Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Transportation Utility Fee Legislation topic
No spam. Unsubscribe anytime.
Provo staff brief council on two bills that could reshape local transportation-utility fees; churches and other tax-exempt properties singled out
Summary
Public works staff reviewed House Bill 454 and Senate Bill 310, which would codify transportation-utility fees (TUF) and — in one version — exempt religious nonprofit properties; staff cautioned a Senate proposal exempting churches could reduce Provo’s current TUF revenue by about $251,000 annually.
Public-works staff and city legal advisers briefed the council on two bills pending at the Utah Legislature that would affect municipal transportation-utility fees (TUF), and showed preliminary estimates of the revenue impact if a bill exempting religious nonprofit properties becomes law.
Vern (public-works presenter) summarized House Bill 454, sponsored by Rep. Karen Peterson, which would codify municipal authority to establish TUFs, require transparent processes and public notice, and allow classification of users. The bill would require an annual report to the state auditor, allow capital projects to be funded by TUFs, and include a 10‑year statutory sunset with a required reassessment. The bill also contemplates reduced rates for entities that generate limited use (for example, houses of worship with three or fewer operating days in a given period), depending on how classifications are applied.
Staff also described Senate Bill 310 (Sen. Brammer), which, in the version discussed, would exempt religious nonprofit properties from TUF entirely. City analysis prepared for the council estimated that exempting churches, BYU and the Missionary Training Center (all tax-exempt religious properties identified in the review) would reduce Provo’s current annual TUF revenue by roughly $251,000 — about 10% of the city’s modeled TUF yield under staff’s current rate structure. The city’s model uses a classification system with three categories and multiple sub-classes that staff said distributes fees to better reflect usage.
Staff stressed that the council’s current TUF study — slated for a full presentation on March 25 — includes options for classifications, appeals and exemptions. They noted the Utah League of Cities and Towns is engaged and that the league’s position varies by bill: House Bill 454 attracted house-level support while the senate proposal drew league opposition because of the proposed broad exemption for religious nonprofits.
Councilors asked how an exemption would be administered and whether the county or other taxing entities would be affected. Staff said the proposed bills are at different stages: House Bill 454 had cleared house committee steps; SB 310 was in senate committee. Staff said they will return with the TUF study and updated financial impacts at the March 25 meeting.
