reglab/statecodes huggingface dataset:
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 2 - Designating an Assessment Area › Section 201 - Resolution or ordinance designating an assessment area -- Classifications within an assessment area -- Preconditions to adoption of a resolution or ordinance.

Effective 5/5/2021
11-42-201.
Resolution or ordinance designating an assessment area -- Classifications within an assessment area -- Preconditions to adoption of a resolution or ordinance.
(1)
(a) Subject to the requirements of this part, a governing body of a local entity intending to levy an assessment on property to pay some or all of the cost of providing improvements benefitting the property, performing operation and maintenance benefitting the property, or conducting economic promotion activities benefitting the property shall adopt a resolution or ordinance designating an assessment area.
(b) A designation resolution or designation ordinance described in Subsection (1)(a) may divide the assessment area into multiple classifications to allow the governing body to:
(i) levy a different level of assessment; or
(ii) use a different assessment method in each classification to reflect more fairly the benefits that property within the different classifications is expected to receive because of the proposed improvement, operation and maintenance, or economic promotion activities.
(c) The boundaries of a proposed assessment area:
(i) may include property that is not intended to be assessed; and
(ii) except for an assessment area within a public infrastructure district created under Title 17D, Chapter 4, Public Infrastructure District Act, may not be coextensive or substantially coterminous with the boundaries of the local entity.
(2) Before adopting a designation resolution or designation ordinance described in Subsection (1)(a), the governing body of the local entity shall:
(a) give notice as provided in Section 11-42-202;
(b) receive and consider all protests filed under Section 11-42-203; and
(c) hold a public hearing as provided in Section 11-42-204.
Amended by Chapter 314, 2021 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 2 - Designating an Assessment Area › Section 203 - Protests.

Effective 5/12/2015
11-42-203.
Protests.
(1) An owner of property that is proposed to be assessed and who does not want the property to be included in an assessment area may, within 60 days after the day of the hearing described in Subsection 11-42-204(1), file a written protest:
(a) against:
(i) the designation of the assessment area;
(ii) the inclusion of the owner's property in the proposed assessment area;
(iii) the proposed improvements to be acquired or constructed; or
(iv) if applicable, the inclusion of an unassessed benefitted government property, the benefit for which the other assessed properties will collectively pay; or
(b) protesting:
(i) whether the assessment meets the requirements of Section 11-42-409; or
(ii) any other aspect of the proposed designation of an assessment area.
(2) Each protest under Subsection (1) shall:
(a) describe or otherwise identify the property owned by the person filing the protest; and
(b) include the signature of the owner of the property.
(3) An owner may withdraw a protest at any time before the expiration of the 60-day period described in Subsection (1) by filing a written withdrawal with the governing body.
(4) If the governing body intends to assess property within the proposed assessment area by type of improvement or classification, as described in Section 11-42-201, and the governing body has clearly noticed its intent, the governing body shall:
(a) in determining whether adequate protests have been filed, aggregate the protests by the type of improvement or by classification; and
(b) apply to and calculate for each type of improvement or classification the threshold requirements of adequate protests.
(5) The failure of an owner of property within the proposed assessment area to file a timely written protest constitutes a waiver of any objection to:
(a) the designation of the assessment area;
(b) any improvement to be provided to property within the assessment area;
(c) the inclusion of the owner's property within the assessment area;
(d) the fact, but not amount, of benefit to the owner's property; and
(e) the inclusion of an unassessed benefitted government property in the assessment area.
(6) The local entity shall post the total and percentage of the written protests it has received on the local entity's website, or, if no website is available, at the local entity's place of business at least five days before the public meeting described in Section 11-42-206.
Amended by Chapter 396, 2015 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 2 - Designating an Assessment Area › Section 204 - Hearing.

Effective 5/12/2015
11-42-204.
Hearing.
(1) On the date and at the time and place specified in the notice under Section 11-42-202, the governing body shall hold a public hearing.
(2)
(a) The governing body:
(i) subject to Subsection (2)(a)(ii), may continue the public hearing from time to time to a fixed future date and time; and
(ii) may not hold a public hearing that is a continuance less than five days before the deadline for filing protests described in Section 11-42-203.
(b) The continuance of a public hearing does not restart or extend the protest period described in Subsection 11-42-203(1).
(3) At the public hearing, the governing body shall hear all:
(a) objections to the designation of the proposed assessment area or the improvements proposed to be provided in the assessment area;
(b) objections to whether the assessment will meet the requirements of Section 11-42-409;
(c) objections to the inclusion within the assessment area of an unassessed benefitted government property, the benefit for which the other assessed properties will collectively pay; and
(d) persons desiring to be heard.
Amended by Chapter 396, 2015 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 2 - Designating an Assessment Area › Section 205 - Unimproved property.

