Agenda Packets - 1999/06/07 - Laserfiche WebLink

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H.P. 2420 May 17, 1999 Version: Conference Committee Report Page 42 Section 10 Amount of abatement. Authorizes political subdivisions to abate fiscal disparities tax. Each of the three units (city/town, school district, and county) would be permitted to abate an amount of the total taxes equal to its tax rate multiplied by the tax capacity of the parcel. Thus, the total amount of the abatement would effectively include tax equal to the fiscal disparity tax on a commercial or industrial parcel. The abatement would be fully funded by the approving local unit of government. It would not reduce the contributions to the fiscal disparities pool or increase distributions from the pool. This section authorizes abating interest and penalties on property taxes. This section clarifies that use of an abatement for public infrastructure is not limited to improvements located on the parcel whose taxes are abated. It also allows the town board of supervisors to grant an abatement. Under present law, this required action at the town meeting. 11 Deferred payment schedule. Requires establishing a repayment schedule, when abatement is used to defer payment of taxes. The deferred taxes will be levied as with a regular • abatement. 12 Amount of school district abatements. Allows school districts to abate the full amount of their tax. Under present law, school districts may not abate one-half of the tax attributable to the general education tax rate. 13 Annual approval of abatements of school taxes. Eliminates the requirement that schools annually re-approve abatements. This requirement prevents issuing bonds financed with the amount of the school tax abatements. 14 Consent of property owner. Clarifies that a property owner need not consent to an abatement. 15 Public infrastructure. Clarifies that abatements may be retained to reimburse the political subdivision for infrastructure costs for which bonds were not issued. 16 TIF grants. Provides that the TIF grant programs may pay for deficits caused by the 1998 property tax class rate compression, as well as any enacted in 1999. Present law limited the availability of grants to the 1997 compression. 17 TIF grants, extension. Extends the duration of the TIF grant program by one additional year through 2002. 18 Onamia TIF. Allows the city of Onamia to increase the 5 year rule to 10 years. The 5 year rule requires increment to be spent or binding contracts to be entered within five years after the district is certified. These increments may only be spent on three parcels fronting on U.S. highway 169. • Article 10: Tax Increment Financing