Salt Lake City Code tit. 3, ch. 3.40 — ENTERPRISE FUND PAYMENT IN LIEU OF TAXES | City Code of Salt Lake City, Utah (2026 S-21: current through Ord. 49-26, passed September 15, 2026) — City of Salt Lake City

Salt Lake City Code § 3.40.010 SHORT TITLE

3.40.010: SHORT TITLE: This chapter shall be known as the ENTERPRISE FUND PAYMENT IN LIEU OF TAXES ORDINANCE OF SALT LAKE CITY. (Ord. 47-04 § 1, 2004)

Salt Lake City Code § 3.40.020 PURPOSE

3.40.020: PURPOSE: The water, golf, sewer, stormwater, refuse, and street lighting functions of the city are operated as enterprise funds, and the city's general fund receives no revenue from their use of city owned property. The city's objective in enacting this chapter is to fairly and equitably charge an amount in lieu of taxes for each of said enterprise funds' use of city owned property, as if said enterprise funds were operated as private entities and were paying real and personal property taxes as private businesses. (Ord. 28-20, 2020; Ord. 47-04 § 1, 2004)

Salt Lake City Code § 3.40.030 PAYMENT IN LIEU OF TAXES

3.40.030: PAYMENT IN LIEU OF TAXES: There is levied upon the city's water, golf, sewer, stormwater, refuse, and street lighting enterprise funds an annual payment in lieu of taxes based on the calculation of the value of assets within city limits held and used by each of said enterprise funds, using the income method of property evaluation. As suggested by the May 17, 1989, KPMG Peat Marwick report to the mayor and city council on charges for services between funds, for years subsequent to fiscal year 1990-1991, the payment in lieu of taxes shall be calculated using the income method of valuation for each said fund as follows: A. Net revenue shall be calculated by subtracting operating expenses from operating revenue. B. The asset value shall be calculated by dividing the net revenue by the capitalization rate of nine and one-half percent (91/2%). C. The payment in lieu of taxes shall be calculated by multiplying the asset value by the city's property tax rate. D. The sums due the city's general fund under this chapter for each fiscal year after 1990-1991 shall be determined by the city's finance department following the city's administrative policies and procedures and using audited financial data. Each said enterprise fund shall be notified of the pilot due in the city's budget, with payment due on or before December 30 of each year, beginning in 1990. (Ord. 28-20, 2020; Ord. 47-04 § 1, 2004)