(A)
enact or approve a development agreement; or
(B)
to amend or modify a development agreement.
(b)
This Subsection
(8)
applies to a specified county, as defined in Section
17-80-101
,
that has created a small public transit district on or before January 1, 2022.
(c)
To accomplish the objectives described in Subsection
(1)
, an owner of undeveloped
property within an unincorporated county shall have the right to develop and build a
mixed-use development if:
(i)
the owner has submitted an entitlement agreement to the county on or before
December 31, 2022, and is within a
1/3
one-third
mile radius of a public transit
hub in a county described in Subsection
(8)(b)
, including parcels that are
intersected by the
1/3
one-third
mile radius; and
(ii)
the county described in Subsection
(8)(b)
has failed to approve the entitlement
agreement described in Subsection
(8)(c)(i)
by ordinance before December 31,
2022.
(d)
The mixed use development described in Subsection
(8)(c)
shall include the
following:
(i)
(A)
(I)
a maximum number of dwelling units equal to 30 multiplied by the
total acres of developable area within the mixed-use development dedicated
exclusively to residential use; or
(II)
a maximum number of dwelling units equal to 15 multiplied by the total
acres of the mixed-use development; and
(B)
at least 33% of the dwelling units as affordable housing;
(ii)
commercial uses, including office, retail, educational, and healthcare in support of
the mixed-use development constituting no more than
1/3
one-third
of the total
planned gross building square footage of the subject parcels; and
(iii)
any other infrastructure element necessary or reasonable to support the
mixed-use development, including:
(A)
parking infrastructure;
(B)
streets;
(C)
sidewalks;
(D)
parks; and
(E)
trails.
(e)
(i)
The mixed-use development described in this Subsection
(8)
may qualify for a
housing and transit reinvestment zone described in Subsection
(4)(a)
.
(ii)
The county described in Subsection
(8)(b)
may propose a housing and transit
reinvestment zone in accordance with this part, if the housing and transit
reinvestment zone includes:
(A)
(I)
an average of at least 30 dwelling units per acre within the acreage of the
housing and transit reinvestment zone dedicated to residential use; or
(II)
a minimum number of 14 dwelling units per acre on average within the
acreage of the housing and transit reinvestment zone; and
(B)
at least 33% of the dwelling units as affordable housing units.
(f)
A county may not take an action or enforce an agreement, ordinance, regulation, or
requirement that prevents or creates development impediments to the development of
a mixed-use development as described in this Subsection
(8)
.
(g)
A county action to approve or implement the development of a mixed-use
development as described in this Subsection
(8)
shall constitute an administrative
action taken by the county and does not require county legislative action.
The following section is affected by a coordination clause at the end of this bill.
Section 4. Section
63N-3-603.1
is amended to read:
63N-3-603.1
. 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
revenue
described in Subsection
63N-3-602(38)(b)(ii)
63N-3-602(39)(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
revenue
described
in Subsection
63N-3-602(38)(b)(i)
63N-3-602(39)(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)
.
Section 5. Section
63N-3-604
is amended to read:
63N-3-604
. Process for a proposal of a housing and transit reinvestment zone --
Analysis.
(1)
Subject to approval of the housing and transit reinvestment zone committee as described
in Section
63N-3-605
, in order to create a housing and transit reinvestment zone, a
municipality or public transit county that has general land use authority over the housing
and transit reinvestment zone area, shall:
(a)
prepare a proposal for the housing and transit reinvestment zone that:
(i)
demonstrates that the proposed housing and transit reinvestment zone will meet
the objectives described in Subsection
63N-3-603(1)
;
(ii)
explains how the municipality or public transit county will achieve the
requirements of Subsection
63N-3-603(2)(a)(i)
;
(iii)
defines the specific transportation infrastructure needs, if any, and proposed
improvements and estimated budgets;
(iv)
defines the boundaries of:
(A)
the housing and transit reinvestment zone; and
(B)
the sales and use tax boundary corresponding to the housing and transit
reinvestment zone boundary, as described in Section
63N-3-610
;
(v)
includes maps of the proposed housing and transit reinvestment zone to illustrate:
(A)
the proposed boundary and radius from a public transit hub;
(B)
proposed housing density within the housing and transit reinvestment zone;
and
(C)
existing zoning and proposed zoning changes related to the housing and transit
reinvestment zone;
(vi)
identifies any development impediments that prevent the development from
being a market-rate investment, including proposed strategies and estimated
budgets for addressing each one;
(vii)
describes the proposed development plan and estimated budgets, including the
requirements described in Subsections
63N-3-603(2)
and
(4)
;
(viii)
establishes a base year and collection period to calculate the property tax
increment within the housing and transit reinvestment zone;
(ix)
establishes a sales and use tax base year to calculate the sales and use tax
increment within the housing and transit reinvestment zone in accordance with
Section
63N-3-610
;
(x)
describes projected maximum revenues generated and the amount of property tax
