Development Authority Modifications

34
10-20-305
11-59-103
11-59-207
11-59-208
17D-4-202
17D-4-202.2
59-12-103
63A-3-404
63I-1-210
63I-1-211
0
Development Authority Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jerry W Stevenson
House Sponsor: Jordan D. Teuscher
LONG TITLE
General Description:
This bill deals with the Point of the Mountain State Land Authority.
Highlighted Provisions:
This bill:
defines terms;
authorizes a municipality to coordinate with a state agency, independent entity, or
regional economic development authority with exclusive control over the management,
development, and disposition of a parcel of state-owned land in order to ensure future
alignment with municipal general plans and land use regulations;
requires a public infrastructure district created by a development authority to have a
majority of the public infrastructure district's board members appointed by the governing
body of the development authority, subject to exceptions;
provides that a public infrastructure district created by a development authority that issues
a bond may not issue additional or subsequent bonds but may refinance bonds one time;
provides that the Point of the Mountain State Land Authority (authority) may coordinate
with Draper when the authority intends to dispose of a parcel of point of the mountain
state land to a private party;
modifies the distribution percentages of privilege tax to the authority for certain parcels of
point of the mountain state land;
modifies the percentage of property tax augmentation that shall be distributed to the
authority for certain transferred parcels;
reduces the percentage of state sales and tax revenue the State Tax Commission is
directed to distribute to the authority;
authorizes a borrower to request and the Division of Finance to consider an amendment to
a loan agreement to extend or forgive a loan made from certain infrastructure revolving
loan funds;
repeals a sunset date and creates a sunset date; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
10-20-305
Effective
05/06/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 15
11-59-103
Effective
05/06/26
Repealed
01/01/29
, as last amended by Laws of Utah
2025, First Special Session, Chapter 15
11-59-207
Effective
05/06/26
Repealed
01/01/29
, as last amended by Laws of Utah
2025, Chapter 31
11-59-208
Effective
05/06/26
Repealed
01/01/29
, as enacted by Laws of Utah 2022,
Chapter 237
17D-4-202
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 347
59-12-103
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapter 285
63A-3-404
Effective
05/06/26
, as last amended by Laws of Utah 2022, Chapters 237,
463
63I-1-210
Effective
05/06/26
, as last amended by Laws of Utah 2024, Third Special
Session, Chapter 5
63I-1-211
Effective
05/06/26
, as last amended by Laws of Utah 2024, Third Special
Session, Chapters 4, 5
ENACTS:
17D-4-202.2
Effective
05/06/26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
10-20-305
is amended to read:
10-20-305
Effective
05/06/26
. State and federal property.
(1)
Unless otherwise provided by law, nothing contained in this chapter or
Chapter 21
,
Municipalities and Housing Supply, may be construed as giving a municipality
jurisdiction over property owned by the state or the United States.
(2)
(a)
As used in this Subsection
(2)
, "exempted government landowner" means a state
agency, independent entity, or regional economic development authority that has
exclusive control over the management, development, and disposition of a parcel of
state-owned land.
(b)
Notwithstanding Subsection
(1)
, when an exempted government landowner intends
to dispose of a parcel of state-owned land, a municipality may coordinate with the
exempted government landowner to develop a prospective land use regulation or
general plan amendment for the parcel in order to ensure alignment between the
exempted government landowner's activity and objectives and the municipality's role
as the land use authority if
the parcel is conveyed to a private owner.
(c)
A municipal legislative body that adopts a prospective land use regulation or amends
a general plan under Subsection
(2)(b)
is not required to comply with the notice
provisions of Part 2, Notice, the procedure specified in Section
10-20-502
, or
Subsections
10-20-503(2)
and
(3)
, if:
(i)
the prospective land use regulation will govern, or the general plan amendment
describes, state-owned land
if that the state-owned land is transferred to private
ownership; and
(ii)
the exempted government landowner requested the prospective land use
regulation or general plan amendment.
Section 2. Section
11-59-103
is amended to read:
11-59-103
Effective
05/06/26
Repealed
01/01/29
. Scope of chapter -- Limit on
selling or leasing point of the mountain state land -- Authority control over point of the
mountain state land -- Role of Division of Facilities Construction and Management --
Local government authority not applicable.
(1)
This chapter governs the management of the point of the mountain state land, and the
process of planning, managing, and implementing the development of the point of the
mountain state land.
(2)
(a)
No part of the point of the mountain state land may be sold or otherwise disposed
of or leased without the approval of the board.
(b)
The authority has complete and exclusive control over the management,
development, and disposition of the point of the mountain state land.
(3)
(a)
The facilities division serves the role of compliance agency under
Title 15A, State
Construction and Fire Codes Act
, with respect to the point of the mountain state land.
(b)
The facilities division is the permitting agency responsible for the issuance of a
building permit or certificate of occupancy related to construction on the point of the
mountain state land, in accordance with applicable building codes and standards.
(4)
The authority of a local government under Title 10, Chapter 20, Municipal Land Use,
Development, and Management Act, or Title 17, Chapter 79, County Land Use,
Development, and Management Act, does not apply to the use of the point of the
mountain state land or to any improvements constructed on the point of the mountain
state land, including improvements constructed by an entity other than the authority.
(5)
If the authority intends to dispose of a parcel of point of the mountain state land to a
private party, the authority shall:
(a)
coordinate with Draper in accordance with Section
10-20-305
to ensure:
(i)
the authority's objectives described in Section
11-59-203
are achieved in regard to
the parcel;
(ii)
the highest and best use of the parcel; and
(iii)
that the planning for and development of the parcel, if any, may continue after
disposal in the same manner as before disposal; and
(b)
provide Draper with a draft land use regulation to govern the parcel of point of the
mountain state land.
Section 3. Section
11-59-207
is amended to read:
11-59-207
Effective
05/06/26
Repealed
01/01/29
. Privilege tax on leased
property on state-owned land.
(1)
As used in this section:
(a)
"Exempt property" means real property that is exempt from ad valorem property tax
because the real property is owned by the state.
(b)
"Lease agreement" means an agreement by which a private person leases from the
state real property that is part of the point of the mountain state land.
(c)
(i)
"Leased property" means real property that:
(A)
is part of the point of the mountain state land;
(B)
is leased by a private person; and
(C)
would be subject to ad valorem property tax if the real property were owned
by the private person.
(ii)
"Leased property" includes attachments and other improvements to the real
property that would be included in an assessment of the value of the real property
if the real property were not exempt property.
(d)
"Lessee" means a private person that leases property that is part of the point of the
mountain state land under a lease agreement.
(e)
"Phase one land" means a portion of the leased property that:
(i)
is identified by a plat or legal description;
(ii)
consists, or will consist, of one or more parcels;
(iii)
is identified by the authority in a written agreement, executed before January 1,
2026, as either intended for development as:
(A)
the first phase of development of the point of the mountain state land; or
(B)
an event center and related facilities, including parking and public infrastructur
e
;
and
(iv)
does not exceed 105 total acres.
