Tax Increment Financing Act; authorize conduit bond issuance to finance redevelopment projects.

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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Lamar

HOUSE BILL NO. 1942

AN ACT TO CREATE A NEW CODE SECTION TO BE CODIFIED AS SECTION 1
21-45-23, MISSISSIPPI CODE OF 1972, TO AUTHORIZE MUNICIPALITIES TO 2
ISSUE BONDS, NOTES OR OTHER OBLIGATIONS AS A CONDUIT ISSUER TO 3
FINANCE THE COSTS OF A REDEVELOPMENT PROJECT UNDER THE TAX 4
INCREMENT FINANCING ACT, AND TO SECURE SUCH FINANCING BY TAXPAYER 5
AGREEMENTS; TO AUTHORIZE MUNICIPALITIES TO ENTER INTO TAXPAYER 6
AGREEMENTS IN CONNECTION WITH TAX INCREMENT FINANCING OF 7
REDEVELOPMENT PROJECTS FOR THE PURPOSE OF SECURING SUCH FINANCING; 8
TO PROVIDE FOR OPTIONAL LIEN SECURITY FOR TAXPAYER AGREEMENTS; TO 9
PROVIDE THAT TAXPAYER AGREEMENTS DO NOT CONSTITUTE TAXES, PUBLIC 10
DEBT OR PLEDGES OF GOVERNMENTAL CREDIT; TO AMEND SECTION 21-45-3, 11
MISSISSIPPI CODE OF 1972, TO DEFINE THE TERM "TAXPAYER AGREEMENT" 12
AND TO REVISE THE DEFINITION OF THE TERM "REDEVELOPMENT PROJECT" 13
UNDER THE TAX INCREMENT FINANCING ACT; TO BRING FORWARD SECTIONS 14
21-45-5, 21-45-7, 21-45-9, 21-45-11, 21-45-13, 21-45-15, 21-45-17, 15
21-45-19 AND 21-45-21, MISSISSIPPI CODE OF 1972, WHICH ARE 16
SECTIONS OF THE TAX INCREMENT FINANCING ACT, FOR THE PURPOSE OF 17
POSSIBLE AMENDMENT; AND FOR RELATED PURPOSES. 18
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 19
SECTION 1. The following shall be codified as Section 20
21-45-23, Mississippi Code of 1972: 21
21-45-23. (1) As an alternative financing mechanism for 22
redevelopment projects and in addition to any other authority 23
granted in this chapter, a municipality may issue bonds, notes or 24
other obligations as a conduit issuer to finance the costs of a 25
redevelopment project. Such obligations may be secured by: 26
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(a) Payments due under one or more taxpayer agreements; 27
(b) Any lien created by one or more taxpayer 28
agreements; 29
(c) Tax increment revenues; or 30
(d) Any combination of the foregoing or other private 31
security. 32
A municipality issuing such bonds shall have no obligation to 33
advance funds, levy taxes (other than in the ordinary course in 34
connection with the redevelopment project) or appropriate money 35
for the payment of such obligations. Bonds issued under this 36
section shall be payable solely from the security pledged and 37
shall not constitute a general obligation of the municipality or 38
the state. 39
(2) A municipality authorized to issue bonds, notes or other 40
obligations as a conduit issuer to finance the costs of a 41
redevelopment project under this section may, at its option, enter 42
into a taxpayer agreement with the owner or developer of real 43
property located within a project area. A taxpayer agreement may 44
be used to: 45
(a) Guarantee, enhance or otherwise secure the 46
repayment of such bonds, notes or other obligations issued to 47
finance the costs of a redevelopment project; 48
(b) Provide for payments in lieu of, or in addition to, 49
tax increment revenues; or 50
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(c) Provide for any other payment obligation from a 51
municipality or other source, whether public or private, to 52
support the financing or refinancing of the costs of a 53
redevelopment project. 54
(3) A taxpayer agreement entered into under this section: 55
(a) Constitutes a voluntary and binding contractual 56
payment obligation of the property owner or developer in 57
connection with the ad valorem taxes to be paid on a project area; 58
(b) Shall not be considered a tax, fee or assessment 59
imposed by a municipality; 60
(c) Shall not constitute a pledge of the faith, credit 61
or taxing power of the State of Mississippi or any municipality; 62
(d) Shall not constitute indebtedness of the state or 63
any municipality for purposes of any constitutional or statutory 64
debt limitation; 65
(e) Shall not be considered a fee-in-lieu agreement or 66
an exemption from taxation under the Constitution and laws of the 67
state; and 68
(f) Shall be for a term not to exceed thirty (30) 69
years. 70
(4) If a taxpayer agreement provides that payments due under 71
the taxpayer agreement are secured by a lien on real property: 72
(a) The lien shall arise automatically upon execution 73
and recordation of the taxpayer agreement; 74
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(b) The lien shall have parity with ad valorem tax 75
liens, subordinate only to previously filed ad valorem tax liens; 76
(c) The lien shall take priority over any subsequent 77
mortgage, judgment, lien or other encumbrance on the property; and 78
