Utah Code 17C-1-407. Limitations on tax increment
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Terms Used In Utah Code 17C-1-407
- Development impediment: means a condition of an area that meets the requirements described in Section
17C-2-303 for an urban renewal project area or Section17C-5-405 for a community reinvestment project area. See Utah Code 17C-1-102 - Incremental value: means a figure derived by multiplying the marginal value of the property located within a project area on which tax increment is collected by a number that represents the adjusted tax increment from that project area that is paid to the agency. See Utah Code 17C-1-102
- Person: means :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5
- 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:
(47)(a) for an urban renewal project area, Section17C-2-201 ;(47)(b) for an economic development project area, Section17C-3-201 ;(47)(c) for a community development project area, Section17C-4-204 ; or(47)(d) for a community reinvestment project area, Section17C-5-302 . See Utah Code 17C-1-102- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Property tax: includes a privilege tax imposed under Title 59, Chapter 4, Privilege Tax. 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:
(61)(a)(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 Section59-2-924 ; and(61)(a)(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 Section59-2-924 . See Utah Code 17C-1-102- Taxing entity: means a public entity that:
(62)(a) levies a tax on property located within a project area; or(62)(b) imposes a sales and use tax under Title 59, Chapter 12, Sales and Use Tax Act. See Utah Code 17C-1-102- 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(1)(a) If the development of retail sales of goods is the primary objective of an urban renewal project area, tax increment from the urban renewal project area may not be paid to or used by an agency unless the agency makes a development impediment determination under Chapter 2, Part 3, Development Impediment Determination in Urban Renewal Project Areas.(1)(b) Except as provided in Section 11-41-103, development of retail sales of goods does not disqualify an agency from receiving tax increment.(1)(c) After July 1, 2005, an agency may not receive or use tax increment generated from the value of property within an economic development project area that is attributable to the development of retail sales of goods, unless the tax increment was previously pledged to pay for bonds or other contractual obligations of the agency.(2)(2)(a) For the purpose of this Subsection (2):(2)(a)(i) “Final tax rate” means the rate used to determine the amount of taxes a taxing entity levies as described in the notice to a taxpayer under Subsection 59-2-1317(2).(2)(a)(ii) “Increased tax revenue” means tax revenue attributable to a tax rate increase.(2)(a)(iii) “Tax rate increase” means the amount calculated by subtracting a taxing entity’s certified rate, as defined in Section 59-2-924, from the taxing entity’s final tax rate.(2)(b) Except as provided in Subsection (2)(c), for a year in which a taxing entity imposes a final tax rate higher than the certified tax rate, a county shall not pay an agency any portion of a taxing entity’s increased tax revenue.(2)(c) Notwithstanding Subsection (2)(b), a county may pay all or a portion of a taxing entity’s increased tax revenue to an agency if, at the time of the project area budget approval, the taxing entity committee or each taxing entity that is a party to an agreement under Section 17C-4-201 or 17C-5-204 consents to pay the agency the increased tax revenue.(2)(d) If the taxing entity committee or each tax entity that is a party to an agreement under Section 17C-4-201 or 17C-5-204 does not consent to payment of the increased tax revenue to the agency under Subsection (2)(c), the county shall distribute to the taxing entity the increased tax revenue in the same manner as other property tax revenue.(2)(e) Notwithstanding any other provision of this section, if, before tax year 2013, increased tax revenue is paid to an agency without the consent of the taxing entity committee or each taxing entity that is a party to an agreement under Section 17C-4-201 or 17C-5-204, and notwithstanding the law at the time that the tax revenue was collected or increased:(2)(e)(i) the State Tax Commission, the county as the collector of the taxes, a taxing entity, or any other person or entity may not recover, directly or indirectly, the increased tax revenue from the agency by adjustment of a tax rate used to calculate tax increment or otherwise;(2)(e)(ii) the county is not liable to a taxing entity or any other person or entity for the increased tax revenue that was paid to the agency; and(2)(e)(iii) tax increment, including the increased tax revenue, shall continue to be paid to the agency subject to the same number of tax years, percentage of tax increment, and cumulative dollar amount of tax increment as approved in the project area budget and previously paid to the agency.(2)(f) An adjustment may not be made to incremental value under Section 59-2-924 for increased tax revenue not paid to an agency under this section.(3) Except as the taxing entity committee otherwise agrees, an agency may not receive tax increment under an urban renewal or economic development project area budget adopted on or after March 30, 2009:(3)(a) that exceeds the percentage of tax increment or cumulative dollar amount of tax increment specified in the project area budget; or(3)(b) for more tax years than specified in the project area budget.