(e)
(f)
"Privilege tax" means a tax imposed under Section
59-4-101
.
(2)
Beginning January 1 of the year immediately following the execution of a lease
agreement, the possession or other beneficial use enjoyed by any person of property on
point of the mountain state land, if that property is used in connection with a business
conducted for profit, is subject to Title 59, Chapter 4, Privilege Tax.
(3)
The treasurer of the county in which the point of the mountain state land is located shall,
in the manner and at the time provided in Section
59-2-1365
:
(a)
collect privilege tax from a lessee; and
(b)
distribute privilege tax revenue to the authority in the following percentages:
(i)
for phase one land:
(i)
(A)
beginning January 1, 2025, 100% of the
privilege tax
revenue
generated
by the privilege tax on point of the mountain state land
;
(ii)
(B)
beginning January 1, 2038, 96.3% of the
privilege tax
revenue
generated
by the privilege tax on point of the mountain state land
;
(iii)
(C)
beginning January 1, 2044, 92.5% of the
privilege tax
revenue

generated by the privilege tax on point of the mountain state land
;
(iv)
(D)
beginning January 1, 2049, 90% of the
privilege tax
revenue
generated
by the privilege tax on point of the mountain state land
;
(v)
(E)
beginning January 1, 2054, 87.5% of the
privilege tax
revenue
generated
by the privilege tax on point of the mountain state land
; and
(vi)
(F)
beginning January 1, 2068, 25% of the
privilege tax
revenue
generated
by the privilege tax on point of the mountain state land.
; and
(ii)
for point of the mountain state land that is not phase one land, according to the
same terms as in Subsection
(3)(b)(i)
, unless the authority provides notice to the
county treasurer that a lower percentage of privilege tax shall be distributed to the
authority.
(4)
If applicable, the authority shall provide the notice described in Subsection
(3)(b)(ii)
:
(a)
in writing; and
(b)
by no later than October 1 of the year before the reduced distribution percentage for
the privilege tax revenue generated on point of the mountain state land that is not
phase one land is intended to commence.
Section 4. Section
11-59-208
is amended to read:
11-59-208
Effective
05/06/26
Repealed
01/01/29
. Portion of property tax
augmentation to be paid to authority.
(1)
As used in this section:
(a)
"Base taxable value" means the taxable value in the year before the transfer date.
(b)
"Property tax augmentation":
(i)
means the amount of property tax that is the difference between:
(A)
the amount of property tax revenues generated each tax year by all taxing
entities from a transferred parcel, using the current assessed value of the
property; and
(B)
the amount of property tax revenues that would be generated from that same
transferred parcel using the base taxable value of the property; and
(ii)
does not include property tax revenue from:
(A)
a county additional property tax or multicounty assessing and collecting levy
imposed in accordance with Section
59-2-1602
;
(B)
a judgment levy imposed by a taxing entity under Section
59-2-1328
or
59-2-1330
; or
(C)
a levy imposed by a taxing entity under Section
11-14-310
to pay for a general
obligation bond.
(c)
"Transfer date" means the date that fee title to land that is part of the point of the
mountain state land is transferred to a private person.
(d)
"Transferred parcel" means a parcel of land:
(i)
that is part of the point of the mountain state land; and
(ii)
the fee title to which has been transferred to a private person.
(2)
Beginning January 1,
2023
2026
, the authority shall be paid
75%
25%
of property tax
augmentation from a transferred parcel:
(a)
for a period of 25 years beginning January 1 of the year immediately following the
transfer date for the transferred parcel; and
(b)
for a period of an additional 15 years beyond the period stated in Subsection
(2)(a)
if:
(i)
the board determines by resolution that the additional years will produce a
significant benefit to the authority; and
(ii)
the resolution is adopted before the end of the 25-year period under Subsection
(2)(a)
.
(3)
A county that collects property tax on property within the county in which the point of
the mountain state land is located shall pay and distribute to the authority the amount of
property tax augmentation that the authority is entitled to collect under Subsection
(2)
, in
the manner and at the time provided in Section
59-2-1365
.
Section 5. Section
17D-4-202
is amended to read:
17D-4-202
Effective
05/06/26
. Public infrastructure district board -- Governing
document.
(1)
(a)
The legislative body or board of the creating entity shall appoint the initial
members of the board of a public infrastructure district, in accordance with
:

(i)
the governing document
.
; and
(ii)
this part.
(b)
A governing document approved by the legislative body or board of the creating
entity may provide for the board of a public infrastructure district to, upon a vacancy
on the board, appoint an individual to the board so long as the individual meets the
requirements to serve on a public infrastructure district board described in this
section.
(c)
For public infrastructure districts not described in Subsection
(1)(b)
, and except as
provided in Subsection
(1)(d)
:
(i)
if there is a vacancy on the board of a public infrastructure district, or a board
member provides notice to the legislative body or board of the creating entity of
the board member's intention to resign from the board, the legislative body or
board of the creating entity shall appoint a replacement board member within 45
days from the day on which the vacancy first occurs or the board member
provides notice of the board member's intent to resign; and
(ii)
if a legislative body or board of the creating entity fails to fill a vacancy on the
board within the time period described in Subsection
(1)(c)(i)
, the board of the
public infrastructure district may appoint an individual who is eligible to serve on
the board according to the requirements of this section to fill the board vacancy.
(d)
If a public infrastructure district board position has transitioned from appointment to
election, as described in Subsection
(4)
, and an elected board position becomes
vacant, the provisions of Section
20A-1-512
apply to fill the vacancy.
(2)
(a)
Unless otherwise limited in the governing document and except as provided in
Subsection
(2)(b)
, the initial term of each member of the board is four years.
(b)
Notwithstanding Subsection
(2)(a)
, approximately half of the members of the initial
board shall serve a six-year term so that, after the expiration of the initial term, the
term of approximately half the board members expires every two years.
(c)
A board may elect that a majority of the board serve an initial term of six years.
(d)
After the initial term, the term of each member of the board is four years.
(e)
A member of the board who is appointed shall continue to serve on the board of the
public infrastructure district until a replacement board member is appointed.
(3)
(a)
Notwithstanding Subsection
17B-1-302(1)(b)
, a board member is not required to
be a resident within the boundaries of the public infrastructure district if:
(i)
all of the surface property owners consent to the waiver of the residency
requirement;
(ii)
there are no residents within the boundaries of the public infrastructure district;
(iii)
no qualified candidate timely files to be considered for appointment to the board;
or
(iv)
no qualified individual files a declaration of candidacy for a board position in
accordance with Subsection
17B-1-306(5)
.
