02-21 15:21 S.B. 322
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Municipality Annexation and Incorporation Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin R. Musselman
House Sponsor:
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LONG TITLE
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General Description:
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This bill modifies provisions related to municipal annexation and incorporation.
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Highlighted Provisions:
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This bill:
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▸ requires an annexation policy plan to include a statement regarding:
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● the current county zoning of an unincorporated area proposed for annexation; and
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● the zoning likely to be applied, should the unincorporated area be annexed to the
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municipality, to the unincorporated area proposed for annexation;
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▸ prohibits a municipality from zoning in an affected area in a manner that results in the
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affected area being utilized in a more restrictive way than before the affected area was
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annexed into the municipality, for at least one year following the date of annexation;
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▸ requires a municipal legislative body to establish by ordinance a process to compensate a
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property owner for a reduction in property value following an annexation or
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incorporation and subsequent zoning for a more restrictive use of the property; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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10-2-401.5, as last amended by Laws of Utah 2021, Chapter 112
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10-2-425, as last amended by Laws of Utah 2024, Chapters 342, 438
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ENACTS:
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10-2-430, Utah Code Annotated 1953
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10-2a-221, Utah Code Annotated 1953
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10-2a-511, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 10-2-401.5 is amended to read:
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10-2-401.5 . Annexation policy plan.
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(1) No municipality may annex an unincorporated area located within a specified county
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unless the municipality has adopted an annexation policy plan as provided in this section.
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(2) To adopt an annexation policy plan:
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(a) the planning commission shall:
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(i) prepare a proposed annexation policy plan that complies with Subsection (3);
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(ii) hold a public meeting to allow affected entities to examine the proposed
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annexation policy plan and to provide input on it;
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(iii) provide notice of the public meeting under Subsection (2)(a)(ii) to each affected
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entity at least 14 days before the meeting;
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(iv) accept and consider any additional written comments from affected entities until
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10 days after the public meeting under Subsection (2)(a)(ii);
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(v) before holding the public hearing required under Subsection (2)(a)(vi), make any
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modifications to the proposed annexation policy plan the planning commission
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considers appropriate, based on input provided at or within 10 days after the
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public meeting under Subsection (2)(a)(ii);
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(vi) hold a public hearing on the proposed annexation policy plan;
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(vii) provide reasonable public notice, including notice to each affected entity, of the
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public hearing required under Subsection (2)(a)(vi) at least 14 days before the date
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of the hearing;
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(viii) make any modifications to the proposed annexation policy plan the planning
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commission considers appropriate, based on public input provided at the public
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hearing; and
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(ix) submit the planning commission's recommended annexation policy plan to the
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municipal legislative body; and
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(b) the municipal legislative body shall:
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(i) hold a public hearing on the annexation policy plan recommended by the planning
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commission;
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(ii) provide reasonable notice, including notice to each affected entity, of the public
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hearing at least 14 days before the date of the hearing;
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(iii) after the public hearing under Subsection (2)(b)(ii), make any modifications to
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the recommended annexation policy plan that the legislative body considers
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appropriate; and
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(iv) adopt the recommended annexation policy plan, with or without modifications.
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(3) Each annexation policy plan shall include:
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(a) a map of the expansion area which may include territory located outside the county
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in which the municipality is located;
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(b) a statement of the specific criteria that will guide the municipality's decision whether
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or not to grant future annexation petitions, addressing matters relevant to those
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criteria including:
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(i) the character of the community;
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(ii) the need for municipal services in developed and undeveloped unincorporated
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areas;
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(iii) the municipality's plans for extension of municipal services;
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(iv) how the services will be financed;
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(v) an estimate of the tax consequences to residents both currently within the
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municipal boundaries and in the expansion area;[ and]
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(vi) the interests of all affected entities;
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(vii) the current county zoning of the unincorporated area proposed for annexation;
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and
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(viii) the zoning likely to be applied, should the unincorporated area be annexed to
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the municipality, to the unincorporated area proposed for annexation;
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(c) justification for excluding from the expansion area any area containing urban
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development within 1/2 mile of the municipality's boundary; and
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(d) a statement addressing any comments made by affected entities at or within 10 days
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after the public meeting under Subsection (2)(a)(ii).
