Introduced
by
To revise the law that allows a local taxing authority to choose to exempt its taxes from “capture” by the tax increment financing authority plan (TIFA) of a new downtown development authority (DDA). Under current law a local taxing authority may “opt out” of the capture when the DDA is started; the bill would allow it to make this election every years, unless doing so would impair bonds issued by the DDA. A TIFA "captures" the increment of extra local property tax revenue that would result from the property value growth which might be generated by certain improvement projects the authority undertakes. The “captured” tax revenue would be used to pay off the debt incurred by borrowing to subsidize these activities. The boundary of a TIFA may encompass more than one taxing authority (such as a library district inside a municipality, for example). See also House Bills 5178 to 5182.
Referred to the Committee on Commerce