11-42-205.
Unimproved property.
(1)
(a) Before a local entity may designate an assessment area in which more than 75% of the property proposed to be assessed consists of unimproved property, and designation of the assessment area would require that the local entity issue bonds, the local entity shall obtain:
(i) an appraisal:
(A) of the unimproved property;
(B) from an appraiser who is a member of the Appraisal Institute;
(C) addressed to the local entity or a financial institution; and
(D) verifying that the market value of the property, after completion of the proposed improvements, is at least three times the amount of the assessments proposed to be levied against the unimproved property; or
(ii) the most recent taxable value of the unimproved property from the assessor of the county in which the unimproved property is located, verifying that the taxable value of the property, after completion of the proposed improvements, is at least three times the amount of the assessments proposed to be levied against the unimproved property.
(b) If the owner of the unimproved property has entered into a construction loan acceptable to the local entity to finance the facilities to be constructed or installed on the unimproved property, the market value of the unimproved property, as determined under Subsection (1)(a)(i), may include, at the local entity's option:
(i) the principal amount of the construction loan; or
(ii) the value of the unimproved property with the facilities to be financed by the construction loan, as determined by an appraisal of:
(A) the unimproved property; and
(B) the facilities proposed to be constructed.
(2) With respect to the designation of an assessment area described in Subsection (1)(a), the local entity may require:
(a) financial information acceptable to the governing body with respect to the owner's ability to pay the proposed assessments;
(b) a financial institution's commitment securing, to the governing body's satisfaction, the owners' obligation to pay the proposed assessments; or
(c) a development plan, approved by a qualified, independent third party, describing the plan of development and the financial feasibility of the plan, taking into account growth trends, absorption studies, and other demographic information applicable to the unimproved property.
(3) Information that an owner provides to a local entity under Subsection (2)(a) is not a record for purposes of Title 63G, Chapter 2, Government Records Access and Management Act.
Amended by Chapter 388, 2011 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 2 - Designating an Assessment Area › Section 208 - Recording notice of deletion if property is deleted from an assessment area.

11-42-208.
Recording notice of deletion if property is deleted from an assessment area.
If, after adoption of a designation resolution or ordinance under Section 11-42-206, a local entity deletes property from the assessment area, the local entity shall record a notice of deletion in a form that includes the legal description and tax identification number of the property and otherwise complies with applicable recording statutes.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 3 - Contracts for Improvements › Section 302 - Contracts for work in an assessment area -- Sources of payment -- Payments as work progresses.

11-42-302.
Contracts for work in an assessment area -- Sources of payment -- Payments as work progresses.
(1) A contract for work in an assessment area or for the purchase of property required to make an improvement in an assessment area may require the contract obligation to be paid from proceeds from the sale of assessment bonds, interim warrants, or bond anticipation notes.
(2)
(a) To the extent that a contract is not paid from the sources stated in Subsection (1), the local entity shall advance funds to pay the contract obligation from other legally available money, according to the requirements of the contract.
(b) A local entity may reimburse itself for an amount paid from its general fund or other funds under Subsection (2)(a) from:
(i) the proceeds from the sale of assessment bonds, interim warrants, or bond anticipation notes; or
(ii) assessments or improvement revenues that are not pledged for the payment of assessment bonds, interim warrants, or bond anticipation notes.
(c) A local entity may not reimburse itself for costs of making an improvement that are properly chargeable to the local entity or for which an assessment may not be levied.
(3)
(a) A contract for work in an assessment area may provide for payments to the contractor as the work progresses.
(b) If a contract provides for periodic payments:
(i) periodic payments may not exceed 90% of the value of the work done to the date of the payment, as determined by estimates of the project engineer; and
(ii) a final payment may be made only after the contractor has completed the work and the local entity has accepted the work.
(c) If a local entity retains money payable to a contractor as the work progresses, the local entity shall retain or withhold and release the money as provided in Section 13-8-5.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 402 - Notice of assessment and board of equalization hearing.

