8.0. EDSR 03-13-1995 - Laserfiche WebLink

Home Browse Search

=aGUc �iMN � f f� - Mar 02 95- 157 IVo .011 P .02 • Tax Increment Focus of Reforms -Narrative of H.F. 147 (delete everything amendment) The bill would significantly restrict the permissible uses of tax increment financing as well as add other onerous reporting and approval requirements. The major provision of the bill would strictly limitthe use of tax increment rcvcnues in districts certified before May 1, 1990. Under the bill, tax increment revenues would only be permitted to fulfill commitments currently in place,pay reasonable administrative expenses or to make payments to school districts. For example, tax increment revenues could only be used to pay outstanding bonds that are secured by tax increment revenues and that were issued before February 1, 1995 or to satisfy formal commitments, arguments, or contracts entered into by February I, 1995. In addition, the bill would require the authority to decertify the district when all outstanding bonds have been paid or dcfcased and all contractual obligations have been satisfied or arc otherwise covered by escrowed funds. The bill tightens up the "butfor" test by requiring a finding that the use of TIF will discourage • businesses from moving to another state(the intent is to limit city vs. city Clevelopment contests). Soil districts would he limited to polluted lands(topography and terrain atone would no longer be satisfactory). The State Auditor would replace the Department of Revenues as the overseer of TIF financed by capturing .1 percent(or about$230,000 from all increments statewide. County attorneys could sue to enforce the TIF law. In another provision of the bill, school district approval would he required for any tax increment district that is either initially planned for housing or may eventually be usd for housing. Even though the current school revenue formula would provide for additional Operating revenues for any new students located in a tax increment district,the concern apparently surrounds the capital needs of school districts that may be stressed by additional students. The bill would expand the annual tax increment reporting requirements to include a description of the activities that have occurred within the district during the previous year as well as additional information on the use of the tax increment revenues, including,a narrative of activities or improvements outside the district. Probably the most difficult provision would he to write this narrative in "plain and simple language"that would he easily understandable to a person not familiar with tax increment financing. TI he League has a copy of the section by section summary of H.F. 147 and the delete-all bill. Contact Joel Ju nik.