Tax Increment Financing Modifications

HB 427 modifies Utah's tax increment financing (TIF) process for public entities like cities, counties, and special districts. Starting July 1, 2026, these entities must hold a public meeting to discuss their TIF application and submit it to the Governor's Office of Economic Opportunity for review. The bill requires applicants to include a "but-for analysis" proving the project needs TIF to proceed, and mandates that excess TIF revenue must be used to pay down debt instead of general funds. It also requires public disclosure of application details and defines key terms to standardize the process. This bill affects local governments seeking to fund development projects using future tax revenue growth.