HomeMy WebLinkAboutSEOPW-CRA-2000-03-13-Discussion Item 10AkGENDA ITEM
10-A
HB 3411
SALES TAX INCREMENT FOR REDEVELOPMENT
• New sales tax revenues realized from projects in a redevelopment area
meeting certain strict criteria may be allocated to financing projects in that
redevelopment area.
• Existing tax increment revenue program is based solely on increased
value of real property in the community redevelopment area which does not in
all cases generate any or sufficient revenues to finance the needed
redevelopment program. Many redevelopment projects are exempt from
property tax (e.g. publicly owned buildings) and do not generate increment
revenues, but they do generate sales tax revenue.
• Limited number of areas in the state will be able to meet the strict
criteria for approval to use this program. Maximum number of areas eligible
for sales tax increment based on current redevelopment areas will be 3.
• A good pilot program to test the use of sales tax revenue increases. This
will encourage development of retail and commercial in redevelopment areas
which generate more new jobs. Similar to program used in Illinois.
• The sales tax increment to be allocated for redevelopment will be "new"
revenue which is not now being generated or realized by state or local
government.
• Maximum amount of sales tax increment in any one year will be
approximately $1-$3 million, which is a very small portion of the total state
sales tax revenue, but a very critical amount of annual revenue needed to make
a redevelopment project happen.
• Will address problems in areas due to severe poverty and unemployment.
• State Department of Revenue will have oversight and approval of areas
and will work with local governments to implement.
• Definition of "capital improvements" in the Community Redevelopment
Act is expanded to finance projects which will generate revenues.
SEOPW! CRA,
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1 Section 1. Title.
2 This Act shall be known and referred to as the "Sales Tax Increment
3 Redevelopment Assistance Act."
4 Section 2. Definitions.
5 "Sales tax increment revenues" means the revenues calculated and
6 deposited in the redevelopment trust fund as provided in section
7 Section 3. Sales Tax Increment Revenues.
8 (1) No community redevelopment agency shall utilize sales tax increment
9 revenues pursuant to this Act until the governing body of the local government
10 which created that agency has adopted a resolution finding that the
11 community redevelopment area has the conditions described in subsection (2).
12 The finding shall be based on data from the most current decennial census,
13 and from information published by the Bureau of the Census and the Bureau
14 of Labor Statistics. The data shall be comparable in point or period of time and
15 methodology employed.
16 (2) To be eligible to receive sales tax increment revenues pursuant to this
17 Act, the community redevelopment area shall have the following conditions:
18 (a) In each census tract within an area, the poverty rate is not less than
19 50 percent.
20 (b) In each of the census tract within the area, the poverty rate is not
21 less than 35 percent.
22 (c) The average rate of unemployment in the area as a whole is not less
23 than 15 percent based on the most recent decennial census information
24 published by the Bureau of the Census and the Bureau of Labor Statistics.
25 (d) Contiguous census tracts with no population shall be treated as
26 having a poverty rate which meets the standards of paragraphs (a) and (b), and
27 an unemployment rate which meets the standard of paragraph (c).
28 (e) For purposes of this subsection (2), "poverty rate" describes the
29 number of persons residing within the area who meet the definition of persons
30 living below the poverty level as defined by the U.S. Government.
31 (q In making the calculations required by this section, all fractional
32 percentages of one-half percent or more shall be rounded up to the next
33 highest whole percentage figure.
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1 Section 4. Redevelopment trust fund.
2 (1) (a) There shall be established for each community redevelopment
3 agency a redevelopment trust fund. Funds allocated to and deposited into this
4 fund shall be used by the agency to finance or refinance any community
5 redevelopment it undertakes pursuant to the approved community
6 redevelopment plan. No community redevelopment agency may receive or
7 spend any increment revenues pursuant to this section unless and until the
8 governing body has, by ordinance, provided for the funding of the
9 redevelopment trust fund for the duration of a community redevelopment plan.
10 Such ordinance may be adopted only after the governing body has approved a
11 community redevelopment plan.
12 (b) The annual funding of the redevelopment trust fund shall be in an
13 amount not less than that increment in the income, proceeds, revenues, and
14 funds of each taxing authority derived from or held in connection with the
15 undertaking and carrying out of community redevelopment under this part.
