SB 278 — Development Authority Modifications

- 6 - SB0278 compared with SB0278S04 (a) in writing;

11-59-208.11-59-208 (Effective 05/06/26) (Repealed 01/01/29).

(a)- for6 a- periodEnrolled ofCopy 25S.B. years beginning January 1 of the year immediately following the transfer date for the transferred parcel;

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

and - 7 - SB0278 compared with SB0278S04 (ii) the resolution is adopted before the end of the 25-year period under Subsection (2)(a).

17D-4-202.17D-4-202 (Effective 05/06/26).

(1)(1)(a) (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:

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- board7 according- toS.B. the requirements of this section to fill the board vacancy.

278 Enrolled Copy the board according to the requirements of this section to fill the board vacancy.

(2)(2)(a) - 8 - SB0278 compared with SB0278S04 (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.

(3)(3)(a) (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:

(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,8 a- governingEnrolled documentCopy mayS.B. allow the creating entity to continue to appoint a property owner, or the agent of a property owner, to the public infrastructure district board.

-278 9residential -property, SB0278a compared with SB0278S04 (e) A governing document may allow forthe acreating propertyentity ownerto continue to recommendappoint a property ownerowner, or athe propertyagent owner'sof agenta forproperty appointmentowner, to the public infrastructure district boardboard. in numbers proportional to the property owner's ownership of land, or value of land, within a public infrastructure district.

(4)(e) (a) A governing document may provideallow for a transitionproperty fromowner legislativeto bodyrecommend appointmenta underproperty Subsectionowner (1)or to a methodproperty ofowner's electionagent byfor registeredappointment votersto basedthe uponpublic milestonesinfrastructure ordistrict eventsboard thatin thenumbers governingproportional documentto identifies,the includingproperty aowner's milestoneownership forof eachland, division or individualvalue boardof positionland, providingwithin thata whenpublic theinfrastructure milestonedistrict. is reached:

(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:

(5)(5)(a) (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.

(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).- 9 - S.B.

278 Enrolled Copy (5)(a).

- 10 - SB0278 compared with SB0278S04 (7) A governing document shall:

(8)(8)(a) (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.

Section 617D-4-202.2 is enacted to read:

17D-4-202.2.17D-4-202.2 (Effective 05/06/26).

(1)- As10 used- inEnrolled thisCopy section:S.B.

-278 11(1) -As SB0278used comparedin withthis SB0278S04section: (a) "Governing body" means the governing body of the development authority that created a public infrastructure district.

(a) "Governing body" means the governing body of the development authority that created a public infrastructure district.

59-12-103.59-12-103 (Effective 07/01/26).

- 1211 - SB0278S.B. compared with SB0278S04 (b) amounts paid for:

278 Enrolled Copy (b) amounts paid for:

(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, - 13 - SB0278 compared with SB0278S04 river runs, jeep tours, boat tours, scenic cruises, horseback rides, sports activities, or any other amusement, entertainment, recreation, exhibition, cultural, or athletic activity;

(g)- amounts12 paid- orEnrolled chargedCopy forS.B. services for repairs or renovations of tangible personal property, unless Section 59-12-104 provides for an exemption from sales and use tax for:

278 (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:

and (ii) parts used in the repairs or renovations of the tangible personal property described in Subsection (1)(1)(g)(i), (g)(i), regardless of whether:

(i)(i)(A) (A) of a product transferred electronically;

or - 14 - SB0278 compared with SB0278S04 (B) a right to use the product that is less than a permanent use, including a right:

and (n) sales of leased tangible personal property from the lessor to the lessee made in the state.- 13 - S.B.

(2)278 (a)Enrolled ExceptCopy asstate. 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:

(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:

(e)(e)(i)(A) - 15 - SB0278 compared with SB0278S04 (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,- that14 the- sharedEnrolled vehicleCopy isS.B. an individual-owned shared vehicle.

278 commission, that the shared vehicle is an individual-owned shared vehicle.

(iii)(iii)(A) (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).

-(f)(i) 16 - SB0278 compared with SB0278S04 (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:

and (B)- a15 local- taxS.B. imposed on the entire bundled transaction at the sum of the tax rates described in Subsection (2)(a)(ii).

278 Enrolled Copy (B) a local tax imposed on the entire bundled transaction at the sum of the tax rates described in Subsection (2)(a)(ii).

-(g)(i) 17 - SB0278 compared with SB0278S04 (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,- and16 the- sale,Enrolled lease,Copy orS.B. 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:

278 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:

(h)(h)(i) (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:

or - 18 - SB0278 compared with SB0278S04 (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- regular17 course- ofS.B. business for nontax purposes.

278 Enrolled Copy the regular course of business for nontax purposes.

(j)(j)(i) (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:

(k)(k)(i) - 19 - SB0278 compared with SB0278S04 (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:

(C)- Subsection18 (2)(b)(i);- Enrolled Copy S.B.

