17C-5-204. Community reinvestment project area subject to interlocal agreement -- Consent of a taxing entity to an agency receiving project area funds.

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/14/2019

(1)As used in this section, "successor taxing entity" means a taxing entity that:

(a)is created after the day on which an interlocal agreement is executed to allow an agency to receive a taxing entity's project area funds; and

(b)levies or imposes a tax within the community reinvestment project area.

(2)This section applies to a community reinvestment project area that is subject to an interlocal agreement under Subsection 17C-5-202(1)(a) .

(3)For the purpose of implementing a community reinvestment project area plan, an agency may negotiate with a taxing entity for all or a portion of the taxing entity's project area funds.

(4)A taxing entity may agree to allow an agency to receive the taxing entity's project area funds by executing an interlocal agreement with the agency in accordance with Title 11, Chapter 13, Interlocal Cooperation Act .

(5)Before an agency may use project area funds received under an interlocal agreement described in Subsection

(4), the agency shall:

(a)obtain a written certification, signed by an attorney licensed to practice law in the state, stating that the agency and the taxing entity have each followed all legal requirements relating to the adoption of the interlocal agreement; and

(b)provide a signed copy of the certification described in Subsection (5)(a) to the taxing entity.

(6)An interlocal agreement described in Subsection

(4)shall:

(a)if the interlocal agreement provides for the agency to receive tax increment, state:

(i)the method of calculating the amount of the taxing entity's tax increment from the community reinvestment project area that the agency receives, including the base year and base taxable value;

(ii)the project area funds collection period; and

(iii)the percentage of the taxing entity's tax increment or the maximum cumulative dollar amount of the taxing entity's tax increment that the agency receives;

(b)if the interlocal agreement provides for the agency to receive the taxing entity's sales and use tax revenue, state:

(i)the method of calculating the amount of the taxing entity's sales and use tax revenue that the agency receives;

(ii)the project area funds collection period; and

(iii)the percentage of sales and use tax revenue or the maximum cumulative dollar amount of sales and use tax revenue that the agency receives;

(c)include a copy of the community reinvestment project area budget; and

(d)prohibit a taxing entity from proportionately reducing the amount of project area funds the taxing entity consents to pay to an agency under this section by the amount of any direct expenditures the taxing entity makes within the project area for the benefit of the project area or the agency.

(7)A school district may consent to allow an agency to receive tax increment from the school district's basic levy only to the extent that the school district also consents to allow the agency to receive tax increment from the school district's local levy.

(8)The parties may amend an interlocal agreement under this section by mutual consent.

(9)A taxing entity's consent to allow an agency to receive project area funds under this section is not subject to the requirements of Section 10-8-2 .

(10)An interlocal agreement executed by a taxing entity under this section may be enforced by or against any successor taxing entity.

Amended by Chapter 333 , 2019 General Session