increment capture from each taxing entity and proposed expenditures of revenue
derived from the housing and transit reinvestment zone;
(xi)
includes an analysis of other applicable or eligible incentives, grants, or sources
of revenue that can be used to reduce the finance gap;
(xii)
estimates budgets and evaluates possible benefits to active and public
transportation availability and impacts on air quality;
(xiii)
proposes a finance schedule to align expected revenue with required financing
costs and payments;
(xiv)
provides a pro-forma for the planned development that:
(A)
satisfies the requirements described in Subsections
63N-3-603
(2), (3), and (4);
(B)
includes data showing the cost difference between what type of development
could feasibly be developed absent the housing and transit reinvestment zone
property tax increment and the type of development that is proposed to be
developed with the housing and transit reinvestment zone property tax
increment; and
(C)
provides estimated budgets and construction costs, anticipated revenue,
financing, expenses, and other sources and uses of funds for the project area;
and
(xv)
for a housing and transit reinvestment zone at a commuter rail station, light rail
station, or bus rapid transit station that is proposed and not in public transit service
operation as of the date of submission of the proposal, demonstrates that the
proposed station is:
(A)
included
as needed in phase one of a
in a
metropolitan planning
organization's adopted long-range transportation plan
and in phase one of the
relevant public transit district's adopted long-range plan
; and
(B)
reasonably anticipated to be constructed in the near future; and
(b)
submit the housing and transit reinvestment zone proposal to the Governor's Office
of Economic Opportunity.
(2)
As part of the proposal described in Subsection
(1)
, a municipality or public transit
county shall study and evaluate possible impacts of a proposed housing and transit
reinvestment zone on parking within the city and housing and transit reinvestment zone.
(3)
(a)
After receiving the proposal as described in Subsection
(1)(b)
, the Governor's
Office of Economic Opportunity shall:
(i)
within 14 days after the date on which the Governor's Office of Economic
Opportunity receives the proposal described in Subsection
(1)(b)
, provide notice
of the proposal to all affected taxing entities, including the
State
Tax Commission,
cities, counties, school districts, metropolitan planning organizations, and the
county assessor and county auditor of the county in which the housing and transit
reinvestment zone is located; and
(ii)
at the expense of the proposing municipality or public transit county as described
in Subsection
(5)
, contract with an independent entity to perform the financial gap
analysis described in Subsection
(3)(b)
.
(b)
The gap analysis required in Subsection
(3)(a)(ii)
shall include:
(i)
a description of the planned development;
(ii)
a market analysis relative to other comparable project developments included in
or adjacent to the municipality or public transit county absent the proposed
housing and transit reinvestment zone;
(iii)
an evaluation of the proposal to and a determination of the adequacy and
efficiency of the proposal;
(iv)
an evaluation of the proposed increment capture needed to cover the enhanced
development costs associated with the housing and transit reinvestment zone
proposal and enable the proposed development to occur; and
(v)
based on the market analysis and other findings, an opinion relative to the
appropriate amount of potential public financing reasonably determined to be
necessary to achieve the objectives described in Subsection
63N-3-603(1)
.
(c)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed housing and transit reinvestment zone as described in Subsection
(3)(a)(i)
,
the State Tax Commission shall:
(i)
evaluate the feasibility of administering the tax implications of the proposal; and
(ii)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the
State
Tax
Commission can feasibly administer the proposal.
(4)
After receiving the results from the analysis described in Subsection
(3)(b)
, the
municipality or public transit county proposing the housing and transit reinvestment
zone may:
(a)
amend the housing and transit reinvestment zone proposal based on the findings of
the analysis described in Subsection
(3)(b)
and request that the Governor's Office of
Economic Opportunity submit the amended housing and transit reinvestment zone
proposal to the housing and transit reinvestment zone committee; or
(b)
request that the Governor's Office of Economic Opportunity submit the original
housing and transit reinvestment zone proposal to the housing and transit
reinvestment zone committee.
(5)
(a)
The Governor's Office of Economic Opportunity may accept, as a dedicated
credit, up to $20,000 from a municipality or public transit county for the costs of the
gap analysis described in Subsection
(3)(b)
.
(b)
The Governor's Office of Economic Opportunity may expend funds received from a
municipality or public transit county as dedicated credits to pay for the costs
associated with the gap analysis described in Subsection
(3)(b)
.
Section 6. Section
63N-3-604.1
is amended to read:
63N-3-604.1
. Process for proposing a convention center reinvestment zone.
(1)
To create a convention center reinvestment zone under this part, the Governor's Office
of Economic Opportunity shall, after consulting with and giving notice to the related
eligible municipality and county, provide a proposal for a convention center
reinvestment zone to the housing and transit reinvestment zone committee.
