SB 336: Utah Fairpark Area Investment and Restoration District Modifications - Utah

Substitute #3 → Enrolled · 8 edits · Mar 27, 2025

MODERATE

This bill updates the Utah Fairpark Area Investment and Restoration District to prepare for a potential Major League Sports team by creating a new State Fair Park Authority, allowing the district to levy new taxes (accommodations and motor vehicle rentals), and enabling public infrastructure districts to issue bonds for stadium development. It also designates the district as a qualifying jurisdiction for tax data sharing and establishes stricter conflict of interest rules for board members.

Scope change

The bill expands the district's authority to include tax collection powers and the ability to create public infrastructure districts, while also adding new funding sources from state tax revenues.

FISCAL

Created a new State Fair Park Authority to replace the existing fair corporation, granting it powers to manage the state fair and oversee development.

Authorized the district to impose a new 15% accommodations tax on lodging and services within the district sales tax area.

Established a new 1.5% motor vehicle rental tax specifically for short-term leases within the district, effective after a franchise agreement is signed.

Allowed a newly created public infrastructure district to levy property taxes and issue bonds to fund stadium and utility development.

Designated the district as a 'qualifying jurisdiction' to receive specific tax revenue data from the State Tax Commission.

TIMELINE

Set the effective date for most provisions to May 7, 2025, with specific tax and sales/use tax provisions taking effect on July 1, 2025.

REQUIREMENT

Mandated annual conflict of interest disclosure statements for all board members, with specific penalties for non-compliance.

DEFINITION

Defined new terms including 'qualified stadium,' 'franchise agreement,' and 'enhanced property tax revenue' to guide future development and funding.

Introduced → Substitute #1 · 5 edits

MODERATE

This bill modifies the Utah Fairpark legislation to facilitate the development of multiple professional sports stadiums by lowering the minimum stadium capacity requirement from 30,000 to 18,000 seats and clarifying that multiple stadiums can be built. It also updates the timeline for a specific motor vehicle rental tax, changing the start date from July 1, 2025, to October 1, 2025, and expands the definition of public infrastructure to include hotels and hospitality facilities.

Scope change

The bill broadens the scope of the fairpark district to explicitly allow for the construction of multiple qualified stadiums and expands the definition of eligible public infrastructure projects to include hotels and hospitality facilities.

DEFINITION

The minimum capacity requirement for a 'qualified stadium' was lowered from 30,000 to 18,000 spectators to allow for the development of multiple stadiums.

The definition of 'public infrastructure and improvements' was expanded to explicitly include hotels, hospitality facilities, eating establishments, convention facilities, and other related facilities.

TIMELINE

The start date for a specific 1.5% motor vehicle rental tax was changed from July 1, 2025, to October 1, 2025.

REQUIREMENT

The process for expanding the fairpark district boundary was modified to require the host municipality to approve an amendment to an existing agreement rather than entering into a completely new agreement.

FISCAL

The allocation of enhanced property tax revenue to host municipalities was changed from a fixed 25% to a minimum of 25%, with the exact amount to be determined by agreement.

Substitute #2 → Substitute #3 · 9 edits

MAJOR

This bill modifies the Utah Fairpark Area Investment and Restoration District to create a new State Fair Park Authority that replaces the existing fair corporation. It broadens the district's powers to include public infrastructure districts that can levy property taxes and issue bonds, establishes conflict of interest disclosure requirements for board members, and designates the district as a qualifying jurisdiction for tax information sharing with the State Tax Commission. The bill also creates a new funding mechanism through a district sales tax area and modifies how enhanced property tax revenue is distributed to the district.

Scope change

The bill expands the scope of the Fairpark District's authority by enabling it to create public infrastructure districts with independent taxing power and broadens the district's ability to manage land use and stadium development projects.

DEFINITION

Created the State Fair Park Authority as a new independent nonprofit entity that replaces the dissolved fair corporation, with perpetual succession and public corporation status.

FISCAL

Established a new district sales tax area and accommodations tax (up to 15%) that the fairpark district can impose and collect, with revenue allocated to the district and potentially shared with counties.

Authorized the fairpark district to create public infrastructure districts that can levy property taxes at rates up to 0.015 and issue bonds for public utility infrastructure development.

Modified the Outdoor Adventure Infrastructure Restricted Account to allow 50% of excess revenue to be transferred to the fairpark district starting fiscal year 2025-2026.

REQUIREMENT

Requires annual conflict of interest disclosure statements from board members, with civil fines and misdemeanor penalties for non-compliance.

ELIGIBILITY

Designates the fairpark district as a qualifying jurisdiction that can receive tax information from the State Tax Commission, similar to counties and cities.

TIMELINE

Changed the effective date for certain provisions to May 7, 2025, and established a coordination clause to merge with S.B. 27 if both pass, effective July 1, 2026.

Extended the stadium contribution limit to $900,000,000 and established a 30-year minimum lease term for qualified stadiums with major league sports teams.

SCOPE

Broadened the district's land use authority to include privately owned land within the district boundary, subject to agreements with host municipalities.

Substitute #1 → Substitute #2 · 7 edits

MODERATE

This substitute bill modifies the Utah Fairpark Area Investment and Restoration District legislation to expand stadium development capabilities, clarify tax authority powers, and update definitions related to stadium contributions and qualified stadiums. The changes allow for multiple stadiums with lower capacity requirements, establish new conflict of interest disclosure requirements for board members, and designate the fairpark district as a qualifying jurisdiction for tax information sharing.

Scope change

The bill's scope expanded to include provisions for multiple qualified stadiums rather than a single stadium, and added coordination clauses for motor vehicle rental tax provisions.

DEFINITION

Changed the minimum capacity requirement for a 'qualified stadium' from 30,000 to 18,000 spectators to allow for smaller stadium development.

Modified the definition of 'stadium contribution' to allow for one or more stadiums rather than a single stadium, and clarified that it includes associated facilities like parking structures and lighting.

REQUIREMENT

Added annual conflict of interest disclosure requirements for fairpark board members, requiring submission by January 31 each year with public posting.

Established a process requiring board members to file annual conflict of interest disclosure statements with public posting requirements and penalties for non-compliance.

ELIGIBILITY

Designated the fairpark district as a qualifying jurisdiction that can receive tax information from the State Tax Commission.

FISCAL

Updated motor vehicle rental tax provisions to change the transition date from October 1, 2025 to a date based on franchise agreement execution, and added provisions for payment verification.

SCOPE

Added coordination clause to merge changes to Section 59-12-103 with S.B. 27 if both bills pass, ensuring consistent motor vehicle rental tax treatment.

Utah Fairpark Area Investment and Restoration District Modifications

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