Salt Lake Tribune
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RDA-fund shield advances in House
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Legislation allowing school districts and other taxing agencies to shield their tax dollars from redevelopment agencies has moved forward.

Rep. John Dougall saw his RDA bill unanimously pass out of the House Political Subdivisions Committee on Monday. The bill is now awaiting debate by the full House.

In his House Bill 307, the American Fork Republican wants to require taxing entities - such as school districts and counties - to agree in writing to participate in an RDA in order to allow the agency to take their share of increased property taxes. If they don't, money intended for them cannot go to the RDA.

RDAs aim to bring life to blighted areas by allowing cities to use projected property-value increases to pay for improvements that in turn drive development. Left behind are those other taxing entities that could lose their share of new property taxes for as long as 30 years.

Schools officials believe they are the biggest losers because they depend on property taxes for their survival, but have a minority vote when it comes to blocking RDAs.

Another RDA-reform bill - Sen. Curtis Bramble's Senate Bill 184 - would prohibit communities from using RDA money to fund stadiums. It also blocks new RDAs for a year. SB184 is awaiting debate by the full Senate.

"The cities will try to weaken Dougall's bill," said Mike Jerman, vice president of the Utah Taxpayers Association. "We'll try to strengthen Bramble's bill when it comes over to the House."

- Jacob Santini

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