Agenda Packets - 1999/06/07 - Laserfiche WebLink

Home Browse Search

H.F.2420 May 17, 1999 Version: Conference Committee Report Page 41 Section Early decertification required. If the authority spent increments on activities outside of the district, after December 31, 1999 it may only spend increments to pay pre-existing obligations. These are bonds issued or contracts entered before the dates listed in the previous paragraph, except for contracts for activities in the district may be entered into up to June 30, 1999 (rather than the May 1, 1999 date). When these obligations are paid, the district must be decertified. 5 Enforcement notices. Requires a county attorney who receives a TIF violation notice to . _ notify the State Auditor, if the county attorney decides not bring an action or if 12 months pass and no action has been brought. The State Auditor is then required to notify the attorney general. 6 Suspension of TIP authority. Requires the attorney general to review materials on violations submitted by the State Auditor, the municipality, and the development authority. If the attorney general finds the violation was substantial, the attorney general is to petition the tax court to suspend the municipality and development authority's power to use TIF for up to five years. Before petitioning the tax court, the attorney generalis to attempt to resolve the matter using alternative dispute resolution. If the tax court finds a substantial violation, it may suspend the authority to use tax increment financing for up to 5 years. In determining the length of the suspension, the court may consider a variety of enumerated factors, such as the dollar amount involved, the sophistication of the local unit, the extent which it was a clear violation of law, or whether there was a pattern of violations. A suspension would prohibit requesting certification of new districts, adding area to existing districts, issuing bonds, or amending a TIF plan to authorize new activities or expenditures. This suspension procedure and authority is limited to violations that are identified by the State Auditor beginning in the year 2000. 7 Conforming changes. Repeals the special pooling authority to eliminate deficits enacted in 1998 as part of the special taxing district authority. Section 3 provides general pooling rules for this purpose. 8 Permitted purposes for abatements. Allows abatements to be used to defer paying taxes without interest or penalties. This section also clarifies that property tax abatements may be used to pay for public infrastructure. 9 Definition. Defines abatement to include deferral of taxes with abatement of interest and penalties. This is intended to permit use of abatements to defer the payment of taxes without interest. Article 10: Tax Increment Financing