This document summarizes key economic development and tax-related issues addressed during the 2017 Utah legislative session. It discusses bills focused on transportation funding, justice reinvestment, homelessness, tax reform, land use and permitting, and economic incentives. The state budget increased funding for education, transportation infrastructure, homelessness, and criminal justice programs. Issues around regulating Airbnb, food trucks, business licensing, and economic development incentives faced debate. Questions are raised about the appropriate balance between state and local control, and how Utah can best promote business and coordinate its economic development efforts.

1. THE UTAH ALLIANCE FOR
ECONOMIC DEVELOPMENT
2 0 1 7 L E G I S L A T I V E S E S S I O N – T A X E S A N D
E C O N O M I C D E V E L O P M E N T

2. PLANNING AND DEVELOPMENT DRIVE
THE LEGISLATIVE SESSION
UTAH ASSOCIATION OF COUNTIES
Worked on Over 120 Bills in 45 Working Days
• Transportation Funding and Governance
• Justice Reinvestment
• Homelessness Funding
• Tax Reform Efforts
• Planning and Zoning (Numerous)
• Local Development Permitting (Numerous)
• Redevelopment Amendments (Numerous)
• Incentive Reform (Numerous)
• Just to name a few

3. YOU CAN TELL A LOT ABOUT SOMEONE’S PRIORITIES
BY LOOKING AT THEIR BUDGET
• Utah Budget: $16.1 Billion (Up $1B from 2016-17 budget)
• 4% increase in WPU for public education
• $1Billion bonding package for Transportation
• Concurrently with 12% reduction in GO Bond Debt
• Emphasis on homelessness and JRI population (County issues)
• Emphasis on Education and Infrastructure
• Big Issues for the Legislature
• Disruptive Innovation
• Air BNB
• Home-based Business
• On-Line Transactions and Tax Reform
• Tax Credit and Incentive Evaluation
• Big Issues by the Bodies
• HOUSE: Air BNB, Justice Reinvestment, Homelessness, Alcohol Reform
• SENATE: Marijuana, Criminal Justice Reform, Transportation Funding, Incentive Reform
• Governor
• Highlights the need to promote education as a part of our economic development
strategy

4. B R O A D T A X P O L I C Y
TAXES/TAX REFORM

5. TAX REFORM ISSUES
Online Sales Tax (SB110)
• Shrinking of the tax-base
• Fight over “new” tax or a collection effort
• Amazon voluntary collection of sales tax
Scrutiny of Tax Exemptions
• $426M in Exemptions (Reported this week)
• Aviation Fuel, Sale of Hay, Newspaper Sales, Vending
Machine Sales, Etc.
Review of Incentives (HB25)
• Staff pushing for performance-based matrix for any
new incentive
• Solar Power Installation
• Clean Energy/Car Purchase

6. R E G U L A T O R Y R E F O R M
ECONOMIC DEVELOPMENT
PRESSURE POINTS

7. EFFICIENCY VS. LOCAL CONTROL

8. PRESSURE POINTS
• SB81– Local Government Licensing
• Argument: Home-based business shouldn’t need regulation
unless they have an impact
• Argument: Licensing Fees are overly burdensome
• SB241-- Local Government Plan Review
• Argument: Local government is taking too long to regulate
development
• Argument: Development community willing to shoulder risk if
plan check isn’t completed
• SB250 – Food Truck Regulation
• Argument: Uniformity in regulation to promote growth
• Argument: Local regulation is too complicated and sporadic

9. “STATE AND CITIES IN POWER STRUGGLE OVER
LOCAL LAWS” – WALL STREET JOURNAL (APR 2017)
PRADA – PRISON
MIDA – MILITARY
NWQDA – MAYBE?
STATE AIRPORT – MAYBE?
STATE TRANSIT – MAYBE?

10. WH A T R O L E D O I N C E N T I V E S P L A Y ?
RDA

11. JUST A “SMALL” EFFORT TO UNWIND
TAX INCREMENT
HB339 and HB 424 – Affordable Housing
- How does affordable housing relate to economic
development
- Homelessness, JRI, Transitional Housing
- How do we tell this story?
SB139 and SB 142 – Educational Increment
- How much diversion is too much?
- What about the school kids
- Does the increment game really pay off?

12. AND THEN THERE IS ASSESSMENT AND
SPECIAL TAXING DISTRICTS
SB94– Taxing Districts
- What authority and accountability do these
districts have
- Board and openness reform
HB32 Assessment Area Reform
- How should they be used
- How can you protest them
- How do you determine the value of improvements
This Becomes a Finance Question

13. WH A T WO U L D L I N C O L N D O (W W L D )?
THE QUESTIONS I AM
ASKING MYSELF

14. QUESTIONS WE SHOULD BE ASKING?
Broad Policy: Stability in the tax base and how?
- Exemption Reform
- Tax Collection Efforts
- Modest Growth (Truth in Taxation)
- Sales Tax on Food
Regulatory Reform: How do we allow for local
character but streamline regulation
- Single business sign-on
- Coordinated licensure framework
- Ordinance evaluation
- Fees vs. Taxes for Developmental regulation
- Chamber’s Business Friendly City/County Guide

15. QUESTIONS WE SHOULD BE ASKING?
CONTINUED
The Incentive Game: Who is on first base?
- How do the incentives interact with one another?
- How do we measure success of incentives?
- What exactly are we trying to incent?
- Is our current tool box sufficient?
Financing the Deal
- How do you bring $ to the front of the transaction?
- What tools do we have and do they really work?
Biggest Question:
- How do we tell the economic development story?
- How do we get the “players” together to start
mapping out a strategy?

16. COMMUNICATION AND COORDINATION
Call Me Any Time
801-712-4891 (cell)
lincoln@uacnet.org