Effective 5/3/2023
11-42-402.
Notice of assessment and board of equalization hearing.
Each notice required under Subsection 11-42-401(2)(a)(iii) shall:
(1) state:
(a) that an assessment list is completed and available for examination at the offices of the local entity;
(b) the total estimated or actual cost of the improvements;
(c) the amount of the total estimated or actual cost of the proposed improvements to be paid by the local entity;
(d) the amount of the assessment to be levied against benefitted property within the assessment area;
(e) the assessment method used to calculate the proposed assessment;
(f) the unit cost used to calculate the assessments shown on the assessment list, based on the assessment method used to calculate the proposed assessment; and
(g) the dates, times, and place of the board of equalization hearings under Subsection 11-42-401(2)(b)(i); and
(2) for at least 20, but not more than 35, days before the day on which the first hearing of the board of equalization is held, be published for the local entity's jurisdiction, as a class B notice under Section 63G-30-102.
Amended by Chapter 435, 2023 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 405 - Limit on amount of assessment -- Costs required to be paid by the local entity.

11-42-405.
Limit on amount of assessment -- Costs required to be paid by the local entity.
(1) An assessment levied within an assessment area may not, in the aggregate, exceed the sum of:
(a) the contract price or estimated contract price;
(b) the acquisition price of improvements;
(c) the reasonable cost of:
(i)
(A) utility services, maintenance, and operation, to the extent permitted by Subsection 11-42-401(4); and
(B) labor, materials, or equipment supplied by the local entity;
(ii) economic promotion activities; or
(iii) operation and maintenance costs;
(d) the price or estimated price of purchasing property;
(e) any connection fees;
(f) estimated interest on interim warrants and bond anticipation notes issued with respect to an assessment area;
(g) the capitalized interest on each assessment bond;
(h) overhead costs not to exceed 15% of the sum of Subsections (1)(a), (b), (c), and (e);
(i) an amount for contingencies of not more than 10% of the sum of Subsections (1)(a) and (c), if the assessment is levied before construction of the improvements in the assessment area is completed;
(j) an amount sufficient to fund a reserve fund, if the governing body creates and funds a reserve fund as provided in Section 11-42-702;
(k) 1/2 the cost of grading changes as provided in Section 11-42-407; and
(l) incidental costs incurred by a property owner in order to satisfy the local entity's requirements for inclusion in a voluntary assessment area, if applicable.
(2) Each local entity providing an improvement in an assessment area shall pay, from improvement revenues not pledged to the payment of bonds and from any other legally available money:
(a) overhead costs for which an assessment cannot be levied;
(b) the costs of providing an improvement for which an assessment was not levied, if the assessment is levied before construction of the improvement in the assessment area is completed; and
(c) the acquisition and constructions costs of an improvement for the benefit of property against which an assessment may not be levied.
Amended by Chapter 246, 2013 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 406 - Assessment for economic promotion activities -- Duration -- Reporting.

Effective 5/12/2015
11-42-406.
Assessment for economic promotion activities -- Duration -- Reporting.
(1)
(a) If the governing body of a local entity designates an assessment area in accordance with Part 2, Designating an Assessment Area, for economic promotion activities, the governing body:
(i) subject to Subsection (1)(a)(ii), may levy an assessment to pay for economic promotion activities by adopting an assessment resolution or ordinance in accordance with Section 11-42-404; and
(ii) except as provided in Subsection (1)(b), may not levy the assessment for a period longer than five years.
(b) A governing body may levy additional assessments to pay for economic promotion activities after the five-year period described in Subsection (1)(a)(ii) if the governing body:
(i) designates a new assessment area in accordance with Part 2, Designating an Assessment Area;
(ii) adopts a new assessment resolution or ordinance in accordance with Section 11-42-404;
(iii) limits each additional assessment to a five-year period; and
(iv) complies with Subsections (1)(b)(i) through (iii) for each additional assessment.
(2) If a local entity designates an assessment area for economic promotion activities, the local entity:
(a) shall spend on economic promotion activities at least 70% of the money generated from an assessment levied in the assessment area and from improvement revenues;
(b) may not spend more than 30% of the money generated from the assessment levied in the assessment area and from improvement revenues on administrative costs, including salaries, benefits, rent, travel, and costs incidental to publications; and
(c) in accordance with Subsection (3), shall publish a detailed report including the following:
(i) an account of money deposited into the assessment fund described in Section 11-42-412;
(ii) an account of expenditures from the fund described in Section 11-42-412; and
(iii) a detailed account of whether each expenditure described in Subsection (2)(c)(ii) was made for economic promotion activities described in Subsection (2)(a) or for administrative costs described in Subsection (2)(b).
(3) A local entity shall publish a report required in Subsection (2)(c):
(a) on:
(i) if available, the local entity's public web site; and
(ii) if the local entity is not a county or municipality, on the public web site of any county or municipality in which the local entity has jurisdiction;
(b)
(i) within one year after the day on which the local entity adopts a new assessment resolution or ordinance for economic promotion activities; and
(ii) each subsequent year that the economic promotion activities levy is assessed by updating the information described in Subsection (2)(c); and
(c) for six months on a web site described in Subsection (3)(a) after the day on which the report is initially published under Subsection (3)(b) or updated under Subsection (3)(b)(ii).
Amended by Chapter 396, 2015 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 407 - Improvements that change the grade of an existing street, alley, or sidewalk -- Improvements that improve an intersection or spaces opposite an alley.

