§ 11-42-411 — Installment payment of assessments.

Utah § 11-42-411

• Jurisdiction: Utah
• Title 11: Cities, Counties, and Local Taxing Units
• Ch. 11-42: Assessment Area Act
• Part 11-42-4: Assessments

Text

(1) (1)(a) In an assessment resolution or ordinance, the governing body may, subject to Subsection (1)(b), provide that some or all of the assessment be paid in installments over a period:
(1)(a)(i) not to exceed 20 years from the effective date of the resolution or ordinance, except as provided in Subsection (1)(a)(ii); or
(1)(a)(ii) not to exceed 30 years from the effective date of the resolution, for a resolution adopted by:
(1)(a)(ii)(A) a development authority;
(1)(a)(ii)(B) an infrastructure financing district under Title 17B, Chapter 2a, Part 13, Infrastructure Financing Districts;
(1)(a)(ii)(C) a public infrastructure district created by a development authority under Title 17D, Chapter 4, Public Infrastructure District Act; or
(1)(a)(ii)(D) any other local entity, if the resolution is adopted with the consent of all owners of surface property within the assessment area.
(1)(b) If an assessment resolution or ordinance provides that some or all of the assessment be paid in installments for a period exceeding 10 years from the effective date of the resolution or ordinance, the governing body:
(1)(b)(i) shall make a determination that:
(1)(b)(i)(A) the improvement for which the assessment is made has a reasonable useful life for the full period during which installments are to be paid; or
(1)(b)(i)(B) it would be in the best interests of the local entity and the property owners for installments to be paid for more than 10 years; and
(1)(b)(ii) may provide in the resolution or ordinance that no assessment is payable during some or all of the period ending three years after the effective date of the resolution or ordinance.
(2) An assessment resolution or ordinance that provides for the assessment to be paid in installments may provide that the unpaid balance be paid over the period of time that installments are payable:
(2)(a) in substantially equal installments of principal; or
(2)(b) in substantially equal installments of principal and interest.
(3) (3)(a) Each assessment resolution or ordinance that provides for the assessment to be paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and variable rates, as determined by the governing body, from the effective date of the resolution or ordinance or another date specified in the resolution or ordinance.
(3)(b) If the assessment is for operation and maintenance costs or for the costs of economic promotion activities:
(3)(b)(i) a local entity may charge interest only from the date each installment is due; and
(3)(b)(ii) the first installment of an assessment shall be due 15 days after the effective date of the assessment resolution or ordinance.
(3)(c) If an assessment resolution or ordinance provides for the unpaid balance of the assessment to bear interest at a variable rate, the assessment resolution or ordinance shall specify:
(3)(c)(i) the basis upon which the rate is to be determined from time to time;
(3)(c)(ii) the manner in which and schedule upon which the rate is to be adjusted; and
(3)(c)(iii) a maximum rate that the assessment may bear.
(4) Interest payable on assessments may include:
(4)(a) interest on assessment bonds;
(4)(b) ongoing local entity costs incurred for administration of the assessment area; and
(4)(c) any costs incurred with respect to:
(4)(c)(i) securing a letter of credit or other instrument to secure payment or repurchase of bonds; or
(4)(c)(ii) retaining a marketing agent or an indexing agent.
(5) Interest imposed in an assessment resolution or ordinance shall be paid in addition to the amount of each installment annually or at more frequent intervals as provided in the assessment resolution or ordinance.
(6) (6)(a) Except for an assessment for operation and maintenance costs or for the costs of economic promotion activities, a property owner may pay some or all of the entire assessment without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
(6)(b) After the 25-day period stated in Subsection (6)(a), a property owner may at any time prepay some or all of the assessment levied against the owner's property.
(6)(c) A local entity may require a prepayment of an installment to include:
(6)(c)(i) an amount equal to the interest that would accrue on the assessment to the next date on which interest is payable on bonds issued in anticipation of the collection of the assessment; and
(6)(c)(ii) the amount necessary, in the governing body's opinion or the opinion of the officer designated by the governing body, to assure the availability of money to pay:
(6)(c)(ii)(A) interest that becomes due and payable on those bonds; and
(6)(c)(ii)(B) any premiums that become payable on bonds that are called in order to use the money from the prepaid assessment installment.

Legislative History

Amended by Chapter 388, 2024 General Session