17C-1-1002. Transferring project area incremental revenue — Agency may levy a property tax.
(1)
An agency and an eligible taxing entity may enter into an interlocal agreement for the purpose of transferring all or a portion of the eligible taxing entity‘s project area incremental revenue.
Terms Used In Utah Code 17C-1-1002
Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
Community reinvestment project area plan: means a project area plan adopted under 1. See Utah Code 17C-1-102
Cooperative development project: means project area development with impacts that extend beyond an agency's geographic boundaries to the benefit of two or more communities. See Utah Code 17C-1-1001
Economic development project: means project area development for the purpose of:
(a)
creating, developing, attracting, and retaining business;
Eligible taxing entity: means a taxing entity that:
(a)
is a municipality, a county, or a school district; and
(b)
contains an agency partially or completely within the taxing entity's geographic boundaries. See Utah Code 17C-1-1001
Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Implementation plan: means a plan adopted in accordance with Section 17C-1-1004 that:
(a)
describes how the agency uses property tax revenue; and
Project area: means the geographic area described in a project area plan within which the project area development described in the project area plan takes place or is proposed to take place. See Utah Code 17C-1-102
Project area funds: means tax increment or sales and use tax revenue that an agency receives under a project area budget adopted by a taxing entity committee or an interlocal agreement. See Utah Code 17C-1-102
Project area funds collection period: means the period of time that:
(a)
begins the day on which the first payment of project area funds is distributed to an agency under a project area budget approved by a taxing entity committee or an interlocal agreement; and
(b)
ends the day on which the last payment of project area funds is distributed to an agency under a project area budget approved by a taxing entity committee or an interlocal agreement. See Utah Code 17C-1-102
Project area incremental revenue: means the amount of revenue generated by the incremental value that a taxing entity receives after a project area funds collection period ends. See Utah Code 17C-1-1001
Project area plan: means an urban renewal project area plan, an economic development project area plan, a community development project area plan, or a community reinvestment project area plan that, after the project area plan's effective date, guides and controls the project area development. See Utah Code 17C-1-102
State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
Tax increment: means the difference between:
(i)
the amount of property tax revenue generated each tax year by a taxing entity from the area within a 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 tax rate as defined in Section 59-2-924; and
(ii)
the amount of property tax revenue that would be generated from that same area using the base taxable value of the property and each taxing entity's current certified tax rate as defined in Section 59-2-924. See Utah Code 17C-1-102
Taxing entity: means a public entity that:
(a)
levies a tax on property located within a project area; or
An agency shall ensure that an interlocal agreement described in Subsection (1):
(a)
identifies each project area that is subject to the interlocal agreement;
(b)
is adopted by the board and the taxing entity in accordance with Section 17C-1-1003;
(c)
for each project area:
(i)
states the amount of project area incremental revenue that the eligible taxing entity agrees to transfer to the agency;
(ii)
states the year in which the eligible taxing entity will transfer the amount described in Subsection (2)(c)(i); and
(iii)
for the year described in Subsection (2)(c)(ii), requires the agency to add the project area incremental revenue transferred in the agency’s budget;
(d)
includes a copy of the implementation plan described in Section 17C-1-1004;
(e)
requires the agency to dissolve, in accordance with Section 17C-1-702, any project area:
(i)
that is subject to the interlocal agreement; and
(ii)
for which the project area funds collection period will expire; and
(f)
is filed with the county auditor, the State Tax Commission, and the eligible taxing entity.
(3)
If an agency and an eligible taxing entity enter into an interlocal agreement under this section:
(a)
subject to Subsection (4) and Section 17C-1-1004, the agency may levy a property tax on taxable property within the agency’s geographic boundaries; and
(b)
except as provided in Subsection (5), the agency may not:
(i)
create a new community reinvestment project area within the taxing entity’s geographic boundaries; or
(ii)
amend a project area plan or budget if the amendment:
(A)
enlarges the project area from which tax increment is collected;
(B)
permits the agency to receive a greater amount of tax increment; or
(C)
extends the project area funds collection period.
(4)
(a)
An agency may levy a property tax for a fiscal year that:
(i)
is after the year in which the agency receives project area incremental revenue; and
(ii)
begins on or after the January 1 on which the agency has authority to impose a property tax under this section.
(b)
An agency board shall calculate the agency’s certified tax rate in accordance with Section 59-2-924.
(c)
An agency may levy a property tax rate that exceeds the agency’s certified rate only if the agency complies with Sections 59-2-919 through 59-2-923.
(5)
For a cooperative development project or an economic development project, an agency may, in accordance with Chapter 5, Community Reinvestment:
(a)
create a new community reinvestment project area; or
(b)
amend a community reinvestment project area plan or budget.