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(4) In developing, considering, and adopting an annexation policy plan, the planning
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commission and municipal legislative body shall:
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(a) attempt to avoid gaps between or overlaps with the expansion areas of other
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municipalities;
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(b) consider population growth projections for the municipality and adjoining areas for
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the next 20 years;
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(c) consider current and projected costs of infrastructure, urban services, and public
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facilities necessary:
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(i) to facilitate full development of the area within the municipality; and
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(ii) to expand the infrastructure, services, and facilities into the area being considered
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for inclusion in the expansion area;
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(d) consider, in conjunction with the municipality's general plan, the need over the next
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20 years for additional land suitable for residential, commercial, and industrial
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development;
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(e) consider the reasons for including agricultural lands, forests, recreational areas, and
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wildlife management areas in the municipality; and
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(f) be guided by the principles set forth in Subsection 10-2-403(5).
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(5) Within 30 days after adopting an annexation policy plan, the municipal legislative body
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shall submit a copy of the plan to the legislative body of each county in which any of the
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municipality's expansion area is located.
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(6) Nothing in this chapter may be construed to prohibit or restrict two or more
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municipalities in specified counties from negotiating and cooperating with respect to
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defining each municipality's expansion area under an annexation policy plan.
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Section 2. Section 10-2-425 is amended to read:
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10-2-425 . Filing of notice and plat -- Recording and notice requirements --
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Effective date of annexation or boundary adjustment.
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(1) As used in this section:
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(a) "Annexation action" means:
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(i) the enactment of an ordinance annexing an unincorporated area;
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(ii) an election approving an annexation under Section 10-2a-404;
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(iii) the enactment of an ordinance approving a boundary adjustment by each of the
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municipalities involved in the boundary adjustment; or
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(iv) an automatic annexation that occurs on July 1, 2027 under Subsection 10-2-429
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(2)(b).
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(b) "Applicable legislative body" means:
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(i) the legislative body of each municipality that enacts an ordinance under this part
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approving the annexation of an unincorporated area or the adjustment of a
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boundary; or
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(ii) the legislative body of a municipality to which an unincorporated island is
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automatically annexed under Section 10-2-429.
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(2) An applicable legislative body shall:
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(a) within 60 days after an annexation action, file with the lieutenant governor:
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(i) a notice of an impending boundary action, as defined in Section 67-1a-6.5, that
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meets the requirements of Subsection 67-1a-6.5(3);
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(ii) a copy of an approved final local entity plat, as defined in Section 67-1a-6.5; and
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(iii) if applicable, a copy of an agreement under Subsection 10-2-429(2)(a)(ii);
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(b) upon the lieutenant governor's issuance of a certificate of annexation or boundary
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adjustment, as the case may be, under Section 67-1a-6.5:
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(i) if the annexed area or area subject to the boundary adjustment is located within the
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boundary of a single county, submit to the recorder of that county the original
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notice of an impending boundary action, the original certificate of annexation or
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boundary adjustment, the original approved final local entity plat, and a certified
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copy of the ordinance approving the annexation or boundary adjustment; or
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(ii) if the annexed area or area subject to the boundary adjustment is located within
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the boundaries of more than a single county:
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(A) submit to the recorder of one of those counties the original notice of
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impending boundary action, the original certificate of annexation or boundary
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adjustment, and the original approved final local entity plat;
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(B) submit to the recorder of each other county a certified copy of the documents
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listed in Subsection (2)(b)(ii)(A); and
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(C) submit a certified copy of the ordinance approving the annexation or boundary
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adjustment to each county described in Subsections (2)(b)(ii)(A) and (B); and
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(c) concurrently with Subsection (2)(b):
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(i) send notice of the annexation or boundary adjustment to each affected entity; and
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(ii) in accordance with Section 53-2d-514, file with the Bureau of Emergency
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Medical Services:
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(A) a certified copy of the ordinance approving the annexation of an
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unincorporated area or the adjustment of a boundary, if applicable; and
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(B) a copy of the approved final local entity plat.
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(3) If an annexation or boundary adjustment under this part also causes an automatic
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annexation to a special district under Section 17B-1-416 or an automatic withdrawal
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from a special district under Subsection 17B-1-502(2), the municipal legislative body
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shall, as soon as practicable after the lieutenant governor issues a certificate of
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annexation or boundary adjustment under Section 67-1a-6.5, send notice of the
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annexation or boundary adjustment to the special district to which the annexed area is
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automatically annexed or from which the annexed area is automatically withdrawn.
