HB 91 -- Tax Increment Financing
Sponsor: Johnson (47)
This bill prohibits a tax increment financing (TIF) redeveloping
plan from being effective until the matter is approved by voters
in the affected municipality or county.
Tax increment financing cannot be used to fund more than 15% of
the total estimated costs of a project that is primarily retail
or to develop sites where 25% or more of the area is vacant,
considered open space, or is currently being used for
agricultural or horticultural purposes. These type of areas that
are part of the redevelopment project and were included in the
municipality's comprehensive plan prior to January 1, 2002, are
exempt from this requirement.
Municipalities are required to pay 25% of the payments in lieu of
taxes they receive from TIF projects to taxing entities that
would otherwise be entitled to receive revenue from property
taxes. If a TIF project includes residential uses, real property
tax levies attributable to the residential portion of the
development will pass through directly to the affected school
districts unless commission members representing the affected
districts say they will forgo this revenue.