CCP 03-13-1995 - Laserfiche WebLink

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. ____________.______-_-_c::-:::-n___ - -..-.----1:;-- -- --'"l'p -- ---mLEf:f(;i)t--iJF-niJ-lTfTt:~-nrEL:bL:":4"'0:;iJ072 t1a.r 02 95 15:~, No.U i .UL L I . '" -- Tax Incrcment Focus of Reforms -- Narrative ofH.F. 147 (delete everything amendment) The bill would significantly restrict the permissible uses oftax increment financing as wcll as I add other oncrous reporting and approval requirements. The m~or provision of the bill would strictly limit the use of tax illcrcmcnt revenues in districls I certified before May I, 1990. Underthc bill, tax increment revenues would only be permitted to fulfill eommitmcnts currently in place, pay reason,ble administrative expenses or to make I payments to school districts_ For cxample, tax increment revenues could only be used to pay outstanding bonds that are secured by tax increment revenues and that were issued bcfore February I, 1995 or to satisfy formal commitments, arguments, or contracL. entered into by I February 1, 1995. In addition, the bill would require the authority 10 decertify the district when all outstanding I bonds have been paid or defeased and all contractual obligations have been satisfied or arc otherwise covered by escrowed funds. The bill tightens up the "but for" test by requiring a fmding that the use ofTIF will discourage I businesses from moving to al)other state (the intent is to limit city vs. city development contests). Soil districts would be limited to polluted lands (topography and terrain alone would no longcr " 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. Counly attorneys could sue to enforce the TII' law. In another provision of the bill, school district approval would he required for any tax incrcment I district that is cither initially planned for housing or may eventually be used for housing. Even though the current school revenue fOffilula would provide for additional operating revenues for I any new students located in a tax incremcnt district, the concern apparcntly surrounds thc capital needs of school districts Ihat may bc stressed by additional studcnts. . The bill would expand the annual tax incrcment reporting requirements to include a description I of the activities that have occurred within the dismct during the previous year as well as I additional information on the use of the tax increment revenucs, including a narrativc of activitics Or improvements outside the distriel. Probably the most diflicult provision would be to writc this narrative in "plain and simple languagc' that would be easily understandable to a I person not familiar with Illx increment financing. 'Ibe Leaguc has a copy of the section by seclion summary ofH.F. 147 and the delete-all bill. I Contact Jocl Jamnik. I '- I