17C-1-401.5. Agency receipt and use of project area funds — Distribution of project area funds.
(1)
An agency may receive and use project area funds in accordance with this title.
Terms Used In Utah Code 17C-1-401.5
Base taxable value: means , unless otherwise adjusted in accordance with provisions of this title, a property's taxable value as shown upon the assessment roll last equalized during the base year. See Utah Code 17C-1-102
Community development project area plan: means a project area plan adopted under 1. See Utah Code 17C-1-102
Community reinvestment project area plan: means a project area plan adopted under 1. See Utah Code 17C-1-102
Economic development project area plan: means a project area plan adopted under 1. See Utah Code 17C-1-102
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 budget: means a multiyear projection of annual or cumulative revenues and expenses and other fiscal matters pertaining to a project area prepared in accordance with:
(a)
for an urban renewal project area, Section 17C-2-201;
(b)
for an economic development project area, Section 17C-3-201;
(c)
for a community development project area, Section 17C-4-204; or
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 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
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
Taxing entity committee: means a committee representing the interests of taxing entities, created in accordance with Section 17C-1-402. See Utah Code 17C-1-102
Urban renewal project area plan: means a project area plan adopted under 1. See Utah Code 17C-1-102
(2)
(a)
A county that collects property tax on property located within a project area shall, in accordance with Section 59-2-1365, distribute to an agency any tax increment that the agency is authorized to receive.
(b)
Tax increment distributed to an agency in accordance with Subsection (2)(a) is not revenue of the taxing entity.
(3)
(a)
The project area funds collection period shall be measured:
(i)
for a pre-July 1, 1993, project area plan, from the first tax year regarding which the agency accepts tax increment from the project area;
(ii)
for a post-June 30, 1993, urban renewal or economic development project area plan:
(A)
with respect to tax increment, from the first tax year for which the agency receives tax increment under the project area budget; or
(B)
with respect to sales and use tax revenue, as indicated in the interlocal agreement between the agency and the taxing entity that authorizes the agency to receive all or a portion of the taxing entity’s sales and use tax revenue;
(iii)
for a community development project area plan, as indicated in the resolution or interlocal agreement of a taxing entity that authorizes the agency to receive the taxing entity’s project area funds;
(iv)
for a community reinvestment project area plan that is subject to a taxing entity committee:
(A)
with respect to tax increment, from the first tax year for which the agency receives tax increment under the project area budget; or
(B)
with respect to sales and use tax revenue, in accordance with the interlocal agreement between the agency and the taxing entity that authorizes the agency to receive all or a portion of the taxing entity’s sales and use tax revenue; or
(v)
for a community reinvestment project area plan that is subject to an interlocal agreement, in accordance with the interlocal agreement between the agency and the taxing entity that authorizes the agency to receive the taxing entity’s project area funds.
(b)
Unless otherwise provided in a project area budget that is approved by a taxing entity committee, or in an interlocal agreement adopted by a taxing entity, tax increment may not be paid to an agency for a tax year before the tax year following:
(i)
for an urban renewal project area plan, an economic development project area plan, or a community reinvestment project area plan that is subject to a taxing entity committee, the effective date of the project area plan; and
(ii)
for a community development project area plan or a community reinvestment project area plan that is subject to an interlocal agreement, the effective date of the interlocal agreement that authorizes the agency to receive tax increment.
(4)
With respect to a community development project area plan or a community reinvestment project area plan that is subject to an interlocal agreement:
(a)
a taxing entity may, through interlocal agreement, authorize an agency to be paid any or all of the taxing entity’s project area funds for any period of time; and
(b)
the interlocal agreement authorizing the agency to be paid project area funds shall specify:
(i)
the base taxable value of the project area; and
(ii)
the method of calculating the amount of project area funds to be paid to the agency.
(5)
(a)
(i)
The boundaries of one project area may overlap and include the boundaries of another project area.
(ii)
If a taxing entity committee is required to approve the project area budget of an overlapping project area described in Subsection (5)(a)(i), the agency shall, before the first meeting of the taxing entity committee at which the project area budget will be considered, inform each taxing entity of the location of the overlapping boundaries.
(b)
(i)
Before an agency may receive tax increment from the newly created overlapping portion of a project area, the agency shall inform the county auditor regarding the respective amount of tax increment that the agency is authorized to receive from the overlapping portion of each of the project areas.
(ii)
The combined amount of tax increment described in Subsection (5)(b)(i) may not exceed 100% of the tax increment generated from a property located within the overlapping boundaries.
(c)
Nothing in this Subsection (5) gives an agency a right to receive project area funds that the agency is not otherwise authorized to receive under this title.
(d)
The collection of project area funds from an overlapping project area described in Subsection (5)(a) does not affect an agency’s use of project area funds within the other overlapping project area.
(6)
With the written consent of a taxing entity, an agency may be paid tax increment, from the taxing entity’s property tax revenue only, in a higher percentage or for a longer period of time, or both, than otherwise authorized under this title.
(7)
Subject to Section 17C-1-407, an agency is authorized to receive tax increment as described in:
(a)
for a pre-July 1, 1993, project area plan, Section 17C-1-403;
(b)
for a post-June 30, 1993, project area plan:
(i)
Section 17C-1-404 under a project area budget adopted by the agency in accordance with this title;
(ii)
a project area budget approved by the taxing entity committee and adopted by the agency in accordance with this title; or
for a community reinvestment project area plan that is subject to a taxing entity committee, a project area budget approved by the taxing entity committee and adopted by the agency in accordance with this title; or
(e)
for a community reinvestment project area plan that is subject to an interlocal agreement, an interlocal agreement entered into under Section 17C-5-204.
