SB 228 — Community Reinvestment Agency Amendments

(7) Home ownership promotion zone funds may be used to pay all of the costs of bonds issued by the municipality in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest.

(8) A municipality may:

(a) create one or more public infrastructure districts within a home ownership promotion zone under Title 17D, Chapter 4, Public Infrastructure District Act;

and (b) pledge and utilize the home ownership promotion zone funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure district.

(9) A municipality, agency, or public infrastructure district that receives tax increment shall comply with the reporting requirements in Section 63N-1a-308.

{Section 2.

Section 11-58-803 is amended to read:

} 11-58-803.

Port authority reporting.

(1) (a) On or before November 1 of each year, the authority shall prepare and file a report with the county auditor of each county in which the authority jurisdictional land is located, the State Tax Commission, the State Board of Education, and each taxing entity that levies a tax on property from which the authority collects property tax differential.

(b) The requirement of Subsection (1)(a) to file a copy of the report with the state as a taxing entity is met if the authority files a copy with the State Tax Commission and the state auditor.

(2) Each report under Subsection (1) shall contain:

(a) an estimate of the property tax differential to be paid to the authority for the calendar year ending December 31;

and - 4 - SB0228 compared with SB0228S01 (b) an estimate of the property tax differential to be paid to the authority for the calendar year beginning the next January 1.

(3) Before November 30 of each year, the board shall present a report to the Executive Appropriations Committee of the Legislature, as the Executive Appropriations Committee directs, that includes:

(a) an accounting of how authority funds have been spent, including funds spent on the environmental sustainability component of the authority business plan under Subsection 11-58-202(1)(a);

(b) an update about the progress of the development and implementation of the authority business plan under Subsection 11-58-202(1)(a), including the development and implementation of the environmental sustainability component of the plan;

and (c) an explanation of the authority's progress in achieving the policies and objectives described in Subsection 11-58-203(1).

(4) The authority shall comply with the reporting requirements in Section 63N-1a-308.

{Section 3.

Section 11-59-208 is amended to read:

} 11-59-208.

Portion of property tax augmentation to be paid to authority -- Reporting.

(1) As used in this section:

(a) "Base taxable value" means the taxable value in the year before the transfer date.

(b) "Property tax augmentation":

(i) means the amount of property tax that is the difference between:

(A) the amount of property tax revenues generated each tax year by all taxing entities from a transferred parcel, using the current assessed value of the property;

and (B) the amount of property tax revenues that would be generated from that same transferred parcel using the base taxable value of the property;

and (ii) does not include property tax revenue from:

(A) a county additional property tax or multicounty assessing and collecting levy imposed in accordance with Section 59-2-1602;

(B) a judgment levy imposed by a taxing entity under Section 59-2-1328 or 59-2-1330;

or (C) a levy imposed by a taxing entity under Section 11-14-310 to pay for a general obligation bond.

(c) "Transfer date" means the date that fee title to land that is part of the point of the mountain state land is transferred to a private person.

(d) "Transferred parcel" means a parcel of land:

(i) that is part of the point of the mountain state land;

and - 5 - SB0228 compared with SB0228S01 (ii) the fee title to which has been transferred to a private person.

(2) Beginning January 1, 2023, the authority shall be paid 75% of property tax augmentation from a transferred parcel:

(a) for a period of 25 years beginning January 1 of the year immediately following the transfer date for the transferred parcel;

and (b) for a period of an additional 15 years beyond the period stated in Subsection (2)(a) if:

(i) the board determines by resolution that the additional years will produce a significant benefit to the authority;

and (ii) the resolution is adopted before the end of the 25-year period under Subsection (2)(a).

(3) A county that collects property tax on property within the county in which the point of the mountain state land is located shall pay and distribute to the authority the amount of property tax augmentation that the authority is entitled to collect under Subsection (2), in the manner and at the time provided in Section 59-2-1365.

(4) The authority shall comply with the reporting requirements in Section 63N-1a-308.

{Section 4.

Section 11-70-401 is amended to read:

} 11-70-401.

Enhanced property tax revenue to be paid to fairpark district -- Reporting.

(1) Subject to Subsection (5), the fairpark district shall be paid 90% of enhanced property tax revenue generated from each parcel of privately owned land within the fairpark district boundary:

(a) beginning the tax year that begins on January 1, 2025;

and (b) until the transition date for that parcel.

(2) Subject to Subsection (5), during the payment period the fairpark district shall be paid up to 100% of enhanced property tax revenue:

(a) generated from designated parcels of privately owned land within a project area;

and (b) as the board specifies in a designation resolution adopted in consultation with a qualified owner.

(3) For purposes of the payment of enhanced property tax revenue under this section, a payment period shall begin, as specified in the designation resolution, on January 1 of a year that begins after the designation resolution is adopted.

(4) (a) For purposes of this section, the fairpark district may designate an improved portion of a parcel in a project area as a separate parcel.

- 6 - SB0228 compared with SB0228S01 (b) A fairpark district designation of an improved portion of a parcel as a separate parcel under Subsection (4)(a) does not constitute a subdivision, as defined in Section 10-20-102 or Section 17-79-102.

(c) A county recorder shall assign a separate tax identification number to the improved portion of a parcel designated by the fairpark district as a separate parcel under Subsection (4)(a).

