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House raises population caps for enterprise-zone incentives and sends HB 87 to Senate
Summary
The House passed HB 87 to increase population thresholds for enterprise-zone eligibility (counties to 70,000; cities to 20,000) to keep growing rural communities eligible; the bill passed 73–0 after floor questioning about the fiscal note.
The Utah House of Representatives passed HB 87 on Feb. 10, a bill that adjusts population thresholds for participation in the state’s enterprise zone incentive program to reflect local growth. The bill, as amended on the floor, raises the county eligibility cap to 70,000 and the city cap to 20,000; supporters said the change prevents communities that previously qualified from being excluded solely due to population growth.
Representative Bridal, the bill sponsor, said no new counties or cities that have not previously participated would be added; rather, the change resets the thresholds so communities that have historically used enterprise-zone incentives can continue to do so as populations increase. He said the adjustment aims to incentivize business location outside heavily populated Wasatch Front counties and to ease road and air-quality pressures.
Representative Fred Cox asked whether the fiscal note is properly allocated, noting that the roughly $750,000 fiscal impact shown in the analyst’s note is charged to education rather than to other appropriate sources. The sponsor responded that the fiscal note does not capture longer-term economic benefits (such as increased income or property tax revenue) and that, by the fiscal analyst’s design, such benefits are not accounted for in the immediate fiscal estimate.
Representative Nelson, representing rural interests, said she supported the bill because several counties and cities had outgrown prior statutory limits and deserve to remain eligible for incentives that promote local economic development.
The House voted to pass HB 87 as amended by a recorded vote of 73 yes, 0 no. The bill will be transmitted to the Senate for consideration.
Sources and attribution: All attributions are drawn from the Feb. 10 House floor transcript; fiscal-note values are as described on the floor and should be confirmed with the official fiscal analyst’s documents.