(d) The lien may be enforced, collected and foreclosed 79
in the same manner as delinquent ad valorem taxes under the laws 80
of the state. A lien created under this section shall exist only 81
for the duration and to the extent provided in the taxpayer 82
agreement. 83
(5) A taxpayer agreement creating a lien under this section 84
shall be recorded in the office of the chancery clerk of the 85
county in which the property is located. Recordation shall 86
provide constructive notice and shall perfect the lien without 87
further action. 88
(6) Payments due under a taxpayer agreement shall be deemed 89
delinquent when unpaid on the date specified in the taxpayer 90
agreement. All interest, penalties, fees and collection costs 91
applicable to delinquent ad valorem taxes shall apply to 92
delinquent taxpayer agreement payments. 93
(7) A municipality may assign its rights under a taxpayer 94
agreement, including the right to receive payments, any lien 95
securing such payments, and the rights to enforce such lien, to a 96
trustee, bondholder or purchaser of bonds issued to finance the 97
costs of a redevelopment project. An assignee shall possess all 98
enforcement rights held by the municipality. 99
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(8) Upon full payment of all obligations secured by a 100
taxpayer agreement, the municipality shall execute and record a 101
release of lien, which shall extinguish the lien upon recordation. 102
(9) Nothing in this section shall be construed to require a 103
municipality to enter into a taxpayer agreement. 104
SECTION 2. Section 21-45-3, Mississippi Code of 1972, is 105
amended as follows: 106
21-45-3. For the purposes of this chapter, the following 107
terms shall have the meanings given them in this section unless a 108
different meaning is clearly indicated by the context: 109
(a) "Project area" includes: 110
(i) Areas in which there is a significant amount 111
of buildings or improvements which, by reason of dilapidation, 112
deterioration, age, obsolescence, inadequate provision for 113
ventilation, light, air, sanitation or open spaces, high density 114
of population and overcrowding or the existence of conditions 115
which endanger life or property by fire and other causes, or any 116
combination of such factors, are conducive to ill health, 117
transmission of disease, infant mortality, juvenile delinquency or 118
crime and are detrimental to the public health, safety, morals or 119
welfare; 120
(ii) Areas in which are located a building or 121
buildings that are of important value for purposes of historical 122
preservation, as designated by the Department of Archives and 123
History; 124
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(iii) Areas which by reason of a significant 125
amount of defective or inadequate street layout, faulty lot layout 126
in relation to size, adequacy, accessibility or usefulness, 127
unsanitary or unsafe conditions, deterioration of site 128
improvements, diversity of ownership, tax delinquency, defective 129
or unusual conditions of title, improper subdivision or obsolete 130
platting or the existence of conditions which endanger life or 131
property by fire or other causes, or any combination of such 132
factors, substantially impair or arrest the sound growth of the 133
community, retard the provision of housing accommodations or 134
constitute an economic or social liability and are a menace to the 135
public health, safety, morals or welfare in their present 136
condition and use; 137
(iv) Areas in which the construction, renovation, 138
repair or rehabilitation of property for residential, commercial 139
or other uses is in the public interest; or 140
(v) A project for which a certificate of public 141
convenience and necessity has been obtained by the municipality 142
pursuant to the Regional Economic Development Act. 143
(b) A "redevelopment project" may include any work or 144
undertaking by a municipality: 145
(i) To acquire project areas or portions thereof, 146
including lands, structures or improvements the acquisition of 147
which is necessary or incidental to the proper clearance, 148
development or redevelopment of such areas or to the prevention of 149
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the spread or recurrence of slum conditions or conditions of 150
blight; 151
(ii) To clear any project areas by demolition or 152
removal of existing buildings, structures, streets, utilities or 153
other improvements thereon and to install, construct or 154
reconstruct streets, utilities, bulkheads, boat docks and site 155
improvements essential to the preparation of sites for uses in 156
accordance with the redevelopment plan and public improvements to 157
