This bill did not receive a vote.
With the exception of Arizona, Tax Increment Financing (TIF) is a tool available to all state and local governments that enables them to award tax breaks to certain companies who expand or relocate their facilities.
If Tax Increment Financing was used to rehabilitate areas blighted from environmental disaster or were limited to reimbursing the cost of demolishing old buildings, it could be tolerated — or even supported. However, because Tax Increment Financing is routinely authorized by governments for a wide variety of projects and could use greater transparency, TIF reform is in the works for Utah this session.
House Bill 557, sponsored by Representative James Dunnigan, codifies some of the reform recommendations resulting from a recently conducted audit of TIF by the Utah Office of the Legislative Auditor General. They include:
- Requiring a study to determine if TIF is necessary to justify a development.
- Making TIF fund balances and expenditures publicly available.
- Providing better guidance on what to do with unused funds.
These adjustments to state law are welcome and will hopefully result in more judicious use of TIF in Utah.
