Sign Up
SB 243 Utah Senate · 2026 General Session

Tax Increment Amendments

SB 243 amends tax increment financing rules for public transit-oriented developments in designated counties. It limits new projects to a 1/3-mile radius of transit hubs, restricts total project area to 125 noncontiguous acres, and caps the capture of property tax increases at 50% (not 80%) over a 15-year period per parcel. These changes apply specifically to projects approved under the bill's framework within a 30-year overall timeline. The bill is currently pending in the Senate Rules Committee after committee recommendations failed.
Issues: ✗ Budget & TaxesOpposes Budget & TaxesCaps tax increment capture at 50% (down from 80%), restricting TIF use for transit projects and limiting tax revenue diversion from general funds.95% confidence ✗ HousingOpposes HousingRestricts development size (125 acres), radius (1/3-mile), and reduces tax capture cap (50% vs 80%), limiting transit-oriented housing project viability.85% confidence ✓ TransportationSupports TransportationAmends tax rules to incentivize transit-oriented developments within 1/3-mile of hubs, capping tax capture to fund transit infrastructure expansion.95% confidence
Bill status failed 1 of 4 stages cleared
Introduction
Feb 2026
Committee Review
Floor Vote
Governor
Introduced Feb 3, 2026 Last action Mar 7, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

Amended Excerpts 3/4/2026 19:03:156 → Amended 3/4/2026 19:03:156 · 5 edits
MODERATE
This bill amends Utah's housing and transit reinvestment zone laws to update requirements for affordable housing percentages, increase density standards, and adjust the duration of property tax increments. The changes aim to better align development incentives with transit-oriented goals and ensure more affordable housing units are included in new projects.
Scope change
The bill modifies the applicability of tax increment financing for housing and transit reinvestment zones, specifically changing the percentage of affordable housing required and the maximum duration for capturing property tax increments.
REQUIREMENT

Changed the maximum property tax increment capture rate from 80% to 50% for public transit counties.

Added new objectives requiring at least 12% of dwelling units to be affordable, with specific allocations for 80% and 60% of median income households.

Added density requirements mandating at least 51% residential use and an average of 50 dwelling units per acre in residential areas.

Added new objectives for improving parking efficiencies, conserving water, improving air quality, and increasing access to childcare.

TIMELINE

Reduced the maximum term for property tax increment capture from 25 years to 15 years and shortened the overall period from 45 years to 30 years.

Floor votes

How they voted

No floor votes recorded yet.
Full legislative history

Actions timeline

Total actions
16
Key actions
2
Committee
2
Amendments
2
Mar 5, 2026
Upper · Passed
Senate/ comm rpt/ sent to Rules/ amended [Senate Rules Committee]
upper
Mar 4, 2026
Upper · Passed
Senate Comm - Recommends Returned to Rules [Senate Revenue and Taxation Committee]
upper
Feb 13, 2026
Introduced
Senate Comm - Amendment Recommendation [Senate Revenue and Taxation Committee]
upper
Feb 4, 2026
Committee
Senate/ to standing committee [Senate Revenue and Taxation Committee]
upper
Feb 3, 2026
Introduced
Senate/ 1st reading (Introduced)
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Kathleen Riebe
Kathleen Riebe
DDemocratic
UT
15