(5) A host municipality shall be paid a minimum of 25% of the enhanced property tax revenue generated by a property tax imposed by the host municipality to reimburse the host municipality for services the host municipality provides to a project area in accordance with Subsection 11-70-206(6) (c), with the exact amount determined in an agreement between the host municipality and the fairpark district.

(6) The fairpark district shall comply with the reporting requirements in Section 63N-1a-308.

{Section 5.

Section 17-80-504 is amended to read:

} 17-80-504.

Payment, use, administration, and reporting of revenue from a home ownership promotion zone.

(1) (a) A county may receive tax increment and use home ownership promotion zone funds in accordance with this section.

(b) The maximum amount of time that a county may receive and use tax increment collected from a home ownership promotion zone is 15 consecutive years.

(2) A county that collects property tax on property located within a home ownership promotion zone shall, in accordance with Section 59-2-1365, retain 60% of the tax increment collected from property within the home ownership promotion zone to be used as described in this section.

(3) (a) Tax increment retained by a county in accordance with Subsection (2) is not revenue of the taxing entity or county, but home ownership promotion zone funds.

(b) Home ownership promotion zone funds may be administered by an agency created by the county within which the home ownership promotion zone is located.

(c) Before an agency may receive home ownership promotion zone funds from a county, the agency shall enter into an interlocal agreement with the county.

(4) - 7 - SB0228 compared with SB0228S01 (a) A county or agency shall use home ownership promotion zone funds within, or for the direct benefit of, the home ownership promotion zone.

(b) If any home ownership promotion zone funds will be used outside of the home ownership promotion zone, the legislative body of the county shall make a finding that the use of the home ownership promotion zone funds outside of the home ownership promotion zone will directly benefit the home ownership promotion zone.

(5) A county or agency shall use home ownership promotion zone funds to achieve the purposes described in Section 17-80-502 by paying all or part of the costs of any of the following:

(a) project improvement costs;

(b) systems improvement costs;

(c) water exaction costs;

(d) street lighting costs;

(e) environmental remediation costs;

or (f) the costs of the county to create and administer the home ownership promotion zone, which may not exceed 3% of the total home ownership promotion zone funds.

(6) Home ownership promotion zone funds may be paid to a participant, if the county and participant enter into a participation agreement which requires the participant to utilize the home ownership promotion zone funds as allowed in this section.

(7) Home ownership promotion zone funds may be used to pay all of the costs of bonds issued by the county in accordance with Title 17C, Chapter 1, Part 5, Agency Bonds, including the cost to issue and repay the bonds including interest.

(8) A county may:

(a) create one or more public infrastructure districts within home ownership promotion zone under Title 17D, Chapter 4, Public Infrastructure District Act;

and (b) pledge and utilize the home ownership promotion zone funds to guarantee the payment of public infrastructure bonds issued by a public infrastructure district.

(9) A county, agency, or public infrastructure district that receives tax increment shall comply with the reporting requirements in Section 63N-1a-308.

Section 1.

17C-1-102.17C-1-102 .

{(EffectiveDefinitions. 05/06/26)}Definitions.

- 8 - SB0228 compared with SB0228S01 [(1) "Active project area" means a project area that has not been dissolved in accordance with Section 17C-1-702.] [(2)] (1) "Adjusted tax increment" means the percentage of tax increment, if less than 100%, that an agency is authorized to receive:

(d)- project2 area- incrementalEnrolled revenueCopy asS.B. defined in Section 17C-1-1001;

228 (d) project area incremental revenue as defined in Section 17C-1-1001;

- 9 - SB0228 compared with SB0228S01 [(6)] (5) "Annual income" means the same as that term is defined in regulations of the United States Department of Housing and Urban Development, 24 C.F.R.

[(12)] (11) "Budget hearing" means the public hearing on a proposed project area budget required- under3 Subsection- 17C-2-201(2)(d)S.B. for an urban renewal project area budget, Subsection 17C-3-201(2)(d) for an economic development project area budget, or Subsection 17C-5-302(2)(e) for a community reinvestment project area budget.

228 Enrolled Copy required under Subsection 17C-2-201(2)(d) for an urban renewal project area budget, Subsection 17C-3-201(2)(d) for an economic development project area budget, or Subsection 17C-5-302(2)(e) for a community reinvestment project area budget.

- 10 - SB0228 compared with SB0228S01 [(14)] (13) "Combined incremental value" means the combined total of all incremental values from all project areas, except project areas that contain some or all of a military installation or inactive industrial site, within the agency's boundaries under project area plans and project area budgets at the time that a project area budget for a new project area is being considered.

(22) "Dormancy period" means a period that ends six months after the project area funds collection- period4 ends.- Enrolled Copy S.B.

228 collection period ends.

- 11 - SB0228 compared with SB0228S01 (a) for a municipality, comparing the percentage of all housing units within the municipality that are publicly subsidized income targeted housing units to the percentage of all housing units within the county in which the municipality is located that are publicly subsidized income targeted housing units;

[(30)] (31)(31)(a) (a) "Inactive airport site" means land that:

(ii)- is5 occupied- byS.B. an airport:

(A)228 (I)Enrolled thatCopy (ii) is nooccupied longerby in operation as an airport;airport:

or(A)(I) (II)that -is 12no -longer SB0228in comparedoperation withas SB0228S01an (Aa)airport; that is scheduled to be decommissioned;

or (II)(Aa) that is scheduled to be decommissioned;

[(31)] (32)(32)(a) (a) "Inactive industrial site" means land that:

[(35)] (36)(36)(a) (a) " Local government building" means a building owned and operated by a community for the primary purpose of providing one or more primary community functions,- including:6 - Enrolled Copy S.B.

