<h1>Tax exemption for urban development agencies refused modification after policy review favoring reduction of exemptions in budget exercise.</h1> Tax exemption for Urban Development Agencies is conditioned on satisfying charitable-entity criteria: a charitable purpose, engagement in public-utility objects, registration under the applicable regime, and absence of trade or commercial activities above the prescribed commercial threshold. Government-constituted UDAs may claim a separate exemption provided they do not conduct commercial activities and fulfill other statutory conditions. A request for modifying UDA tax treatment was reviewed during the 2016 budget exercise and not adopted due to a policy to reduce exemptions.