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(4) Each notice required under Subsection [(1)] (2) relating to an annexation or boundary
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adjustment shall state the effective date of the annexation or boundary adjustment, as
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determined under Subsection (5).
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(5) An annexation or boundary adjustment under this part is completed and takes effect:
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(a) for the annexation of or boundary adjustment affecting an area located in a county of
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the first class, except for an annexation under Section 10-2-418:
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(i) July 1 following the lieutenant governor's issuance under Section 67-1a-6.5 of a
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certificate of annexation or boundary adjustment if:
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(A) the certificate is issued during the preceding November 1 through April 30;
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and
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(B) the requirements of Subsection (2) are met before that July 1; or
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(ii) January 1 following the lieutenant governor's issuance under Section 67-1a-6.5 of
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a certificate of annexation or boundary adjustment if:
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(A) the certificate is issued during the preceding May 1 through October 31; and
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(B) the requirements of Subsection (2) are met before that January 1; and
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(b) subject to Subsection (6), for all other annexations and boundary adjustments, the
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date of the lieutenant governor's issuance, under Section 67-1a-6.5, of a certificate of
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annexation or boundary adjustment.
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(6)(a) As used in this Subsection (6) and Subsection (7):
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(i) "Affected area" means:
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(A) in the case of an annexation, the annexed area; and
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(B) in the case of a boundary adjustment, any area that, as a result of the boundary
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adjustment, is moved from within the boundary of one municipality to within
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the boundary of another municipality.
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(ii) "Annexing municipality" means:
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(A) in the case of an annexation, the municipality that annexes an unincorporated
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area or the municipality to which an unincorporated island is automatically
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annexed under Section 10-2-429; and
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(B) in the case of a boundary adjustment, a municipality whose boundary includes
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an affected area as a result of a boundary adjustment.
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(b) The effective date of an annexation or boundary adjustment for purposes of assessing
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property within an affected area is governed by Section 59-2-305.5.
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(c) Until the documents listed in Subsection (2)(b)(i) are recorded in the office of the
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recorder of each county in which the property is located, a municipality may not:
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(i) levy or collect a property tax on property within an affected area;
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(ii) levy or collect an assessment on property within an affected area; or
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(iii) charge or collect a fee for service provided to property within an affected area,
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unless the municipality was charging and collecting the fee within that area
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immediately before annexation.
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(7) Notwithstanding Section 10-9a-501 or Subsection 10-9a-503(1), for at least one year
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after the effective date of an annexation, a legislative body may not amend a zoning
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district in an affected area in a manner that results in the affected area being utilized in a
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more restrictive way than before the affected area was annexed into the municipality.
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Section 3. Section 10-2-430 is enacted to read:
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10-2-430 . Process to compensate a property for a reduction in property value
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following annexation.
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A municipal legislative body shall establish by ordinance a process for the municipality
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to compensate a property owner for a reduction in property value if:
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(1) the municipality annexes the property owner's property as described in this part; and
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(2) following the annexation, the municipality zones the property in a more restrictive way
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than the property was zoned before the property was annexed into the municipality.
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Section 4. Section 10-2a-221 is enacted to read:
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10-2a-221 . Process to compensate a property for a reduction in property value
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following annexation.
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A municipal legislative body shall establish by ordinance a process for the municipality
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to compensate a property owner for a reduction in property value if:
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(1) the municipality incorporates and includes the property owner's property as described in
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this chapter; and
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(2) following the incorporation, the municipality zones the property in a more restrictive
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way than the property was zoned before the property was incorporated into the
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municipality.
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Section 5. Section 10-2a-511 is enacted to read:
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10-2a-511 . Process to compensate a property for a reduction in property value
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following annexation.
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(1) A preliminary municipality legislative body shall establish by ordinance a process for a
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preliminary municipality to compensate a property owner for a reduction in property
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value if:
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(a) the preliminary municipality incorporates and includes the property owner's property
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as described in this chapter; and
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(b) following the incorporation, the preliminary municipality zones the property in a
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more restrictive way than the property was zoned before the property was
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incorporated into the preliminary municipality.
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(2) A town legislative body shall establish by ordinance a process for the town to
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compensate a property owner for a reduction in property value if:
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(a) the town incorporates and includes the property owner's property as described in this
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chapter; and
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(b) following the incorporation, the town zones the property in a more restrictive way
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than the property was zoned before the property was incorporated into the town.
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Section 6. Effective Date.
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This bill takes effect on May 7, 2025.
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