Utah Code 63N-3-610. Sales and use tax increment in a housing and transit reinvestment zone

63N-3-610. Sales and use tax increment in a housing and transit reinvestment zone.

(1)

A housing and transit reinvestment proposal shall, in consultation with the tax commission:

Terms Used In Utah Code 63N-3-610

Base year: means , for a proposed housing and transit reinvestment zone area, a year beginning the first day of the calendar quarter determined by the last equalized tax roll before the adoption of the housing and transit reinvestment zone. See Utah Code 63N-3-602
Commission: means the Unified Economic Opportunity Commission created in Section 63N-1a-201. See Utah Code 63N-1a-102
Housing and transit reinvestment zone: means a housing and transit reinvestment zone created pursuant to this part. See Utah Code 63N-3-602
Municipality: means the same as that term is defined in Section 10-1-104. See Utah Code 63N-3-602
Public transit county: means a county that has created a small public transit district. See Utah Code 63N-3-602
Sales and use tax base year: means a sales and use tax year determined by the first year pertaining to the tax imposed in Section 59-12-103 after the sales and use tax boundary for a housing and transit reinvestment zone is established. See Utah Code 63N-3-602
Sales and use tax boundary: means a boundary created as described in Section 63N-3-604, based on state sales and use tax collection that corresponds as closely as reasonably practicable to the housing and transit reinvestment zone boundary. See Utah Code 63N-3-602
Sales and use tax increment: means the difference between:

(a)

the amount of state sales and use tax revenue generated each year following the sales and use tax base year by the sales and use tax from the area within a housing and transit reinvestment zone designated in the housing and transit reinvestment zone proposal as the area from which sales and use tax increment is to be collected; and

(b)

the amount of state sales and use tax revenue that was generated from that same area during the sales and use tax base year. See Utah Code 63N-3-602

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 Commission: means the State Tax Commission created in Section 59-1-201. See Utah Code 63N-3-602

Tax increment: means the difference between:

(a)

the amount of property tax revenue generated each tax year by a taxing entity from the area within a housing and transit reinvestment zone designated in the housing and transit reinvestment zone proposal as the area from which tax increment is to be collected, using the current assessed value and each taxing entity's current certified tax rate as defined in Section 59-2-924; and

(b)	the amount of property tax revenue that would be generated from that same area using the base taxable value and each taxing entity's current certified tax rate as defined in Section 59-2-924. See Utah Code 63N-3-602
(a)	create a sales and use tax boundary as described in Subsection (2); and

(b)	establish a sales and use tax base year and collection period to calculate and transfer the state sales and use tax increment within the housing and transit reinvestment zone.

(2)

(a)

The municipality or public transit county, in consultation with the tax commission, shall establish a sales and use tax boundary that:

(i)	is based on state sales and use tax collection boundaries; and

(ii)	follows as closely as reasonably practicable the boundary of the housing and transit reinvestment zone.

(b)	The municipality or public transit county shall include the sales and use tax boundary in the housing and transit reinvestment zone proposal as described in Section 63N-3-604.

(3)

Beginning the first day of the calendar quarter one year after the sales and use tax boundary for a housing and transit reinvestment zone is established, the tax commission shall, at least annually, transfer an amount equal to 15% of the sales and use tax increment within an established sales and use tax boundary into the Transit Transportation Investment Fund created in Section 72-2-124.

(4)

(a)

The requirement described in Subsection (3) to transfer incremental sales tax revenue shall take effect:

(i)	on the first day of a calendar quarter; and

(ii)	after a 90-day waiting period, beginning on the date the commission receives notice from the municipality or public transit county meeting the requirements of Subsection (4)(b).

(b)

The notice described in Subsection (4)(a) shall include:

(i)	a statement that the housing and transit reinvestment zone will be established under this part;

(ii)	the approval date and effective date of the housing and transit reinvestment zone; and

(iii)

the definitions of the sales and use tax boundary and sales and use tax base year.

Amended by Chapter 433, 2022 General Session

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