|
Senate Bill 576 |
Senate Author: Davis, Wendy et al. |
|
Effective: 6-19-09 |
House Sponsor: Smith, Todd |
Senate Bill 576 amends the Tax Code to authorize, in an implementation agreement between the board of directors of a reinvestment zone and governing body of the municipality or county that creates the zone, the use of revenue in the tax increment fund to pay project costs, including property acquisition costs, relating to the construction of a road, a sidewalk, or other public infrastructure. The bill applies the authorization to construction of infrastructure whether inside or outside the zone. The bill authorizes a municipality, in lieu of permitting a portion of its tax increment to be paid into the tax increment fund, to offer a property tax exemption to the owners of taxable real property in a reinvestment zone. Previous law excluded a municipality from electing such an option while allowing the option for other taxing units. An exemption agreement must be approved by the zone's board of directors and the governing body of each taxing unit that imposes taxes on real property in the zone and deposits any of its tax increment into the fund. The bill removes a provision prohibiting a taxing unit from offering a tax abatement agreement to property owners in a zone after the taxing unit has entered into an agreement to pay tax increments into the fund.