This bill proposes updates to current statutes by introducing a new Article 4.1 that establishes a framework for Tax Increment Financing (TIF) Improvement Areas. It defines key terms such as "assessed value," "municipal improvement area," and "project costs," and outlines the process for municipalities to designate these areas. The bill mandates public hearings and joint review board approvals before any area can be designated or development plans adopted, while also specifying financial mechanisms for funding improvements through tax increment revenues derived from increased assessed property values.

Additionally, the bill introduces new restrictions on the use of tax increment funds, prohibiting their use for debt service on bonds or to circumvent other tax laws, and requires municipalities to maintain separate tax increment funds for each improvement area. It mandates annual audits of financial transactions related to each area, with results reported to the joint review board and made public. The bill clarifies the termination process for improvement areas, stating that municipalities become liable for unpaid costs upon termination and must notify relevant parties if an area is terminated early. It also ensures that assessed values of taxable property in the area are included in the roll for each affected taxing jurisdiction, enhancing transparency and accountability.

Statutes affected:
Introduced Version: 42-17052, 42-17251, 9-442.05, 9-442.08, 9-442.03, 42-11001, 9-442.07, 9-442.01, 9-442.02, 9-442.04, 9-442.06, 9-442.12, 42-17255, 9-442.09, 9-442.10, 16-204, 9-442.11, 9-442.13, 42-17051, 48-807, 42-17053, 15-991, 41-1276