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House approves ban on direct sales-tax rebates to retail developers, expands prohibition to counties
Summary
The House passed (64-1) a measure that bars municipalities and counties from using sales-tax revenue to directly rebate retail developers, while preserving use of tax revenue for public infrastructure; debate focused on whether the ban should cover oral agreements.
The Utah House on the floor adopted a second-substitute to Senate Bill 124, a measure that prevents cities and counties from giving sales-tax revenue directly to retail developers as inducements to locate in their jurisdictions. Representative Adams, sponsor of the substitute, said the change expands the original municipal-only bill to include counties at the request of local mayors and intends to stop a pattern of communities ‘‘zoning for dollars.’’
Opponents and questioners asked whether the bill would bar legitimate development agreements. Representative Adams replied the…
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