Rep. Eileen Kowall plans to introduce legislation this week (draft of that legislation can be found here:TIF Draft 1 (2)) making significant changes to TIF districts. Also available is a copy of the PowerPoint that was used to present the over all plan (with not a lot of detailed specifics): Tax Increment Financing Reform Presentation (9 11 2014).
Some of the goals of the legislation include:
- combine all the TIF acts into one (but leaving Brownfields and Nonprofit Railway Act on their own),
- increase in transparency along with an incentive to comply,
- define what activities TIF dollars can be used for, and
- add in special assessment capabilities similar to what is allowed for a Principal Shopping District, in addition to the up to 2 mill levy allowed currently under the DDA act.
Here is a brief analysis of what the Draft 1 legislation does: Brief analysis of Draft 1 TIF legislation.
The legislative timeline for completion is a fast one. The bill is expected to be introduced this week followed by two weeks of testimony beginning September 24 with the goal of passing it out of the House before they leave at the beginning of October. That would leave the Senate for lame duck.
As you read through the analysis and/or draft legislation and have questions or comments (especially feedback on how this will specifically impact your local communities) please contact me so we can continue to compile local impact lists. Additionally, if you have any interest in testifying either next week or the following week, we would love to have you to put some local faces to the problems this legislation could create.
Please contact your Representatives with the local impact of the legislation and ask them to not rush a vote just to get something done before the end of the year. This is a significant change and deserves a significant amount of attention, work, discussion and detail put into it so we are not creating bad public policy.
Nikki Brown is a legislative associate for the League handling economic development and land use issues. She can be reached at [email protected] or 517-908-0305.