encourage private redevelopment in accordance with the 158
redevelopment plan; or 159
(iii) To sell or lease property acquired by a 160
municipality as part of a redevelopment project for not less than 161
its fair value for uses in accordance with such redevelopment plan 162
to retain property or public improvements for public use in 163
accordance with the redevelopment plan. 164
"Redevelopment project" may also include the preparation of a 165
redevelopment plan, the planning, survey and other work incident 166
to a redevelopment project and the preparation of all plans and 167
arrangements for carrying out a redevelopment project, relocation 168
of businesses and families required under applicable law, and upon 169
a determination, by resolution of the governing body of the 170
municipality in which such land is located, that the acquisition 171
and development of additional real property not within a project 172
area is essential to the proper clearance or redevelopment of a 173
project area or a necessary part of the general slum clearance 174
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program of the municipality, the acquisition, planning, 175
preparation for development or disposal of such land shall 176
constitute a redevelopment project. In connection with a project 177
undertaken by a developer under Section 21-45-9 or 21-45-23, 178
"redevelopment project" may include the costs of the acquisition, 179
construction, installation and equipping of public or private 180
improvements, including, but not limited to, buildings. 181
(c) "Redevelopment plan" means a plan for the 182
acquisition, clearance, reconstruction, rehabilitation or future 183
use of a redevelopment project area which shall be sufficiently 184
complete: 185
(i) To indicate its relationship to definite local 186
objectives as to appropriate land uses and improved traffic, 187
public transportation, public utilities, recreational, 188
residential, commercial and community facilities and other public 189
improvements; and 190
(ii) To indicate proposed land uses, waterfront 191
uses, if any, and building requirements in the area. 192
A redevelopment plan may include interlocal cooperation 193
agreements between a municipality and a county whereby both agree 194
to pledge revenues payable to them to fund the debt of service of 195
any indebtedness incurred pursuant to this chapter. 196
(d) "Governing body" means the governing body of any 197
municipality or the board of supervisors of any county. 198
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(e) "Developer" means any person, firm, corporation, 199
partnership or other entity which enters into an agreement with a 200
municipality whereby the developer agrees to construct, operate 201
and maintain or procure the construction, operation and 202
maintenance of buildings or other facilities or improvements upon 203
land or waterfront being a part of a redevelopment project. 204
(f) "Municipality" means any city or town incorporated 205
under the laws of the State of Mississippi or any county. 206
(g) "Clerk" means the municipal clerk or chancery 207
clerk, as the case may be. 208
(h) "Taxpayer agreement" means a voluntary written 209
agreement entered into under Section 21-45-23 between a 210
municipality and the owner or developer of real property located 211
within a project area. 212
SECTION 3. Section 21-45-5, Mississippi Code of 1972, is 213
brought forward as follows: 214
21-45-5. This chapter shall be construed as cumulative 215
authority to other existing laws relating to the powers of 216
municipalities to undertake and carry out slum clearance and 217
redevelopment work. Any municipality engaged in slum clearance or 218
redevelopment work through a redevelopment project within the 219
boundaries of the municipality may provide for financing to defray 220
the cost, in whole or in part, of the same as hereinafter 221
provided. Insofar as this chapter is inconsistent with any other 222
law, this chapter shall be controlling. 223
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Any municipality may accept grants or other financial 224
assistance from the state or federal government, or any other 225
entity, to defray the cost, in whole or in part, of any activity 226
consistent with the purposes of this chapter. 227
Any municipality may enter into agreements with any developer 228
whereby the developer will agree to construct, operate and 229
maintain buildings or other facilities or improvements included 230
within such projects as are provided in a redevelopment plan. 231
SECTION 4. Section 21-45-7, Mississippi Code of 1972, is 232
brought forward as follows: 233
