Section 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:
  • (a) create a sales and use tax boundary as described in Subsection (2); and
  • (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.

• (2)
  • (a) The municipality or public transit county, in consultation with the tax commission, shall establish a sales and use tax boundary that:
    • (i) is based on state sales and use tax collection boundaries; and
    • (ii) follows as closely as reasonably practicable the boundary of the housing and transit reinvestment zone.
  • (b) 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) Beginning the first day of the 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.

• (4)
  • (a) The requirement described in Subsection (3) to transfer incremental sales tax revenue shall take effect:
    • (i) on the first day of a calendar quarter; and
    • (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).
  • (b) The notice described in Subsection (4)(a) shall include:
    • (i) a statement that the housing and transit reinvestment zone will be established under this part;
    • (ii) the approval date and effective date of the housing and transit reinvestment zone; and
    • (iii) the definitions of the sales and use tax boundary and sales and use tax base year.

Amended by Chapter 433, 2022 General Session