228 functions, including:

- 13 - SB0228 compared with SB0228S01 (iii) a city hall;

[(42)] (43) "Participant" means one or more persons that enter into a participation agreement with- an7 agency.- S.B.

228 Enrolled Copy with an agency.

- 14 - SB0228 compared with SB0228S01 [(44)] (45) "Plan hearing" means the public hearing on a proposed project area plan required under Subsection 17C-2-102(1)(a)(vi) for an urban renewal project area plan, Subsection 17C-3-102(1)17C-3-102(1)(d) (d) for an economic development project area plan, Subsection 17C-4-102(1)(d) for a community development project area plan, or Subsection 17C-5-104(3)(e) for a community reinvestment project area plan.

(c) planning, designing, demolishing, clearing, constructing, rehabilitating, or remediating- environmental8 issues;- Enrolled Copy S.B.

228 remediating environmental issues;

- 15 - SB0228 compared with SB0228S01 (f) providing open space, including streets or other public grounds or space around buildings;

[(54)] (55)(55)(a) (a) "Property tax" means each levy on an ad valorem basis on tangible or intangible personal or real property.

(a)- the9 United- States,S.B. including an agency of the United States;

228 Enrolled Copy (a) the United States, including an agency of the United States;

[(56)] (57) "Publicly owned infrastructure and improvements" means water, sewer, storm drainage, electrical, natural gas, telecommunication, or other similar systems and lines, streets, roads, curb, - 16 - SB0228 compared with SB0228S01 gutter, sidewalk, walkways, parking facilities, public transportation facilities, or other facilities, infrastructure, and improvements benefitting the public and to be publicly owned or publicly maintained or operated.

and (b) includes an area formerly included in the National Priorities List, as described in [Subsection[ (59)Subsection (a)](59)(a)] Subsection (60)(a), but removed from the list following remediation that leaves on site the waste that caused the area to be included in the National Priorities List.

(b) the taxable value of all real and personal property the commission assesses in accordance- with10 Title- 59,Enrolled ChapterCopy 2,S.B. Part 2, Assessment of Property, for the current year;

228 accordance with Title 59, Chapter 2, Part 2, Assessment of Property, for the current year;

[(63)] (64)(64)(a) (a) "Tax increment" means the difference between:

- 17 - SB0228 compared with SB0228S01 (i) the amount of property tax revenue generated each tax year by a taxing entity from the area within a project area designated in the project area plan as the area from which tax increment is to be collected, using the current assessed value of the property and each taxing entity's current certified[certified] final tax rate as defined in Section 59-2-924;[59-2-924] 17C-1-1001;

and (ii) the amount of property tax revenue that would be generated from that same area using the base taxable value of the property and each taxing entity's current certified[ certified] final tax rate as defined in Section 59-2-924.[59-2-924] 17C-1-1001.

{Section 7.

Section 17C-1-603 is amended to read:

} 17C-1-603.

Reporting requirements -- Governor's Office of Economic Opportunity to maintain a database.

(1) As used in this section:

(a) "Database" means the [collection of electronic data described in Subsection (2)(a)] same as that term is defined in Section 63N-1a-308.

(b) "Office" means the Governor's Office of Economic Opportunity.

(c) "Office website" means a public website maintained by the office.

[(2) The office shall:] - 18 - SB0228 compared with SB0228S01 [(a) create and maintain electronic data to track information for each agency located within the state;

and] [(b) make the database publicly accessible from the office website.] [(3) (a) The office may:] [(i) contract with a third party to create and maintain the database;

and] [(ii) charge a fee for a county, city, or agency to provide information to the database.] [(b) The office shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to establish a fee schedule for the fee described in Subsection (3)(a)(ii).] [(4)] (2) On or before June 30 of each year, an agency shall, for each [active] approved project area for which the project area funds collection period has not expired, submit to the office for inclusion in the office's database the following information:

(a) an assessment of the change in marginal value from the base year assessed value, including:

[(i) the base year;] [(ii)] (i) the estimated current assessed value;

[(iii)] (ii) the percentage change in marginal value;

and [(iv)] (iii) a narrative description of the relative growth in assessed value;

(b) except as provided in Subsection (2)(c), the amount of project area funds the agency received in the previous year and the amount of project area funds the agency spent for each year of the project area funds collection period, broken down by the applicable budget or funds analysis category described in [Subsection (4)(d)] Subsection (2)(e), including:

(i) a comparison of the actual project area funds received and spent for each year to the amount of project area funds forecasted for each year when the project area was created, if available;

(ii) [(A)] the agency's historical receipts and expenditures of project area funds, including the tax year for which the agency first received project area funds from the project area;

[or] [(B) if the agency has not yet received project area funds from the project area, the year in which the agency expects each project area funds collection period to begin;] (iii) (A) a list of each taxing entity that levies or imposes a tax within the project area;

[and ] (B) a description of the benefits that each taxing entity receives from the project area;

and - 19 - SB0228 compared with SB0228S01 (C) the percent of marginal value that each taxing entity provides to the project area;

and (iv) the amount paid to other taxing entities under Section 17C-1-410, if applicable;

(c) if the agency has not yet received project area funds from an approved project area:

