Utah Code § 63N-3a-403 — Utah Code / Title 63N / Chapter 63N-3a / § 63N-3a-403
§ 63N-3a-403. Committee consideration of a zone with energy implications.
Status: in_force

(1) The committee shall approve an application for a zone designation if the application demonstrates that: (a) the proposed zone includes land suitable for a large load data center based on: (i) access to electrical energy resources; and (ii) adequate water supply; and (b) the proposed development plan: (i) aligns with the state's regional and statewide economic development objectives; (ii) includes realistic timelines and milestones; (iii) identifies specific infrastructure improvements; and (iv) quantifies projected economic benefits to the residents who live near the zone. (2) (a) The committee shall establish the percentage of property tax increment a regionally significant development zone is authorized to capture and utilize as described in Subsection 63N-3a-203(4), including establishing the percentage of property tax increment that shall be deposited into the reinvestment account. (b) If the committee approves a proposal to divert personal property tax revenue, the committee shall establish: (i) the percentage of personal property tax revenue that shall be diverted to the county or municipality that creates the zone; and (ii) the remitting percentage that the county treasurer shall deposit into the reinvestment account. (c) The remitting percentage of property tax increment revenue for a zone described in this part is established in Subsection (3). (3) Beginning January 1 following the designation of a zone as described in this section, the county treasurer shall: (a) transfer the percentage, established by the committee under Subsection (2)(b)(i), of revenue attributed to personal property tax within the zone to the agency managing the zone; (b) transfer the remitting percentage, established by the committee under Subsection (2)(b)(ii), of revenue attributed to personal property tax within the zone into the reinvestment account; (c) transfer the percentage of property tax increment, as established by the committee under Subsection (2)(a), generated within the zone to the zone's creating entity; (d) deposit the percentage of tax increment established under Subsection (2)(a) for deposit into the reinvestment account into the reinvestment account; and (e) make the distributions required under this Subsection (3): (i) at the same time as regular annual property tax distributions; and (ii) using the same method as other property tax distributions. (4) A county or municipality that receives revenue under Subsection (3) may: (a) transfer revenue to the agency managing the zone, to be used as regionally significant development zone revenue as described in Title 17C, Chapter 6, Regionally Significant Development Zones Act; (b) transfer revenue to a regional economic development authority with a project area that overlaps the zone, as described in Subsection 63N-3a-208(7)(b), in accordance with an agreement between the county or municipality and the regional economic development authority; (c) subject to Subsection (5), use the revenue to provide an incentive; (d) use the revenue to facilitate infrastructure development, including electrical energy infrastructure development and water infrastructure development; and (e) use the revenue to support workforce development programs within the county or municipality. (5) (a) Beginning May 6, 2027, a county or municipality, or a regional economic development authority that shares zone revenue with a county or municipality, may only provide an incentive to a large load data center from the revenue the county or municipality receives, or that is shared with the regional economic development authority, of up to 80% of the diverted personal property tax revenue as described under Subsection (3). (b) Notwithstanding Subsection (5)(a): (i) a county that levies the county energy excise tax authorized in Section 59-37-201 may offer up to 80% of the revenue the county collects annually from the county energy excise tax as an incentive for a large load data center, as described in Section 11-41-202; and (ii) a municipality that levies the municipal energy tax authorized in Title 10, Chapter 1, Part 3, Municipal Energy Sales and Use Tax Act, may provide up to 80% of the revenue generated by the municipal energy tax as an incentive to a large load data center, as described in Section 11-41-202. (6) Nothing in this section authorizes a political subdivision other than one described in Subsection (4) or (5) to offer an incentive to a large load data center, as described in Title 11, Chapter 41, Part 2, Prohibition on Tax Increment Incentives for Large Load Data Centers Act.