(2)
(a)
The Governor's Office of Economic Opportunity shall ensure that a proposal for
the creation of a convention center reinvestment zone includes the following
information and data that:
(i)
defines the boundary of the proposed convention center reinvestment zone;
(ii)
describes generally the proposed development plan;
(iii)
identifies a base year and collection period to calculate the property tax
increment within the convention center reinvestment zone;
(iv)
specifies a sales and use tax base year to calculate the sales and use tax increment
within the convention center reinvestment zone in accordance with Section
63N-3-610.1
;
(v)
provides estimated project and investment objectives for the convention center
reinvestment zone; and
(vi)
outlines generally the impacts on transportation in and around the proposed
convention center reinvestment zone.
(b)
(i)
For a convention center reinvestment zone in a capital city, the proposal
described in Subsection
(2)(a)
shall also provide estimated budgets and
construction costs, anticipated revenue, financing, expenses, and other sources and
uses of funds for the project area.
(ii)
The base year and collection period to calculate the property tax increment within
the convention center reinvestment zone in a capital city shall be December 31,
2023.
(c)
The proposal described in Subsection
(2)(b)
shall limit the use of funds to:
(i)
a convention center;
(ii)
a publicly owned entertainment venue;
(iii)
parking; and
(iv)
infrastructure related to the project.
(3)
A proposal by the Governor's Office of Economic Opportunity for a convention center
reinvestment zone shall demonstrate how the information and data provided in the
proposal
pursuant to
described in
Subsection
(2)
furthers the objectives described in
Section
63N-3-603.1
and is in the public interest.
(4)
After submitting the proposal as described in Subsection
(2)
, the Governor's Office of
Economic Opportunity shall provide notice of the proposal to all affected taxing entities,
including the State Tax Commission, cities, counties, school districts, metropolitan
planning organizations, and the county assessor and county auditor of the county in
which the convention center reinvestment zone is located.
(5)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed convention center reinvestment zone as described in Subsection
(4)
, the
State
Tax Commission shall, within 14 days:
(a)
evaluate the feasibility of administering the tax implications of the proposal; and
(b)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the State Tax
Commission can feasibly administer the proposal.
Section 7. Section
63N-3-605
is amended to read:
63N-3-605
. Housing and transit reinvestment zone committee -- Creation.
(1)
For any housing and transit reinvestment zone
proposed under this part
,
convention
center reinvestment zone, convention center reinvestment zone in a capital city,
or for a
first home investment zone proposed
in accordance with Part 16, First Home
Investment Zone Act
under this chapter
, there is created a housing and transit
reinvestment zone committee with membership described in Subsection
(2)
.
(2)
Each housing and transit reinvestment zone committee shall consist of the following
members:
(a)
one representative from the Governor's Office of Economic Opportunity, designated
by the executive director of the Governor's Office of Economic Opportunity;
(b)
one representative from each municipality that is a party to the proposed housing and
transit reinvestment zone or first home investment zone, designated by the chief
executive officer of each respective municipality;
(c)
a member of the Transportation Commission created in Section
72-1-301
;
(d)
a member of the board of trustees of a large public transit district;
(e)
one individual from the Office of the State Treasurer, designated by the state
treasurer;
(f)
two members designated by the president of the Senate;
(g)
two members designated by the speaker of the House of Representatives;
(h)
one member designated by the chief executive officer of each county affected by the
housing and transit reinvestment zone or first home investment zone;
(i)
two representatives designated by the school superintendent from the school district
affected by the housing and transit reinvestment zone or first home investment zone;
and
(j)
one representative, representing the largest participating local taxing entity, after the
municipality, county, and school district.
(3)
The individual designated by the Governor's Office of Economic Opportunity as
described in Subsection
(2)(a)
shall serve as chair of the housing and transit
reinvestment zone committee.
(4)
(a)
A majority of the members of the housing and transit reinvestment zone
committee constitutes a quorum of the housing and transit reinvestment zone
committee.
(b)
An action by a majority of a quorum of the housing and transit reinvestment zone
committee is an action of the housing and transit reinvestment zone committee.
(5)
(a)
After the Governor's Office of Economic Opportunity receives the results of the
analysis described in Section
63N-3-604
, and after the Governor's Office of
Economic Opportunity has received a request from the submitting municipality or
public transit county to submit the housing and transit reinvestment zone proposal to
the housing and transit reinvestment zone committee, the Governor's Office of
Economic Opportunity shall notify each of the entities described in Subsection
(2)
of
the formation of the housing and transit reinvestment zone committee.
(b)
For a first home investment zone, the housing and transit reinvestment zone
committee shall follow the procedures described in Section
63N-3-1604
.
(6)
(a)
The chair of the housing and transit reinvestment zone committee shall convene a
public meeting to consider the proposed housing and transit reinvestment zone.
(b)
A meeting of the housing and transit reinvestment zone committee is subject to Title
52, Chapter 4, Open and Public Meetings Act.
(7)
(a)
The proposing municipality or public transit county shall present the housing and
transit reinvestment zone proposal to the housing and transit reinvestment zone
committee in a public meeting.