16 Such increment shall be determined annually and shall be that amount equal
17 to 95 percent of the difference between:
18 1. The amount of ad valorem taxes levied each year by each taxing
19 authority, exclusive of any amount from any debt service millage, on taxable
20 real property contained within the geographic boundaries of a community
21 redevelopment area; and
22 2. The amount of ad valorem taxes which would have been produced by
23 the rate upon which the tax is levied each year by or for each taxing authority,
24 exclusive of any debt service millage, upon the total of the assessed value of
25 the taxable real property in the community redevelopment area as shown upon
26 the most recent assessment roll used in connection with the taxation of such
27 property by each taxing authority prior to the effective date of the ordinance
28 providing for the funding of the trust fund.
29 (01. In addition to the funding of the redevelopment trust fund provided
30 for under paragraph (b), an ordinance by the governing body which created the
31 fund may provide for annual deposit of the sales tax increment revenues in the
32 fund if the area meets the requirements of Section 3 An ordinance which
33 created the redevelopment trust fund did not provide for the deposit of sales
34 tax increment revenues may be amended to provide for such sales tax
35 increment revenues without affecting the calculation or deposit of the
36 increment revenues described in subsection (1). Notwithstanding a subsequent
37 decennial census being completed after the enactment of the ordinance
38 described in this subsection, the most recent census prior to the enactment of
39 the ordinance shall be the basis for the determination of eligibility for sales tax
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I increment revenues and the calculation of such increment. The sales tax
2 increment revenues shall be determined annually, and shall be the difference
3 between:
4 a. The aggregate amount of state sales and use taxes remitted by dealers
5 under[state sales tax act] at places of business located within the geographic
6 boundaries of the community redevelopment area during the state fiscal year
7 for which the increment is being determined; and
8 b.the amount of sales and use taxes so remitted in the state fiscal year
9 immediately preceding the adoption of the ordinance;
10 2. The governing body shall notify the [state agency collecting sales tax]
11 within 10 calendar days after the adoption or amendment of an ordinance that
12 provides for sales tax increment revenues, and shall include a copy of the
13 resolution adopted pursuant to Section —.
14 3. For the purposes of determining the amount of sales tax increment
15 revenues to be transferred to each community redevelopment trust fund
16 funded pursuant to this paragraph, the [state sales tax agency] and each
17 governing body that adopts or amends such an ordinance shall exchange tax
18 administration information on an annual basis, in the format prescribed by the
19 [state sales tax agency]. Each governing body with such an ordinance, and the
20 [state sales tax agency], are responsible for transmitting this shared data no
21 later than 1 of each year. Such information shall include the
22 taxpayer's sales tax registration number and business location and such other
23 tax registration information as the [state sales tax agency] prescribes. To the
24 fullest extent practicable, the information shall be shared in a computer-
25 processable medium. For the initial calculation, each governing body and the
26 [state sales tax agency] shall exchange all information enumerated in this
27 subparagraph no later than the first day of the fourth month after the adoption
28 of the ordinance providing for sales tax increment revenues.
29 4. Based upon the information provided by the governing body pursuant
30 to subparagraphs 2. and 3., the [state sales tax agency] shall calculate the
31 sales tax increment revenues for that community redevelopment area each
32 state fiscal year and transfer that amount to a separate account within the
33 redevelopment trust fund.
34 (2)(a) Except for the purpose of funding the trust fund pursuant to
35 subsection (3), upon the adoption of an ordinance providing for funding of the
36 redevelopment trust fund as provided in this section, each taxing authority
37 shall, by 1 of each year, appropriate to the trust fund for so long as any
38 indebtedness pledging increment revenues to the payment thereof is
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1 outstanding a sum that is no less than the increment as defined and
2 determined in paragraph (1)(b) accruing to such taxing authority.
3 Section 4. Rules.
4 The [state sales tax agency] is authorized to promulgate rules necessary
5 to effectuate the provisions of this Act pertaining to the calculation and
6 reallocation of sales tax increment revenues.
ORL1-224744\707\95000-61258
April 14, 1998
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