11-42-407.
Improvements that change the grade of an existing street, alley, or sidewalk -- Improvements that improve an intersection or spaces opposite an alley.
(1) If an improvement in an assessment area involves changing the grade of an existing street, alley, or sidewalk, the local entity shall pay half of the cost of bringing the street, alley, or sidewalk to the established grade.
(2) If an improvement in an assessment area improves an intersection of streets or spaces opposite an alley, the local entity may levy an assessment against the other properties to be assessed in the assessment area for the cost of the improvement.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 408 - Assessment against government land prohibited -- Exception.

Effective 3/28/2017
11-42-408.
Assessment against government land prohibited -- Exception.
(1)
(a) Except as provided in Subsection (2), a local entity may not levy an assessment against property owned by the federal government or a public agency, even if the property benefits from the improvement.
(b) Notwithstanding Subsection (1)(a), a public agency may contract with a local entity:
(i) for the local entity to provide an improvement to property owned by the public agency; and
(ii) to pay for the improvement provided by the local entity.
(c) Nothing in this section may be construed to prevent a local entity from imposing on and collecting from a public agency, or a public agency from paying, a reasonable charge for a service rendered or material supplied by the local entity to the public agency, including a charge for water, sewer, or lighting service.
(2) Notwithstanding Subsection (1):
(a) a local entity may continue to levy and enforce an assessment against property acquired by a public agency within an assessment area if the acquisition occurred after the assessment area was designated; and
(b) property that is subject to an assessment lien at the time it is acquired by a public agency continues to be subject to the lien and to enforcement of the lien if the assessment and interest on the assessment are not paid when due.
Amended by Chapter 470, 2017 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 410 - Amending an assessment resolution or ordinance.

11-42-410.
Amending an assessment resolution or ordinance.
(1) A governing body may adopt a resolution or ordinance amending the original assessment resolution or ordinance adopted under Section 11-42-404 to:
(a) correct a deficiency, omission, error, or mistake:
(i) with respect to:
(A) the total cost of an improvement;
(B) operation and maintenance costs; or
(C) the cost of economic promotion activities; or
(ii) that results in a tract, lot, block, or parcel not being fully assessed or assessed in an incorrect amount;
(b) reallocate or adjust assessments under the original assessment resolution or ordinance for operation and maintenance costs or the costs of economic promotion activities;
(c) reallocate or adjust assessments under the original assessment resolution or ordinance; or
(d) reduce an assessment as a result of the issuance of refunding bonds.
(2) If an amendment under Subsection (1)(a) or (c) results in an increase in an assessment for any property owner, the governing body shall comply with the notice requirements of Section 11-42-402, unless the owner waives notice as provided in Section 11-42-104.
Amended by Chapter 246, 2009 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 412 - Assessment fund -- Uses of money in the fund -- Treasurer's duties with respect to the fund.

11-42-412.
Assessment fund -- Uses of money in the fund -- Treasurer's duties with respect to the fund.
(1) The governing body of each local entity that levies an assessment under this part on benefitted property within an assessment area shall establish an assessment fund.
(2) The governing body shall:
(a) deposit into the assessment fund all money paid to the local entity from assessments and interest on assessments; and
(b) deposit into a separate account in the assessment fund all money paid to the local entity from improvement revenues.
(3) Money in an assessment fund may be expended only for paying:
(a) the local entity's costs and expenses of making, operating, and maintaining improvements to the extent permitted under Section 11-42-415;
(b) operation and maintenance costs;
(c) economic promotion activities;
(d) local entity obligations; and
(e) costs that the local entity incurs with respect to:
(i) administration of the assessment area; or
(ii) obtaining a letter of credit or other instrument or fund to secure the payment of assessment bonds.
(4) The treasurer of the local entity:
(a) shall:
(i) subject to Subsection (4)(b)(i), be the custodian of the assessment fund;
(ii) keep the assessment fund intact and separate from all other local entity funds and money;
(iii) invest money in an assessment fund by following the procedures and requirements of Title 51, Chapter 7, State Money Management Act; and
(iv) keep on deposit in the assessment fund any interest received from the investment of money in the assessment fund and use the interest exclusively for the purposes for which the assessment fund was established; and
(b) may:
(i) arrange for the assessment fund to be held by a trustee bank on behalf of the local entity; and
(ii) pay money out of the assessment fund only for the purposes listed in Subsection (3).
(5) When all local entity obligations have been paid or legally considered paid in full, the treasurer of the local entity shall transfer all money remaining in the assessment fund as provided in Section 11-42-414.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 413 - Surplus assessments -- Payment of bonds -- Rebate of assessment if improvements abandoned.

