17D-4-305. Action to contest tax, fee, or proceeding — Requirements — Exclusive remedy — Bonds, taxes, and fees incontestable.
| (1) |
A person who contests a tax or fee or any proceeding to create a public infrastructure district, levy a tax, or impose a fee may bring a civil action against the public infrastructure district or the creating entity to:
Terms Used In Utah Code 17D-4-305- Creating entity: means the county, municipality, or development authority that approves the creation of a public infrastructure district. See Utah Code 17D-4-102
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Person: means :Utah Code 68-3-12.5
- Summons: Another word for subpoena used by the criminal justice system.
| (a) |
set aside the proceeding; or |
| (b) |
enjoin the levy, imposition, or collection of a tax or fee. |
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| (2) |
The person bringing an action described in Subsection (1):
| (a) |
shall bring the action in the district court with jurisdiction in the county in which the public infrastructure district is located; and |
| (b) |
may not bring the action against or serve a summons relating to the action on the public infrastructure district more than 30 days after the effective date of the:
| (i) |
creation of the public infrastructure district, if the challenge is to the creation of the public infrastructure district; or |
| (ii) |
tax or fee, if the challenge is to a tax or fee. |
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| (3) |
An action under Subsection (1) is the exclusive remedy of a person who:
| (a) |
claims an error or irregularity in a tax or fee or in any proceeding to create a public infrastructure district, levy a tax, or impose a fee; or |
| (b) |
challenges a bondholder’s right to repayment. |
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| (4) |
After the expiration of the 30-day period described in Subsection (2)(b):
| (a) |
a bond issued or to be issued with respect to a public infrastructure district and any tax levied or fee imposed becomes incontestable against any person who has not brought an action and served a summons in accordance with this section; |
| (b) |
a person may not bring a suit to:
| (i) |
enjoin the issuance or payment of a bond or the levy, imposition, collection, or enforcement of a tax or fee; or |
| (ii) |
attack or question in any way the legality of a bond, tax, or fee; and |
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| (c) |
a court may not inquire into the matters described in Subsection (4)(b). |
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| (5) |
| (a) |
This section does not insulate a public infrastructure district from a claim of misuse of funds after the expiration of the 30-day period described in Subsection (2)(b). |
| (b) |
| (i) |
Except as provided in Subsection (5)(b)(ii), an action in the nature of mandamus is the sole form of relief available to a party challenging the misuse of funds. |
| (ii) |
The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal charges against or the prosecution of a party for the misuse of funds. |
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Renumbered and Amended by Chapter 314, 2021 General Session