(i) the year in which the agency expects each project area funds collection period to begin;

(ii) a list of each taxing entity that levies or imposes a tax within the project area;

(iii) a description of the benefits that each taxing entity is expected to receive from the project area;

and (iv) the percent of marginal value that each taxing entity provides to the project area;

[(c)] (d) a description of current and anticipated project area development, including:

(i) [a narrative of ]any significant project area development, including infrastructure development, site development, participation agreements, or vertical construction;

and (ii) other details of agency action and development within the project area, including:

(A) the total acreage developed [acreage] after the agency established the project area;

(B) the total undeveloped acreage the agency expects will be developed before the project area is dissolved;

(C) the percentage of residential development;

and (D) the total number of housing units authorized, if applicable;

[(d)] (e) the project area budget, if applicable, or other project area funds analyses, with receipts and expenditures categorized by the type of receipt and expenditure related to the development performed or to be performed under the project area plan, including:

(i) each project area funds collection period, including:

(A) the start and end date of the project area funds collection period;

and (B) the number of years remaining in each project area funds collection period;

(ii) the amount of project area funds the agency is authorized to receive from the project area cumulatively and from each taxing entity, including:

(A) the total dollar amount;

and (B) the percentage of the total amount of project area funds generated within the project area;

(iii) the remaining amount of project area funds the agency is authorized to receive from the project area, cumulatively and from each taxing entity;

and (iv) the amount of project area funds the agency is authorized to use to pay for the agency's administrative costs, as described in Subsection 17C-1-409(1), including:

(A) the total dollar amount;

and - 20 - SB0228 compared with SB0228S01 (B) the percentage of the total amount of all project area funds;

[(e)] (f) the estimated amount of project area funds that the agency is authorized to receive from the project area for the current calendar year;

[(f)] (g) the estimated amount of project area funds to be paid to the agency for the next calendar year;

[(g)] (h) a map of the project area;

[(h)] (i) a description of how the goals, policies, and purposes of the project area plan have been furthered during the preceding year;

and [(i)] (j) any other relevant information the agency elects to provide.

[(5)] (3) An agency with no [active ] approved project area shall, no later than June 30 of each year until the agency is dissolved under Section 17C-1-701.5, submit a report to the office stating that the agency has no [active] approved project area.

[(6)] (4) Any information an agency submits in accordance with this section:

(a) is for informational purposes only;

and (b) does not alter the amount of project area funds that an agency is authorized to receive from a project area.

[(7)] (5) The provisions of this section apply regardless of when the agency or project area is created.

[(8) On or before September 1 of each year, the office shall prepare and submit an annual written report to the Political Subdivisions Interim Committee that identifies the agencies that complied and the agencies that failed to comply with the reporting requirements of this section during the preceding reporting period.] [(9)] (6) (a) If, by September 30 of the year the information is due, the office does not receive the information that an agency is required to submit under [Subsection (4)] Subsection (2), the office shall:

(i) refer the noncompliant agency to the state auditor for review;

and (ii) post a notice on the office website identifying the noncompliant agency and describing the agency's noncompliance.

[(b) If the office does not receive a report an agency is required to submit under Subsection (5), the office shall refer the noncompliant agency to the state auditor for review.] [(c)] (b) If, for two consecutive years, the office does not receive information an agency is required to submit under [Subsection (4)] Subsection (2):

- 21 - SB0228 compared with SB0228S01 (i) the office shall, no later than July 31 of the second consecutive year, notify the auditor and treasurer of the county in which the noncompliant agency is located of the agency's noncompliance;

and (ii) upon receiving the notice described in [Subsection (9)(c)(i)] Subsection (6)(b)(i), the county treasurer shall withhold from the agency 20% of the amount of tax increment the agency is otherwise entitled to receive.

[(d)] (c) If, after having funds withheld under [Subsection (9)(c)(ii)] Subsection (6)(b)(ii), an agency complies with [Subsection (4)] Subsection (2):

(i) the office shall notify the county auditor and treasurer that the agency has complied with [the requirement of Subsection (4)] Subsection (2);

and (ii) the county treasurer shall disburse the withheld funds to the agency.

17C-1-702.17C-1-702 .

{(EffectiveProject 05/06/26)}Project area dissolution -- Dormancy period extension -- UseUnexpended offunds. unexpended funds for housing.

(1) ExceptA as provided in Subsection (2) or (3), a project area is dissolveddissolved: on the day on which the dormancy period ends.

(a) except as provided in Subsection (2) or (3), on the day on which the dormancy period - 11 - S.B.

228 Enrolled Copy ends;

or (b) eight years after the day on which an agency approved the project area if the project area's collection period has not started.

(a) the agency holds a public hearing to consider the extension, in accordance with {Tilte } Title 17C, Chapter 1, Part 8, Hearing and Notice Requirements;

- 22 - SB0228 compared with SB0228S01 (i) the name of the project area;

and (b)- mail12 or- electronicallyEnrolled submitCopy aS.B. copy of the ordinance to the county auditor, the State Tax Commission, the State Board of Education, and each taxing entity that levies or imposes a tax on property within the[ dissolved] project area.

