Section 305 – Action to contest tax, fee, or proceeding — Requirements — Exclusive remedy — Bonds, taxes, and fees incontestable.

• (1) A person who contests a tax or fee or any proceeding to create a public infrastructure district, levy a tax, or impose a fee may bring a civil action against the public infrastructure district or the creating entity to:
  • (a) set aside the proceeding; or
  • (b) enjoin the levy, imposition, or collection of a tax or fee.

• (2) The person bringing an action described in Subsection (1):
  • (a) shall bring the action in the district court with jurisdiction in the county in which the public infrastructure district is located; and
  • (b) may not bring the action against or serve a summons relating to the action on the public infrastructure district more than 30 days after the effective date of the:
    • (i) creation of the public infrastructure district, if the challenge is to the creation of the public infrastructure district; or
    • (ii) tax or fee, if the challenge is to a tax or fee.

• (3) An action under Subsection (1) is the exclusive remedy of a person who:
  • (a) claims an error or irregularity in a tax or fee or in any proceeding to create a public infrastructure district, levy a tax, or impose a fee; or
  • (b) challenges a bondholder’s right to repayment.

• (4) After the expiration of the 30-day period described in Subsection (2)(b):
  • (a) a bond issued or to be issued with respect to a public infrastructure district and any tax levied or fee imposed becomes incontestable against any person who has not brought an action and served a summons in accordance with this section;
  • (b) a person may not bring a suit to:
    • (i) enjoin the issuance or payment of a bond or the levy, imposition, collection, or enforcement of a tax or fee; or
    • (ii) attack or question in any way the legality of a bond, tax, or fee; and
  • (c) a court may not inquire into the matters described in Subsection (4)(b).

• (5)
  • (a) This section does not insulate a public infrastructure district from a claim of misuse of funds after the expiration of the 30-day period described in Subsection (2)(b).
  • (b)
    • (i) Except as provided in Subsection (5)(b)(ii), an action in the nature of mandamus is the sole form of relief available to a party challenging the misuse of funds.
    • (ii) The limitation in Subsection (5)(b)(i) does not prohibit the filing of criminal charges against or the prosecution of a party for the misuse of funds.

Renumbered and Amended by Chapter 314, 2021 General Session