H.B. 427: Tax Increment Financing Modifications

What the bill does

Did not pass both chambers; the bill was filed on March 6, 2026.

This bill modifies the process by which a public entity may utilize tax increment financing.

• Defines terms
• Beginning July 1, 2026, requires a public entity seeking to utilize tax increment to first: conduct an application authorization meeting; and submit an application to the Governor's Office of Economic Opportunity (office)
• Authorizes the office to review an application and: approve the application; or if the information in the application is unclear, vague, or demonstrably inaccurate, deny the application
• Authorizes a public entity that receives an approved application to begin the process to trigger and utilize tax increment
• Requires a public entity that receives more revenue from tax increment than anticipated to utilize the revenue to defease bonds or otherwise accelerate repayment of debt incurred by the public entity
• Requires the office to ensure certain information from an application is made publicly available

The description and list come from the bill's own long title as recorded by the Legislature. Read the official bill. The Ledger takes no position on it.

Subjects: Utah State Fair Corporation · Counties · Economic Development · Community Reinvestment Agencies · Municipalities · Limited Purpose Local Government Entities · Political Subdivisions (Local Issues) · State Tax Commission · Revenue and Taxation · Independent Entities · Utah Inland Port Authority · Governor's Office of Economic Opportunity · Military Installation Development Authority · Tax Increment Financing

How it moved

1. January 30, 2026 · House1st reading (Introduced)Rules Committee
2. March 6, 2026 · Housefiledfile for bills not passed

Steps as the Legislature recorded them; clerical and fiscal-staff entries are left out. Numbers such as 54-14-7 are yeas, nays and absent.

Fiscal note

From the Legislative Fiscal Analyst's note on H.B. 427, dated February 4, 2026. A fiscal note estimates direct costs and revenue; it is not an appropriation.

• State revenue: Enactment of this legislation could increase revenues in dedicated credits by $50,000 ongoing in FY 2027 to the Governor's Office of Economic opportunity from Local Government or Public Entities paying an application fee.
• State expenditures: Enactment of this bill may cost the Governor's Office of Economic Opportunity $50,000 ongoing in Dedicated Credits beginning in FY 2027 to review applications for utilizing tax increment financing. Additionally, enactment of this bill may cost the Governor's Office of Economic Opportunity $5,000 one-time from the General Fund in FY 2026 to set up an application portal and process for the new application.
• Local government: To the extent that a Local Government or Public Entity submit an application to utilize tax increment financing, the Governor's Office of Economic may establish an application fee and in aggregate it is estimated that Local Government or Public Entities may pay $50,000 ongoing in FY 2027.
• Individuals and businesses: Enactment of this legislation likely will not result in direct expenditures from tax or fee changes for Utah residents and businesses.

Bill overview

Sponsor: R. Neil Walter

Legislature passed-list status: Not available in the saved metadata.

Passed-list membership is not a finding that a bill was signed or took effect. A bill absent from that list is not necessarily pending or defeated.

Latest recorded action

filed
Action date: March 6, 2026

The full step list is above. Find the bill in the official session list for status, hearings and committee records.

Recorded floor votes

No floor-vote records for this bill and session are available here. This does not mean no vote occurred; consult the official bill record.

Ledger coverage

No Ledger stories with an explicit source link to this bill and session are listed here.