17C-1-407 - Limitations on tax increment.
17C-1-407. Limitations on tax increment.
(1) (a) If the development of retail sales of goods is the primary objective of an urbanrenewal project area, tax increment from the urban renewal project area may not be paid to orused by an agency unless a finding of blight is made under Chapter 2, Part 3, BlightDetermination in Urban Renewal Project Areas.
(b) Development of retail sales of goods does not disqualify an agency from receiving taxincrement.
(c) After July 1, 2005, an agency may not be paid or use tax increment generated fromthe value of property within an economic development project area that is attributable to thedevelopment of retail sales of goods, unless the tax increment was previously pledged to pay forbonds or other contractual obligations of the agency.
(2) (a) An agency may not be paid any portion of a taxing entity's taxes resulting from anincrease in the taxing entity's tax rate that occurs after the taxing entity committee approves theproject area budget unless, at the time the taxing entity committee approves the project areabudget, the taxing entity committee approves payment of those increased taxes to the agency.
(b) If the taxing entity committee does not approve of payment of the increased taxes tothe agency under Subsection (2)(a), the county shall distribute to the taxing entity the taxesattributable to the tax rate increase in the same manner as other property taxes.
(3) Except as the taxing entity committee otherwise agrees, an agency may not receivetax increment under an urban renewal or economic development project area budget adopted onor after March 30, 2009:
(a) that exceeds the percentage of tax increment or cumulative dollar amount of taxincrement specified in the project area budget; or
(b) for more tax years than specified in the project area budget.
Amended by Chapter 387, 2009 General Session