Provides relative to the creation of and the levy of taxes by certain special districts
Impact
One of the main provisions in HB850 is the requirement for voter approval for the levying of ad valorem, sales, and hotel occupancy taxes, while also retaining the option for local governments to pledge these tax increments for repaying revenue bonds. This ensures that any financial decisions by the development districts will have a democratic mandate, though specifics on how districts operate with or without voter populations are outlined. Furthermore, the bill requires these districts to conduct a public benefit analysis before making improvements to private properties, ensuring transparency and accountability in their fiscal decisions.
Summary
House Bill 850 seeks to amend existing laws related to the creation and operation of economic development districts in Louisiana, allowing these districts to engage in tax increment financing. The bill stipulates that such districts must have a single, contiguous boundary and ensures that no property within that boundary is excluded. This is a significant clarification aimed at streamlining the formation and governance of these economic districts, thereby fostering economic growth through targeted financial incentives.
Sentiment
The sentiment surrounding HB850 appears generally supportive among economic development advocates who argue that enhancing the power of these districts can stimulate local economies. However, there are concerns regarding the potential for mismanagement and the necessity of ensuring that public investments yield substantial benefits to the community, indicating a cautious optimism about the practicality of these provisions. Legislators see this bill as a necessary tool for stimulating growth, but must balance it with the need for due diligence in financial matters.
Contention
Points of contention primarily revolve around the implications of tax increment financing and the boundaries set for development districts. Critics worry that it may lead to hasty decisions without adequate oversight and potential misuse of public funds. The requirement for public hearings and detailed reporting on expenditures is seen as a safeguard against such outcomes, but it raises questions about the effectiveness and enforcement of these regulations. Moreover, the stipulation that no election is required if there are no qualified electors in a district has raised eyebrows, as it could result in district governance without direct voter input.
Authorizes creation of special districts within certain cities and provides for the governance and the powers and duties of the district, including tax increment finance authority. (gov sig)
Provides relative to economic development districts created by local governmental subdivisions and for the use of tax proceeds collected by such districts (EN SEE FISC NOTE LF RV See Note)
Requires voter approval prior to the creation of certain economic development districts by local governmental subdivisions (OR NO IMPACT LF EX See Note)
Relating to the creation and the powers and duties of certain special districts; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes.
Authorizes the creation of cooperative economic development districts affiliated with certain Louisiana public postsecondary education institutions. (gov sig)
Creates the Thomas H. Delpit Area Special District in the parish of East Baton Rouge and grants it certain TIF and tax authority to finance economic development projects within the district. (7/1/10) (EG DECREASE GF RV See Note)
Provides for the creation of special service districts by parishes and municipalities, and for the raising of revenues by such special service districts. (gov sig) (REF NO IMPACT LF See Note)
Tax increment financing provisions modified, various pooling provisions clarified, administrative expense limitations clarified, and application of violations and remedies expanded.