Provides relative to the use of state sales tax increments in certain local tax increment financing initiatives (EN SEE FISC NOTE GF RV See Note)
Impact
With this amendment, local governments gain a more flexible tool for financing economic development initiatives. Specifically, it allows a potential extension of state sales tax increments for projects that have been approved by the Joint Legislative Committee on the Budget under certain conditions. This change could lead to enhanced investment and promote economic activity in underdeveloped areas, benefiting communities financially, and stimulating local economies.
Summary
House Bill 285 amends the provisions regarding the use of state sales tax increments for tax increment financing mechanisms authorized for local governmental subdivisions. The bill clarifies the circumstances under which state sales tax increments can be utilized for financing local economic development projects, particularly related to projects that have already received prior approvals. This legislation is aimed at fostering local economic growth by allowing for certain exceptions, thus encouraging projects that may have stalled or require additional funding considerations.
Sentiment
Overall, the sentiment around HB 285 seems positive among legislators, as the bill passed the Senate with a unanimous vote. Supporters argue that extending the use of state sales tax increments is essential for local governments to effectively promote economic development, particularly in a time where funding may be limited. The lack of opposition and its passing indicates a shared recognition of the importance of these tools for local governance and development.
Contention
Notable points of contention may arise from concerns about the fiscal implications of extending state sales tax increments. Critics of tax increment financing often argue that such mechanisms can lead to a depletion of resources that could otherwise benefit state-funded services. Additionally, while the bill eliminates some restrictions, there may be apprehensions about the accountability and oversight of how the funds are ultimately used, as local governments gain more leeway in managing their financing strategies.
Authorizes expansion of scope of projects and extension of use of state sales tax for certain tax increment financing districts. (8/1/19) (EN DECREASE GF RV See Note)
Relative to the New Orleans City Park Taxing District, provides with respect to procedures relative to use of state sales tax increments for tax increment financing (EN DECREASE GF RV See Note)
An Act Concerning Tax Incremental Financing In Enterprise Corridor Zones, Tax Incremental Financing In Municipal Development Zones, And Allowing Certain Commercial Properties In Bristol And Plainville To Qualify For Enterprise Zone Benefits.