Fiscal Note
H.B. 562 1st Sub. (Buff)
2024 General Session Utah Fairpark Area Investment and Restoration District by Wilcox, R. (Wilcox, Ryan.)
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total Net GF/ITF/USF (rev.-exp.) $(133,900) $(10,100) $(144,000)
State Government UCA 36-12-13(2)(c)
Revenues FY 2024 FY 2025 FY 2026
Dedicated Credits Revenue $0 $3,776,900 $2,033,000
Total Revenues $0 $3,776,900 $2,033,000
Enactment of this legislation could increase revenue to the General Fund by $1.8 million ongoing beginning in the fiscal year a lease agreement is initiated between the Fairpark district and a major league sports team due to lease payments of $150,000 per month. The lease would exist for a term of
30 years (360 months). The bill could redirect $2.55 million in future ongoing income tax revenue from the Income Tax Fund to the At Risk Student Account created by this bill beginning when non-resident professional athletes earn income within the Fairpark District. Further, it could forego $52.4 million in
sales tax revenue over the term of stadium construction due to the tax exemption for materials used in
the construction of a qualified stadium, $39.3 million of which being General Fund revenue and $13.1
million being sales tax earmarks.
Enactment of the bill could increase dedicated credits revenue for the State Auditor''s Office by
$75,000 ongoing beginning in fiscal year (FY) 2026 for the Fairpark District''s financial audit services.
It could increase dedicated credits revenue to the Department of Government Operations Division of
Finance by $1,818,900 one-time and $1,958,000 ongoing beginning in FY 2025.
Expenditures FY 2024 FY 2025 FY 2026
General Fund $0 $133,900 $133,900
General Fund, One-time $0 $10,100 $0
Dedicated Credits Revenue $0 $3,776,900 $2,033,000
Total Expenditures $0 $3,920,900 $2,166,900
Enactment of this legislation could cost the Department of Government Operations Division of Finance
H.B. 562 1st Sub. (Buff)
$1,818,900 one-time and $1,958,000 ongoing in dedicated credits beginning in FY 2025 for financial systems and services. It could increase current expense costs for the State Auditor''s Office by
$75,000 ongoing from dedicated credits beginning in FY 2026 for the Fairpark District''s financial audit services. It could cost the Tax Commission $67,000 in FY 2025 and $133,900 ongoing beginning in
fiscal year 2026 from the General Fund for staff costs to administer the provisions of the legislation.
The bill could also cost the Tax Commission $77,000 one-time from the General Fund in fiscal year
2025 for system updates to administer the provisions of the legislation.
2024/02/26 09:06, Lead Analyst: Jared Gibbs Attorney: RHR
 FY 2024 FY 2025 FY 2026
Net All Funds $0 $(144,000) $(133,900)
Local Government UCA 36-12-13(2)(c)
Enactment of this legislation could cost the Fairpark District an estimated $600 for per diem and travel reimbursement per board or loan committee meeting; aggregate amount unknown.
The legislation could cost the District $1,818,900 one-time and $1,958,000 ongoing beginning in FY
2025 for accounting, payroll, software, and systems from the Division of Finance. It could cost the District $75,000 ongoing beginning in FY 2026 for current expenses related to financial audit services from the Utah State Auditor.
To the extent that the Fairpark District uses services from the Department of Government Operations,
it could cost the District:
1. $10,000 annually per vehicle requested for fleet services from the Division of Fleet Operations;
2. $480 per user and $2,200 per device annually for computer and network services from the Division of Technology Services;
3. $1,000 annually per full time equivalent employee for personnel management services from the Division of Human Resource Management.
The aggregate amount of these costs is unknown.
The bill could cost the Fairpark District up to $900 million for the development and construction of a qualified stadium following the initiation of a project area plan.
Enactment of this legislation could increase revenue to the Fairpark District by $5.51 million ongoing beginning in fiscal year 2025 due to enhanced property tax collections.
To the extent that the District chooses to levy these taxes, enactment of this legislation could increase revenue to the Fairpark District and decrease revenue to Salt Lake City ongoing beginning in fiscal year 2025 by:
1. between $3,000 and $10,000 from energy sales and use taxes;
2. between $10,000 and $20,000 from municipal telecommunications license taxes.
Enactment of this legislation could increase revenue to the Fairpark District by an unknown amount ongoing beginning in fiscal year 2025 due to privilege tax revenue from the use of state-owned land within the district, accommodation tax collections, and resort communities sales tax collections.
