§ 63N-3-610 — Sales and use tax increment in a housing and transit reinvestment zone.

(1) A housing and transit reinvestment proposal shall, in consultation with the tax commission:
(1)(a) create a sales and use tax boundary as described in Subsection (2); and
(1)(b) establish a sales and use tax base year and collection period to calculate and transfer the state sales and use tax increment within the housing and transit reinvestment zone, which sales and use tax base year is established prospectively, 90 days after the date of the notice described in Subsection (4).
(2) (2)(a) The municipality or public transit county, in consultation with the tax commission, shall establish a sales and use tax boundary that:
(2)(a)(i) is based on state sales and use tax collection boundaries, which are determined using the ZIP Code as defined in Section 59-12-102, including the four digit delivery route extension;
(2)(a)(ii) follows as closely as reasonably practicable the boundary of the housing and transit reinvestment zone; and
(2)(a)(iii) is one contiguous area that includes at least the entire boundary of the housing and transit reinvestment zone.
(2)(b) If a state sales and use tax boundary is intersected by the boundary of the housing and transit reinvestment zone, the housing and transit reinvestment zone may include the entire state sales and use tax boundary.
(2)(c) The municipality or public transit county shall include the sales and use tax boundary in the housing and transit reinvestment zone proposal as described in Section 63N-3-604.
(3) (3)(a) Beginning the first day of a calendar quarter one year after the sales and use tax boundary for a housing and transit reinvestment zone is established, the tax commission shall, at least annually, transfer an amount equal to 15% of the sales and use tax increment within an established sales and use tax boundary into the Transit Transportation Investment Fund created in Section 72-2-124.
(3)(b) A municipality or public transit county may only propose one sales and use tax increment period and one sales and use tax base year for a housing and transit reinvestment zone established under this part.
(4) (4)(a) The establishment of a sales and use tax base year and the requirement described in Subsection (3) to transfer incremental sales tax revenue shall take effect:
(4)(a)(i) on the first day of a calendar quarter; and
(4)(a)(ii) after a 90-day waiting period, beginning on the date the commission receives notice from the municipality or public transit county meeting the requirements of Subsection (4)(b).
(4)(b) The notice described in Subsection (4)(a) shall include:
(4)(b)(i) a statement that the housing and transit reinvestment zone will be established under this part;
(4)(b)(ii) the approval date and effective date of the housing and transit reinvestment zone; and
(4)(b)(iii) the definitions of the sales and use tax boundary and sales and use tax base year.
(5) The State Tax Commission may retain and deposit an administrative charge in accordance with Section 59-1-306 from sales and use tax increment the State Tax Commission collects and administers under this section.

Legislative History

Amended by Chapter 29, 2025 General Session