Utah Code § 17B-2a-1101 Title.
17B-2a-1101. Title.
This part is known as the "Municipal Services District Act."
Enacted by Chapter 405, 2014 General Session
Municipal Services District Act
Utah Code tit. 17B, ch. 17B-2a, pt. 17B-2a-P11
in effectUtah Code § 17B-2a-1102 Definitions.
17B-2a-1102. Definitions.
As used in this part, "municipal services" means one or more of the services identified in Section 17-63-101, 17-78-501, or 17B-1-202.
Amended by Chapter 16, 2025 Special Session 1
Utah Code § 17B-2a-1103 Limited to counties of the first class -- Provisions applicable to municipal services districts.
17B-2a-1103. Limited to counties of the first class -- Provisions applicable to municipal services districts.
(1)
(a) Except as provided in Subsection (1)(b) and Section 17B-2a-1110, a municipal services district may be created only in unincorporated areas in a county of the first class.
(b) Subject to Subsection (1)(c), after the initial creation of a municipal services district, an area may be annexed into the municipal services district in accordance with Chapter 1, Part 4, Annexation, whether that area is unincorporated or incorporated.
(c) An area annexed under Subsection (1)(b) may not be located outside of the originating county of the first class.
(2) Each municipal services district is governed by the powers stated in:
(a) this part; and
(b) Chapter 1, Provisions Applicable to All Special Districts.
(3) This part applies only to a municipal services district.
(4) A municipal services district is not subject to the provisions of any other part of this chapter.
(5) If there is a conflict between a provision in Chapter 1, Provisions Applicable to All Special Districts, and a provision in this part, the provisions in this part govern.
Amended by Chapter 352, 2015 General Session
Utah Code § 17B-2a-1104 Additional municipal services district powers.
17B-2a-1104. Additional municipal services district powers.
(1) In addition to the powers conferred on a municipal services district under Section 17B-1-103, a municipal services district may:
(a) notwithstanding Subsection 17B-1-202(3), provide no more than six municipal services;
(b) assist a municipality or a county located within a municipal services district by providing staffing and administrative services, including:
(i) human resources staffing and services;
(ii) finance and budgeting staffing and services;
(iii) information technology staffing and services; and
(iv) treasurer, recorder or clerk, surveyor, engineer, or auditor services; and
(c) issue bonds as provided in and subject to Chapter 1, Part 11, Special District Bonds, to carry out the purposes of the district.
(2) A municipal services district that includes a converted municipality, as defined in Section 10-1-201.5, shall, upon request by the converted municipality, collect on behalf of the converted municipality all fines, fees, charges, levies, and other payments imposed by the converted municipality.
Amended by Chapter 438, 2024 General Session
Utah Code § 17B-2a-1105 Creation of municipal services district.
17B-2a-1105. Creation of municipal services district.
(1) Notwithstanding any other provision of law, the process to create a municipal services district is initiated by a resolution proposing the creation of the municipal services district, adopted by the legislative body of the county whose unincorporated area includes any of the proposed municipal services district.
(2) The resolution described in Subsection (1) shall comply, as applicable, with the provisions of Subsection 17B-1-203(2)(a).
(3) The legislative body shall comply with the requirements of Sections 17B-1-210 through 17B-1-212.
Enacted by Chapter 405, 2014 General Session
Utah Code § 17B-2a-1106 Municipal services district board of trustees -- Governance.
17B-2a-1106. Municipal services district board of trustees -- Governance.
(1) Notwithstanding any other provision of law regarding the membership of a special district board of trustees, the initial board of trustees of a municipal services district shall consist of the county legislative body.
(2)
(a) If, after the initial creation of a municipal services district, an area within the district is incorporated as a municipality as defined in Section 10-1-104 and the area is not withdrawn from the district in accordance with Section 17B-1-502 or 17B-1-505, or an area within the municipality is annexed into the municipal services district in accordance with Section 17B-2a-1103, the district's board of trustees shall be as follows:
(i) subject to Subsection (2)(b), a member of that municipality's governing body;
(ii) one member of the county council of the county in which the municipal services district is located; and
(iii) the total number of board members is not required to be an odd number.
(b) A member described in Subsection (2)(a)(i) shall be designated by the municipal legislative body.