11-42-413.
Surplus assessments -- Payment of bonds -- Rebate of assessment if improvements abandoned.
(1) As used in this section:
(a) "Current owner" means the owner of property at the time a rebate under this section is paid.
(b) "Last-known address" means the last address of an owner of property within an assessment area according to the last completed real property assessment roll of the county in which the property is located.
(c) "Net assessment" means the amount of an assessment after subtracting:
(i) the amount required to pay for any improvements that have been made prior to their being abandoned; and
(ii) any damages or costs related to an abandonment of improvements.
(2)
(a) If the total cost of completed and accepted improvements is less than the total amount of assessments levied for those improvements, the local entity shall place the surplus in the assessment fund.
(b) If a local entity issues assessment bonds before a surplus under Subsection (2)(a) is determined, the local entity shall hold the surplus in the assessment fund and use the surplus for the payment of the bonds, interest, and any penalties and costs.
(3) If a local entity abandons improvements in an assessment area before the improvements have been started or, if started, before they have been completed and accepted but after an assessment has been levied, the local entity shall rebate the net assessment to the current owner.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 414 - Remaining interest and other money in assessment fund to be transferred to the guaranty fund or the local entity's general fund.

11-42-414.
Remaining interest and other money in assessment fund to be transferred to the guaranty fund or the local entity's general fund.
The treasurer of each local entity that collects interest from the investment of an assessment fund or that receives penalties, costs, and other amounts for the benefit and credit of an assessment that remain after all local entity obligations are paid in full and cancelled shall transfer the remaining amount to:
(1) the guaranty fund, if required by bond covenants; or
(2) the local entity's general fund.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 4 - Assessments › Section 416 - Validation of prior assessment proceedings.

11-42-416.
Validation of prior assessment proceedings.
(1) Subject to Subsection (2), all proceedings taken before April 30, 2007 related to the levy of assessments are validated, ratified, and confirmed, and the assessments are declared to be legal and valid assessments.
(2) Nothing in this section may be construed to affect the validity of an assessment whose legality is being contested on April 30, 2007.
(3)
(a) This chapter applies to all assessments levied after April 30, 2007, even though proceedings were taken before that date under provisions of the law then in effect but repealed or modified on or after that date.
(b) Proceedings taken as described in Subsection (3)(a) under the law in effect before April 30, 2007 are validated, ratified, and confirmed, except to the extent that those proceedings are the subject of an action pending on April 30, 2007 challenging the proceedings.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 5 - Assessment Liens › Section 501 - Assessment constitutes a lien -- Characteristics of an assessment lien.

Effective 5/8/2018
11-42-501.
Assessment constitutes a lien -- Characteristics of an assessment lien.
(1) If the governing body of the local entity that adopts an assessment resolution or ordinance records the assessment resolution or ordinance and the notice of proposed assessment, in accordance with Section 11-42-206, in the office of the recorder of the county in which the assessed property is located, each assessment levied under this chapter, including any installment of an assessment, interest, and any penalties and costs of collection, constitutes a political subdivision lien, as that term is defined in Section 11-60-102, against the property assessed, in accordance with Title 11, Chapter 60, Political Subdivision Lien Authority, and subject to the provisions of this chapter, as of the effective date of the assessment resolution or ordinance.
(2) A lien under this section:
(a) is superior to the lien of a trust deed, mortgage, mechanic's or materialman's lien, or other encumbrances;
(b) has the same priority as, but is separate and distinct from, a lien for general property taxes;
(c) applies without interruption, change in priority, or alteration in any manner to any reduced payment obligations; and
(d) continues until the assessments, reduced payment obligations, and any interest, penalties, and costs are paid, despite:
(i) a sale of the property for or on account of a delinquent general property tax, special tax, or other assessment; or
(ii) the issuance of a tax deed, an assignment of interest by the county, or a sheriff's certificate of sale or deed.
Amended by Chapter 197, 2018 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 5 - Assessment Liens › Section 503 - Local entity payments to avoid a default in local entity obligations -- Reimbursement of payments when property sold at tax or foreclosure sale.

