Convention Center Reinvestment Zone In A Capital City

Utah Code tit. 63N, ch. 63N-23, pt. 63N-23-P4

in effect

Utah Code § 63N-23-401 Applicability, requirements, and limitations on a convention center reinvestment zone in a capital city.

63N-23-401. Applicability, requirements, and limitations on a convention center reinvestment zone in a capital city. (1) A convention center reinvestment zone in a capital city proposal created under this part shall demonstrate how the proposal addresses the following objectives: (a) redevelopment of a convention center and the surrounding area's infrastructure and assets; (b) activation of unrealized economic opportunities related to the convention center and surrounding infrastructure and assets; (c) modernization of infrastructure and design of the convention center and surrounding area and related public spaces; (d) encouragement of transformative development and investment, including parking improvements; (e) promotion of economic development and employment opportunities; (f) improvement of the aesthetic, functionality, and walkability of the convention center and surrounding area; (g) enhancement of tourism opportunities; and (h) creation of an outdoor event space to accommodate events or festivals open to the public. (2) A convention center reinvestment zone in a capital city proposal created under this part shall also demonstrate how the proposal addresses the following objectives: (a) redevelopment of a convention center and surrounding infrastructure and assets that directly serve the convention center, including parking facilities; (b) modernization of infrastructure and design of the convention center; and (c) improvement of the aesthetic, functionality, and walkability of the convention center. (3) The Governor's Office of Economic Development shall propose a convention center reinvestment zone in a capital city to accomplish the objectives described in Subsections (1) and (2). (4) (a) A convention center reinvestment zone in a capital city proposal may propose the capture of 100% of the property tax increment and 100% of the sales and use tax increment described in Subsection 63N-23-101(40)(b)(ii) for a period of 30 years. (b) In addition to the proposed capture of property tax increment and sales and use tax increment described in Subsection (4)(a), the convention center reinvestment zone in a capital city may propose the capture of 50% of the sales and use tax increment described in Subsection 63N-23-101(40)(b)(i). (c) The convention center reinvestment zone in a capital city proposal shall include the respective start date and base year date from which to calculate: (i) the 30-year period of property tax increment; and (ii) the 30-year period of the sales and use tax increment. (d) The convention center reinvestment zone in a capital city proposal may not stagger the collection periods for the parcels within the convention center reinvestment zone boundary and the parcels within the convention center reinvestment zone boundary shall have the same 30-year collection period. (e) The convention center reinvestment zone in a capital city proposal start date for the 30-year period described in this Subsection (4), shall be no sooner than January 1 of the year of the identified tax collection year. (f) The revenue from the property tax increment and sales and use tax increment for a convention center reinvestment zone in a capital city shall be distributed directly to a convention center public infrastructure district in a capital city created under Section 63N-23-403. (g) The convention center public infrastructure district described in Subsection (4)(f) shall be created by an eligible municipality that is a capital city infrastructure district. (5) The Governor's Office of Economic Development may only propose a convention center reinvestment zone: (a) within the boundary of the eligible municipality; (b) consisting of a total area: (i) not to exceed 50 acres; or (ii) if greater than 50 acres, approved by the relevant eligible municipality; (c) consisting only of contiguous parcels; and (d) in an area that includes any portion of an existing convention center and any city block that is bordered by an existing convention center. (6) The Governor's Office of Economic Development shall propose a convention center reinvestment zone in a capital city on or before April 15, 2025. (7) A convention center reinvestment zone in a capital city does not count toward the maximum of eight housing and transit reinvestment zones in a given county as provided in Subsection 63N-23-201(7)(a). Enacted by Chapter 94, 2026 General Session

Utah Code § 63N-23-402 Process for proposing a convention center reinvestment zone in a capital city.