(b)
The housing and transit reinvestment zone committee shall, for a housing and transit
reinvestment zone proposal:
(i)
evaluate and verify whether the elements of a housing and transit reinvestment
zone described in Subsections
63N-3-603(2)
and
(4)
have been met; and
(ii)
evaluate the proposed housing and transit reinvestment zone relative to the
analysis described in Subsection
63N-3-604(2)
.
(c)
The housing and transit reinvestment zone committee shall, for a convention center
reinvestment zone proposal, evaluate and verify whether the objectives of a
convention center reinvestment zone described in Section
63N-3-603.1
have been
met.
(8)
(a)
Subject to Subsection
(8)(b)
, the housing and transit reinvestment zone committee
may:
(i)
(A)
for a housing and transit reinvestment zone, request changes to the housing
and transit reinvestment zone proposal based on the analysis, characteristics,
and criteria described in Section
63N-3-604
; or
(B)
for a convention center reinvestment zone, request changes to the convention
center reinvestment zone proposal based on the characteristics and criteria
described in Sections
63N-3-603.1
and
63N-3-604.1
; or
(ii)
vote to approve or deny the proposal.
(b)
Before the housing and transit reinvestment zone committee may approve the
housing and transit reinvestment zone proposal, the municipality or public transit
county proposing the housing and transit reinvestment zone shall ensure that the area
of the proposed housing and transit reinvestment zone is zoned in such a manner to
accommodate the requirements of a housing and transit reinvestment zone described
in this section and the proposed development.
(9)
If a housing and transit reinvestment zone
, convention center reinvestment zone, or first
home investment zone
is approved by the
housing and transit reinvestment zone
committee:
(a)
the proposed housing and transit reinvestment zone
, convention center reinvestment
zone, or first home investment zone
is established according to the terms of the
housing and transit reinvestment zone proposal;
(b)
the municipality or public transit county proposing the housing and transit
reinvestment zone, convention center reinvestment zone, or first home investment
zone:
(i)
shall enter into one or more entitlement agreements, interlocal agreements,
development agreements, or participation agreements that are necessary or
required to implement all or any portion of the approved housing and transit
reinvestment zone, convention center reinvestment zone, or first home investment
zone proposal;
(ii)
may not reduce the density or alter other zoning uses that are permitted at the
time the housing and transit reinvestment zone, convention center reinvestment
zone, or first home investment zone proposal is approved, in a manner that would
cause the zone to fall below the zoning, density, or land use requirements in the
proposal approved by the housing and transit reinvestment zone; and
(iii)
if a municipality or public transit county has not entered into one or more
agreements described in Subsection (9)(b)(i) implementing a housing and transit
reinvestment zone within two years after the approval of the housing and transit
reinvestment zone proposal, the municipality or public transit county shall submit
a written report to the housing and transit reinvestment zone committee describing:
(A)
the status of the housing and transit reinvestment zone; and
(B)
the anticipated timeline for entering into one or more agreements described in
Subsection (9)(b)(i);
(c)
affected
each affected
local taxing
entities are
entity is
required to participate
according to the terms of the housing and transit reinvestment zone proposal; and
(c)
(d)
each affected taxing entity is required to participate at the same rate.
(10)
A housing and transit reinvestment zone
, convention center reinvestment zone, or first
home investment zone
proposal may be amended by following the same procedure as
approving a housing and transit reinvestment zone proposal.
(11)
(a)
The approval for a convention center reinvestment zone in a capital city may be
completed with a condition that the relevant municipality also create a public
infrastructure district as provided in Subsection
63N-3-607(8)(b)
.
(b)
The approval described in Subsection
(11)(a)
shall verify that the requirements and
limitations on use of funds is limited to the conditions described under Subsections
63N-3-604.1(2)(b)
and (c).
Section 8. Section
63N-3-607
is amended to read:
63N-3-607
. 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 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
.
(d)
(i)
As used in this Subsection (5)
(d)
, "extraterritorial affordable housing" means
affordable housing, as that term is defined in Section
63N-3-1601
, that:
(A)
is located within the municipality proposing the housing and transit
reinvestment zone but outside the boundary of the housing and transit
reinvestment zone;
(B)
is part of a development with a density of at least six units per acre;
(C)
is required to be owner occupied for no less than 25 years; and
(D)
has not been issued a building permit by the municipality as of the date of the
approval of the housing and transit reinvestment zone.
(ii)
A municipality or public district county may use housing and transit reinvestment
zone funds on extraterritorial affordable housing costs if the municipality or
public transit county satisfies the requirement described under Subsection
(4)(b)
.
(iii)
One hundred percent of extraterritorial affordable housing shall meet the
affordable housing requirements described in Section
63N-3-1601
.
(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.
Section 9. Section
63N-3-608
is amended to read:
63N-3-608
. Applicability to an existing community reinvestment project.