(b)
Except under the circumstances described in Subsection
(3)(a)(iii)
or
(iv)
, the
residency requirement in Subsection
17B-1-302(1)(b)
is applicable to any board
member elected for a division or board position that has transitioned from an
appointed to an elected board member in accordance with this section.
(c)
An individual who is not a resident within the boundaries of the public infrastructure
district may not serve as a board member unless the individual is:
(i)
an owner of land or an agent or officer of the owner of land within the boundaries
of the public infrastructure district; and
(ii)
a registered voter at the individual's primary residence.
(d)
If the creating entity determines that a public infrastructure district is not anticipated
to have permanent residents within the public infrastructure district's boundaries, or is
anticipated to be primarily composed of non-residential property or non-primary
residential property, a governing document may allow the creating entity to continue
to appoint a property owner, or the agent of a property owner, to the public
infrastructure district board.
(e)
A governing document may allow for a property owner to recommend a property
owner or a property owner's agent for appointment to the public infrastructure district
board in numbers proportional to the property owner's ownership of land, or value of
land, within a public infrastructure district.
(4)
(a)
A governing document may provide for a transition from legislative body
appointment under Subsection
(1)
to a method of election by registered voters based
upon milestones or events that the governing document identifies, including a
milestone for each division or individual board position providing that when the
milestone is reached:
(i)
for a division, the registered voters of the division elect a member of the board in
place of an appointed member at the next municipal general election for the board
position; or
(ii)
for an at large board position established in the governing document, the
registered voters of the public infrastructure district elect a member of the board in
place of an appointed member at the next municipal general election for the board
position.
(b)
Regardless of whether a board member is elected under Subsection
(4)(a)
, the
position of each remaining board member shall continue to be appointed under
Subsection
(1)
until the member's respective division or board position surpasses the
density milestone described in the governing document.
(5)
(a)
Subject to Subsection
(5)(c)
, the board may, in the board's discretion but no more
frequently than every four years, reestablish the boundaries of each division so that
each division that has reached a milestone specified in the governing document, as
described in Subsection
(4)(a)
, has, as nearly as possible, the same number of eligible
voters.
(b)
In reestablishing division boundaries under Subsection
(5)(a)
, the board shall
consider existing or potential developments within the divisions that, when
completed, would increase or decrease the number of eligible voters within the
division.
(c)
The governing document may prohibit the board from reestablishing, without the
consent of the creating entity, the division boundaries as described in Subsection
(5)(a)
.
(6)
A public infrastructure district may not compensate a board member for the member's
service on the board under Section
17B-1-307
unless the board member is a resident
within the boundaries of the public infrastructure district.
(7)
A governing document shall:
(a)
include a boundary description and a map of the public infrastructure district;
(b)
state the number of board members;
(c)
describe any divisions of the public infrastructure district;
(d)
establish any applicable property tax levy rate limit for the public infrastructure
district;
(e)
establish any applicable limitation on the principal amount of indebtedness for the
public infrastructure district; and
(f)
include other information that the public infrastructure district or the creating entity
determines to be necessary or advisable.
(8)
(a)
Except as provided in Subsection
(8)(b)
, the board and the governing body of the
creating entity may amend a governing document by each adopting a resolution that
approves the amended governing document.
(b)
Notwithstanding Subsection
(8)(a)
, any amendment to increase a property tax levy
rate limitation requires the consent of 100% of surface property owners within the
boundaries of the public infrastructure district.
(9)
A board member is not in violation of Section
67-16-9
if the board member:
(a)
discloses a business relationship in accordance with Sections
67-16-7
and
67-16-8

and files the disclosure with the creating entity:
(i)
before any appointment or election; and
(ii)
upon any significant change in the business relationship; and
(b)
conducts the affairs of the public infrastructure district in accordance with this title
and any parameters described in the governing document.
(10)
Notwithstanding any other provision of this section, the governing document
governs
and Section
17D-4-202.2
, unless inconsistent with existing contractual obligations,
govern
the number, appointment, and terms of board members of a public infrastructure
district created by the development authority.
Section 6. Section
17D-4-202.2
is enacted to read:
17D-4-202.2
Effective
05/06/26
. Public infrastructure district created by a
development authority -- Board -- Governing document.
(1)
As used in this section:
(a)
"Governing body" means the governing body of the development authority that
created a public infrastructure district.
(b)
"Grandfathered public infrastructure district" means a public infrastructure district:
(i)
created by the Point of the Mountain State Land Authority created in Section
11-59-201
; and
(ii)
that is not a specified public infrastructure district.
(c)
"Specified public infrastructure district" means a public infrastructure district created
by a development authority on or after May 6, 2026.
(2)
Except as provided in Subsection
(4)
, the governing document of a specified public
infrastructure district shall require that a majority of the board members of the specified
public infrastructure district be appointed by the governing body.
(3)
Beginning May 6, 2026, a grandfathered public infrastructure district shall modify the
public infrastructure district's governing document by no later than July 1, 2026, to
ensure that at least 40% of the public infrastructure board's seats are appointed by the
governing body.
(4)
The governing document of a specified public infrastructure district may provide for a
different board structure than described in Subsection
(2)
if:
(a)
the governing body finds that a compelling reason exists to reduce the number of
appointments made by the governing body;
(b)
the board and the governing body both make a 2/3 vote to modify the governing
document to reduce the number of appointments made by the governing body; and
(c)
the governing body retains the ability to appoint a minimum of 40% of the board.
(5)
A public infrastructure district created by a development authority that issues a bond
may only issue additional bonds or create new debt:
(a)
in accordance with the governing document approved by the governing body; or
(b)
if a majority of the public infrastructure district's board members are appointed by
the governing body.
Section 7. Section
59-12-103
is amended to read:
59-12-103
Effective
07/01/26
. Sales and use tax base -- Rates -- Effective dates
-- Use of sales and use tax revenue.
