SB 606

This bill changes the method of calculating the maximum number of project

plan amendments to a tax incremental financing district's (TID's) project plan and

creates an exception to the 12 percent test. Generally under current law, a planning

commission may amend a TID's project plan to add or subtract territory from a TID

a maximum of four times during the TID's life. A single amendment, which both adds

and subtracts territory, is counted as one amendment of a project plan.

Under this bill, an amendment to a project plan that subtracts territory does

not count toward the maximum number of allowable amendments to a project plan.

As under current law, a single amendment which both adds and subtracts territory

is still counted as one amendment.

Currently, before a TID may be created or its project plan amended, the city or

village must adopt a resolution containing a finding that the equalized value of

taxable property of the TID plus the value increment of all existing TIDs does not

exceed 12 percent of the total equalized value of taxable property in the city or village

(the "12 percent test"), subject to one general exception. Under the exception, a city

or village may simultaneously create a new TID and subtract territory from an

existing TID without adopting a resolution containing the 12 percent test if the city

or village demonstrates to DOR that the value of the territory that is subtracted at

least equals the amount that DOR believes is necessary to ensure that, when the new

TID is created, the 12 percent test is met. The city or village must also certify to DOR

that no other TID created under this exception currently exists in the city or village.

Under this bill, an amendment to a project plan which only subtracts territory

from a TID is not subject to the 12 percent test.