2006 Utah Code - 17C-1-409 — Allowable uses of tax increment and sales tax.

     17C-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 taxing entity:
     (i) for any of the purposes for which the use of tax increment is authorized under this title;
     (ii) for administrative, overhead, legal, and other operating expenses of the agency; or
     (iii) to pay for, including financing or refinancing, all or part of:
     (A) the urban renewal, economic development, or community development in the project area from which the tax increment funds were collected;
     (B) housing expenditures, projects, or programs as provided in Section 17C-1-411 or 17C-1-412;
     (C) with the consent of the community legislative body and subject to Subsection (6), the value of the land for and the cost of the installation and construction of any publicly owned building, facility, structure, landscaping, or other improvement within the project area from which the tax increment funds were collected; and
     (D) with the consent of the community legislative body and the taxing entity committee, the cost of the installation of publicly owned infrastructure and improvements outside the project area from which the tax increment funds were collected if the agency board and the community legislative body determine by resolution that the publicly owned infrastructure and improvements are of benefit to the project area.
     (b) The determination of the agency board and the community legislative body under Subsection (1)(a)(iii)(D) regarding benefit to the project area shall be final and conclusive.
     (2) Sales tax proceeds that an agency receives from another public entity are not subject to the prohibition or limitations of Title 11, Chapter 41, Prohibition on Sales and Use Tax Incentive Payments Act.
     (3) An agency may use sales tax proceeds it receives under a resolution or interlocal agreement under Section 17C-4-201 for the uses authorized in the resolution or interlocal agreement.
     (4) (a) An agency may contract with the community that created the agency or another public entity to use tax increment to reimburse the cost of items authorized by this title to be paid by 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 be paid by another public entity and the land or improvement has been or will be leased to the community, an agency may contract with and make reimbursement from tax increment funds to the community.
     (5) An agency created by a city of the first or second class may use tax increment from one project area in another project area to pay all or part of the value of the land for and the cost of the installation and construction of a publicly or privately owned convention center or sports complex or any building, facility, structure, or other improvement related to the convention center 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 cost of the installation and construction of the convention center or sports complex or related building, facility, structure, or other improvement.

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     (6) Notwithstanding any other provision of this title, an agency may not use tax increment 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 tax increment under an urban renewal or economic development project area plan, to pay any of the cost 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.

Renumbered and Amended by Chapter 359, 2006 General Session