State Codes and Statutes
Statutes > Utah > Title-17c > Chapter-01 > 17c-1-40917C-1-409. Allowable uses of tax increment and sales tax.
(1) (a) An agency may use tax increment and sales tax proceeds received from a taxingentity:
(i) for any of the purposes for which the use of tax increment is authorized under thistitle;
(ii) for administrative, overhead, legal, and other operating expenses of the agency,including consultant fees and expenses under Subsection 17C-2-102(1)(b)(ii)(B);
(iii) to pay for, including financing or refinancing, all or part of:
(A) urban renewal activities in the project area from which the tax increment funds arecollected, including environmental remediation activities occurring before or after adoption ofthe project area plan;
(B) economic development or community development activities, includingenvironmental remediation activities occurring before or after adoption of the project area plan,in the project area from which the tax increment funds are collected;
(C) housing expenditures, projects, or programs as provided in Section 17C-1-411 or17C-1-412;
(D) subject to Subsections (1)(c) and (6), the value of the land for and the cost of theinstallation and construction of any publicly owned building, facility, structure, landscaping, orother improvement within the project area from which the tax increment funds were collected;and
(E) subject to Subsection (1)(d), the cost of the installation of publicly ownedinfrastructure and improvements outside the project area from which the tax increment fundswere collected if the agency board and the community legislative body determine by resolutionthat the publicly owned infrastructure and improvements are of benefit to the project area; or
(iv) in an urban renewal project area that includes some or all of an inactive industrialsite and subject to Subsection (1)(f), to reimburse the Department of Transportation createdunder Section 72-1-201, or a public transit district created under Title 17B, Chapter 2a, Part 8,Public Transit District Act, for the cost of:
(A) construction of a public road, bridge, or overpass;
(B) relocation of a railroad track within the urban renewal project area; or
(C) relocation of a railroad facility within the urban renewal project area.
(b) The determination of the agency board and the community legislative body underSubsection (1)(a)(iii)(E) regarding benefit to the project area shall be final and conclusive.
(c) An agency may not use tax increment or sales tax proceeds received from a taxingentity for the purposes stated in Subsection (1)(a)(iii)(D) under an urban renewal or economicdevelopment project area plan without the consent of the community legislative body.
(d) An agency may not use tax increment or sales tax proceeds received from a taxingentity for the purposes stated in Subsection (1)(a)(iii)(E) under an urban renewal or economicdevelopment project area plan without the consent of the community legislative body and thetaxing entity committee.
(e) (i) Subject to Subsection (1)(e)(ii), an agency may loan tax increment or sales taxproceeds, or a combination of tax increment and sales tax proceeds, from a project area fund toanother project area fund if:
(A) the agency's board approves; and
(B) the legislative body of each community that created the agency approves.
(ii) An agency may not loan tax increment or sales tax proceeds, or a combination of taxincrement and sales tax proceeds, under Subsection (1)(e)(i) unless the projections for the futuretax increment or sales tax proceeds of the borrowing project area are sufficient to repay the loanamount prior to when the tax increment or sales tax proceeds are intended for use under theloaning project area's plan.
(iii) If a borrowing project area's funds are not sufficient to repay a loan made underSubsection (1)(e)(i) prior to when the tax increment or sales tax proceeds are intended for useunder the loaning project area's plan, the community that created the agency shall repay the loanto the loaning project area's fund prior to when the tax increment or sales tax proceeds areintended for use under the loaning project area's plan.
(f) Before an agency may pay any tax increment or sales tax revenue under Subsection(1)(a)(iv), the agency shall enter into an interlocal agreement defining the terms of thereimbursement with:
(i) the Department of Transportation; or
(ii) a public transit district.
(2) Sales tax proceeds that an agency receives from another public entity are not subjectto the prohibition or limitations of Title 11, Chapter 41, Prohibition on Sales and Use TaxIncentive Payments Act.
(3) An agency may use sales tax proceeds it receives under a resolution or interlocalagreement under Section 17C-4-201 for the uses authorized in the resolution or interlocalagreement.
(4) (a) An agency may contract with the community that created the agency or anotherpublic entity to use tax increment to reimburse the cost of items authorized by this title to be paidby the agency that have been or will be paid by the community or other public entity.
(b) If land has been or will be acquired or the cost of an improvement has been or will bepaid by another public entity and the land or improvement has been or will be leased to thecommunity, an agency may contract with and make reimbursement from tax increment funds tothe community.
(5) An agency created by a city of the first or second class may use tax increment fromone project area in another project area to pay all or part of the value of the land for and the costof the installation and construction of a publicly or privately owned convention center or sportscomplex or any building, facility, structure, or other improvement related to the conventioncenter or sports complex, including parking and infrastructure improvements, if:
(a) construction of the convention center or sports complex or related building, facility,structure, or other improvement is commenced on or before June 30, 2002; and
(b) the tax increment is pledged to pay all or part of the value of the land for and the costof the installation and construction of the convention center or sports complex or relatedbuilding, facility, structure, or other improvement.
(6) Notwithstanding any other provision of this title, an agency may not use taxincrement to construct municipal buildings, courts or other judicial buildings, or fire stations.
(7) Notwithstanding any other provision of this title, an agency may not use taxincrement under an urban renewal or economic development project area plan, to pay any of thecost of the land, infrastructure, or construction of a stadium or arena constructed after March 1,2005, unless the tax increment has been pledged for that purpose before February 15, 2005.
(8) (a) An agency may not use tax increment to pay the debt service of or any other
amount related to a bond issued or other obligation incurred if the bond was issued or theobligation was incurred:
(i) by an interlocal entity created under Title 11, Chapter 13, Interlocal Cooperation Act;
(ii) on or after March 30, 2009; and
(iii) to finance a telecommunication facility.
(b) Subsection (8)(a) may not be construed to prohibit the refinancing, restatement, orrefunding of a bond issued before March 30, 2009.
Amended by Chapter 279, 2010 General Session