(1)
For a housing and transit reinvestment zone created under this part that overlaps any
portion of an existing inactive industrial site community reinvestment project area plan
created in accordance with
Title 17C, Limited Purpose Local Government Entities -
Community Reinvestment Agency Act
:
(a)
if the community reinvestment project area plan captures less than 80% of the
property tax increment from a taxing entity, or if a taxing entity is not participating in
the community reinvestment project area plan, the housing and transit reinvestment
zone may capture the difference between:
(i)
80%; and
(ii)
the percentage of property tax increment captured
pursuant to
in accordance with

the community reinvestment project area plan; and
(b)
if a community reinvestment project area plan expires before the housing and transit
reinvestment zone, the housing and transit reinvestment zone may capture the
property tax increment allocated to the community reinvestment project area plan for
any remaining portion of the term of the housing and transit reinvestment zone and
the base year shall be updated in accordance with Subsection
63N-3-602(4)
.
(2)
For a convention center reinvestment zone created under this part that overlaps any
portion of an existing community reinvestment project area created in accordance with
Title 17C, Limited Purpose Local Government Entities - Community Reinvestment
Agency Act:
(a)
if the community reinvestment project area captures less than 100% of the property
tax increment from a taxing entity, or if a taxing entity is not participating in the
community reinvestment project area, the convention center reinvestment zone may
capture the difference between:
(i)
100%; and
(ii)
the percentage of property tax increment captured
pursuant to
in accordance with

the community reinvestment project area for each taxing entity; and
(b)
if a community reinvestment project area plan expires before the convention center
reinvestment zone, the convention center reinvestment zone may capture the property
tax increment allocated to the community reinvestment project area for any
remaining portion of the term of the convention center reinvestment zone with the
base year relating back to the base year established by the community reinvestment
project area.
(3)
(a)
For a housing and transit reinvestment zone created under this part that overlaps
any portion of an existing community reinvestment project area plan created in
accordance with Title 17C, Limited Purpose Local Government Entities -
Community Reinvestment Agency Act, that includes a retail facility with a gross
sales floor area greater than 140,000 square feet, and if the development includes at
least one housing unit for every 1,250 square feet of retail space within the
development:
(i)
if the community reinvestment project area captures less than 80% of the property
tax increment from a taxing entity, or if a taxing entity is not participating in the
community reinvestment project area plan, the housing and transit reinvestment
zone may capture the difference between:
(A)
80%; and
(B)
the percentage of property tax increment captured in accordance with the
community reinvestment project area plan; and
(ii)
if a community reinvestment project area plan expires before the housing and
transit reinvestment zone, the housing and transit reinvestment zone may not
capture the property tax increment allocated to the community reinvestment
project area plan for any remaining portion of the term of the housing and transit
reinvestment zone and the base year shall be updated in accordance with
Subsection 63N-3-602(4).
(b)
The county assessor shall verify that the retail facility and housing unit requirements
described in this Subsection (3) are met before the housing and transit reinvestment
zone may capture the property tax increment described in Subsection (3)(a).
(4)
Except as provided in this section, a housing and transit reinvestment zone may not
overlap any portion of an existing community reinvestment project area plan created in
accordance with Title 17C, Limited Purpose Local Government Entities - Community
Reinvestment Agency Act.
Section 10. Section
63N-3-611
is amended to read:
63N-3-611
. Boundary adjustments.
If the relevant county assessor or county auditor adjusts parcel boundaries relevant
to a housing and transit reinvestment zone or a convention center reinvestment zone, the
municipality administering the property tax increment collected in the housing and transit
reinvestment zone, or for a convention center reinvestment zone, the Governor's Office of
Economic Opportunity may make corresponding adjustments to the boundary of the housing
and transit reinvestment zone.
(1)
(a)
Subject to the requirements under this part, and after the housing and transit
reinvestment zone committee approves a housing and transit reinvestment zone or a
convention center reinvestment zone proposal in accordance with Section
63N-3-605
,
the Governor's Office of Economic Opportunity shall consult with the relevant
county auditor to determine a boundary adjustment to a housing and transit
reinvestment zone or a convention center reinvestment zone.
(b)
(i)
If a boundary adjustment under Subsection
(1)(a)
is requested, the Governor's
Office of Economic Opportunity shall consult with the county assessor and county
auditor to verify the adjustment meets the requirements under this part.
(ii)
If the boundary adjustment described in Subsection (1)(b)(i) is approved, the
Governor's office of Economic Opportunity shall request approval of the proposed
boundary adjustment from the housing and transit reinvestment zone committee
before approving the boundary adjustment.
(c)
Except as provided in Subsection (1)(d), a parcel may only be triggered for property
tax increment collection on the legal parcel boundary drawn at the time the parcel is
triggered for property tax increment collection.
(d)
(i)
A convention center reinvestment zone in a capital city may commence a
property tax increment collection at different times for different parcels or
subareas within the convention center reinvestment zone in a capital city.
