2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42b - Convention and Tourism Business Assessment Area Act › Section 102 - Designating an assessment area -- Levying and paying an assessment - Requirements and prohibitions.

Effective 5/4/2022
11-42b-102.
Designating an assessment area -- Levying and paying an assessment - Requirements and prohibitions.
(1) Subject to the requirements of this part, the legislative body of a specified county intending to levy an assessment on benefitted properties to pay for beneficial activities shall adopt an ordinance or resolution designating an assessment area.
(2) A specified county that levies an assessment under this chapter for beneficial activities:
(a) shall:
(i) levy an assessment on each benefitted property within the assessment area;
(ii) use an assessment method that, when applied to a benefitted property, reflects an equitable portion of the benefit the benefitted property will receive for the beneficial activities for which the assessment is levied;
(iii) levy and collect an assessment in accordance with a management plan that meets the requirements of Subsection 11-42b-103(2)(a); and
(iv) contract with a third party administrator to implement beneficial activities within the assessment areas;
(b) may:
(i) levy an assessment only on lodging establishments located within the geographical boundaries of the specified county;
(ii) establish benefit zones that divide the assessment area into multiple types or classifications to:
(A) levy a different level of assessment; or
(B) use a different assessment method in each classification to reflect more fairly the benefits that property within the different types or classifications is expected to receive because of the proposed beneficial activities;
(iii) rely on estimated benefits from an increase in:
(A) retail sales rates;
(B) customer base;
(C) public perception;
(D) hotel room rates and occupancy levels;
(E) the commercial environment from enhanced services;
(F) another articulable method of estimating benefits; or
(G) a combination of the methods described in Subsections (2)(b)(iii)(A) through (F); and
(iv) may not:
(A) include, within an assessment area, any area of land that is included within the geographic boundaries of a municipality unless the legislative body of the municipality adopts an ordinance or resolution consenting to the municipality's inclusion in the assessment area; or
(B) levy an assessment for a period longer than 10 years, unless the assessment area is renewed in accordance with Section 11-42b-109.
(3) The legislative body of a specified county may not adopt a designation ordinance or resolution under Subsection (1) unless the legislative body:
(a) receives a petition that meets the requirements of Section 11-42b-103;
(b) gives notice as provided in Section 11-42b-104;
(c) receives and considers all protests filed under Section 11-42b-105;
(d) holds a public hearing as provided in Section 11-42b-106; and
(e) holds a public meeting as provided in Section 11-42b-107.
(4)
(a) The owner of a benefitted property that pays an assessment under this chapter may place the assessment as a mandatory surcharge on guest receipts.
(b) A surcharge under this Subsection (4):
(i) shall be disclosed on all information and communication platforms of the benefitted property in the same manner as other surcharges, hotel and occupancy taxes, and sales and use taxes as required by applicable laws and regulations; and
(ii) may not:
(A) be used to calculate a benefitted property's gross receipts or gross revenues for any purpose, including the calculation of sales revenue, occupancy taxes, or state income taxes; or
(B) be considered as part of income pursuant to any lease or operator agreement.
(5) The payment of an assessment under this chapter may not be taken as a deduction from income for state income tax purposes.
Enacted by Chapter 376, 2022 General Session