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Committee rejects bill to reduce tax-increment capture and duration for HTRZs

Utah State Senate Revenue and Taxation Committee
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Summary

The committee voted 1-2 Feb. 13 to defeat Senate Bill 243, a proposal to reduce developer tax-increment capture from 80% to 50% and shorten capture periods; supporters said the changes protect school funding while opponents warned the adjustments could make projects unviable.

Senate Bill 243, which proposed reducing the share and length of tax-increment capture for certain housing and transit reinvestment zones (HTRZs), failed in committee on a 1-2 roll-call vote Feb. 13.

The sponsor said the bill would lower captured increments from 80% to 50% and shorten default capture periods (25 to 15 years; 45 to 30 years) for future projects, arguing the current terms shift substantial revenue away from school districts. "These tax…

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