11-42-503.
Local entity payments to avoid a default in local entity obligations -- Reimbursement of payments when property sold at tax or foreclosure sale.
(1) To avoid a default in the payment of outstanding local entity obligations, a local entity may pay:
(a) the delinquent amount due, plus interest, penalties, and costs;
(b) the amounts described in Subsection (1)(a) and the full balance of an assessment, if accelerated; or
(c) any part of an assessment or an installment of an assessment that becomes due during the redemption period.
(2) A local entity may:
(a) pay the amounts under Subsection (1) from a guaranty fund or a reserve fund, or from any money legally available to the local entity; and
(b) charge the amounts paid against the delinquent property.
(3)
(a) Upon the tax sale or foreclosure of the property charged as provided in Subsection (2):
(i) all amounts that the local entity paid shall be included in the sale price of the property recovered in the sale; and
(ii) the local entity's guaranty fund, reserve fund, or other source of money paid under Subsection (2)(a), as the case may be, shall be reimbursed for those amounts.
(b) If the property charged as provided in Subsection (2) is sold to the local entity at the tax sale or foreclosure and additional assessment installments become due, the local entity:
(i) may pay the additional installments from the guaranty fund or reserve fund, as the case may be, or from any legally available money;
(ii) shall recover, in a sale of the property, the amount of the installments paid; and
(iii) shall reimburse the guaranty fund or reserve fund when the property is sold.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 5 - Assessment Liens › Section 504 - Assessments on property that the local entity acquires at tax sale or foreclosure -- Transferring title of property in lieu of paying assessments -- Reimbursement.

Effective 5/12/2015
11-42-504.
Assessments on property that the local entity acquires at tax sale or foreclosure -- Transferring title of property in lieu of paying assessments -- Reimbursement.
(1)
(a) Each local entity that purchases property at a tax sale or foreclosure under this part shall pay into the assessment fund all applicable annual installments of assessments and interest for as long as the local entity owns the property.
(b) A local entity may make payments required under this Subsection (1) from the guaranty fund or reserve fund.
(2)
(a) In lieu of making payments under Subsection (1), a local entity may elect to transfer title of the property to the owners of all outstanding assessment bonds, refunding assessment bonds, interim warrants, or bond anticipation notes as payment in full for all delinquent assessments with respect to the property only if:
(i) the local entity and owners agree to the election to transfer; and
(ii) an indenture, private placement memo, or other document or contract memorializing the terms of debt explicitly discloses the terms of the agreement described in Subsection (2)(a)(i).
(b) If a local entity transfers title to property as provided in Subsection (2)(a) or sells property it has received from a tax sale or foreclosure, the selling price may not be less than the amount sufficient to reimburse the local entity for all amounts the local entity paid with respect to an assessment on the property, including an amount sufficient to reimburse the guaranty fund or reserve fund, as the case may be, for all amounts paid from the fund for delinquent assessments or installments of assessments relating to the property, plus interest, penalties, and costs.
(c) Each local entity that sells property it has received from a tax sale or foreclosure shall place the money it receives from the sale into the guaranty fund, reserve fund, or other local entity fund, as the case may be, to the extent of full reimbursement as required in this section.
Amended by Chapter 445, 2015 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 5 - Assessment Liens › Section 505 - Default in the payment of an installment of an assessment -- Interest and costs -- Restoring the property owner to the right to pay installments.

11-42-505.
Default in the payment of an installment of an assessment -- Interest and costs -- Restoring the property owner to the right to pay installments.
(1) If an assessment is payable in installments and a default occurs in the payment of an installment when due, the governing body may:
(a) declare the delinquent amount to be immediately due and subject to collection as provided in this chapter;
(b) accelerate payment of the total unpaid balance of the assessment and declare the whole of the unpaid principal and the interest then due to be immediately due and payable; and
(c) charge and collect all costs of collection, including attorney fees.
(2) Interest shall accrue from the date of delinquency on all applicable amounts under Subsections (1)(a) and (b) until paid in full.
(3) Any interest assessed for or collection costs charged under this section shall be:
(a) the same as apply to delinquent real property taxes for the year in which the balance of the fee or charge becomes delinquent; or
(b) as the governing body determines.
(4) Notwithstanding Subsection (1), a property owner shall be restored to the right to pay an assessment in installments in the same manner as if no default had occurred if the owner pays the amount of all unpaid installments that are past due, with interest, collection and foreclosure costs, and administrative, redemption, and other fees, including attorney fees, before:
(a) the final date that payment may be legally made under a final sale or foreclosure of property to collect delinquent assessment installments, if collection is enforced under Title 59, Chapter 2, Part 13, Collection of Taxes; or
(b) the end of the three-month reinstatement period provided by Section 57-1-31, if collection is enforced through the method of foreclosing trust deeds.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 5 - Assessment Liens › Section 506 - Release and discharge of assessment lien -- Notice of dissolution of assessment area.