Enactment of this legislation could increase revenue to the Fairpark District following the execution of
a franchise agreement with a major league sports team by $6.05 million ongoing due to tax collections on short term lease and rental of vehicles and by $38.4 million ongoing due to tax collections on short term rental accommodation not exceeding 30 consecutive days.
The bill could increase revenue to counties of the fourth, fifth, and sixth class by $2.4 million ongoing beginning in FY 2025 due to tax collections on short term rental accommodation not exceeding 30
consecutive days. Total revenue would be distributed to counties in proportion to their populations.
This revenue may only be spent on emergency medical services and search and rescue activities.
Due to the legislation, Salt Lake City and County could over the term of stadium construction forgo the
H.B. 562 1st Sub. (Buff)
following due to the tax exemption for materials used in the construction of a qualified stadium:
1. $10.8 million (Salt Lake City) and $2.7 million (Salt Lake County) in sales tax revenue;
2. an aggregate of $17.8 million in sales tax revenue to restricted accounts.
2024/02/26 09:06, Lead Analyst: Jared Gibbs Attorney: RHR
Individuals & Businesses UCA 36-12-13(2)(c)
Enactment of this legislation could cost a major league sports team $1.8 million ongoing beginning in
the fiscal year a lease agreement is initiated between the Fairpark district and a major league sports team due to lease payments of $150,000 per month. The lease would exist for a term of 30 years (360
months).
Enactment of this legislation could increase the aggregate tax paid by individuals for short term rental accommodation not exceeding 30 consecutive days by $2.6 million dollar beginning in fiscal year 2025
due to a statewide increase in the tax rate. This aggregate would increase to $41 million following the execution of a franchise agreement with a major league sports team due to an additional increase in
the tax rate.
Enactment of this legislation could increase the aggregate tax paid by individuals for short term lease or rental of vehicles by $6.05 million ongoing following the execution of a franchise agreement with a major league sports team due to tax collections on short term lease and rental of vehicles.
Enactment of this legislation could increase the aggregate taxes paid by individuals by an unknown amount ongoing beginning in fiscal year 2025 due to accommodation tax collections.
Enactment of this legislation could increase the aggregate taxes paid by individuals by an unknown amount ongoing beginning in fiscal year 2025 due to resort communities sales tax collections.
Regulatory Impact UCA 36-12-13(2)(d)
Enactment of this legislation likely will not change the regulatory burden for Utah residents or
businesses.
Performance Evaluation JR1-4-601
This bill does not create a new program or significantly expand an existing program.
Notes on Notes Fiscal notes estimate the direct costs or revenues of enacting a bill. The Legislature uses them to balance the budget. They do not measure a bill's benefits or non-fiscal impacts like opportunity costs, wait times, or inconvenience. A fiscal note is not an appropriation. The Legislature decides appropriations separately.
H.B. 562 1st Sub. (Buff)
2024/02/26 09:06, Lead Analyst: Jared Gibbs Attorney: RHR


Statutes affected:
Introduced: 10-1-203, 10-1-303, 10-1-304, 10-1-310, 10-1-403, 11-68-201, 11-68-202, 11-68-403, 11-68-502, 17-22-5.5, 17D-4-102, 59-2-924, 59-4-101, 59-12-104, 59-12-352, 59-12-354, 59-12-401, 59-12-402, 59-12-1201, 63A-3-401.5, 63A-3-402, 63C-25-101, 63C-25-202
Enrolled: 10-1-203, 10-1-303, 10-1-304, 10-1-310, 10-1-403, 11-68-201, 11-68-202, 11-68-403, 11-68-502, 17-22-5.5, 17D-4-102, 59-2-924, 59-4-101, 59-12-103, 59-12-104, 59-12-352, 59-12-354, 59-12-401, 59-12-402, 59-12-1201, 63A-3-401.5, 63A-3-402, 63C-25-101, 63C-25-202
H.B. 562 1st Substitute : 10-1-203, 10-1-303, 10-1-304, 10-1-310, 10-1-403, 11-68-201, 11-68-202, 11-68-403, 11-68-502, 17C-1-407, 17D-4-102, 59-2-924, 59-4-101, 59-10-544, 59-12-104, 59-12-352, 59-12-354, 59-12-401, 59-12-402, 59-12-1201, 59-28-103, 63A-3-401.5, 63A-3-402, 63C-25-101, 63C-25-202