[(4)228 (a)(b) Asmail usedor inelectronically thissubmit Subsectiona (4),copy "dormancyof period"the meansordinance ato periodthe thatcounty endsauditor, the laterState of:]Tax [(i)Commission, fivethe yearsState afterBoard theof projectEducation, areaand fundseach collectiontaxing periodentity ends;that levies or imposes a tax on property within the[ dissolved] project area.

and][(4)(a) [(ii)As fiveused yearsin after the effective date of this section.] [(b)] {(5) If a legislative body adopts an ordinance described in Subsection (2)(b),(4), the"dormancy agencyperiod" shallmeans include a copyperiod ofthat theends ordinance in the informationlater theof:] agency[(i) isfive requiredyears toafter submit to the Governor's Office of Economic Opportunity under Section 17C-1-603.} (6){(5)} An agency with project area funds remainingcollection at the end of the dormancy period shallends; [use the unexpended funds as provided in Subsection 17C-1-412(1)(b)] return a proportionate share of the unexpended funds to each taxing entity.

and] [(ii) five years after the effective date of this section.] [(b)] (5) An agency with project area funds remaining at the end of the dormancy period shall [ use the unexpended funds as provided in Subsection 17C-1-412(1)(b)] return a proportionate share of the unexpended funds to each taxing entity.

(6) Notwithstanding Subsections (1) and (2), a project area that allocated project area funds and began a dormancy period before May 6, 2026, shall:

(a) be dissolved five years after the day on which the project area began the dormancy period;

and (b) distribute any unexpended funds in accordance with Subsection (5).

17C-1-803.17C-1-803 .

{(EffectiveContinuing 05/06/26)}Continuing a hearing.

[or] - 23 - SB0228 compared with SB0228S01 (4) a dormancy period extension hearing;

17C-1-805.17C-1-805 .

{(EffectiveAgency 05/06/26)}Agency to provide notice of hearings.

Section 517C-1-810 is enacted to read:

17C-1-810.- 13 - S.B.

{(Effective228 05/06/26)}AdditionalEnrolled requirementsCopy for17C-1-810 notice. of a dormancy period extension hearing.

Additional requirements for notice of a dormancy period extension hearing.

17C-5-306.17C-5-306 .

{(EffectiveAmending 05/06/26)}Amending a community reinvestment project area budget.

(b)(b)(i) (i) if the community reinvestment project area budget required approval from a taxing entity committee, obtain the taxing entity committee's approval;

and - 24 - SB0228 compared with SB0228S01 (c) at the public hearing described in Subsection (2)(a) or at a subsequent board meeting, by resolution, adopt the community reinvestment project area budget amendment.

(4)(4)(a) (a) If an agency proposes a community reinvestment project area budget amendment that extends a project area funds collection period, before a taxing entity committee or taxing entity may provide the taxing entity committee's or taxing entity's approval described in Subsection (2)(b), the agency shall provide to the taxing entity committee or taxing entity:

(i)- the14 reasons- whyEnrolled theCopy extensionS.B. is required;

228 (i) the reasons why the extension is required;

(5) If an agency proposes a community reinvestment project area budget amendment that reduces the base taxable value of the project area due to the removal of a parcel under Subsection 17C-5-112(5)17C-5-112(5)(b), (b), an agency may amend a project area budget without:

- 25 - SB0228 compared with SB0228S01 (a) complying with Subsection (2)(a);

(6)(6)(a) (a) A person may contest an agency's adoption of a community reinvestment project area budget amendment within 30 days after the day on which the agency adopts the community reinvestment project area budget amendment.

{Section 13.

Section 17D-4-205 is amended to read:

} 17D-4-205.

Transparency -- Reporting.

(1) A public infrastructure district shall file annual reports with the creating entity regarding the public infrastructure district's actions as provided in the governing document.

(2) A public infrastructure district shall comply with the reporting requirements in Section 63N-1a-308.

{Section 14.

Section 63H-1-501 is amended to read:

} 63H-1-501.

Authority receipt and use of property tax allocation -- Contractual annual payment -- Distribution of property tax allocation.

(1) (a) The authority may:

(i) subject to Subsection (1)(b):

(A) receive up to 75% of the property tax allocation for up to 25 years, as provided in this part;

and (B) after the time period described in Subsection (1)(a)(i)(A) expires, receive up to 75% of the property tax allocation for up to 15 years, if the board determines the additional years will produce significant benefit;

and (ii) use the property tax allocation before, during, and after the period described in Subsection (1)(a) (i).

(b) With respect to a parcel located within a project area, the 25-year period described in Subsection (1) (a)(i)(A) begins on the day on which the authority receives the first property tax allocation from that parcel.

- 26 - SB0228 compared with SB0228S01 (2) (a) For purposes of Subsection (1)(b), the authority may designate an improved portion of a parcel in a project area as a separate parcel.

(b) An authority designation of an improved portion of a parcel as a separate parcel under Subsection (2)(a) is for purposes of Subsection (1)(b) only and does not constitute a subdivision for any other purpose.

(c) A county recorder shall assign a separate tax identification number to the improved portion of a parcel designated by the authority as a separate parcel under Subsection (2)(a).

(3) Improvements on a parcel within a project area become subject to property tax on January 1 immediately following the day on which the authority or an entity designated by the authority issues a certificate of occupancy with respect to those improvements.

(4) (a) If the authority or an entity designated by the authority has not issued a certificate of occupancy for a private parcel within a project area, the private parcel owner shall make an annual payment to the authority:

(i) that is equal to 1.2% of the taxable value of the parcel above the base taxable value of the parcel;

and (ii) until the parcel becomes subject to the property tax described in Subsection (3).

