63H-1-501. Authority receipt and use of property tax allocation — Contractual annual payment — Distribution of property tax allocation.
(1)
Terms Used In Utah Code 63H-1-501
Authority: means the Military Installation Development Authority, created under Section 63H-1-201. See Utah Code 63H-1-102
Base taxable value: means :
(a)
for military land or other land that was exempt from a property tax at the time that a project area was created that included the military land or other land, a taxable value of zero; or
(b)
for private property that is included in a project area, the taxable value of the property within any portion of the project area, as designated by board resolution, from which the property tax allocation will be collected, as shown upon the assessment roll last equalized:
(i)
before the year in which the authority creates the project area; or
(ii)
before the year in which the project area plan is amended, for property added to a project area by an amendment to a project area plan. See Utah Code 63H-1-102
Dedicated tax collections: means the property tax that remains after the authority is paid the property tax allocation the authority is entitled to receive under Subsection 63H-1-501(1), for a property tax levied by:
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
Project area: means the land, including military land, whether consisting of a single contiguous area or multiple noncontiguous areas, described in a project area plan or draft project area plan, where the development project set forth in the project area plan or draft project area plan takes place or is proposed to take place. See Utah Code 63H-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 that includes:
(a)
the base taxable value of property in the project area;
(b)
the projected property tax allocation expected to be generated within the project area;
(c)
the amount of the property tax allocation expected to be shared with other taxing entities;
(d)
the amount of the property tax allocation expected to be used to implement the project area plan, including the estimated amount of the property tax allocation to be used for land acquisition, public improvements, infrastructure improvements, and loans, grants, or other incentives to private and public entities;
(e)
the property tax allocation expected to be used to cover the cost of administering the project area plan;
(f)
if the property tax allocation is to be collected at different times or from different portions of the project area, or both:
(i)
(A)
the tax identification numbers of the parcels from which the property tax allocation will be collected; or
(B)
a legal description of the portion of the project area from which the property tax allocation will be collected; and
(ii)
an estimate of when other portions of the project area will become subject to collection of the property tax allocation; and
(g)
for property that the authority owns or leases and expects to sell or sublease, the expected total cost of the property to the authority and the expected selling price or lease payments. See Utah Code 63H-1-102
Property tax: includes a privilege tax imposed under Title 59, Chapter 4, Privilege Tax, except as described in Subsection (20)(b), and each levy on an ad valorem basis on tangible or intangible personal or real property. See Utah Code 63H-1-102
Property tax allocation: means the difference between:
(a)
the amount of property tax revenues generated each tax year by all taxing entities from the area within a project area designated in the project area plan as the area from which the property tax allocation is to be collected, using the current assessed value of the property; and
(b)
the amount of property tax revenues that would be generated from that same area using the base taxable value of the property. See Utah Code 63H-1-102
Taxable value: means the value of property as shown on the last equalized assessment roll. See Utah Code 63H-1-102
(a)
The authority may:
(i)
subject to Subsection (1)(b):
(A)
receive up to 75% of the property tax allocation for up to 25 years, as provided in this part; and
(B)
after the time period described in Subsection (1)(a)(i)(A) expires, receive up to 75% of the property tax allocation for up to 15 years, if the board determines the additional years will produce significant benefit; and
(ii)
use the property tax allocation before, during, and after the period described in Subsection (1)(a)(i).
(b)
With respect to a parcel located within a project area, the 25-year period described in Subsection (1)(a)(i)(A) begins on the day on which the authority receives the first property tax allocation from that parcel.
(2)
(a)
For purposes of Subsection (1)(b), the authority may designate an improved portion of a parcel in a project area as a separate parcel.
(b)
An authority designation of an improved portion of a parcel as a separate parcel under Subsection (2)(a) is for purposes of Subsection (1)(b) only and does not constitute a subdivision for any other purpose.
(c)
A county recorder shall assign a separate tax identification number to the improved portion of a parcel designated by the authority as a separate parcel under Subsection (2)(a).
(3)
Improvements on a parcel within a project area become subject to property tax on January 1 immediately following the day on which the authority or an entity designated by the authority issues a certificate of occupancy with respect to those improvements.
(4)
(a)
If the authority or an entity designated by the authority has not issued a certificate of occupancy for a private parcel within a project area, the private parcel owner shall make an annual payment to the authority:
(i)
that is equal to 1.2% of the taxable value of the parcel above the base taxable value of the parcel; and
(ii)
until the parcel becomes subject to the property tax described in Subsection (3).
(b)
The authority may use the revenue from payments described in Subsection (4)(a) for any purpose described in Subsection 63H-1-502(1).
(c)
The authority may submit for recording to the office of the recorder of the county in which a private parcel described in Subsection (4)(a) is located:
(i)
a copy of an agreement between the authority and the private parcel owner that memorializes the payment obligation under Subsection (4)(a); or
(ii)
a notice that describes the payment obligation under Subsection (4)(a).
(d)
An owner of a private parcel described in Subsection (4)(a) may not be required to make a payment that exceeds or is in addition to the payment described in Subsection (4)(a)(i) until the private parcel becomes subject to the property tax described in Subsection (3).
(e)
Upon the transfer of title of a private parcel described in Subsection (4)(a), the amount of the annual payment required under Subsection (4)(a) shall be:
(i)
treated the same as a property tax; and
(ii)
prorated between the previous owner and the owner who acquires title from the previous owner.
(f)
A person who fails to pay or is delinquent in paying an annual payment described in Subsection (4)(a) is subject to the same penalties and interest as the failure or delinquent payment of a property tax in accordance with Title 59, Chapter 2, Property Tax Act.
(g)
If requested by the authority, a county treasurer shall:
(i)
include the annual payment described in Subsection (4)(a) on a county property tax notice in accordance with Section 59-2-1317; and
(ii)
collect the annual payment as part of the property tax collection.
(5)
Each county that collects property tax on property within a project area shall pay and distribute to the authority the property tax allocation and dedicated tax collections that the authority is entitled to collect under this title, in the manner and at the time provided in Section 59-2-1365.
(6)
(a)
The board shall determine by resolution when the entire project area or an individual parcel within a project area is subject to property tax allocation.
(b)
The board shall amend the project area budget to reflect whether a parcel within a project area is subject to property tax allocation.
(7)
The following property owned by the authority is not subject to any property tax under Title 59, Chapter 2, Property Tax Act, or any privilege tax under Title 59, Chapter 4, Privilege Tax, regardless of whether the authority enters into a long-term operating agreement with a privately owned entity under which the privately owned entity agrees to operate the property:
(a)
a hotel;
(b)
a hotel condominium unit in a condominium project, as defined in Section 57-8-3; and
(c)
a commercial condominium unit in a condominium project, as defined in Section 57-8-3.