(1)
A tax is imposed on the purchaser as provided in this part on the purchase price or sales
price for amounts paid or charged for the following transactions:
(a)
retail sales of tangible personal property made within the state;
(b)
amounts paid for:
(i)
telecommunications service, other than mobile telecommunications service, that
originates and terminates within the boundaries of this state;
(ii)
mobile telecommunications service that originates and terminates within the
boundaries of one state only to the extent permitted by the Mobile
Telecommunications Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
(iii)
an ancillary service associated with a:
(A)
telecommunications service described in Subsection
(1)(b)(i)
; or
(B)
mobile telecommunications service described in Subsection
(1)(b)(ii)
;
(c)
sales of the following for commercial use:
(i)
gas;
(ii)
electricity;
(iii)
heat;
(iv)
coal;
(v)
fuel oil; or
(vi)
other fuels;
(d)
sales of the following for residential use:
(i)
gas;
(ii)
electricity;
(iii)
heat;
(iv)
coal;
(v)
fuel oil; or
(vi)
other fuels;
(e)
sales of prepared food;
(f)
except as provided in Section
59-12-104
, amounts paid or charged as admission or
user fees for theaters, movies, operas, museums, planetariums, shows of any type or
nature, exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses,
menageries, fairs, races, contests, sporting events, dances, boxing matches, wrestling
matches, closed circuit television broadcasts, billiard parlors, pool parlors, bowling
lanes, golf, miniature golf, golf driving ranges, batting cages, skating rinks, ski lifts,
ski runs, ski trails, snowmobile trails, tennis courts, swimming pools, water slides,
river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or
any other amusement, entertainment, recreation, exhibition, cultural, or athletic
activity;
(g)
amounts paid or charged for services for repairs or renovations of tangible personal
property, unless Section
59-12-104
provides for an exemption from sales and use tax
for:
(i)
the tangible personal property; and
(ii)
parts used in the repairs or renovations of the tangible personal property described
in Subsection
(1)(g)(i)
, regardless of whether:
(A)
any parts are actually used in the repairs or renovations of that tangible
personal property; or
(B)
the particular parts used in the repairs or renovations of that tangible personal
property are exempt from a tax under this chapter;
(h)
except as provided in Subsection
59-12-104(7)
, amounts paid or charged for assisted
cleaning or washing of tangible personal property;
(i)
amounts paid or charged for short-term rentals of tourist home, hotel, motel, or trailer
court accommodations and services;
(j)
amounts paid or charged for laundry or dry cleaning services;
(k)
amounts paid or charged for leases or rentals of tangible personal property if within
this state the tangible personal property is:
(i)
stored;
(ii)
used; or
(iii)
otherwise consumed;
(l)
amounts paid or charged for tangible personal property if within this state the tangible
personal property is:
(i)
stored;
(ii)
used; or
(iii)
consumed;
(m)
amounts paid or charged for a sale:
(i)
(A)
of a product transferred electronically; or
(B)
of a repair or renovation of a product transferred electronically; and
(ii)
regardless of whether the sale provides:
(A)
a right of permanent use of the product; or
(B)
a right to use the product that is less than a permanent use, including a right:
(I)
for a definite or specified length of time; and
(II)
that terminates upon the occurrence of a condition; and
(n)
sales of leased tangible personal property from the lessor to the lessee made in the
state.
(2)
(a)
Except as provided in Subsections
(2)(b)
through (f), a state tax and a local tax are
imposed on a transaction described in Subsection
(1)
equal to the sum of:
(i)
a state tax imposed on the transaction at a tax rate equal to the sum of:
(A)
4.70%;
(B)
the rate specified in Subsection
(6)(a)
; and
(C)
the tax rate the state imposes in accordance with Part 20, Supplemental State
Sales and Use Tax Act, if the location of the transaction as determined under
Sections
59-12-211
through
59-12-215
is in a city, town, or the unincorporated
area of a county in which the state imposes the tax under Part 20, Supplemental
State Sales and Use Tax Act; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(b)
Except as provided in Subsection
(2)(f)
or
(g)
and subject to Subsection
(2)(l)
, a state
tax and a local tax are imposed on a transaction described in Subsection
(1)(d)
equal
to the sum of:
(i)
a state tax imposed on the transaction at a tax rate of 2%; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
transaction under this chapter other than this part.
(c)
Except as provided in Subsection
(2)(f)
or
(g)
, a state tax and a local tax are imposed
on amounts paid or charged for food and food ingredients equal to the sum of:
(i)
a state tax imposed on the amounts paid or charged for food and food ingredients
at a tax rate of 1.75%; and
(ii)
a local tax equal to the sum of the tax rates a county, city, or town imposes on the
amounts paid or charged for food and food ingredients under this chapter other
than this part.
(d)
Except as provided in Subsection
(2)(f)
or
(g)
, a state tax is imposed on amounts paid
or charged for fuel to a common carrier that is a railroad for use in a locomotive
engine at a rate equal to the sum of the rates described in Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
.
(e)
(i)
(A)
The rates described in Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
do not
apply to car sharing, a car sharing program, a shared vehicle driver, or a shared
vehicle owner, for a car sharing or shared vehicle transaction if a shared
vehicle owner certifies to the commission, on a form prescribed by the
commission, that the shared vehicle is an individual-owned shared vehicle.
(B)
A shared vehicle owner's certification described in Subsection
(2)(e)(i)(A)
is
required once during the time that the shared vehicle owner owns the shared
vehicle.
(C)
The commission shall verify that a shared vehicle is an individual-owned
shared vehicle by verifying that the applicable Utah taxes imposed under this
chapter were paid on the purchase of the shared vehicle.
(D)
The exception under Subsection
(2)(e)(i)(A)
applies to a certified
individual-owned shared vehicle shared through a car-sharing program even if
non-certified shared vehicles are also available to be shared through the same
car-sharing program.
(ii)
A tax imposed under Subsection
(2)(a)(i)(C)
or
(2)(a)(ii)
applies to car sharing.
(iii)
(A)
A car-sharing program may rely in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle
certified with the commission as described in Subsection
(2)(e)(i)
.
(B)
If a car-sharing program relies in good faith on a shared vehicle owner's
representation that the shared vehicle is an individual-owned shared vehicle
certified with the commission as described in Subsection
(2)(e)(i)
, the
car-sharing program is not liable for any tax, penalty, fee, or other sanction
imposed on the shared vehicle owner.
(iv)
If all shared vehicles shared through a car-sharing program are certified as
described in Subsection
(2)(e)(i)(A)
for a tax period, the car-sharing program has
no obligation to collect and remit the tax under Subsections
(2)(a)(i)(A)
and
(2)(a)(i)(B)
for that tax period.
(v)
A car-sharing program is not required to list or otherwise identify an
individual-owned shared vehicle on a return or an attachment to a return.
(vi)
A car-sharing program shall:
(A)
retain tax information for each car-sharing program transaction; and
(B)
provide the information described in Subsection
(2)(e)(vi)(A)
to the
commission at the commission's request.
(f)
(i)
For a bundled transaction that is attributable to food and food ingredients and
tangible personal property other than food and food ingredients, a state tax and a
local tax is imposed on the entire bundled transaction equal to the sum of:
(A)
the tax rates described in Subsection
(2)(a)(i)
; and
(B)
a local tax imposed on the entire bundled transaction at the sum of the tax
rates described in Subsection
(2)(a)(ii)
.
(ii)
If an optional computer software maintenance contract is a bundled transaction
that consists of taxable and nontaxable products that are not separately itemized
on an invoice or similar billing document, the purchase of the optional computer
software maintenance contract is 40% taxable under this chapter and 60%
nontaxable under this chapter.
