Utah Code § 63N-3a-403

Committee consideration of a zone with energy implications
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(1) The committee shall approve an application for a zone designation if the application
demonstrates that:
(a) the proposed zone includes land suitable for a large load data center based on:
(i) access to electrical energy resources; and
(ii) adequate water supply; and
(b) the proposed development plan:
(i) aligns with the state's regional and statewide economic development objectives;
(ii) includes realistic timelines and milestones;
(iii) identifies specific infrastructure improvements; and
(iv) quantifies projected economic benefits to the residents who live near the zone.
(2)
(a) The committee shall establish the percentage of property tax increment a regionally
significant development zone is authorized to capture and utilize as described in Subsection
63N-3a-203(4), including establishing the percentage of property tax increment that shall be
deposited into the reinvestment account.
(b) If the committee approves a proposal to divert personal property tax revenue, the committee
shall establish:

(i) the percentage of personal property tax revenue that shall be diverted to the county or
municipality that creates the zone; and
(ii) the remitting percentage that the county treasurer shall deposit into the reinvestment
account.
(c) The remitting percentage of property tax increment revenue for a zone described in this part is
established in Subsection (3).
(3) Beginning January 1 following the designation of a zone as described in this section, the county
treasurer shall:
(a) transfer the percentage, established by the committee under Subsection (2)(b)(i), of revenue
attributed to personal property tax within the zone to the agency managing the zone;
(b) transfer the remitting percentage, established by the committee under Subsection (2)(b)(ii), of
revenue attributed to personal property tax within the zone into the reinvestment account;
(c) transfer the percentage of property tax increment, as established by the committee under
Subsection (2)(a), generated within the zone to the zone's creating entity;
(d) deposit the percentage of tax increment established under Subsection (2)(a) for deposit into
the reinvestment account into the reinvestment account; and
(e) make the distributions required under this Subsection (3):
(i) at the same time as regular annual property tax distributions; and
(ii) using the same method as other property tax distributions.
(4) A county or municipality that receives revenue under Subsection (3) may:
(a) transfer revenue to the agency managing the zone, to be used as regionally significant
development zone revenue as described in Title 17C, Chapter 6, Regionally Significant
Development Zones Act;
(b) transfer revenue to a regional economic development authority with a project area that
overlaps the zone, as described in Subsection 63N-3a-208(7)(b), in accordance with an
agreement between the county or municipality and the regional economic development
authority;
(c) subject to Subsection (5), use the revenue to provide an incentive;
(d) use the revenue to facilitate infrastructure development, including electrical energy
infrastructure development and water infrastructure development; and
(e) use the revenue to support workforce development programs within the county or
municipality.
(5)
(a) Beginning May 6, 2027, a county or municipality, or a regional economic development
authority that shares zone revenue with a county or municipality, may only provide an
incentive to a large load data center from the revenue the county or municipality receives, or
that is shared with the regional economic development authority, of up to 80% of the diverted
personal property tax revenue as described under Subsection (3).
(b) Notwithstanding Subsection (5)(a):
(i) a county that levies the county energy excise tax authorized in Section 59-37-201 may offer
up to 80% of the revenue the county collects annually from the county energy excise tax as
an incentive for a large load data center, as described in Section 11-41-202; and
(ii) a municipality that levies the municipal energy tax authorized in Title 10, Chapter 1, Part 3,
Municipal Energy Sales and Use Tax Act, may provide up to 80% of the revenue generated
by the municipal energy tax as an incentive to a large load data center, as described in
Section 11-41-202.

(6) Nothing in this section authorizes a political subdivision other than one described in Subsection
(4) or (5) to offer an incentive to a large load data center, as described in Title 11, Chapter 41,
Part 2, Prohibition on Tax Increment Incentives for Large Load Data Centers Act.

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