The bill amends the STAR Bonds Financing Act to establish a food sales tax revenue replacement for STAR bond districts created before December 31, 2022. It introduces the STAR Bonds Food Sales Tax Revenue Replacement Fund, which will receive transfers from the state general fund to offset lost sales tax revenues resulting from changes in the sales tax on food and food ingredients. The bill extends the sunset date of the STAR Bonds Financing Act to July 1, 2031, and assigns the Secretary of Revenue the responsibility of certifying the additional sales and use tax revenue that would have been generated from food sales in these districts, with detailed timelines for certification and fund transfers.

Additionally, the bill clarifies the definition and management of STAR bond project districts, allowing eligible areas to include real property from other STAR bond project districts, provided that any outstanding STAR bonds from those districts are prioritized for repayment. It introduces new definitions related to STAR bond project plans and specifies that districts do not need to consist of contiguous parcels. The expiration of STAR bond financing is extended to July 1, 2031, and certain sections of existing law are repealed. The bill also emphasizes the Secretary of Commerce's role in certifying base year revenue and managing tax increments for STAR bond projects, ensuring proper accounting of local sales and use tax revenues.

Statutes affected:
As introduced: 12-17, 79-3201