Utah Code § 63H-1-502 — Utah Code / Title 63H / Chapter 63H-1 / § 63H-1-502
§ 63H-1-502. Allowable uses of property tax allocation and other funds.
Status: in_force

(1) Other than municipal services revenue, the authority may use the property tax allocation and other funds available to the authority: (a) for any purpose authorized under this chapter; (b) for administrative, overhead, legal, and other operating expenses of the authority; (c) to pay for, including financing or refinancing, all or part of the development of land within the project area from which the property tax allocation or other funds were collected, including assisting the ongoing operation of a development or facility within the project area; (d) to pay the cost of the installation and construction of public infrastructure and improvements within the project area from which the property tax allocation funds were collected; (e) to pay the cost of the installation and construction of public infrastructure and improvements, including a passenger ropeway, as defined in Section 72-11-102, outside the project area if: (i) (A) the authority board determines by resolution that the infrastructure and improvements are of benefit to the project area; and (B) for a passenger ropeway, at least one end of the ropeway is located within the project area; or (ii) (A) the funds expended are appropriated by the Legislature; and (B) the authority is directed to expend the funds, and the project or purpose is directed, by the Legislature; (f) to pay the principal and interest on bonds issued by the authority; (g) to pay for a morale, welfare, and recreation program ,or other program that benefits the military or veterans, affiliated with the project area from which the funds were collected; or (h) to pay for the promotion of: (i) a development within the project area; or (ii) amenities outside of the project area that are associated with a development within the project area. (2) The authority may use revenue generated from the authority's operation of public infrastructure and improvements to: (a) operate and maintain the public infrastructure and improvements; and (b) pay for authority operating expenses, including administrative, overhead, and legal expenses. (3) For purposes of Subsection (1), the authority may use: (a) tax revenue received under Subsection 59-12-205(2)(a)(ii)(B); (b) resort communities tax revenue; (c) MIDA energy tax revenue, received under Section 63H-1-204, which does not have to be used in the project area where the revenue was generated; (d) MIDA accommodations tax revenue, received under Section 63H-1-205; (e) transient room tax revenue generated from hotels located on authority-owned or other public-entity-owned property; (f) municipal energy tax or telecommunications tax revenue generated from hotels that are subject to the MIDA accommodations tax under Section 63H-1-205; or (g) payments received under Subsection 63H-1-501(4). (4) The determination of the authority board under Subsection (1)(e) regarding benefit to the project area is final. (5) (a) Subject to Subsection (5)(b), the authority may enter into an agreement with a school district to pay the school district a certain portion of the property tax allocation the authority receives from the project area if: (i) (A) the school district levies a property tax in a project area established prior to 2023; (B) the school district has a building authority that issued a lease revenue bond to construct a new school in 2022; (C) the school district approved a property tax increase of its capital levy in 2023; and (D) the authority and a county that entered into an interlocal cooperation agreement that allocated the property tax allocation agree to amend the interlocal agreement to allow for the payment; or (ii) a school district levies a property tax for a general obligation bond authorized by an election after January 1, 2024. (b) If the board approves an agreement described in Subsection (5)(a), the board shall provide that any annual tax payment is subordinate to any authority bonded indebtedness that pledged any property tax allocation from the project area as security for the bonds.