(ii)
The property tax increment collection described in Subsection (1)(d)(i) shall use
the base year of December 31, 2023 and commence no later than five years from
the day that the convention center reinvestment zone in a capital city proposal is
approved.
(2)
A boundary adjustment that results in an area that does not fall within or bisect the
radius requirements described in this part is allowed if:
(a)
the Governor's Office of Economic Opportunity determines that including the parcel
in the housing and transit reinvestment zone or convention center reinvestment zone
has a reasonable nexus to the purposes described in the relevant housing and transit
reinvestment zone or convention center reinvestment zone proposal;
(b)
the total number of acres within the housing and transit reinvestment zone or
convention center reinvestment zone are equal to or less than the maximum number
of acres allowed within a housing and transit reinvestment zone or convention center
reinvestment zone described in this part; and
(c)
the boundary adjustment does not create a parcel that is entirely located outside
one-half mile from a transit station.
(3)
(a)
A housing and transit reinvestment zone or convention center reinvestment zone
shall be governed by the law in effect on the date the application for the housing and
transit reinvestment zone or convention center reinvestment zone was approved by
the housing and transit reinvestment zone committee.
(b)
Notwithstanding Subsection
(3)(a)
, an approved housing and transit reinvestment
zone proposal submitted before May 1, 2024, shall be governed by the base year and
triggering defined in code before January 1, 2023.
Section 11. Section
63N-3-1601
is amended to read:
63N-3-1601
. 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%

120%
of
the
county median home price
area median income
; 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
.
(14)
"Moderate income housing plan" means the same as that term is defined in Section
11-41-102
.
(15)
"Municipality" means the same as that term is defined in Section
10-1-104
.
(16)
"Owner occupied" means private real property that is:
(a)
used for a single-family residential purpose; and
(b)
required to be occupied by the owner of the real property for no less than 25 years.
(17)
"Project area" means the same as that term is defined in Section
17C-1-102
.
(18)
(a)
"Project improvements" means site improvements and facilities that are:
(i)
planned and designed to provide service for development resulting from a
development activity;
(ii)
necessary for the use and convenience of the occupants or users of development
resulting from a development activity; and
(iii)
not identified or reimbursed as a system improvement.
(b)
"Project improvements" does not mean system improvements.
(19)
"State Tax Commission" means the State Tax Commission created in Section
59-1-201
.
(20)
(a)
"System improvements" means existing and future public facilities that are
designed to provide services to service areas within the community at large.
(b)
"System improvements" does not mean project improvements.
(21)
(a)
"Tax increment" means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from
the area within a first home investment zone designated in the first home
investment zone proposal as the area from which tax increment is to be collected,
using the current assessed value and each taxing entity's current certified tax rate
as defined in Section
59-2-924
; and
(ii)
the amount of property tax revenue that would be generated from that same area
using the base taxable value and each taxing entity's current certified tax rate as
defined in Section
59-2-924
.
(b)
"Tax increment" does not include property tax revenue from:
(i)
a multicounty assessing and collecting levy described in Subsection
59-2-1602
(2);
or
(ii)
a county additional property tax described in Subsection
59-2-1602
(4).
(22)
"Taxing entity" means the same as that term is defined in Section
17C-1-102
.
(23)
"Unencumbered annual community reinvestment agency revenue" means tax
increment revenue received by the agency for purposes identified in Title 17C, Limited
Purpose Local Government Entities - Community Reinvestment Agency Act, that:
(a)
have not been designated or restricted for future qualified uses as approved by the
agency board related to a specific project area; and
(b)
do not have a date certain by which the tax increment revenues will be used.
Section 12. Section
63N-3-1603
is amended to read:
63N-3-1603
. Process for a proposal of a first home investment zone.