11-42-506.
Release and discharge of assessment lien -- Notice of dissolution of assessment area.
(1)
(a) Upon an assessment on a parcel of property having been paid in full, the local entity shall file, in the office of the recorder of the county in which the property is located, a release and discharge of the assessment lien on that property.
(b) Each release and discharge under Subsection (1)(a) shall:
(i) include a legal description of the affected property; and
(ii) comply with other applicable requirements for recording a document.
(2)
(a) Upon all assessments levied within an assessment area having been paid in full, or upon payment in full having been provided for, the local entity shall file, in the office of the recorder of the county in which the property within the assessment area is located, a notice of the dissolution of the assessment area.
(b) Each notice under Subsection (2)(a) shall:
(i) include a legal description of the property assessed within the assessment area; and
(ii) comply with all other applicable requirements for recording a document.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 6 - Interim Warrants, Bond Anticipation Notes, Assessment Bonds, and Refunding Assessment Bonds › Section 601 - Interim warrants.

11-42-601.
Interim warrants.
(1) A local entity may issue interim warrants against an assessment area.
(2) An interim warrant may be in any amount up to:
(a) as portions of the work on improvements in an assessment area are completed, 90% of the value of the completed work, as estimated by the local entity's project engineer;
(b) 100% of the value of the work completed, after completion of the work and acceptance of the work by the local entity's project engineer; and
(c) the price of property, the acquisition of which is required for an improvement.
(3) The governing body may:
(a) issue interim warrants at not less than par value in a manner the governing body determines; and
(b) use the proceeds from the issuance of interim warrants to pay:
(i) the contract price;
(ii) the property price; and
(iii) related costs, including overhead costs.
(4)
(a) Interim warrants shall bear interest from the date of their issuance until paid.
(b)
(i) The governing body shall:
(A) approve the interest rate applicable to interim warrants; and
(B) fix a maturity date for each interim warrant.
(ii) The interest rate applicable to interim warrants may be fixed or variable or a combination of fixed and variable.
(iii) If interim warrants carry a variable interest rate, the governing body shall specify the basis upon which the rate is to be determined, the manner in which the rate is to be adjusted, and a maximum interest rate.
(iv) A local entity may provide for interest on interim warrants to be paid semiannually, annually, or at maturity.
(v) If an interim warrant matures before the local entity has available sources of payment under Section 11-42-603, the local entity may authorize the issuance of a new interim warrant to pay the principal and interest on the maturing warrant.
(c) The local entity shall include interest accruing on interim warrants in the cost of improvements in the assessment area.
(5) A local entity may purchase some or all of the interim warrants it has issued using the local entity's general fund money.
Enacted by Chapter 329, 2007 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 6 - Interim Warrants, Bond Anticipation Notes, Assessment Bonds, and Refunding Assessment Bonds › Section 602 - Bond anticipation notes.

11-42-602.
Bond anticipation notes.
(1) A local entity may by resolution authorize the issuance of bond anticipation notes.
(2) A local entity may use the proceeds from the issuance of bond anticipation notes to pay:
(a) the estimated acquisition and contract price;
(b) the property price;
(c) capitalized interest; and
(d) related costs, including overhead costs.
(3) Each resolution authorizing the issuance of bond anticipation notes shall:
(a) describe the bonds in anticipation of which the bond anticipation notes are to be issued;
(b) specify the principal amount and maturity dates of the notes; and
(c) specify the interest rate applicable to the notes.
(4)
(a) The interest rate on bond anticipation notes issued under this section may be fixed, variable, or a combination of fixed and variable, as determined by the governing body.
(b) If bond anticipation notes carry a variable interest rate, the governing body shall specify the basis upon which the rate is to be determined, the manner in which the rate is to be adjusted, and a maximum interest rate.
(c) A local entity may provide for interest on bond anticipation notes to be paid semiannually, annually, or at maturity.
(5) A local entity may:
(a) issue and sell bond anticipation notes in a manner and at a price, either at, below, or above face value, as the governing body determines by resolution; and
(b) make bond anticipation notes redeemable prior to maturity, at the governing body's option and in the manner and upon the terms fixed by the resolution authorizing their issuance.
(6) Bond anticipation notes shall be executed, be in a form, and have details and terms as provided in the resolution authorizing their issuance.
(7) A local entity may issue bond anticipation notes to refund bond anticipation notes previously issued by the local entity.
(8) A local entity may include interest accruing on bond anticipation notes in the cost of improvements in an assessment area.
Amended by Chapter 246, 2009 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 6 - Interim Warrants, Bond Anticipation Notes, Assessment Bonds, and Refunding Assessment Bonds › Section 603 - Sources of payment for interim warrants and bond anticipation notes.