(iii)
Subject to Subsection
(2)(f)(iv)
, for a bundled transaction other than a bundled
transaction described in Subsection
(2)(f)(i)
or
(ii)
:
(A)
if the sales price of the bundled transaction is attributable to tangible personal
property, a product, or a service that is subject to taxation under this chapter
and tangible personal property, a product, or service that is not subject to
taxation under this chapter, the entire bundled transaction is subject to taxation
under this chapter unless:
(I)
the seller is able to identify by reasonable and verifiable standards the
tangible personal property, product, or service that is not subject to taxation
under this chapter from the books and records the seller keeps in the seller's
regular course of business; or
(II)
state or federal law provides otherwise; or
(B)
if the sales price of a bundled transaction is attributable to two or more items
of tangible personal property, products, or services that are subject to taxation
under this chapter at different rates, the entire bundled transaction is subject to
taxation under this chapter at the higher tax rate unless:
(I)
the seller is able to identify by reasonable and verifiable standards the
tangible personal property, product, or service that is subject to taxation
under this chapter at the lower tax rate from the books and records the seller
keeps in the seller's regular course of business; or
(II)
state or federal law provides otherwise.
(iv)
For purposes of Subsection
(2)(f)(iii)
, books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in
the regular course of business for nontax purposes.
(g)
(i)
Except as otherwise provided in this chapter and subject to Subsections
(2)(g)(ii)
and
(iii)
, if a transaction consists of the sale, lease, or rental of tangible
personal property, a product, or a service that is subject to taxation under this
chapter, and the sale, lease, or rental of tangible personal property, other property,
a product, or a service that is not subject to taxation under this chapter, the entire
transaction is subject to taxation under this chapter unless the seller, at the time of
the transaction:
(A)
separately states the portion of the transaction that is not subject to taxation
under this chapter on an invoice, bill of sale, or similar document provided to
the purchaser; or
(B)
is able to identify by reasonable and verifiable standards, from the books and
records the seller keeps in the seller's regular course of business, the portion of
the transaction that is not subject to taxation under this chapter.
(ii)
A purchaser and a seller may correct the taxability of a transaction if:
(A)
after the transaction occurs, the purchaser and the seller discover that the
portion of the transaction that is not subject to taxation under this chapter was
not separately stated on an invoice, bill of sale, or similar document provided
to the purchaser because of an error or ignorance of the law; and
(B)
the seller is able to identify by reasonable and verifiable standards, from the
books and records the seller keeps in the seller's regular course of business, the
portion of the transaction that is not subject to taxation under this chapter.
(iii)
For purposes of Subsections
(2)(g)(i)
and
(ii)
, books and records that a seller
keeps in the seller's regular course of business includes books and records the
seller keeps in the regular course of business for nontax purposes.
(h)
(i)
If the sales price of a transaction is attributable to two or more items of tangible
personal property, products, or services that are subject to taxation under this
chapter at different rates, the entire purchase is subject to taxation under this
chapter at the higher tax rate unless the seller, at the time of the transaction:
(A)
separately states the items subject to taxation under this chapter at each of the
different rates on an invoice, bill of sale, or similar document provided to the
purchaser; or
(B)
is able to identify by reasonable and verifiable standards the tangible personal
property, product, or service that is subject to taxation under this chapter at the
lower tax rate from the books and records the seller keeps in the seller's regular
course of business.
(ii)
For purposes of Subsection
(2)(h)(i)
, books and records that a seller keeps in the
seller's regular course of business includes books and records the seller keeps in
the regular course of business for nontax purposes.
(i)
Subject to Subsections
(2)(j)
and
(k)
, a tax rate repeal or tax rate change for a tax rate
imposed under the following shall take effect on the first day of a calendar quarter:
(i)
Subsection
(2)(a)(i)(A)
;
(ii)
Subsection
(2)(a)(i)(B)
;
(iii)
Subsection
(2)(b)(i)
;
(iv)
Subsection
(2)(c)(i)
; or
(v)
Subsection
(2)(f)(i)(A)
.
(j)
(i)
A tax rate increase takes effect on the first day of the first billing period that
begins on or after the effective date of the tax rate increase if the billing period for
the transaction begins before the effective date of a tax rate increase imposed
under:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(ii)
The repeal of a tax or a tax rate decrease applies to a billing period if the billing
statement for the billing period is rendered on or after the effective date of the
repeal of the tax or the tax rate decrease imposed under:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(k)
(i)
For a tax rate described in Subsection
(2)(k)(ii)
, if a tax due on a catalogue sale
is computed on the basis of sales and use tax rates published in the catalogue, a
tax rate repeal or change in a tax rate takes effect:
(A)
on the first day of a calendar quarter; and
(B)
beginning 60 days after the effective date of the tax rate repeal or tax rate
change.
(ii)
Subsection
(2)(k)(i)
applies to the tax rates described in the following:
(A)
Subsection
(2)(a)(i)(A)
;
(B)
Subsection
(2)(a)(i)(B)
;
(C)
Subsection
(2)(b)(i)
;
(D)
Subsection
(2)(c)(i)
; or
(E)
Subsection
(2)(f)(i)(A)
.
(iii)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the commission may by rule define the term "catalogue sale."
(l)
(i)
For a location described in Subsection
(2)(l)(ii)
, the commission shall determine
the taxable status of a sale of gas, electricity, heat, coal, fuel oil, or other fuel
based on the predominant use of the gas, electricity, heat, coal, fuel oil, or other
fuel at the location.
(ii)
Subsection
(2)(l)(i)
applies to a location where gas, electricity, heat, coal, fuel oil,
or other fuel is furnished through a single meter for two or more of the following
uses:
(A)
a commercial use;
(B)
an industrial use; or
(C)
a residential use.
(3)
(a)
The commission shall deposit the following state taxes into the General Fund:
(i)
the tax imposed by Subsection
(2)(a)(i)(A)
;
(ii)
the tax imposed by Subsection
(2)(b)(i)
;
(iii)
the tax imposed by Subsection
(2)(c)(i)
;
(iv)
the tax imposed by Subsection
(2)(d)
; and
(v)
the tax imposed by Subsection
(2)(f)(i)(A)
.
(b)
The commission shall distribute the following local taxes to a county, city, or town
as provided in this chapter:
(i)
the tax imposed by Subsection
(2)(a)(ii)
;
(ii)
the tax imposed by Subsection
(2)(b)(ii)
;
(iii)
the tax imposed by Subsection
(2)(c)(ii)
; and
(iv)
the tax imposed by Subsection
(2)(f)(i)(B)
.
(4)
(a)
Notwithstanding Subsection
(3)(a)
, for each fiscal year the commission shall make
the deposits described in Subsections
(4)(b)
through
(4)(h)
from the revenue from the
taxes imposed by:
(i)
Subsection
(2)(a)(i)(A)
;
(ii)
Subsection
(2)(b)(i)
;
(iii)
Subsection
(2)(c)(i)
; and
(iv)
Subsection
(2)(f)(i)(A)
.
