Recently, the Legislature has been active in the expansion or creation of designated areas which utilize funding mechanisms such as taxing authority, redirected revenue, and bonding capacity to achieve public purposes for a broad audience of Utah taxpayers. In exchange for these financial benefits, the local districts are tasked with furthering goals such as urban revitalization, economic development, and cultural enhancement.
One such area is the Sports, Entertainment, Culture, and Convention District (SECC) originally authorized by S.B. 272, “Capital City Revitalization Zone” (2024 General Session). The legislation allowed the state’s capital city to implement a 0.5% sales tax and designate a public infrastructure district to levy property tax. Since then, Salt Lake City has entered into a participation agreement with the Smith Entertainment Group which lays out the plan for the use of funds. Under the terms of the agreement, the project participant agreed to use funds raised from bonding against the sales tax increment to revitalize a three-block area which includes the Delta Center. Additionally, Smith Entertainment Group agreed to contribute to a public benefit account, support workforce development and community initiatives, create public gathering spaces within the district, and refrain from moving any professional basketball or hockey teams out of the Delta Center while the agreement is in effect.
Sports, Entertainment, Culture, and Convention District
| State Authorized Funding Mechanisms | Public Purposes |
|---|---|
| Sales Tax Authority | Urban Redevelopment |
| Property Tax Authority | Workforce Expansion |
| Public Infrastructure Investments |
Another example, the Utah Fairpark Area Investment and Restoration District (UFAIR) is set up somewhat differently from the SECC. Instead of granting taxing authority to an existing political subdivision of the state, H.B. 562, “Utah Fairpark Area Investment and Restoration District” (2024 General Session) created UFAIR as a new, independent political subdivision aimed at developing the land within its borders for public benefit. More specifically, UFAIR was tasked with developing a sports stadium and supporting infrastructure, restoring the area around the Jordan river, and other improvements to State Fair Park Authority property. To facilitate these efforts, the state exempted construction materials used in the sports stadium from sales tax, redirected tax on sales within the district to the Authority, and authorized the collection of enhanced property taxes as well as several consumption taxes (including Transient Room Tax).
Utah Fairpark Area Investment and Restoration District
| State Authorized Funding Mechanisms | Public Purposes |
|---|---|
| Sales Tax Revenue + Exemptions | Sports Stadium |
| Consumption Tax Authorization | Jordan River Restoration |
| Enhanced Property Tax | Public Infrastructure Improvements |
Among the benefits of creating local districts is that the State can improve public goods and services while expending little or no financial or administrative resources. When contemplating the creation of a local district, it pays to carefully consider what powers the district is allowed, how it is to finance itself, and what oversight mechanisms should be in place to ensure accountability to Utah’s taxpayers.
Speaking of Sales Tax, you may be interested in the latest revenue collections, available here:
June Revenue Snapshot (FY 25)
Tax Commission Revenue Summary (Period 11, FY 2025)
Revenue Publications Archive