LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 6221 NOTE PREPARED: Nov 9, 2024
BILL NUMBER: SB 104 BILL AMENDED:
SUBJECT: Residential Tax Increment Financing.
FIRST AUTHOR: Sen. Niemeyer BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Local
DEDICATED
FEDERAL
Summary of Legislation: This bill provides, in the case of an allocation provision adopted after June 30,
2025, for a residential housing development program, that the redevelopment commission (commission) shall
annually transfer at least 5% of the aggregate allocated tax proceeds from the allocation area to the general
fund of the unit that established the commission to assist that unit in the payment of costs incurred for the
provision of police, fire, and ambulance services within the allocation area.
Effective Date: July 1, 2025.
Explanation of State Expenditures:
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: Under this bill, at least 5% of the property taxes generated on the
incremental AV in new residential housing TIF districts will be transferred to the authorizing taxing unit to
pay for public safety services in the TIF area. Revenue for the authorizing taxing unit will increase, while
revenue available to the redevelopment commission will be reduced. Total taxes paid will not change. There
will be no change in the revenue distribution for residential housing TIF districts established before July 1,
2025.
The actual impact depends on the number of residential housing TIF districts established after June 30, 2025,
and the amount of incremental taxes generated in those TIF districts.
State Agencies Affected:
Local Agencies Affected: Taxing units that authorize new residential housing TIF districts; Redevelopment
commissions.
SB 104 1 Information Sources:
Fiscal Analyst: Bob Sigalow, 317-232-9859.
SB 104 2