(b)
The commission shall deposit 15% of the difference between 1.4543% of the
revenue described in Subsection
(4)(a)
and the deposits made under Subsection
(5)(b)
,
into the Water Rights Restricted Account created in Section
73-2-1.6
.
(c)
The commission shall deposit 85% of the difference between 1.4543% of the revenue
described in Subsection
(4)(a)
and the deposits made under Subsection
(5)(b)
, into
the Water Resources Conservation and Development Fund created in Section
73-10-24
for use by the Division of Water Resources for:
(i)
preconstruction costs:
(A)
as defined in Subsection
73-26-103(6)
for projects authorized by Title 73,
Chapter 26, Bear River Development Act; and
(B)
as defined in Subsection
73-28-103(8)
for the Lake Powell Pipeline project
authorized by Title 73, Chapter 28, Lake Powell Pipeline Development Act;
(ii)
the cost of employing a civil engineer to oversee any project authorized by Title
73, Chapter 26, Bear River Development Act;
(iii)
the cost of employing a civil engineer to oversee the Lake Powell Pipeline
project authorized by Title 73, Chapter 28, Lake Powell Pipeline Development
Act; and
(iv)
other uses authorized under Sections
73-10-24
,
73-10-25.1
, and
73-10-30
, and
Subsection
(5)(b)(iv)(B)
after funding the uses specified in Subsections
(4)(c)(i)

through (iii).
(d)
The commission shall deposit 1.4543% of the revenue described in Subsection
(4)(a)

into the Water Infrastructure Restricted Account created in Section
73-10g-103
.
(e)
(i)
Subject to Subsection
(4)(e)(ii)
, the commission shall deposit 26.24% of the
revenue described in Subsection
(4)(a)
into the Transportation Investment Fund of
2005 created in Section
72-2-124
.
(ii)
The commission shall annually reduce the deposit described in Subsection
(4)(e)(i)
by the sum of:
(A)
$1,813,400;
(B)
the earmark described in Subsection
(5)(c)
; and
(C)
an amount equal to 35% of the revenue generated in the current fiscal year by
the portion of the tax imposed on motor and special fuel that is sold, used, or
received in the state that exceeds 29.4 cents per gallon.
(iii)
The amount described in Subsection
(4)(e)(ii)(C)
shall be annually deposited into
the Transit Transportation Investment Fund created in Section
72-2-124
.
(f)
The commission shall deposit .44% of the revenue described in Subsection
(4)(a)
into
the Cottonwood Canyons Transportation Investment Fund created in Section
72-2-124
.
(g)
The commission shall deposit 1% of the revenue described in Subsection
(4)(a)
into
the Commuter Rail Subaccount created in Section
72-2-124
.
(h)
The commission shall deposit 1% of the revenue described in Subsection
(4)(a)
into
the Outdoor Adventure Infrastructure Restricted Account created in Section
51-9-902

as follows:
(i)
into the Outdoor Adventure Infrastructure Restricted Account created in Section
51-9-902
, an amount equal to the amount that was deposited into the Outdoor
Adventure Infrastructure Restricted Account in fiscal year 2025; and
(ii)
for any amount exceeding the amount described in Subsection
(4)(h)(i)
, 50% into
the Outdoor Adventure Infrastructure Restricted Account and 50% to the Utah
Fairpark Area Investment and Restoration District created in Section
11-70-201
.
(5)
(a)
Notwithstanding Subsection
(3)(a)
, each fiscal year the commission shall make
the deposits described in this Subsection
(5)
.
(b)
(i)
(A)
The commission shall deposit $500,000 to the Department of Natural
Resources to be used for watershed rehabilitation or restoration.
(B)
At the end of each fiscal year, 100% of any unexpended amount described in
Subsection
(5)(b)(i)(A)
shall lapse into the Water Resources Conservation and
Development Fund created in Section
73-10-24
.
(ii)
The commission shall deposit $150,000 to the Division of Water Resources for
cloud-seeding projects authorized by Title 73, Chapter 15, Modification of
Weather.
(iii)
The commission shall deposit $525,000 into the Division of Conservation
created in Section
4-46-401
to implement water related programs.
(iv)
The commission shall deposit $7,175,000 into the Water Resources Conservation
and Development Fund created in Section
73-10-24
for use by the Division of
Water Resources:
(A)
for the uses allowed of the Water Resources Conservation and Development
Fund under Section
73-10-24
;
(B)
to conduct hydrologic and geotechnical investigations by the Division of
Water Resources in a cooperative effort with other state, federal, or local
entities, for the purpose of quantifying surface and ground water resources and
describing the hydrologic systems of an area in sufficient detail so as to enable
local and state resource managers to plan for and accommodate growth in
water use without jeopardizing the resource;
(C)
to fund state required dam safety improvements; and
(D)
to protect the state's interest in interstate water compact allocations, including
the hiring of technical and legal staff.
(v)
The commission shall deposit $3,587,500 into the Utah Wastewater Loan
Program Subaccount created in Section
73-10c-5
for use by the Water Quality
Board to fund wastewater projects.
(vi)
The commission shall deposit $3,587,500 into the Drinking Water Loan Program
Subaccount created in Section
73-10c-5
for use by the Division of Drinking Water
to:
(A)
provide for the installation and repair of collection, treatment, storage, and
distribution facilities for any public water system, as defined in Section
19-4-102
;
(B)
develop underground sources of water, including springs and wells; and
(C)
develop surface water sources.
(vii)
The commission shall deposit $2,450,000 to the Division of Wildlife Resources
to:
(A)
implement the measures described in Subsections
23A-3-214(3)(a)
through
(d) to protect sensitive plant and animal species; or
(B)
award grants, up to the amount authorized by the Legislature in an
appropriations act, to political subdivisions of the state to implement the
measures described in Subsections
23A-3-214(3)(a)
through (d) to protect
sensitive plant and animal species.
(viii)
Funds transferred to the Division of Wildlife Resources under Subsection
(5)(b)(vii)(A)
may not be used to assist the United States Fish and Wildlife
Service or any other person to list or attempt to have listed a species as threatened
or endangered under the Endangered Species Act of 1973, 16 U.S.C. Sec. 1531, et
seq.
(ix)
At the end of each fiscal year, any unexpended amounts described in Subsections
(5)(b)(vii)(A)
and
(B)
shall lapse:
(A)
50% into the Water Resources Conservation and Development Fund created
in Section
73-10-24
;
(B)
25% into the Utah Wastewater Loan Program Subaccount created in Section
73-10c-5
; and
(C)
25% into the Drinking Water Loan Program Subaccount created in Section
73-10c-5
.
(x)
The commission shall allocate $175,000 to the Division of Water Rights to cover
the costs incurred in hiring legal and technical staff for the adjudication of water
rights.