63N-23-402. Process for proposing a convention center reinvestment zone in a capital city. (1) To create a convention center reinvestment zone in a capital city under this part, the Governor's Office of Economic Development shall, after consulting with and giving notice to the related eligible municipality and county, provide a proposal for a convention center reinvestment zone in a capital city to the housing and transit reinvestment zone committee. (2) (a) The Governor's Office of Economic Development shall ensure that a proposal for the creation of a convention center reinvestment zone in a capital city includes the following information and data that: (i) defines the boundary of the proposed convention center reinvestment zone in a capital city; (ii) describes generally the proposed development plan; (iii) identifies a base year and collection period to calculate the property tax increment within the convention center reinvestment zone in a capital city; (iv) specifies a sales and use tax base year to calculate the sales and use tax increment within the convention center reinvestment zone in a capital city in accordance with Section 63N-23-406; (v) provides estimated project and investment objectives for the convention center reinvestment zone in a capital city; and (vi) outlines generally the impacts on transportation in and around the proposed convention center reinvestment zone in a capital city. (b) The proposal described in Subsection (2)(a) shall also provide estimated budgets and construction costs, anticipated revenue, financing, expenses, and other sources and uses of funds for the project area. (c) The proposal described in Subsection (2)(b) shall limit the use of funds to: (i) a convention center; (ii) a publicly owned entertainment venue; (iii) parking; and (iv) infrastructure related to the project. (3) A proposal by the Governor's Office of Economic Development for a convention center reinvestment zone in a capital city shall demonstrate how the information and data provided in the proposal described in Subsection (2) furthers the objectives described in Section 63N-23-401 and is in the public interest. (4) After submitting the proposal as described in Subsection (2), the Governor's Office of Economic Development shall provide notice of the proposal to all affected taxing entities, including the State Tax Commission, cities, counties, school districts, metropolitan planning organizations, and the county assessor and county auditor of the county in which the convention center reinvestment zone is located. (5) After receiving notice from the Governor's Office of Economic Development of a proposed convention center reinvestment zone in a capital city as described in Subsection (4), the State Tax Commission shall, within 14 days: (a) evaluate the feasibility of administering the tax implications of the proposal; and (b) provide a letter to the Governor's Office of Economic Development describing any challenges in the administration of the proposal, or indicating that the State Tax Commission can feasibly administer the proposal. Enacted by Chapter 94, 2026 General Session

Utah Code § 63N-23-403 Payment, use, and administration of revenue from a convention center reinvestment zone in a capital city.

63N-23-403. Payment, use, and administration of revenue from a convention center reinvestment zone in a capital city. (1) In accordance with this part: (a) a public infrastructure district shall use the funds from a convention center reinvestment zone in a capital city within or for the benefit of a convention center reinvestment zone in a capital city; and (b) funds from a convention center reinvestment zone in a capital city may be used outside of the capital city convention center reinvestment zone if the use meets the objectives described in Section 63N-23-401 and is determined by the board of the public infrastructure district to be a direct benefit to the convention center reinvestment zone in a capital city. (2) (a) A county that collects property tax on property located within a convention center reinvestment zone shall, in accordance with Section 59-2-1365, distribute to the relevant public infrastructure district created by the eligible municipality any property tax increment the public infrastructure district is authorized to receive up to the amounts approved by the housing and transit reinvestment zone committee. (b) Property tax increment paid to the public infrastructure district are convention center reinvestment zone funds and shall be administered by the public infrastructure district within which the convention center reinvestment zone is located. (c) Property tax increment distributed to a public infrastructure district in accordance with Subsection (2)(a) is not revenue of the taxing entity or municipality. (d) A public infrastructure district shall use convention center reinvestment zone funds to achieve the purposes described in Section 63N-23-401. (3) Convention center reinvestment zone funds may be used to pay all of the costs of debt incurred by the public infrastructure district, including the cost to issue and repay the debt including interest. (4) An eligible municipality that is a capital city shall create one or more public infrastructure districts within the convention center reinvestment zone under Title 17D, Chapter 4, Public Infrastructure District Act, and the convention center reinvestment zone funds may be used to pay all or any portion of debt incurred by the public infrastructure district, including the cost to issue and repay the debt including interest. Enacted by Chapter 94, 2026 General Session

Utah Code § 63N-23-404 Applicability to an existing community reinvestment project.

63N-23-404. Applicability to an existing community reinvestment project. For a convention center reinvestment zone in a capital city created under this part that overlaps any portion of an existing community reinvestment project area created in accordance with Title 17C, Limited Purpose Local Government Entities - Community Reinvestment Agency Act: (1) if the community reinvestment project area captures less than 100% of the property tax increment from a taxing entity, or if a taxing entity is not participating in the community reinvestment project area, the convention center reinvestment zone in a capital city may capture the difference between: (a) 100%; and (b) the percentage of property tax increment captured in accordance with the community reinvestment project area for each taxing entity; and (2) if a community reinvestment project area plan expires before the convention center reinvestment zone, the convention center reinvestment zone may capture the property tax increment allocated to the community reinvestment project area for any remaining portion of the term of the convention center reinvestment zone with the base year relating back to the base year established by the community reinvestment project area. Enacted by Chapter 94, 2026 General Session

Utah Code § 63N-23-405 Property tax increment protections.

