Transferring project area incremental revenue -- Agency may levy a property tax.
Checkout our iOS App for a better way to browser and research.
(1) An agency and an eligible taxing entity may enter into an interlocal agreement for the purpose of transferring all or a portion of the eligible taxing entity's project area incremental revenue.
(2) An agency shall ensure that an interlocal agreement described in Subsection (1):
(a) identifies each project area that is subject to the interlocal agreement;
(b) is adopted by the board and the taxing entity in accordance with Section 17C-1-1003;
(c) for each project area:
(i) states the amount of project area incremental revenue that the eligible taxing entity agrees to transfer to the agency;
(ii) states the year in which the eligible taxing entity will transfer the amount described in Subsection (2)(c)(i); and
(iii) for the year described in Subsection (2)(c)(ii), requires the agency to add the project area incremental revenue transferred in the agency's budget;
(d) includes a copy of the implementation plan described in Section 17C-1-1004;
(e) requires the agency to dissolve, in accordance with Section 17C-1-702, any project area:
(i) that is subject to the interlocal agreement; and
(ii) for which the project area funds collection period will expire; and
(f) is filed with the county auditor, the State Tax Commission, and the eligible taxing entity.
(3) If an agency and an eligible taxing entity enter into an interlocal agreement under this section:
(a) subject to Subsection (4) and Section 17C-1-1004, the agency may levy a property tax on taxable property within the agency's geographic boundaries; and
(b) except as provided in Subsection (5), the agency may not:
(i) create a new community reinvestment project area within the taxing entity's geographic boundaries; or
(ii) amend a project area plan or budget if the amendment:
(A) enlarges the project area from which tax increment is collected;
(B) permits the agency to receive a greater amount of tax increment; or
(C) extends the project area funds collection period.
(4)
(a) An agency may levy a property tax for a fiscal year that:
(i) is after the year in which the agency receives project area incremental revenue; and
(ii) begins on or after the January 1 on which the agency has authority to impose a property tax under this section.
(b) An agency board shall calculate the agency's certified tax rate in accordance with Section 59-2-924.
(c) An agency may levy a property tax rate that exceeds the agency's certified rate only if the agency complies with Sections 59-2-919 through 59-2-923.
(5) For a cooperative development project or an economic development project, an agency may, in accordance with Chapter 5, Community Reinvestment:
(a) create a new community reinvestment project area; or
(b) amend a community reinvestment project area plan or budget.