(xi)
At the end of each fiscal year, any unexpended amounts described in Subsection
(5)(b)(x)
shall lapse:
(A)
50% into the Water Resources Conservation and Development Fund created
in Section
73-10-24
;
(B)
25% into the Utah Wastewater Loan Program Subaccount created in Section
73-10c-5
; and
(C)
25% into the Drinking Water Loan Program Subaccount created in Section
73-10c-5
.
(c)
The commission shall deposit $45,000,000 into the Active Transportation Investment
Fund created in Section
72-2-124
.
(d)
The commission shall deposit $533,750 into the Qualified Emergency Food
Agencies Fund created by and expended in accordance with Section
35A-8-1009
.
(e)
The commission shall deposit $200,000 into the General Fund as a dedicated credit
for the sole use of the Search and Rescue Financial Assistance Program created by
and to be expended in accordance with Title 53, Chapter 2a, Part 11, Search and
Rescue Act.
(6)
(a)
The rate specified in this Subsection
(6)
is 0.15%.
(b)
Notwithstanding Subsection
(3)(a)
, the commission shall, for a fiscal year beginning
on or after July 1, 2019, annually transfer the amount of revenue collected from the
rate described in Subsection
(6)(a)
on the transactions that are subject to the sales and
use tax under Subsection
(2)(a)(i)(B)
into the Medicaid ACA Fund created in Section
26B-1-315
.
(7)
(a)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
,
(12), and (13), and as described in Section
63N-3-610
, beginning the first day of a
calendar quarter one year after the sales and use tax boundary for a housing and
transit reinvestment zone is established under Title 63N, Chapter 3, Part 6, Housing
and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer
an amount equal to 15% of the sales and use tax increment from the sales and use tax
imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate, on transactions occurring within
an established sales and use tax boundary, as defined in Section
63N-3-602
, into the
Transit Transportation Investment Fund created in Section
72-2-124
.
(b)
Beginning no sooner than January 1, 2026, notwithstanding Subsection
(3)(a)
, and
except as provided in Subsections
(11)
, (12), and (13), and as described in Section
63N-3-610.1
, beginning the first day of a calendar quarter after the year set in the
proposal and after the sales and use tax boundary for a convention center
reinvestment zone is established in a capital city under Title 63N, Chapter 3, Part 6,
Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall
transfer an amount equal to 50% of the sales and use tax increment as defined in
Section
63N-3-602
from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a
4.7% rate, on transactions occurring within an established sales and use tax boundary,
as defined in Section
63N-3-602
, to a convention center public infrastructure district
created in accordance with Section
17D-4-202.1
and specified in the convention
center reinvestment zone proposal submitted
pursuant
to
in accordance with
Title
63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
(8)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
, (12), and
(13), beginning October 1, 2024 the commission shall transfer to the Utah Fairpark Area
Investment and Restoration District, created in Section
11-70-201
, the revenue from the
sales and use tax imposed by Subsection
(2)(a)(i)(A)
, on transactions occurring within
the district sales tax area, as defined in Section
11-70-101
.
(9)
(a)
As used in this Subsection
(9)
:
(i)
"Additional land" means point of the mountain state land described in Subsection
11-59-102(6)(b)
that the point of the mountain authority acquires after the point of
the mountain authority provides the commission a map under Subsection
(9)(c)
.
(ii)
"Point of the mountain authority" means the Point of the Mountain State Land
Authority, created in Section
11-59-201
.
(iii)
"Point of the mountain state land" means the same as that term is defined in
Section
11-59-102
.
(b)
Notwithstanding Subsection
(3)(a)
and except as provided in Subsections
(11)
, (12),
and (13), the commission shall distribute to the point of the mountain authority
50
25
% of the revenue from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
, on
transactions occurring on the point of the mountain state land.
(c)
The distribution under Subsection
(9)(b)
shall begin the next calendar quarter that
begins at least 90 days after the point of the mountain authority provides the
commission a map that:
(i)
accurately describes the point of the mountain state land; and
(ii)
the point of the mountain authority certifies as accurate.
(d)
A distribution under Subsection
(9)(b)
with respect to additional land shall begin the
next calendar quarter that begins at least 90 days after the point of the mountain
authority provides the commission a map of point of the mountain state land that:
(i)
accurately describes the point of the mountain state land, including the additional
land; and
(ii)
the point of the mountain authority certifies as accurate.
(e)
(i)
Upon the payment in full of bonds secured by the sales and use tax revenue
distributed to the point of the mountain authority under Subsection
(9)(b)
, the
point of the mountain authority shall immediately notify the commission in
writing that the bonds are paid in full.
(ii)
The commission shall discontinue distributions of sales and use tax revenue under
Subsection
(9)(b)
at the beginning of the calendar quarter that begins at least 90
days after the date that the commission receives the written notice under
Subsection
(9)(e)(i)
.
(10)
Notwithstanding Subsection
(3)(a)
, the amount of state sales tax revenues described in
Section
63N-2-503.5
is deposited into the Convention Incentive Fund created in Section
63N-2-503.5
.
(11)
(a)
As used in this Subsection
(11)
:
(i)
"Applicable percentage" means:
(A)
for a housing and transit reinvestment zone created under Title 63N, Chapter
3, Part 6, Housing and Transit Reinvestment Zone Act, 15% of the revenue
from the sales and use tax imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate
for sales occurring within the qualified development zone described in
Subsection
(11)(a)(ii)(A)
;
(B)
for the Utah Fairpark Area Investment and Restoration District created in
Section
11-70-201
, the revenue from the sales and use tax imposed by
Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the qualified
development zone described in Subsection
(11)(a)(ii)(B)
; and
(C)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
50
25
% of the revenue from sales and use tax imposed by
Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the qualified
development zone described in Subsection
(11)(a)(ii)(C)
.
(ii)
"Qualified development zone" means:
(A)
the sales and use tax boundary of a housing and transit reinvestment zone
created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment
Act;
(B)
the district sales tax boundary as defined in Section
11-70-101
for the Utah
Fairpark Area Investment and Restoration District, created in Section
11-70-201
; or
(C)
the sales and use tax boundary of point of the mountain state land, as defined
in Section
11-59-102
, under the Point of the Mountain State Land Authority
created in Section
11-59-201
.
(iii)
"Schedule J sale" means a sale reported on State Tax Commission Form
TC-62M, Schedule J or a substantially similar form as designated by the
commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be deposited into the General Fund.
(12)
(a)
As used in Subsections
(12)
and
(13)
:
(i)
"Applicable percentage" means, for a convention center reinvestment zone created
in a capital city under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount equal to 50% of the sales and use tax
increment, as that term is defined in Section
63N-3-602
, from the sales and use tax
imposed by Subsection
(2)(a)(i)(A)
at a 4.7% rate for sales occurring within the
qualified development zone described in Subsection
(12)(a)(ii)
.
