The bill's passage is anticipated to promote urban revitalization along riverfronts by allowing tax increment financing (TIF) mechanisms. Local governments will be empowered to utilize revenue generated from a defined tax area to support capital improvements, pay off debts related to the development, and sustain public utilities and infrastructure enhancements. The establishment of such tax areas could be a significant boon for economic development, fostering new investments and jobs in the local economies.
Summary
House Bill 1368 introduces provisions for establishing riverfront economic development tax areas within cities and counties that are not consolidated municipalities in Indiana. This legislative initiative allows local governments to create designated tax regions that can harness incremental state income tax and sales tax revenue to fund economic development projects. The bill sets up a framework for designating eligible areas, which must support local infrastructure improvements and aim to attract and retain business enterprises within those areas.
Contention
Notably, the measure stipulates that a tax area can remain in effect for a maximum of 25 years, after which it will be automatically terminated if not renewed. This temporal limitation could pose a concern for long-term investors and stakeholders who might prefer a more extended framework for planning and resource allocation. Additionally, there may be debate around the implications of such tax areas on existing revenue structures and the potential competition among different municipalities to attract economic development funds.
Establishing the Pike reservoir project district act to provide for a lake and related commercial and residential development in Bourbon county and authorizing a governing board and sales and property tax increment financing for such project.