SB 1008 - This act makes various changes designed to increase accountability for tax increment financing projects (TIF). The act:

(1) Creates countywide public finance review authorities in counties where TIF is used;

(2) Excludes sales taxes dedicated by a vote of the people to a specific purpose or project from being subject to TIF;

(3) Defines a retail project as any redevelopment project where more than 50% of total costs are devoted to retail establishment;

(4) Provides that the information required by current law to be included in a redevelopment plan must be substantial and competent and that which a reasonable person would believe;

(5) Requires an economic feasibility analysis indicating the return on investment of the proposed development for project worth over $250,000 in TIF. All documents relating to the study and other current requirements must be published prior to 30 days of the adoption of the TIF plan. A resident may enjoin such adoption by suit or 5% of registered voters may petition to have the plan delayed until the voters of the municipality can vote on the issue;

(6) Prohibits approval of a retail project for TIF unless the local countywide public finance review authority certifies that the TIF will serve a regional public benefit because of extended absence of private investment, the project would bring under-served retail activity to the area, the retail project will result in new jobs, sales, and property taxes, and the TIF will not unfairly influence competition with other retail establishments;

(7) Requires that infrastructure improvements supported by TIF meet the Americans with Disabilities Act requirements;

(8) Requires that a municipality seeking to designate a TIF located wholly or partially outside its boundaries must first obtain permission from any other municipality in which the TIF would be located;

(9) Requires that, for the life of a project, the municipality shall pay 25% of the payments in lieu of taxes to any other taxing entities entitled to receive property tax revenue in such municipality. This amount shall be divided proportionately among the other affected taxing entities. When a TIF project includes residential uses, unless the commission members representing the affected school board or boards say otherwise, real property tax levies attributable to the residential portion of the development shall pass through to the school district or districts;

(10) Requires that the municipality and the developer submit information to Department of Economic Development (DED) regarding the approved plan annually, to be published on the department's web site. The report shall identify the number and location of redevelopment areas, quantifying public investment in each, and assess the public benefit, as quantified in terms of tax revenue and net new job creation, and show the economic impact of the project on each taxing district which is at least partially within the boundaries of the redevelopment area;

(11) Requires that the governing body and DED have access to the TIF site and to the records of the business established on the site at all reasonable times;

(12) Provides that the annual report for retail projects must include a certification from the countywide public finance review authority reaffirming the continuing economic benefit of the TIF.
JEFF CRAVER