11-42-603.
Sources of payment for interim warrants and bond anticipation notes.
Each local entity that has issued interim warrants or bond anticipation notes shall pay the warrants or notes from:
(1) proceeds from the sale of assessment bonds;
(2) cash the local entity receives from the payment for improvements;
(3) assessments;
(4) improvement revenues that are not pledged to the payment of assessment bonds;
(5) proceeds from the sale of interim warrants or bond anticipation notes; or
(6) the local entity's guaranty fund or, if applicable, the reserve fund.
Amended by Chapter 246, 2009 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 6 - Interim Warrants, Bond Anticipation Notes, Assessment Bonds, and Refunding Assessment Bonds › Section 604 - Notice regarding resolution or ordinance authorizing interim warrants or bond anticipation notes -- Complaint contesting warrants or notes -- Prohibition against contesting warrants and notes.

Effective 5/3/2023
11-42-604.
Notice regarding resolution or ordinance authorizing interim warrants or bond anticipation notes -- Complaint contesting warrants or notes -- Prohibition against contesting warrants and notes.
(1) A local entity may publish notice, as provided in Subsection (2), of a resolution or ordinance that the governing body has adopted authorizing the issuance of interim warrants or bond anticipation notes.
(2)
(a) If a local entity chooses to publish notice under Subsection (1), the notice shall:
(i) be published:
(A) for the local entity, as a class A notice under Section 63G-30-102, for at least 30 days; and
(B) as required in Section 45-1-101; and
(ii) contain:
(A) the name of the issuer of the interim warrants or bond anticipation notes;
(B) the purpose of the issue;
(C) the maximum principal amount that may be issued;
(D) the maximum length of time over which the interim warrants or bond anticipation notes may mature;
(E) the maximum interest rate, if there is a maximum rate; and
(F) the times and place where a copy of the resolution or ordinance may be examined, as required under Subsection (2)(b).
(b) The local entity shall allow examination of the resolution or ordinance authorizing the issuance of the interim warrants or bond anticipation notes at its office during regular business hours.
(3) Any person may, within 30 days after publication of a notice under Subsection (1), file a verified, written complaint in the district court of the county in which the person resides, contesting the regularity, formality, or legality of the interim warrants or bond anticipation notes issued by the local entity or the proceedings relating to the issuance of the interim warrants or bond anticipation notes.
(4) After the 30-day period under Subsection (3), no person may contest the regularity, formality, or legality of the interim warrants or bond anticipation notes issued by a local entity under the resolution or ordinance that was the subject of the notice under Subsection (1), or the proceedings relating to the issuance of the interim warrants or bond anticipation notes.
Amended by Chapter 435, 2023 General Session
2023 Utah Code › Title 11 - Cities, Counties, and Local Taxing Units › Chapter 42 - Assessment Area Act › Part 6 - Interim Warrants, Bond Anticipation Notes, Assessment Bonds, and Refunding Assessment Bonds › Section 606 - Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.

11-42-606.
Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.
(1) Assessment bonds are not a general obligation of the local entity that issues them.
(2) A local entity that issues assessment bonds:
(a) may not be held liable for payment of the bonds except to the extent of:
(i) funds created and received from assessments against which the bonds are issued;
(ii) improvement revenues; and
(iii) the local entity's guaranty fund under Section 11-42-701 or, if applicable, reserve fund under Section 11-42-702; and
(b) is responsible for:
(i) the lawful levy of all assessments;
(ii) the collection and application of improvement revenues, as provided in this chapter;
(iii) the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and
(iv) the faithful accounting, collection, settlement, and payment of:
(A) assessments and improvement revenues; and
(B) money in a guaranty fund or, if applicable, a reserve fund.
(3) If a local entity illegally assesses property that is exempt from assessment, the local entity:
(a) is liable to the holders of assessment bonds for the payment of the illegal assessment; and
(b) shall pay the amount for which it is liable under Subsection (3)(a) from the local entity's general fund or other legally available money.
Enacted by Chapter 329, 2007 General Session