(ii)
"Qualified development zone" means the sales and use tax boundary of a
convention center reinvestment zone created in a capital city under Title 63N,
Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
(iii)
"Qualifying construction materials" means construction materials that are:
(A)
delivered to a delivery outlet within a qualified development zone; and
(B)
intended to be permanently attached to real property within the qualified
development zone.
(b)
For a sale of qualifying construction materials, the commission shall distribute the
product calculated in Subsection
(12)(c)
to a qualified development zone if the seller
of the construction materials:
(i)
establishes a delivery outlet with the commission within the qualified development
zone;
(ii)
reports the sales of the construction materials to the delivery outlet described in
Subsection
(12)(b)(i)
; and
(iii)
does not report the sales of the construction materials on a simplified electronic
return.
(c)
For the purposes of Subsection
(12)(b)
, the product is equal to:
(i)
the sales price or purchase price of the qualifying construction materials; and
(ii)
the applicable percentage.
(13)
(a)
As used in this Subsection
(13)
, "Schedule J sale" means a sale reported on State
Tax Commission Form TC-62M, Schedule J, or a substantially similar form as
designated by the commission.
(b)
Revenue generated from the applicable percentage by a Schedule J sale within a
qualified development zone shall be distributed into the General Fund.
Section 8. Section
63A-3-404
is amended to read:
63A-3-404
Effective
05/06/26
. Loan agreement.
(1)
(a)
A borrower that borrows money from an infrastructure fund shall enter into a loan
agreement with the division for repayment of the money.
(b)
(i)
A loan agreement under Subsection
(1)(a)
shall be secured by:
(A)
bonds, notes, or another evidence of indebtedness validly issued under state
law; or
(B)
revenue generated from an infrastructure project.
(ii)
The security provided under Subsection
(1)(b)(i)
may include the borrower's
pledge of some or all of a revenue source that the borrower controls.
(c)
The respective loan approval body may determine that property tax revenue or
revenue from the infrastructure project for which the infrastructure loan is obtained is
sufficient security for an infrastructure loan.
(2)
An infrastructure loan shall bear interest at a rate not to exceed .5% above bond market
interest rates available to the state.
(3)
(a)
Subject to Subsection
(3)(b)
, the respective loan approval body shall determine
the length of term of an infrastructure loan.
(b)
If the security for an infrastructure loan is property tax revenue, the repayment terms
of the infrastructure loan agreement shall allow sufficient time for the property tax
revenue to generate sufficient money to cover payments under the infrastructure loan.
(4)
An infrastructure loan agreement may provide for a portion of the loan proceeds to be
applied to a reserve fund to secure repayment of the infrastructure loan.
(5)
(a)
If a borrower fails to comply with the terms of an infrastructure loan agreement,
the division may:
(i)
seek any legal or equitable remedy to obtain:
(A)
compliance with the agreement; or
(B)
the payment of damages; and
(ii)
request a state agency with money due to the borrower to withhold payment of
the money to the borrower and instead to pay the money to the division to pay any
amount due under the infrastructure loan agreement.
(b)
A state agency that receives a request from the division under Subsection
(5)(a)(ii)

shall pay to the division the money due to the borrower to the extent of the amount
due under the infrastructure loan agreement.
(6)
Upon approval from the respective loan approval body the division shall loan money
from an infrastructure fund according to the terms established by the respective loan
approval body.
(7)
(a)
The division shall administer and enforce an infrastructure loan according to the
terms of the infrastructure loan agreement.
(b)
(i)
Beginning May 5, 2021, the division shall assume responsibility from the State
Infrastructure Bank Fund for servicing the loan under Subsection
63B-27-101(3)(a)(i)
.
(ii)
Payments due on or after October 1, 2021, under the loan under Subsection
63B-27-101(3)(a)(i)
shall be made to the division rather than to the State
Infrastructure Bank Fund, to be deposited into the military development fund.
(iii)
Notwithstanding Subsection
(7)(b)(ii)
and upon receipt of each debt service
payment, the division shall deposit an amount equal to interest payments due on
the bond described in Subsection
63B-27-101(3)(a)(i)
into the Transportation
Investment Fund of 2005 created in Section
72-2-124
.
(8)
A borrower may request, and the division may consider, an amendment to a loan
agreement described in this section that:
(a)
extends the term of the borrower's repayment; or
(b)
forgives the balance of the borrower's loan.
(9)
(a)
The division may agree to a request described in Subsection
(8)
and amend a loan
agreement as described in this Subsection
(9)
.
(b)
Upon receiving a request described in Subsection
(8)
, the division shall notify the
Executive Appropriations Committee no later than 10 days after the day on which the
division receives the request.
(c)
Before amending a loan agreement, the division shall:
(i)
consider factors necessitating the amendment and whether the amendment is in the
best interests of the state, including if:
(A)
the infrastructure project was properly managed and loan funds were wisely
invested;
(B)
external factors existed beyond the borrower's control that made the
infrastructure projects impossible or impractical to complete; and
(C)
changes to the infrastructure project would avoid the need for extension or
forgiveness and additional investment of funds;
(ii)
consider how and if the state shall be made financially whole, in whole or in part,
under the proposed amendment; and
(iii)
provide notice to, and receive advice from, the Executive Appropriations
Committee as described in Subsection
(9)(d)
.
(d)
(i)
The division shall notify the Executive Appropriations Committee of a
proposed amendment to a loan agreement at least 45 days before the division
executes the amendment.
(ii)
The Executive Appropriations Committee may provide, and the division shall
consider, advice regarding a proposed amendment described in this Subsection
(9)
.
Section 9. Section
63I-1-210
is amended to read:
63I-1-210
Effective
05/06/26
. Repeal dates: Title 10.
(1)
Subsection
10-1-104(5)(c)
, regarding a preliminary municipality, is repealed January 1,
2031.
(2)
Subsection
10-2a-201.5(1)(b)
, regarding a preliminary municipality, is repealed January
1, 2031.
(3)
Subsection
10-2a-202(5)
, regarding a feasibility request, is repealed January 1, 2031.
(4)
Title 10, Chapter 2a, Part 5, Incorporation of a Preliminary Municipality
, is repealed
January 1, 2031.
(5)
Subsection
10-20-305(2)
, authorizing a municipality to coordinate with the exempted
government landowner to develop a prospective land use regulation or general plan
amendment for a parcel of state-owned land, is repealed January 1, 2036.
Section 10. Section
63I-1-211
is amended to read:
63I-1-211
Effective
05/06/26
. Repeal dates: Title 11.
Title 11, Chapter 59, Point of the Mountain State Land Authority Act, is repealed
January 1, 2029.
Subsection 11-59-103(5), authorizing the Point of the Mountain State Land Authority to
coordinate with the city of Draper before disposing of certain parcels of state-owned land, is
repealed January 1, 2036.
Section 11.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect
May 6, 2026
.
(2)
The actions affecting Section 59-12-103
Effective
07/01/26
take effect on
July 1, 2026
.
3-12-26 12:07 PM