(c) A municipal or county legislative body may appoint a member of the municipality's or the county's legislative body to act as an alternate member of the municipal services district board of trustees, to serve in place of the regular board member selected pursuant to Subsection (2)(a) or (b) during any period of time when the regular board member is absent, unable, or refuses to act as a member of the municipal services district board of trustees, provided that:
(i) the municipal or county legislative body adopts a resolution to make the appointment;
(ii) the alternate member meets all applicable statutory requirements to serve on the board of trustees;
(iii) the alternate member takes the oath of office and is covered by crime insurance as provided in Section 17B-1-303; and
(iv) the term of the alternate member will be identical to that of the board member described in Subsection (2)(a) who is appointed by the municipality's or the county's legislative body.
(d) Should a member of the board of trustees who is appointed pursuant to Subsection (2)(a) or (b) and the alternate board member selected as provided in Subsection (2)(c) both be present at a meeting or other official event of the municipal services district, the alternate board member may not act as a member of the board of trustees during the meeting or event.
(e) An alternate board member designated as provided in Subsection (2)(c) may not chair a meeting of the board of trustees unless only alternate board members are present at the anchor location.
(f) Compensation under Section 17B-1-307 may equitably be apportioned between a regular board member and an alternate board member.
(3)
(a) As used in this Subsection (3):
(i) "District participant" means:
(A) the county that created a municipal services district under Section 17B-2a-1105; or
(B) a municipality that is part of the municipal services district.
(ii) "Proportionate amount" means, for each district participant, the amount that is attributable to the district participant in proportion to the total amount attributable to all district participants.
(iii) "Trigger date" means the earliest of:
(A) the effective date of an annexation of an unincorporated island, as defined in Section 10-2-814, that occurs under Title 10, Chapter 2, Part 8, Annexation, excluding an automatic annexation under Section 10-2-814;
(B) the effective date of an incorporation of a community council area, as defined in Section 10-2a-102; and
(C) the effective date of an automatic annexation under Section 10-2-814.
(b) For a board of trustees described in Subsection (2), each board member's vote is weighted:
(i) until the trigger date, using the proportion of the municipal services district population that resides:
(A) for each member described in Subsection (2)(a)(i), within that member's municipality; and
(B) for the member described in Subsection (2)(a)(ii), within the unincorporated county; and
(ii) beginning the trigger date:
(A) 60% according to the proportionate amount of the combined total of sales tax revenue and revenue for B and C roads under Section 72-2-108;
(B) 30% according to the proportionate amount of weighted mileage, as defined in Section 72-2-108; and
(C) 10% according to the proportionate amount of population.
(4) The board may adopt a resolution providing for future board members to be appointed, as provided in Section 17B-1-304, or elected, as provided in Section 17B-1-306.
(5) Notwithstanding Subsections 17B-1-309(1) or 17B-1-310(1), the board of trustees may adopt a resolution to determine the internal governance of the board.
(6) The municipal services district and the county may enter into an agreement for the provision of legal services to the municipal services district.
Amended by Chapter 161, 2025 General Session
Amended by Chapter 399, 2025 General Session
Utah Code § 17B-2a-1107 Exclusion of rural real property.
17B-2a-1107. Exclusion of rural real property.
(1) As used in this section, "rural real property" means an area:
(a) zoned primarily for manufacturing, commercial, or agricultural purposes; and
(b) that does not include residential units with a density greater than one unit per acre.
(2) Unless an owner gives written consent, rural real property may not be included in a municipal services district if the rural real property:
(a) consists of 1,500 or more contiguous acres of rural real property consisting of one or more tax parcels;
(b) is not contiguous to but is used in connection with rural real property that consists of 1,500 acres or more contiguous acres of real property consisting of one or more tax parcels;
(c) is owned, managed, or controlled by a person, company, or association, including a parent, subsidiary, or affiliate related to the owner of 1,500 or more contiguous acres of rural real property consisting of one or more tax parcels; or
(d) is located in whole or in part in one of the following as defined in Section 17-41-101:
(i) an agricultural protection area;
(ii) a mining protection area; or
(iii) an industrial protection area.
(3)
(a) Subject to Subsection (3)(b), an owner of rural real property may withdraw consent to inclusion in a municipal services district at any time.