21-45-7. Any redevelopment project may contain a provision 234
that municipal and county ad valorem taxes, if any, levied upon 235
taxable property in a redevelopment project or municipal sales 236
taxes collected within the area, or both, shall be divided 237
according to a tax increment financing plan. 238
SECTION 5. Section 21-45-9, Mississippi Code of 1972, is 239
brought forward as follows: 240
21-45-9. Any governing body may issue tax increment bonds, 241
the final maturity of which shall not extend beyond thirty (30) 242
years, for the purpose of financing all or a portion of the cost 243
of a redevelopment project within the boundaries of the 244
municipality, funding any reserve which the governing body may 245
deem advisable in connection with the retirement of the proposed 246
indebtedness and funding any other incidental expenses involved in 247
incurring such indebtedness. The debt service of indebtedness 248
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incurred pursuant to this section shall be provided from the added 249
increments of municipal and county ad valorem tax revenues or any 250
portion of the sales taxes, or both, to result from any such 251
redevelopment project, or sales tax revenue allocated for 252
distribution to a county under Section 27-65-75(1)(d), and shall 253
never constitute an indebtedness of the municipality within the 254
meaning of any state constitutional provision or statutory 255
limitation and shall never constitute nor give rise to a pecuniary 256
liability of the municipality or a charge against its general 257
credit or taxing powers. 258
Said bonds may be authorized by resolution or resolutions of 259
the governing body, and may be issued in one or more series, may 260
bear such date or dates, mature at such time or times, bear 261
interest at such rate or rates, payable at such times, be in such 262
denominations, be in such form, be registered, be executed in such 263
manner, be payable in such medium of payment, at such place or 264
places, be subject to such terms of redemption, with or without 265
premium, carry such conversion or registration privileges and be 266
declared or become due before the maturity date thereof, as such 267
resolution or resolutions may provide; however, such bonds shall 268
not bear a greater interest rate to maturity than that allowed 269
under Section 75-17-101. Said bonds shall be sold for not less 270
than par value plus accrued interest at public sale in the manner 271
provided by Section 31-19-25 or at private sale, in the discretion 272
of the governing body. The lowest interest rate specified for any 273
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bonds issued shall not be less than seventy percent (70%) of the 274
highest interest rate specified for the same bond issue. Said 275
bonds may be repurchased by the municipality out of any available 276
funds at a price not to exceed the principal amount thereof and 277
accrued interest, and all bonds so repurchased shall be cancelled. 278
In connection with the issuance of said bonds, the municipality 279
shall have the power to enter into contracts for rating of the 280
bonds by national rating agencies; obtaining bond insurance or 281
guarantees for such bonds and complying with the terms and 282
conditions of such insurance or guarantees; make provision for 283
payment in advance of maturity at the option of the owner or 284
holder of the bonds; covenant for the security and better 285
marketability of the bonds, including, without limitation, the 286
establishment of a debt service reserve fund and sinking funds to 287
secure or pay such bonds; and make any other provisions deemed 288
desirable by the municipality in connection with the issuance of 289
said bonds. 290
If a governing body desires to issue tax increment financing 291
bonds under the Regional Economic Development Act, the governing 292
body also shall comply with any requirements provided therein. 293
In connection with the issuance of said bonds, the 294
municipality may arrange for lines of credit with any bank, firm 295
or person for the purpose of providing an additional source of 296
repayment for such bonds and amounts drawn on such lines of credit 297
may be evidenced by bonds, notes or other evidences of 298
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indebtedness containing such terms and conditions as the 299
municipality may determine; provided, however, that such bonds, 300
notes or evidences of indebtedness shall be secured by and payable 301
from the same sources as are pledged to the payment of said bonds 302
which are additionally secured by such line of credit, and that 303
said bonds, notes or other evidences of indebtedness shall be 304
