Audit cites ‘inadequate oversight’ in state economic development program
“A report released Tuesday by the Utah state auditor calls for more statute clarity, consistent administration and transparency in a corporate incentives program through the Governor’s Office of Economic Development.
The Corporate Recruitment and Incentives Program seeks to help existing companies expand and to recruit new companies to Utah to bring more high-paying jobs to the state.
As part of the initiative, the program administers economic development tax increment financing, which returns a portion of new tax growth to participating companies after they’ve paid their taxes for a given period. The maximum rebate companies can receive is 30 percent of the taxes they paid over 20 years.
Currently, 127 companies have signed on with the program, which has brought about 13,000 jobs and generated $128 million in net revenue since it began in 2006.
But GOED was selected for an audit because of the “significant amount of long-term financial commitments (it) can make through its corporate incentives program and the impact that such commitments have on future tax revenue,” the report states.”
Jacobesen, Morgan. Desert News 14 October 2014.