(b) An owner may withdraw consent by submitting a written and signed request to the municipal services district board of trustees that:
(i) identifies and describes the rural real property to be withdrawn; and
(ii) requests that the rural real property be withdrawn.
(c)
(i) No later than 30 days after the day on which the municipal services district board of trustees receives a request that complies with Subsection (3)(b), the board shall adopt a resolution withdrawing the rural real property as identified and described in the request.
(ii) The rural real property is withdrawn from and no longer in the jurisdiction of the municipal services district upon adoption of the resolution.
Amended by Chapter 352, 2015 General Session
Utah Code § 17B-2a-1108 Municipality required to remit local option sales and use tax.
17B-2a-1108. Municipality required to remit local option sales and use tax.
(1)
(a) A municipality located in whole or in part within a municipal services district shall remit to the municipal services district:
(i) an amount equal to the amount the municipality receives under Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; and
(ii) an amount equal to the amount of transportation funds the municipality receives under Section 72-2-108.
(b) The municipality shall remit to the municipal services district the amounts required in Subsection (1)(a) within 30 days after the day on which the municipality receives the funds identified in Subsections (1)(a)(i) and (1)(a)(ii).
(2) For purposes of Subsection (1)(a)(i), the amount of local sales tax a municipality is required to remit to a municipal services district is an amount:
(a) determined after subtracting amounts required under Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act, to be deducted from the amount a municipality would otherwise receive under Title 59, Chapter 12, Part 2, Local Sales and Use Tax Act; and
(b) representative of only those taxes collected in the area of the municipality that is also located within the municipal services district.
(3) For purposes of Subsection (1)(a)(ii), the amount of transportation funds a municipality is required to remit to a municipal services district is an amount equal to the amount of class B and class C road miles in that part of the municipality located within the municipal services district divided by the total class B and class C road miles in the municipality.
(4) If the municipal legislative body of a municipality located in whole or in part within a municipal services district adopts and delivers a resolution to withdraw in accordance with Subsection 17B-1-502(3)(a)(iii), the municipality shall only remit to the municipal services district the amounts described in Subsection (1) that relate to the period that the municipality is in the municipal services district, regardless of when the municipality receives those amounts.
Amended by Chapter 13, 2017 General Session
Utah Code § 17B-2a-1109 Counties and municipalities authorized to provide funds to a municipal services district.
17B-2a-1109. Counties and municipalities authorized to provide funds to a municipal services district.
(1) A county or, subject to Section 17B-2a-1108, a municipality involved in the establishment or operation of a municipal services district may fund the operation and maintenance of the district through the sharing of sales tax and other revenue for district purposes.
(2) A municipal services district may use sales tax or other revenue that the district receives from a county or a municipality under Subsection (1) to fund expenses and activities of a county or municipality that is part of the district.
Amended by Chapter 37, 2019 General Session
Utah Code § 17B-2a-1110 Withdrawal from a municipal services district upon incorporation -- Feasibility study required for city or town withdrawal -- Public hearing -- Notice -- Revenues transferred to municipal services district.
17B-2a-1110. Withdrawal from a municipal services district upon incorporation -- Feasibility study required for city or town withdrawal -- Public hearing -- Notice -- Revenues transferred to municipal services district.
(1)
(a) A municipality may withdraw from a municipal services district in accordance with Section 17B-1-502 or 17B-1-505, as applicable, and the requirements of this section.
(b) If a municipality engages a feasibility consultant to conduct a feasibility study under Subsection (2)(a), the 180 days described in Subsection 17B-1-502(3)(a)(iii)(A) is tolled from the day that the municipality engages the feasibility consultant to the day on which the municipality holds the final public hearing under Subsection (5).
(2)
(a) If a municipality decides to withdraw from a municipal services district, the municipal legislative body shall, before adopting a resolution under Section 17B-1-502 or 17B-1-505, as applicable, engage a feasibility consultant to conduct a feasibility study.
(b) The feasibility consultant shall be chosen:
(i) by the municipal legislative body; and
(ii) in accordance with applicable municipal procurement procedures.
(3) The municipal legislative body shall require the feasibility consultant to:
(a) complete the feasibility study and submit the written results to the municipal legislative body before the council adopts a resolution under Section 17B-1-502;
(b) submit with the full written results of the feasibility study a summary of the results no longer than one page in length; and
(c) attend the public hearings under Subsection (5).