deemed to be bonds for all purposes of this chapter. Pending the 305
preparation or execution of definitive bonds, interim receipts or 306
certificates, or temporary bonds may be delivered to the purchaser 307
or purchasers of said bonds. Any provision of law to the contrary 308
notwithstanding, any bonds, if any, issued pursuant to this 309
chapter shall possess all of the qualities of negotiable 310
instruments. 311
The municipality may also issue refunding bonds for the 312
purpose of paying any of its bonds at or prior to maturity or upon 313
acceleration or redemption. Refunding bonds may be issued at such 314
time prior to the maturity or redemption of the refunded bonds as 315
the municipality may determine. The refunding bonds may be issued 316
in sufficient amounts to pay or provide the principal of the bonds 317
being refunded, together with any redemption premium thereon, any 318
interest accrued or to accrue to the date of payment of such 319
bonds, the expenses of issuing the refunding bonds, the expenses 320
of redeeming the bonds being refunded, and such reserves for debt 321
service or other capital or current expenses from the proceeds of 322
such refunding bonds as may be required by any of the 323
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municipality's resolutions, trust indenture or other security 324
instruments. The issuance of refunding bonds, the maturities and 325
other details thereof, the security therefor, the rights of the 326
holders and the rights, duties and obligations of the municipality 327
in respect of the same shall be governed by the provisions of this 328
chapter relating to the issuance of bonds other than refunding 329
bonds, insofar as the same may be applicable. 330
Before incurring any debt pertaining to a redevelopment 331
project incorporating a tax increment financing plan the governing 332
body may, but shall not be required to, secure an agreement from 333
one or more developers obligating such developer or developers: 334
(a) To effect the completion of all or any portion of 335
the buildings or other facilities or improvements, as described in 336
the redevelopment project, at no cost to the municipality; 337
(b) To pay all or any portion of the real property 338
taxes due on the project in a timely manner; and 339
(c) To maintain and operate all or any portion of the 340
buildings or other facilities or improvements of the project in 341
such a manner as to preserve property values. 342
No breach of any such agreement shall impose any pecuniary 343
liability upon a municipality or any charge upon its general 344
credit or against its taxing powers. 345
Additionally, the municipality may enter into an agreement 346
with the developer under which the developer may construct all or 347
any part of the redevelopment project with private funds in 348
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advance of issuance of the bonds and may be reimbursed by the 349
municipality for actual costs incurred by the developer upon 350
issuance and delivery of the bonds and receipt of the proceeds, 351
conditioned upon dedication of redevelopment project by the 352
developer to the municipality to assure public use and access. 353
This condition shall not apply to the privately owned portion of a 354
project for which the Mississippi Development Authority has issued 355
a certificate of convenience and necessity pursuant to the 356
Regional Economic Development Act. In addition, this condition 357
shall not apply to the privately owned portion of a redevelopment 358
project where the governing body of a municipality makes a finding 359
that it is in the best interest of such municipality that such 360
condition shall not apply. 361
SECTION 6. Section 21-45-11, Mississippi Code of 1972, is 362
brought forward as follows: 363
21-45-11. Any tax increment financing plan, at a minimum, 364
shall contain: 365
(a) A statement of the objectives of a municipality 366
with regard to the plan; 367
(b) A statement indicating the need and proposed use of 368
the tax increment financing plan in relationship to the 369
redevelopment plan; 370
(c) A statement containing the cost estimates of the 371
redevelopment project and the projected sources of revenue (ad 372
valorem taxes, sales taxes, and the proceeds of any other 373
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financial assistance) to be used to meet the costs including 374
estimates of tax increments and the total amount of indebtedness 375
to be incurred; 376
(d) A list of all real property to be included in the 377
tax increment financing plan; 378
(e) The duration of the tax increment financing plan's 379
existence; 380
(f) A statement of the estimated impact of the tax 381