(1)
Subject to approval of the housing and transit reinvestment zone committee as described
in Section
63N-3-1604
, in order to create a first home investment zone, a municipality
that has general land use authority over the first home investment zone area, shall:
(a)
prepare a proposal for the first home investment zone that:
(i)
demonstrates that the proposed first home investment zone will meet the
objectives described in Subsection
63N-3-1602(1)
;
(ii)
explains how the municipality will achieve the requirements of Subsection
63N-3-1602(2)
;
(iii)
defines the specific infrastructure needs, if any, and proposed improvements;
(iv)
demonstrates how the first home investment zone will ensure:
(A)
sufficient pedestrian access to schools and other areas of community; and
(B)
inclusion of child care facilities and access;
(v)
defines the boundaries of the first home investment zone;
(vi)
includes maps of the proposed first home investment zone to illustrate:
(A)
proposed housing density within the first home investment zone;
(B)
extraterritorial homes relevant to the first home investment zone, including
density of the development of extraterritorial homes; and
(C)
existing zoning and proposed zoning changes related to the first home
investment zone;
(vii)
identifies any development impediments that prevent the development from
being a market-rate investment and proposed strategies for addressing each one;
(viii)
describes the proposed development plan, including the requirements described
in Subsections
63N-3-1602(2)
and
(4)
;
(ix)
establishes the collection period or periods to calculate the tax increment;
(x)
describes projected maximum revenues generated and the amount of tax
increment capture from each taxing entity and proposed expenditures of revenue
derived from the first home investment zone;
(xi)
includes an analysis of other applicable or eligible incentives, grants, or sources
of revenue that can be used to reduce the finance gap;
(xii)
proposes a finance schedule to align expected revenue with required financing
costs and payments;
(xiii)
evaluates possible benefits to active transportation, public transportation
availability and utilization, street connectivity, and air quality; and
(xiv)
provides a pro forma for the planned development that:
(A)
satisfies the requirements described in Subsections
63N-3-1602(2)
and
(4)
; and
(B)
includes data showing the cost difference between what type of development
could feasibly be developed absent the first home investment zone tax
increment and the type of development that is proposed to be developed with
the first home investment zone tax increment;
(b)
submit the proposal to the relevant school district to discuss the requirements of the
proposal and whether the proposal provides the benefits and achieves the objectives
described in this part; and
(c)
submit the first home investment zone proposal to the Governor's Office of
Economic Opportunity.
(2)
As part of the proposal described in Subsection
(1)
, a municipality shall:
(a)
study and evaluate possible impacts of a proposed first home investment zone on
parking and efficient use of land within the municipality and first home investment
zone; and
(b)
include in the first home investment zone proposal the findings of the study
described in Subsection
(2)(a)
and proposed strategies to efficiently address parking
impacts.
(3)
(a)
After receiving the proposal as described in Subsection
(1)(c)
, the Governor's
Office of Economic Opportunity shall:
(i)
within 14 days after the date on which the Governor's Office of Economic
Opportunity receives the proposal described in Subsection
(1)(c)
, provide notice
of the proposal to all affected taxing entities, including the State Tax Commission,
cities, counties, school districts, metropolitan planning organizations, and the
county assessor and county auditor of the county in which the first home
investment zone is located; and
(ii)
at the expense of the proposing municipality as described in Subsection
(5)
,
contract with an independent entity to:
(A)
perform the gap analysis described in Subsection
(3)(b)
; and
(B)
perform an analysis of the pro-forma described in Subsection
(1)(a)(xiv)(B)

and the feasibility of the proposed development absent the tax increment.
(b)
The gap and pro-forma analysis required in Subsection
(3)(a)(ii)
shall include:
(i)
a description of the planned development;
(ii)
a market analysis relative to other comparable project developments included in
or adjacent to the municipality absent the proposed first home investment zone;
(iii)
an evaluation of the proposal and a determination of the adequacy and efficiency
of the proposal;
(iv)
an evaluation of the proposed tax increment capture needed to cover the system
improvements and project improvements associated with the first home
investment zone proposal and enable the proposed development to occur, and for
the benefit of affordable housing projects; and
(v)
based on the market analysis and other findings, an opinion relative to the
appropriate amount of potential public financing reasonably determined to be
necessary to achieve the objectives described in Subsection
63N-3-1602(1)
.
(c)
After receiving notice from the Governor's Office of Economic Opportunity of a
proposed first home investment zone as described in Subsection
(3)(a)(i)
, the
municipality, in consultation with the county assessor
, the county auditor,
and the
State Tax Commission, shall:
(i)
evaluate the feasibility of administering the tax implications of the proposal; and
(ii)
provide a letter to the Governor's Office of Economic Opportunity describing any
challenges in the administration of the proposal, or indicating that the county
assessor can feasibly administer the proposal.
(4)
After receiving the results from the analysis described in Subsection
(3)(b)
, the
municipality proposing the first home investment zone may:
(a)
amend the first home investment zone proposal based on the findings of the analysis
described in Subsection
(3)(b)
and request that the Governor's Office of Economic
Opportunity submit the amended first home investment zone proposal to the housing
and transit reinvestment zone committee; or
(b)
request that the Governor's Office of Economic Opportunity submit the original first
home investment zone proposal to the housing and transit reinvestment zone
committee.
(5)
(a)
The Governor's Office of Economic Opportunity may accept, as a dedicated
credit, up to $20,000 from a municipality for the costs of the gap analysis described
in Subsection
(3)(b)
.
(b)
The Governor's Office of Economic Opportunity may expend funds received from a
municipality as dedicated credits to pay for the costs associated with the gap analysis
described in Subsection
(3)(b)
.
Section 13. Section
63N-3-1609
is amended to read:
63N-3-1609
. Boundary adjustments.
If the relevant county assessor or county auditor adjusts parcel boundaries relevant
to a first home investment zone, the municipality administering the tax increment collected in
the first home investment zone may make corresponding adjustments to the boundary of the
first home investment zone.
