79-2-407. Study of funding for water infrastructure costs.
| (1) |
The department shall:
Terms Used In Utah Code 79-2-407- Department: means the Department of Natural Resources created in Section 79-2-201. See Utah Code 79-1-102
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- 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
| (a) |
study the use of property tax revenue for payment of costs related to supplying drinking and irrigation water, including infrastructure, treatment, and delivery; and |
| (b) |
make recommendations for funding of the costs described in Subsection (1)(a). |
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| (2) |
As part of the study and to prepare the recommendations described in Subsection (1), the department shall:
| (a) |
analyze the use of tax revenue for water infrastructure in other states with similar climate and water supply challenges as the state of Utah; |
| (b) |
review the use of property tax revenue for construction, operation, maintenance, repair, and replacement of water facilities, including facilities related to:
| (i) |
diversion, treatment, and storage of drinking and irrigation water; and |
| (ii) |
the delivery of drinking and irrigation water to end users; |
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| (c) |
investigate policies that would ensure all users contribute to the cost of water infrastructure; |
| (d) |
identify methods of developing tiered water rate structures that promote water conservation and ensure reasonable revenue stability; |
| (e) |
analyze the effect of eliminating or reducing property tax revenue as a funding source for costs related to water infrastructure, treatment, or delivery, including:
| (i) |
the effect on retail water rates and retail customer water use and demand; |
| (ii) |
wholesale water suppliers’ ability to prepare for anticipated local and regional water demand; and |
| (iii) |
water development costs associated with new growth; and |
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| (f) |
identify and study any water conservancy district or special service district that levies a property tax for a purpose described in Subsection (1)(a) but does not provide water service. |
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| (3) |
The department shall convene a working group consisting of a wide range of stakeholders with diverse interests, including those with expertise in water development and delivery, tax policy, and water funding, to help the department conduct the study and develop the recommendations described in this section. |
| (4) |
On or before October 30, 2024, the department shall provide a written report of the department’s findings, including any recommended legislative action, to the Natural Resources, Agriculture, and Environment Interim Committee and the Revenue and Taxation Interim Committee. |
Enacted by Chapter 221, 2023 General Session
