Section 206 – Extending collection of tax increment under an economic development project area budget.

• (1) An amendment or extension approved by a taxing entity or taxing entity committee before May 10, 2011, is not subject to this section.

• (2)
  • (a) Except as provided in Section 17C-1-1002, an agency’s collection of tax increment under an adopted economic development project area budget may be extended by:
    • (i) following the project area budget amendment procedures outlined in Section 17C-3-205; or
    • (ii) following the procedures outlined in this section.
  • (b) The base taxable value for an urban renewal project area budget may not be altered as a result of an extension under this section unless otherwise expressly provided for in an interlocal agreement adopted in accordance with Subsection (3)(a).

• (3) To extend under this section the agency’s collection of tax increment from a taxing entity under a previously approved project area budget, the agency shall:
  • (a) obtain the approval of the taxing entity through an interlocal agreement;
  • (b)
    • (i) hold a public hearing on the proposed extension in accordance with Subsection 17C-2-201(2)(d) in the same manner as required for a proposed project area budget; and
    • (ii) provide notice of the hearing:
      • (A) as required by Chapter 1, Part 8, Hearing and Notice Requirements; and
      • (B) including the proposed period of extension of the project area budget; and
  • (c) after obtaining the approval of the taxing entity in accordance with Subsection (3)(a), at or after the public hearing, adopt a resolution approving the extension.

• (4) After the expiration of a project area budget, an agency may continue to receive tax increment from those taxing entities that have agreed to an extension through an interlocal agreement in accordance with Subsection (3)(a).

• (5)
  • (a) A person may contest the agency’s adoption of a budget extension within 30 days after the day on which the agency adopts the resolution providing for the extension.
  • (b) A person that fails to contest a budget extension under Subsection (5)(a):
    • (i) shall forfeit any claim against the agency’s adoption of the extension; and
    • (ii) may not contest:
      • (A) a distribution of tax increment to the agency under the budget, as extended; or
      • (B) an agency’s use of tax increment under the budget, as extended.

Amended by Chapter 214, 2021 General Session