(b) The authority may use the revenue from payments described in Subsection (4)(a) for any purpose described in Subsection 63H-1-502(1).

(c) The authority may submit for recording to the office of the recorder of the county in which a private parcel described in Subsection (4)(a) is located:

(i) a copy of an agreement between the authority and the private parcel owner that memorializes the payment obligation under Subsection (4)(a);

or (ii) a notice that describes the payment obligation under Subsection (4)(a).

(d) An owner of a private parcel described in Subsection (4)(a) may not be required to make a payment that exceeds or is in addition to the payment described in Subsection (4)(a)(i) until the private parcel becomes subject to the property tax described in Subsection (3).

(e) Upon the transfer of title of a private parcel described in Subsection (4)(a), the amount of the annual payment required under Subsection (4)(a) shall be:

(i) treated the same as a property tax;

and - 27 - SB0228 compared with SB0228S01 (ii) prorated between the previous owner and the owner who acquires title from the previous owner.

(f) A person who fails to pay or is delinquent in paying an annual payment described in Subsection (4) (a) is subject to the same penalties and interest as the failure or delinquent payment of a property tax in accordance with Title 59, Chapter 2, Property Tax Act.

(g) A county treasurer shall:

(i) include the annual payment described in Subsection (4)(a) on a county property tax notice in accordance with Section 59-2-1317;

and (ii) collect the annual payment as part of the property tax collection.

(h) A county auditor shall include the annual payment described in Subsection (4)(a) on the notice of property valuation in accordance with Subsection 59-2-919.1(1).

(5) Each county that collects property tax on property within a project area shall pay and distribute to the authority the property tax allocation and dedicated tax collections that the authority is entitled to collect under this title, in the manner and at the time provided in Section 59-2-1365.

(6) (a) The board shall determine by resolution when the entire project area or an individual parcel within a project area is subject to property tax allocation.

(b) The board shall amend the project area budget to reflect whether a parcel within a project area is subject to property tax allocation.

(7) The following property owned by the authority is not subject to any property tax under Title 59, Chapter 2, Property Tax Act, or any privilege tax under Title 59, Chapter 4, Privilege Tax, regardless of whether the authority enters into a long-term operating agreement with a privately owned entity under which the privately owned entity agrees to operate the property:

(a) a hotel;

(b) a hotel condominium unit in a condominium project, as defined in Section 57-8-3;

and (c) a commercial condominium unit in a condominium project, as defined in Section 57-8-3.

(8) The authority shall comply with the reporting requirements in Section 63N-1a-308.

{Section 15.

Section 63N-1a-102 is amended to read:

} 63N-1a-102.

Definitions.

As used in this title:

- 28 - SB0228 compared with SB0228S01 (1) "Base taxable value" means the taxable value for a project area, during a period specified in the statute applicable to the project area, that reflects the revenue received by a taxing entity before tax increment revenue begins to be collected for the project area.

(2) "Baseline jobs" means the number of full-time employee positions that existed within a business entity in the state before the date on which a project related to the business entity is approved by the office or by the GOEO board.

[(2)] (3) "Baseline state revenue" means the amount of state tax revenue collected from a business entity or the employees of a business entity during the year before the date on which a project related to the business entity is approved by the office or by the GOEO board.

[(3)] (4) "Economic opportunity agency" includes:

(a) the Department of Workforce Services;

(b) the Department of Cultural and Community Engagement;

(c) the Department of Commerce;

(d) the Department of Natural Resources;

(e) the Office of Energy Development;

(f) the State Board of Education;

(g) institutions of higher education;

(h) the Utah Multicultural Commission;

(i) the World Trade Center Utah;

(j) local government entities;

(k) associations of governments;

(l) the Utah League of Cities and Towns;

(m) the Utah Association of Counties;

(n) the Economic Development Corporation of Utah;

(o) the Small Business Administration;

(p) chambers of commerce;

(q) industry associations;

(r) small business development centers;

and (s) other entities identified by the commission or the executive director.

[(4)] (5) "Executive director" means the executive director of the office.

- 29 - SB0228 compared with SB0228S01 [(5)] (6) "Full-time employee" means an employment position that is filled by an employee who works at least 30 hours per week and:

(a) may include an employment position filled by more than one employee, if each employee who works less than 30 hours per week is provided benefits comparable to a full-time employee;

and (b) may not include an employment position that is shifted from one jurisdiction in the state to another jurisdiction in the state.

[(6)] (7) "GOEO board" means the Board of Economic Opportunity created in Section 63N-1a-401.

[(7)] (8) "High paying job" means a newly created full-time employee position where the aggregate average annual gross wage of the employment position, not including health care or other paid or unpaid benefits, is:

(a) at least 110% of the average wage of the county in which the employment position exists;

or (b) for an employment position related to a project described in Chapter 2, Part 1, Economic Development Tax Increment Financing, and that is located within the boundary of a county of the third, fourth, fifth, or sixth class, or located within a municipality in a county of the second class and where the municipality has a population of 10,000 or less:

(i) at least 100% of the average wage of the county in which the employment position exists;

or (ii) an amount determined by rule made by the office in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, if the office determines the project is in a county experiencing economic distress.

[(8)] (9) (a) "Incremental job" means a full-time employment position in the state that:

(i) did not exist within a business entity in the state before the beginning of a project related to the business entity;

and (ii) is created in addition to the number of baseline jobs that existed within a business entity.

