Utah Code § 17C-1-407

Limitations on tax increment
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(1)
(a) If the development of retail sales of goods is the primary objective of an urban renewal project
area, tax increment from the urban renewal project area may not be paid to or used by an

agency unless the agency makes a development impediment determination under Chapter
2, Part 3, Development Impediment Determination in Urban Renewal Project Areas.
(b) Except as provided in Section 11-41-103, development of retail sales of goods does not
disqualify an agency from receiving tax increment.
(c) After July 1, 2005, an agency may not receive or use tax increment generated from the
value of property within an economic development project area that is attributable to the
development of retail sales of goods, unless the tax increment was previously pledged to pay
for bonds or other contractual obligations of the agency.
(2)
(a) For the purpose of this Subsection (2):
(i) "Final tax rate" means the rate used to determine the amount of taxes a taxing entity levies
as described in the notice to a taxpayer under Subsection 59-2-1317(2).
(ii) "Increased tax revenue" means tax revenue attributable to a tax rate increase.
(iii) "Tax rate increase" means the amount calculated by subtracting a taxing entity's certified
rate, as defined in Section 59-2-924, from the taxing entity's final tax rate.
(b) Except as provided in Subsection (2)(c), for a year in which a taxing entity imposes a final tax
rate higher than the certified tax rate, a county shall not pay an agency any portion of a taxing
entity's increased tax revenue.
(c) Notwithstanding Subsection (2)(b), a county may pay all or a portion of a taxing entity's
increased tax revenue to an agency if, at the time of the project area budget approval, the
taxing entity committee or each taxing entity that is a party to an agreement under Section

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