3.0. HRSR 02-05-2001 - Laserfiche WebLink

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first subdistrict increment(which is,generally,the tax attributable to the"base value"of the parcel). This period overrides any shorter duration for the underlying TIF District,except that during the extended period,the increment may be used only to pay the cost of hazardous waste removal and related administrative costs, and the "base value" increment is no longer ill collected. Hazardous Waste Extension The 1995 legislature added an alternative to hazardous substance subdistricts. An authority, with approval of the municipality, may extend the duration of any TIF district if: 1. contamination is discovered after the district was established; 2. the authority elects not to create a hazardous substance subdistrict; and 3. the municipality pays for the cost of removal or remediation out of general revenues and not from tax increments. If those tests are met, the district may be extended for the lesser of(1) 10 years after the district would otherwise have terminated; or (2) the number of additional years necessary to collect increment equal to the clean up costs paid by the municipality from non-tax increment funds. Cleanup costs are restricted to actual costs ofremoval and remediation,including testing and engineering but excluding financing or interest costs. Cleanup costs are also reduced by any reimbursements or amounts recovered from private parties or other responsible parties. This provision is available for any TIF district filed for certification after December 31, 1988. Pre-1979 Districts •TIF districts created prior to August 1, 1979 are not generally subject to the TIF Act,except when the proposed development extends beyond the"scope of activity"in the project plan after May 1, 1988. After April 1,2001,increment from a pre-1979 district may be used only to pay bonds that were outstanding as of April 1, 1990,but in no event may increment be collected after August 1,2009. TIF Special Taxing Districts The 1998 Legislature authorized cities to establish special taxing districts within TIF districts and levy special taxes to make up deficits caused by the 1997 and 1998 reductions in the property tax class rates. This authority is limited to TIF districts for which the request for certification was made before June 2, 1997(the enactment date of the 1997 class rate reductions). Only property that is subject to either an assessment agreement or a development agreement is subject to the tax. In order to qualify,the city must have a TIF district deficit caused by the 1997 and 1998 reductions in the class rates and used any available increments from other TIF districts within the city. In order to establish a TIF special taxing district,the city must adopt an ordinance after holding a public hearing on the question. A notice of hearing,containing specific information, is also required. A copy of the ordinance must be sent to the commissioner of revenue. Ehlers&Associates-TIF Basics 5