(b) "Incremental job" includes a full-time employment position where the employee is hired:

(i) directly by a business entity;

or (ii) by a professional employer organization, as defined in Section 31A-40-102, on behalf of a business entity.

[(9)] (10) "New state revenue" means the state revenue collected from a business entity or a business entity's employees during a calendar year minus the baseline state revenue calculation.

[(10)] (11) "Office" or "GOEO" means the Governor's Office of Economic Opportunity.

- 30 - SB0228 compared with SB0228S01 [(11)] (12) "State revenue" means state tax liability paid by a business entity or a business entity's employees under any combination of the following provisions:

(a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;

(b) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information;

(c) Title 59, Chapter 10, Part 2, Trusts and Estates;

(d) Title 59, Chapter 10, Part 4, Withholding of Tax;

and (e) Title 59, Chapter 12, Sales and Use Tax Act.

[(12)] (13) "State strategic goals" means the strategic goals listed in Section 63N-1a-103.

[(13)] (14) "Statewide economic development strategy" means the economic development strategy developed by the office in accordance with Section 63N-1a-301.

(15) (a) "Tax increment revenue" means the difference between the tax revenue generated in accordance with Title 59, Chapter 2, Property Tax Act, and Title 59, Chapter 12, Sales and Use Tax Act, from or within a project area during a specified period of time, and the base taxable value for the project area.

(b) "Tax increment revenue" includes any concept substantially the same as the concept described in Subsection (15)(a), regardless of the concept's name.

[(14)] (16) "Targeted industry" means an industry or group of industries targeted by the office under Section 63N-1a-301, for economic development in the state.

Section 16.

Section 16 is enacted to read:

63N-1a-308.

Political subdivision reporting requirements -- Office to maintain a database.

(1) As used in this section:

(a) "Agency" means a community reinvestment agency, as defined in Section 17C-1-102.

(b) "Database" means the collection of electronic data described in Subsection (2)(a).

(c) (i) "Local entity" means a political subdivision of the state that receives or plans to receive tax increment revenue for a project area.

(ii) "Local entity" does not include an agency.

(d) "Office website" means a public website maintained by the office.

(e) "Project area" means an area created and designated to receive tax increment revenue according to the terms of an adopted project area plan, project area budget, or interlocal agreement.

- 31 - SB0228 compared with SB0228S01 (f) "Project area budget" means a multiyear projection of annual or cumulative revenues and expenses and other fiscal matters pertaining to a project area.

(g) "Project area plan" means a written plan that, after the plan's effective date, guides and controls the development within a project area.

(h) "Taxing entity" means a public entity that:

(i) levies a tax on property located within a project area;

or (ii) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act, within a project area.

(2) The office shall:

(a) create and maintain electronic data to track:

(i) information that each local entity is required to submit to the office under this section;

and (ii) information that each agency is required to submit to the office under Section 17C-1-603;

(b) summarize and provide analysis of the electronic data;

and (c) make the database publicly accessible from the office website.

(3) (a) The office may:

(i) contract with a third party to create and maintain the database;

and (ii) charge a fee to a local entity and agency to cover the office's cost of complying with Subsection (2).

(b) The office shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act:

(i) governing how a local entity and agency shall submit the information required in Subsection (4);

(ii) governing the form of the information required in Subsection (4);

and (iii) to establish a fee schedule for the fee described in Subsection (3)(a)(ii).

(4) On or before June 30 of each year, a local entity shall, for each project area for which the local entity receives tax increment revenue, submit to the office for inclusion in the database the following information:

(a) an assessment of the change in marginal value from the base year assessed value, including:

(i) the estimated current assessed value;

(ii) the percentage change in marginal value;

and (iii) a narrative description of the relative growth in assessed value;

- 32 - SB0228 compared with SB0228S01 (b) except as provided in Subsection (4)(c), the amount of tax increment revenue the local entity received in the previous year and the amount of funds the local entity spent for each year the local entity received tax increment revenue, broken down by the applicable budget or funds analysis category described in Subsection (4)(d), including:

(i) a comparison of the tax increment revenue received and spent for each year to the amount of tax increment revenue forecasted for each year when the local entity created the project area, if available;

(ii) the local entity's historical receipts and expenditures of tax increment revenue, including the tax year for which the local entity first received tax increment revenue from the project area;

and (iii) (A) a list of each taxing entity that levies or imposes a tax within the project area;

(B) a description of the benefits that each taxing entity receives from the project area;

and (C) the percent of marginal value that each taxing entity provides to the project area;

(c) if the local entity has not yet received tax increment revenue from the approved project area:

(i) the year in which the local entity expects to begin receiving tax increment revenue;

(ii) a list of each taxing entity that levies or imposes a tax within the project area;

(iii) a description of the benefits that each taxing entity is expected to receive from the project area;

and (iv) the percent of marginal value that each taxing entity provides to the project area;

(d) a description of current and anticipated project area development, including:

(i) any significant project area development, including infrastructure development, site development, participation agreements, or vertical construction;

and (ii) other details of local entity action and development within the project area, including:

(A) the total acreage developed after the local entity established the project area;

(B) the total undeveloped acreage the local entity expects will be developed before the project area is dissolved;

(C) the percentage of residential development;

and (D) the total number of housing units authorized, if applicable;