63N-23-405. Property tax increment protections. (1) Upon petition by a participating taxing entity or on the initiative of the housing and transit reinvestment zone committee creating a housing and transit reinvestment zone or convention center reinvestment zone, a housing and transit reinvestment zone or convention center reinvestment zone may suspend or terminate the collection of property tax increment in a housing and transit reinvestment zone or convention center reinvestment zone if the housing and transit reinvestment zone committee determines, by clear and convincing evidence, presented in a public meeting of the housing and transit reinvestment zone committee, that: (a) a substantial portion of the property tax increment collected in the convention center reinvestment zone has not or will not be used for the purposes provided in Section 63N-23-403; and (b) (i) the convention center reinvestment zone and related public infrastructure district has no indebtedness secured by funds provided for in this chapter; or (ii) the convention center reinvestment zone and related public infrastructure district has no binding financial obligations secured by this chapter. (2) A convention center reinvestment zone may not collect property tax increment in excess of the property tax increment projections or limitations set forth in the convention center reinvestment zone proposal. (3) The public infrastructure district administering the property tax increment collected in a convention center reinvestment zone under Section 63N-23-403, shall have standing in a court with proper jurisdiction to enforce provisions of the convention center reinvestment zone proposal, participation agreements, and other agreements for the use of the property tax increment collected. (4) The public infrastructure district administering the property tax increment collected in a convention center reinvestment zone under Section 63N-23-403 that is collecting property tax increment shall follow the reporting requirements described in Section 17C-1-603 and the audit requirements described in Sections 17C-1-604 and 17C-1-605. (5) For each convention center reinvestment zone collecting tax increment within a county, the county auditor shall follow the reporting requirement found in Section 17C-1-606. Enacted by Chapter 94, 2026 General Session

Utah Code § 63N-23-406 Sales and use tax increment in a convention center reinvestment zone in a capital city.

63N-23-406. Sales and use tax increment in a convention center reinvestment zone in a capital city. (1) A convention center reinvestment zone in a capital city proposal shall, in consultation with the State Tax Commission: (a) create a sales and use tax boundary as described in Subsection (2); and (b) establish a sales and use tax base year to calculate and transfer the sales and use tax increment within the convention center reinvestment zone in a capital city 90 days after the date of the notice described in Subsection (5). (2) (a) The Governor's Office of Economic Development, in consultation with the State Tax Commission, shall establish a sales and use tax boundary that: (i) is based on state sales and use tax collection boundaries, which are determined using the ZIP Code as defined in Section 59-12-102, including the four digit delivery route extension; (ii) follows as closely as reasonably practicable the boundary of the convention center reinvestment zone; and (iii) is one contiguous area that includes at least the entire boundary of the convention center reinvestment zone. (b) If a state sales and use tax boundary is intersected by the boundary of the convention center reinvestment zone, the convention center reinvestment zone may include the entire state sales and use tax boundary. (c) The Governor's Office of Economic Development shall include the sales and use tax boundary in the convention center reinvestment zone proposal as described in Section 63N-23-401. (3) Beginning no sooner than January 1, 2026, and on the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone in a capital city is established, the State Tax Commission shall, at least annually, transfer an amount equal to 50% of the state sales and use tax increment and 100% of any local sales and use tax increment within an established sales and use tax boundary to the public infrastructure district created in accordance with Section 63N-23-403. (4) The Governor's Office of Economic Development may only propose one sales and use tax increment period and one sales and use tax base year for a convention center reinvestment zone established under this part. (5) (a) The distribution of the sales and use tax increment shall begin: (i) on the first day of a calendar quarter; (ii) after a 90-day waiting period, beginning on the date the State Tax Commission receives notice from the Governor's Office of Economic Development meeting the requirements of Subsection (5)(b); and (iii) no earlier than January 1, 2026, after the year set in the proposal of the approved convention center reinvestment zone. (b) The notice described in Subsection (5)(a) shall include: (i) a statement that the convention center reinvestment zone will be established under this part; (ii) the approval date and effective date of the convention center reinvestment zone; and (iii) the definitions of the sales and use tax boundary and sales and use tax base year. (6) The State Tax Commission may retain and deposit an administrative charge in accordance with Section 59-1-306 from sales and use tax revenues the State Tax Commission collects and administers under this section. Enacted by Chapter 94, 2026 General Session

Utah Code § 63N-23-407 Boundary adjustments.

63N-23-407. Boundary adjustments. If the relevant county assessor or county auditor adjusts parcel boundaries relevant to a convention center reinvestment zone in a capital city, the Governor's Office of Economic Development may make corresponding adjustments to the boundary of the convention center reinvestment zone in a capital city. Enacted by Chapter 94, 2026 General Session

Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title63N/Chapter23/63N-23-P4.html?v=C63N-23-P4_2026050620260506Fetched: 10/26/2026