278 (C) Subsection (2)(b)(i);

(iii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the commission may by rule define the term "catalogue sale." (l)(l)(i) (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.

(3)(3)(a) (a) The commission shall deposit the following state taxes into the General Fund:

- 20 - SB0278 compared with SB0278S04 (i) the tax imposed by Subsection (2)(a)(ii);

(4)(4)(a) (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:

(b)- The19 commission- shallS.B. 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.

278 Enrolled Copy (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.

and (iv) other uses authorized under Sections 73-10-24, 73-10-25.1, and 73-10-30, and Subsection (5)(b)(iv)(5)(b)(iv)(B) (B) after funding the uses specified in Subsections (4)(c)(i) through (iii).

-(e)(i) 21 - SB0278 compared with SB0278S04 (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.

(f)- The20 commission- shallEnrolled depositCopy .44%S.B. of the revenue described in Subsection (4)(a) into the Cottonwood Canyons Transportation Investment Fund created in Section 72-2-124.

278 (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.

(5)(5)(a) (a) Notwithstanding Subsection (3)(a), each fiscal year the commission shall make the deposits described in this Subsection (5).

(b)(b)(i)(A) (i) (A) The commission shall deposit $500,000 to the Department of Natural Resources to be used for watershed rehabilitation or restoration.

- 22 - SB0278 compared with SB0278S04 (B) At the end of each fiscal year, 100% of any unexpended amount described in Subsection (5)(5)(b)(i)(A) (b)(i)(A) shall lapse into the Water Resources Conservation and Development Fund created in 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- the21 hydrologic- systemsS.B. 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;

278 Enrolled Copy 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;

or - 23 - SB0278 compared with SB0278S04 (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.

(B)- 25%22 into- theEnrolled UtahCopy WastewaterS.B. Loan Program Subaccount created in Section 73-10c-5;

278 (B) 25% into the Utah Wastewater Loan Program Subaccount created in Section 73-10c-5;

(6)(6)(a) (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)(6)(a) - 24 - SB0278 compared with SB0278S04 (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)(7)(a) (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- amount23 equal- toS.B. 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.

278 Enrolled Copy 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.

(9)(9)(a) (a) As used in this Subsection (9):

- 25 - SB0278 compared with SB0278S04 (i) "Additional land" means point of the mountain state land described in Subsection 11-59-102(6)11-59-102(6)(b) (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).

(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%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)- The24 distribution- underEnrolled SubsectionCopy (9)(b)S.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:

278 (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:

(e)(e)(i) (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.

(11)(11)(a) (a) As used in this Subsection (11):

- 26 - SB0278 compared with SB0278S04 (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);

and (C) for the Point of the Mountain State Land Authority created in Section 11-59-201,- [50]25 25%- ofS.B. 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).

278 Enrolled Copy 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).

(12)(12)(a) (a) As used in Subsections (12) and (13):

- 27 - SB0278 compared with SB0278S04 (iii) "Qualifying construction materials" means construction materials that are:

(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- the26 construction- materials:Enrolled Copy S.B.

278 of the construction materials:

(ii) reports the sales of the construction materials to the delivery outlet described in Subsection (12)(b)(12)(b)(i); (i);

(13)(13)(a) (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.

63A-3-404.63A-3-404 (Effective 05/06/26).

(1)(1)(a) (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)(b)(i) (i) A loan agreement under Subsection (1)(a) shall be secured by:

- 28 - SB0278 compared with SB0278S04 (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.

(3)(3)(a) (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- to27 generate- sufficientS.B. money to cover payments under the infrastructure loan.

278 Enrolled Copy revenue to generate sufficient money to cover payments under the infrastructure loan.

(5)(5)(a) (a) If a borrower fails to comply with the terms of an infrastructure loan agreement, the division may:

(7)(7)(a) (a) The division shall administer and enforce an infrastructure loan according to the terms of the infrastructure loan agreement.

(b)(b)(i) - 29 - SB0278 compared with SB0278S04 (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).

(9)(9)(a) (a) The division may agree to a request described in Subsection (8) and amend a loan agreement- as28 described- inEnrolled thisCopy SubsectionS.B. (9).

278 agreement as described in this Subsection (9).

(d)(d)(i) - 30 - SB0278 compared with SB0278S04 (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.

63I-1-210.63I-1-210 (Effective 05/06/26).

Section- 10.29 - S.B.

278 Enrolled Copy Section 10.

63I-1-211.63I-1-211 (Effective 05/06/26).

Effective date.

{This(1) } Except as provided in Subsection (2), this bill takes effect {on } May 6, 2026.

Section- 7.30 -

Repealer.

This Bill Repeals:

Section 63I-1-211, Repeal dates:

Title 11.

3-6-26 9:41 PM - 31 -