HF3166

Purpose of the Bill

The bill aims to modify the process for establishing an economic development district utilizing tax increment financing (TIF) by requiring the involvement and approval of school districts in certain situations.

Main Provisions

• School District Approval: The primary change proposed by the bill is that for most new economic development districts, excluding those for specific workforce housing projects, the tax increment financing plan must be approved by the school district governing board within which any part of the proposed district resides.

• Municipal Approval Process: A tax increment financing plan needs approval from the municipality where the district is located. This involves a public hearing with proper notice and documentation of the plan’s compliance with local development goals.

• Economic Needs and Impact Assessment: Municipalities must make documented findings indicating:

  • Proposed developments wouldn't happen just with private investment.
  • The market value without TIF would be less than with TIF assistance.
  • The plan aligns with the general development/redevelopment vision of the municipality.

Significant Changes to Existing Law

• Additional Layer of Approval: School districts' approval was not previously a condition for certifying a TIF district. This bill introduces this requirement, bringing school districts into the decision-making process for most economic development districts.

Relevant Terms

tax increment financing, economic development district, school district approval, workforce housing project, municipal approval, market value assessment, private investment