17C-4-201. Consent of a taxing entity to an agency receiving tax increment or sales tax funds for community development project.
(1)
An agency may negotiate with a taxing entity for the taxing entity’s consent to the agency receiving the taxing entity’s project area funds for the purpose of providing money to carry out a proposed or adopted community development project area plan.
Terms Used In Utah Code 17C-4-201
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.
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
Base year: means , except as provided in Subsection 17C-1-402(4)(c), the year during which the assessment roll is last equalized:
(a)
for a pre-July 1, 1993, urban renewal or economic development project area plan, before the project area plan's effective date;
(b)
for a post-June 30, 1993, urban renewal or economic development project area plan, or a community reinvestment project area plan that is subject to a taxing entity committee:
(i)
before the date on which the taxing entity committee approves the project area budget; or
(ii)
if taxing entity committee approval is not required for the project area budget, before the date on which the community legislative body adopts the project area plan;
(c)
for a project on an inactive airport site, after the later of:
(i)
the date on which the inactive airport site is sold for remediation and development; or
(ii)
the date on which the airport that operated on the inactive airport site ceased operations; or
(d)
for a community development project area plan or a community reinvestment project area plan that is subject to an interlocal agreement, as described in the interlocal agreement. See Utah Code 17C-1-102
Basic levy: means the portion of a school district's tax levy constituting the minimum basic levy under Section 59-2-902. 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
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 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
Before an agency may use project area funds received under a resolution or interlocal agreement adopted for the purpose of providing money to implement a proposed or adopted community development project area plan, the agency shall:
(a)
obtain a written certification, signed by an attorney licensed to practice law in this state, stating that the agency and the taxing entity have each followed all legal requirements relating to the adoption of the resolution or interlocal agreement, respectively; and
(b)
provide a signed copy of the certification described in Subsection (3)(a) to the appropriate taxing entity.
(4)
A resolution adopted or interlocal agreement entered under Subsection (2) on or after March 30, 2009 shall specify:
(a)
if the resolution or interlocal agreement provides for the agency to be paid tax increment:
(i)
the method of calculating the amount of the taxing entity’s tax increment from the project area that will be paid to the agency, including the agreed base year and agreed base taxable value;
(ii)
the project area funds collection period; and
(iii)
the percentage of the taxing entity’s tax increment or maximum cumulative dollar amount of the taxing entity’s tax increment that the agency will be paid; and
(b)
if the resolution or interlocal agreement provides for the agency to be paid a taxing entity’s sales and use tax revenue:
(i)
the method of calculating the amount of the taxing entity’s sales and use tax revenue that the agency will be paid;
(ii)
the project area funds collection period; and
(iii)
the percentage of sales and use tax revenue or the maximum cumulative dollar amount of sales and use tax revenue that the agency will be paid.
(5)
(a)
Unless the taxing entity otherwise agrees, an agency may not be paid a taxing entity’s tax increment:
(i)
that exceeds the percentage or maximum cumulative dollar amount of tax increment specified in the resolution or interlocal agreement under Subsection (2); or
(ii)
for more tax years than specified in the resolution or interlocal agreement under Subsection (2).
(b)
Unless the taxing entity otherwise agrees, an agency may not be paid a taxing entity’s sales and use tax revenue:
(i)
that exceeds the percentage or maximum cumulative dollar amount of sales and use tax revenue specified in the resolution or interlocal agreement under Subsection (2); or
(ii)
for more tax years than specified in the resolution or interlocal agreement under Subsection (2).
(6)
A school district may consent to an agency receiving tax increment from the school district’s basic levy only to the extent that the school district also consents to the agency receiving tax increment from the school district’s local levy.
(7)
(a)
A resolution or interlocal agreement under this section may be amended from time to time.
(b)
Each amendment of a resolution or interlocal agreement shall be subject to and receive the benefits of the provisions of this part to the same extent as if the amendment were an original resolution or interlocal agreement.
(8)
A taxing entity’s consent to an agency receiving funds under this section is not subject to the requirements of Section 10-8-2.
(9)
(a)
For purposes of this Subsection (9), “successor taxing entity” means any taxing entity that:
(i)
is created after the date of adoption of a resolution or execution of an interlocal agreement under this section; and
(ii)
levies a tax on any parcel of property located within the project area that is the subject of the resolution or the interlocal agreement described in Subsection (9)(a)(i).
(b)
A resolution or interlocal agreement executed by a taxing entity under this section may be enforced by or against any successor taxing entity.