(4)
(a) The feasibility study shall consider:
(i) population and population density within the withdrawing municipality;
(ii) current and five-year projections of demographics and economic base in the withdrawing municipality, including household size and income, commercial and industrial development, and public facilities;
(iii) projected growth in the withdrawing municipality during the next five years;
(iv) subject to Subsection (4)(b), the present and five-year projections of the cost, including overhead, of municipal services in the withdrawing municipality;
(v) assuming the same tax categories and tax rates as currently imposed by the municipal services district and all other current service providers, the present and five-year projected revenue for the withdrawing municipality;
(vi) a projection of any new taxes per household that may be levied within the withdrawing municipality within five years of the withdrawal; and
(vii) the fiscal impact on other municipalities serviced by the municipal services district.
(b)
(i) For purposes of Subsection (4)(a)(iv), the feasibility consultant shall assume a level and quality of municipal services to be provided to the withdrawing municipality in the future that fairly and reasonably approximates the level and quality of municipal services being provided to the withdrawing municipality at the time of the feasibility study.
(ii) In determining the present cost of a municipal service, the feasibility consultant shall consider:
(A) the amount it would cost the withdrawing municipality to provide municipal services for the first five years after withdrawing; and
(B) the municipal services district's present and five-year projected cost of providing municipal services.
(iii) The costs calculated under Subsection (4)(a)(iv) shall take into account inflation and anticipated growth.
(5) If the results of the feasibility study meet the requirements of Subsection (4), the municipal legislative body shall, at its next regular meeting after receipt of the results of the feasibility study, schedule at least one public hearing to be held:
(a) within the following 60 days; and
(b) for the purpose of allowing:
(i) the feasibility consultant to present the results of the study; and
(ii) the public to become informed about the feasibility study results, including the requirement that if the municipality withdraws from the municipal services district, the municipality must comply with Subsection (9), and to ask questions about those results of the feasibility consultant.
(6) At a public hearing described in Subsection (5), the municipal legislative body shall:
(a) provide a copy of the feasibility study for public review; and
(b) allow the public to express its views about the proposed withdrawal from the municipal services district.
(7)
(a) The municipal clerk or recorder shall publish notice of the public hearings required under Subsection (5) for the municipality, as a class A notice under Section 63G-30-102, for at least three weeks before the day of the first hearing described in Subsection (5).
(b) The notice under Subsection (7)(a) shall include the feasibility study summary and shall indicate that a full copy of the study is available for inspection and copying at the office of the municipal clerk or recorder.
(8) At a public meeting held after the public hearing required under Subsection (5), the municipal legislative body may adopt a resolution under Section 17B-1-502 or 17B-1-505, as applicable, if the municipality is in compliance with the other requirements of that section.
(9) The municipality shall pay revenues in excess of 5% to the municipal services district for 10 years beginning on the next fiscal year immediately following the municipal legislative body adoption of a resolution or an ordinance to withdraw under Section 17B-1-502 or 17B-1-505 if the results of the feasibility study show that the average annual amount of revenue under Subsection (4)(a)(v) exceed the average annual amount of cost under Subsection (4)(a)(iv) by more than 5%.
Amended by Chapter 438, 2024 General Session
Utah Code § 17B-2a-1111 Withdrawal of a municipality that changes form of government.
17B-2a-1111. Withdrawal of a municipality that changes form of government.
If a municipality after the 180-day period described in Subsection 17B-1-502(3)(a)(iii)(A) changes form of government in accordance with Title 10, Chapter 3b, Part 6, Changing to Another Form of Municipal Government, the municipality under the new form of government may withdraw from a municipal services district only in accordance with the provisions of Section 17B-1-505.
Amended by Chapter 438, 2024 General Session
Utah Code § 17B-2a-1112 Audit.
17B-2a-1112. Audit.
The board of trustees shall provide a copy of an accounting report, as defined in Section 51-2a-102, to each political subdivision that is provided municipal services by the municipal services district that is filed with the state auditor on behalf of the municipal services district in accordance with Section 51-2a-203.
Enacted by Chapter 352, 2015 General Session
Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title17B/Chapter2A/17B-2a-P11.html?v=C17B-2a-P11_2014040320140513Fetched: 10/26/2026