06-03-1991 WS - Laserfiche WebLink

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6 property within the taxing jurisdiction.This provision will increase significantly the amount of a referendum levy paid by homeowners/voters as compared to C/I or rental property. Instead of the current 5:1 pay ratio based on taxable value,the ratio is reduced to 1:1 based on market value. Tax statements will show referenda levy payments separately. Levy referenda ballots must have clear,bold-faced language indicating, "By voting yes on this ballot question,you are voting for a property tax increase." There is a one-year exception for school referenda passed in a first-class city for taxes payable starting in 1993. VIII.Tax Increment Financing Several changes were made to the section governing Tax Increment Financing (TIF). Most were technical in nature to correct mistakes from last year's bill. The reduction in LGA/HACA will apply only to the new area of an old district (pre-April 30, 1990) that is amended by adding a new area. A phase-in schedule of the aid reductions is provided for economic development districts for manufacturing , and research and development projects, which must be located in cities with populations under 10,000 outside a metropolitan statistical area by federal law. The phase-in is accomplished over five years. Calculation for lost state aid excludes equalized levies for 1. health and safety, 2. cooperation and combination, 3. community education, 4. early childhood family education, and 5. non-regular transportation from the calculation of the state aid reductions. The original tax capacity of a tax increment district is based on the prior year's assessment if certification is requested by June 30, and for the current year's assessment if certification is requested after June 30. A development authority will be allowed to treat a parcel as occupied by a substandard building for the purposes of redevelopment and renewal and renovation district criteria, even though the parcel does not have a substandard building on it at the time the district is established. There are three conditions: * The authority must have removed, financed removal or entered into a development contract for the removal of the substandard building within three years before requesting certification of the parcel; * The authority must adopt before the demolition or removal a resolution finding the building was substandard and that the parcel would be inc lu•e• i - '" •t' . • , • *The otiginatnet tax capacity of the parcel will be the greaterofthe value before or after the demolition and removal. Delinquent taxes on property in a TIF district will be paid to the authority after the district is decertified if the delinquency required the authority to use revenues other than tax increments to pay the district's bonds. Under the three-year knock-out rule, TIF bonds must be issued for the project in which the district is located. Interest costs on developer financing are not prohibited by the five-year rule. Payments of credit enhanced bonds are not subject to the five-year rule if increments from the district where the financed activities are located and from the pooling share are insufficient. Increments may be used to pay credit enhanced bonds, even if the district is not permitted to pool increments because the request for certification was made before 1982.