(1)
(a)
Subject to the requirements under this part, and after the housing and transit
reinvestment zone committee approves a first home investment zone proposal in
accordance with Section
63N-3-1604
, the Governor's Office of Economic
Opportunity shall consult with the relevant county auditor to determine a boundary
adjustment to parcel boundaries relevant to a first home investment zone.
(b)
If a boundary adjustment under Subsection
(1)(a)
is requested, the county assessor
shall request approval of the proposed boundary adjustment from the housing and
transit reinvestment zone committee before approving the boundary adjustment.
(c)
A parcel may only be triggered for property tax increment collection on the legal
parcel boundary drawn at the time the parcel is triggered for property tax increment
collection.
(2)
A boundary adjustment that results in an area that does not fall within or bisect the
radius requirements described in this part is allowed if:
(a)
the Governor's Office of Economic Opportunity determines that including the parcel
in the first home investment zone has a reasonable nexus to the purposes described in
the relevant first home investment zone proposal;
(b)
the total number of acres within the first home investment zone is equal to or less
than the maximum number of acres allowed within a first home investment zone
described in this part; and
(c)
the boundary adjustment does not create a parcel that is entirely located outside
one-half mile from a transit station.
Section 14.
Effective Date.
This bill takes effect on
May 6, 2026
.
Section 15.
Coordinating S.B. 221 with S.B. 39.
If S.B. 221, Housing and Transit Reinvestment Zone Amendments, and S.B. 39,
Investment Zone Amendments, both pass and become law, the Legislature intends that, on
May 6, 2026:
(1) Subsection 59-2-924(1)(q) in S.B. 39 and S.B. 221 be amended to read:
"
(q) "Project area" means:
(i) for an authority created under Section 11-58-201, the same as that term is defined in
Section 11-58-102;
(ii) for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201, the same as that term is defined in Section 11-70-101;
(iii) for an agency created under Section 17C-1-201.5, the same as that term is defined in
Section 17C-1-102;
(iv) for an authority created under Section 63H-1-201, the same as that term is defined in
Section 63H-1-102;
(v) for a housing and transit reinvestment zone
or convention center reinvestment zone
created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, the
same as that term is defined in Section 63N-3-602
, created under Title 63N, Chapter 23, Part
2, Housing and Transit Reinvestment Zone, as housing and transit reinvestment zone is
defined in Section 63N-23-101
;
(vi) for a convention center reinvestment zone, created under Title 63N, Chapter 23, Part 3,
Convention Center Reinvestment Zone, as convention center reinvestment zone is defined in
Section 63N-23-101;
(vii) for a convention center reinvestment zone in a capital city, created under Title 63N,
Chapter 23, Part 4, Convention Center Reinvestment Zone in a Capital City, as convention
center reinvestment zone in a capital city is defined in 63N-23-101;
(vi)
(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, the same as that term is defined in Section 10-21-101 or Section
17-80-101
, created under Title 63N, Chapter 23, Part 5, Home Ownership Promotion Zone for
Municipalities, or Title 63N, Chapter 23, Part 6, Home Ownership Promotion Zone for
Counties, as homeownership promotion zone is defined in Section 63N-23-501 or 63N-23-601
;
(vii)
(ix)
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
,
created under Title 63N, Chapter 23, Part 7, First Home Investment Zone, as first home
investment zone is defined in 63N-23-101
; or
(viii)
(x)
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.
";
(2) The amendments to Subsection 63N-3-602(4) in S.B. 221 supersede the amendments to
Subsection 63N-23-101(4) in S.B. 39;
(3) Subsection 63N-23-101(33) enacted in S.B. 39 be amended to read:
"(33) "Project area plan" means the same as that term is defined in Section 17C-1-102."; and
(4)(a) Subsection 63N-3-603.1(4)(a) in S.B. 221 and Subsection 63N-23-301(3)(a) in S.B.
39 be amended to read:
"
(4)(a)(i)
(3)(a)
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
revenue

described in Subsection
63N-3-602(38)(b)(ii)
63N-23-101(40)(b)(ii)
for a period of 30 years.
(ii)For a convention center reinvestment zone in a capital city, in addition to the proposed
capture of property tax increment and sales and use tax increment described in Subsection
(4)(a)(i), the convention center reinvestment zone may propose the capture of 50% of the sales
and use tax increment described in Subsection 63N-3-602(38)(b)(i
).
"
(b) Subsections 63N-23-401(4)(a) and (b) enacted in S.B. 39 be amended to read:
"(4)(a) A convention center reinvestment zone in a capital city proposal may propose the
capture of 100% of the property tax increment and 100% of the sales and use tax revenue
described in Subsection 63N-23-101(40)(b)(ii) for a period of 30 years.
(b) In addition to the proposed capture of property tax increment and sales and use tax
revenue described in Subsection (4)(a), the convention center reinvestment zone in a capital
city may propose the capture of 50% of the sales and use tax revenue described in Subsection
63N-23-101(40)(b)(i).".
2-20-26 5:10 PM