increment financing plan upon the revenues of all taxing 382
jurisdictions in which a redevelopment project is located; and 383
(g) A statement requiring that a separate fund be 384
established to receive ad valorem taxes and the proceeds of any 385
other financial assistance. 386
Before approving any tax increment financing plan, the 387
governing body shall hold a public hearing thereon after published 388
notice in a newspaper in which the municipality is authorized to 389
publish legal notices at least once and not less than ten (10) 390
days and not more than twenty (20) days prior to the hearing. 391
SECTION 7. Section 21-45-13, Mississippi Code of 1972, is 392
brought forward as follows: 393
21-45-13. The principal, interest and premium, if any, on 394
any tax increment bond shall be secured by a pledge of the 395
revenues payable to the municipality pursuant to the tax increment 396
financing plan and may also be secured, in the discretion of the 397
municipality, by a lien on all or any part of the redevelopment 398
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project and any security by any developer pursuant to and secured 399
by a security agreement. The proceedings under which any 400
indebtedness is authorized or any security agreement may contain 401
any agreement or provisions customarily contained in instruments 402
securing such obligations, without limiting the generality of the 403
foregoing provisions respecting the construction, maintenance and 404
operation of buildings or other facilities or improvements of the 405
project, the creation and maintenance of special funds, the rights 406
and remedies available in the event of default to the debt holders 407
or to the trustee, all as the governing body shall deem advisable; 408
provided, however, that in making any such agreements or 409
provisions, no municipality shall have the power to obligate 410
itself except with respect to: 411
(a) The proceeds of the bonds and any property 412
purchased with the proceeds of the bonds; 413
(b) Any security pledged, mortgaged or otherwise made 414
available by a developer for the securing of bonds or other 415
indebtedness; and 416
(c) No municipality shall have the power to obligate 417
itself except with respect to the application of the revenues from 418
the tax increments; nor shall any municipality have the power to 419
incur a pecuniary liability or charge upon its general credit or 420
against its taxing powers. 421
Tax increment financing bonds issued under the Regional 422
Economic Development Act also may be secured as provided therein. 423
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The proceedings authorizing any bonds and any security 424
agreement securing bonds may provide that in the event of default 425
in payment of the principal of or interest on such bonds, or in 426
the performance of any agreement contained in such proceedings or 427
security agreement, such payment and performance may be enforced 428
by mandamus or by appointment of a receiver in equity with such 429
powers as may be necessary to enforce the obligations thereof. No 430
breach of any such agreement shall impose any pecuniary liability 431
upon any municipality or any charge upon its general credit or 432
against its taxing powers. 433
The trustee under any security agreement or any depository 434
specified by such security agreement may be such persons or 435
corporation as the governing body shall designate; provided, that 436
they may be residents of Mississippi or nonresidents of 437
Mississippi or incorporated under the laws of the United States or 438
the laws of other states of the United States. 439
SECTION 8. Section 21-45-15, Mississippi Code of 1972, is 440
brought forward as follows: 441
21-45-15. The proceeds from the sale of any bonds issued 442
under authority of this chapter shall be applied only for the 443
purpose for which the bonds were issued; provided, however, that 444
any premium and accrued interest received in any such sale shall 445
be applied to the payment of the principal of or the interest on 446
the bonds sold; and provided further, that if for the purpose for 447
which the bonds were issued, such unneeded portion of the proceeds 448
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shall be applied to the payment of the principal of or the 449
interest on the bonds. 450
SECTION 9. Section 21-45-17, Mississippi Code of 1972, is 451
brought forward as follows: 452
21-45-17. The bonds authorized by this chapter and the 453
income therefrom and all security agreements and mortgages 454
executed as security therefor made pursuant to the provisions 455
hereof, and the revenues derived therefrom, shall be exempt from 456