(e) the project area budget, if applicable, or other project area funds analyses, with receipts and expenditures categorized by the type of receipt and expenditure related to the development performed or to be performed under the project area plan, including:

(i) the start and end date of when tax increment revenue is collected from the project area;

- 33 - SB0228 compared with SB0228S01 (ii) the number of years remaining that tax increment revenue will be collected from the project area;

(iii) the amount of tax increment revenue the local entity is authorized to receive from the project area, cumulatively and from each taxing entity, including:

(A) the total dollar amount;

and (B) the percentage of the total amount of tax increment revenue generated within the project area;

(iv) the remaining amount of tax increment revenue the local entity is authorized to receive from the project area, cumulatively and from each taxing entity;

and (v) the amount of tax increment revenue the local entity is authorized to use to pay for the local entity's administrative costs;

(f) the estimated amount of tax increment revenue that the local entity is authorized to receive from the project area for the current calendar year;

(g) the estimated amount of tax increment revenue to be paid to the local entity for the next calendar year;

(h) a map of the project area;

(i) a description of how the goals, policies, and purposes of the project area plan have been furthered during the preceding year;

and (j) any other relevant information the local entity elects to provide.

(5) The provisions of this section apply regardless of when the project area is created.

(6) At or before the October interim meeting of the Political Subdivisions Interim Committee, the office shall present a written report of the electronic data that the office is required to create and maintain under Subsection (2)(a) that includes:

(a) a list of local entities and agencies that failed to comply with the reporting requirements of this section during the preceding reporting period;

(b) a statewide summary of:

(i) the number of project areas receiving tax increment revenue;

and (ii) the total acres included in project areas receiving tax increment revenue;

(c) for each county a summary of:

(i) the number of project areas receiving tax increment revenue;

(ii) the total acres included in project areas;

(iii) the total acres included in project areas compared to the total taxable acres in the county;

(iv) the percentage of county property tax that is allocated as tax increment revenue;

- 34 - SB0228 compared with SB0228S01 (v) the total amount of tax increment revenue projected in all project area budgets;

(vi) the estimated tax increment revenue from project area budgets that has not yet been collected;

(vii) a description of any project area that is approved but has not received tax increment revenue;

and (viii) project areas dissolved during the prior year;

and (d) any recommendation for legislation.

(7) (a) If the office does not, on or before September 30 of the year the information is due, receive the information that a local entity is required to submit under Subsection (4), the office shall:

(i) refer the noncompliant local entity to the state auditor for review;

and (ii) post a notice on the office website identifying the noncompliant local entity and describing the local entity's noncompliance.

(b) If, for two consecutive years, the office does not receive information a local entity is required to submit under Subsection (4):

(i) the office shall, no later than July 31 of the second consecutive year, notify the auditor and treasurer of the county in which the noncompliant local entity is located of the local entity's noncompliance;

and (ii) upon receiving the notice described in Subsection (7)(b)(i), the county treasurer shall withhold from the local entity 20% of the amount of tax increment revenue the local entity is otherwise entitled to receive.

(c) If, after having funds withheld under Subsection (7)(b)(ii), a local entity complies with Subsection (4):

(i) the office shall notify the county auditor and treasurer that the local entity complied with Subsection (4);

and (ii) the county treasurer shall disburse the withheld funds to the local entity.

{Section 17.

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;

- 35 - SB0228 compared with SB0228S01 (b) activation of unrealized economic opportunities related to the convention center and surrounding infrastructure and assets;

(c) modernization of infrastructure and design of the convention center and surrounding area and related public spaces;

(d) encouragement of transformative development and investment, including parking improvements;

(e) promotion of economic development and employment opportunities;

(f) improvement of the aesthetic, functionality, and walkability of the convention center and surrounding area;

(g) enhancement of tourism opportunities;

and (h) creation of outdoor event space to accommodate events or festivals open to the public.

(2) A convention center reinvestment zone in a capital city proposal created under this part shall also demonstrate how the proposal addresses the following objectives:

(a) redevelopment of a convention center and surrounding infrastructure and assets that directly serve the convention center, including parking facilities;

(b) modernization of infrastructure and design of the convention center;

and (c) improvement of the aesthetic, functionality, and walkability of the convention center.

(3) The Governor's Office of Economic Opportunity shall propose a convention center reinvestment zone to accomplish the objectives described in Subsections (1) and (2).

(4) (a) (i) A convention center reinvestment zone proposal may propose the capture of 100% of the property tax increment and 100% of the sales and use tax increment described in Subsection 63N-3-602(38)(b)(ii) for a period of 30 years.

(ii) For a convention center reinvestment zone in a capital city, in addition to the proposed capture of property tax increment and sales and use tax increment described in Subsection (4)(a)(i), the convention center reinvestment zone may propose the capture of 50% of the sales and use tax increment described in Subsection 63N-3-602(38)(b)(i).

(b) The convention center reinvestment zone proposal shall include the respective start date and base year date from which to calculate:

(i) the 30-year period of property tax increment;

and (ii) the 30-year period of the sales and use tax increment.

- 36 - SB0228 compared with SB0228S01 (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).

- 37 - SB0228 compared with SB0228S01 (8) A municipality or public infrastructure district that receives tax increment shall comply with the reporting requirements in Section 63N-1a-308.

{Section 18.

Section 63N-3-607 is amended to read:

} 63N-3-607.

Payment, use, administration, and reporting 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.