all income taxation in the state. 457
SECTION 10. Section 21-45-19, Mississippi Code of 1972, is 458
brought forward as follows: 459
21-45-19. The cost of a redevelopment project shall be 460
deemed to include the actual cost of the construction or 461
rehabilitation of any part of a project which may be constructed 462
or rehabilitated by a municipality, including architects' and 463
engineers' fees, the purchase price of any real property that may 464
be acquired by a municipality by purchase, all expenses in 465
connection with the authorization, sale and issuance of bonds or 466
other indebtedness to finance such acquisition, and the interest 467
on bonds for a reasonable time prior to construction or 468
rehabilitation, during construction or rehabilitation and for not 469
exceeding one (1) year after completion of the construction or 470
rehabilitation. 471
SECTION 11. Section 21-45-21, Mississippi Code of 1972, is 472
brought forward as follows: 473
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21-45-21. (1) After adoption of a redevelopment plan 474
containing a tax increment financing plan the clerk shall certify 475
the assessed value of the real property, including personal 476
property located thereon, described in the tax increment financing 477
plan. Property taxable at the time of the certification shall be 478
included in the assessed value at its most recently determined 479
valuation. 480
Property exempt from taxation at the time of the request 481
shall be included at zero unless it was taxable when the tax 482
increment financing plan was approved, in which case its most 483
recently determined assessed valuation before it became exempt 484
shall be included. These assessed values shall be, and will be 485
referred to as, the "original assessed value." 486
(2) Each year thereafter, the clerk and the State Tax 487
Commission, if applicable, shall certify the amount by which the 488
assessed value of real property, including personal property 489
located thereon, described in the tax increment financing plan has 490
increased or decreased from the original assessed value. These 491
assessed values shall be, and will be referred to as, the "current 492
assessed value." 493
(3) Any amount by which the current assessed value of the 494
real property, including personal property located thereon, 495
described in the redevelopment plan exceeds the original assessed 496
value shall be referred to as the "captured assessed value." The 497
clerk shall certify the amount of the captured assessed value to 498
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the municipality each year for the duration of the tax increment 499
financing plan. A municipality may choose to retain all or a 500
portion of the captured assessed value for purposes of tax 501
increment financing if the plan provides that all or a portion of 502
the captured assessed value is necessary to finance the 503
redevelopment project, including the cost of establishing 504
necessary reserves to insure payment of revenue bonds. 505
If the tax increment financing plan provides that only a 506
portion of the captured assessed value is necessary to finance the 507
redevelopment program, only that portion shall be set aside and 508
the remainder shall be apportioned to the various municipal tax 509
levy funds and the various county tax levy funds. 510
The amount of captured assessed value that a municipality 511
intends to use for purposes of tax increment financing must be 512
clearly stated in the tax increment financing plan. 513
(4) After adoption of a redevelopment plan containing a tax 514
increment financing plan which includes a portion of the 515
municipality sales tax diversion, the State Tax Commission shall 516
certify the amount of sales tax collected by the state within the 517
boundaries of the redevelopment area and diverted to the 518
municipality in the twelve-month period ending on the last day of 519
the month before the effective date of approval of the plan. Any 520
increase in the amount collected within the boundaries shall be 521
set aside by the municipality in the fund created by the tax 522
increment financing plan. 523
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ST: Tax Increment Financing Act; authorize
conduit bond issuance to finance redevelopment
projects.
Each redevelopment plan shall be approved in the same manner 524
and at the same times provided in Section 43-35-13 for the 525
approval of urban renewal plans. Any tax increment financing plan 526
shall become effective on the same date as the redevelopment plan 527
is approved. 528
SECTION 12. This act shall take effect and be in force from 529
and after July 1, 2026. 530