The bill amends the STAR Bonds Financing Act to create a food sales tax revenue replacement for STAR bond districts established before December 31, 2022. It establishes the STAR Bonds Food Sales Tax Revenue Replacement Fund, which will receive transfers from the state general fund to offset lost sales tax revenues due to 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 planning and specifies that project districts do not need to consist of contiguous parcels. The bill also modifies tax increment provisions to include revenue from various taxes collected within STAR bond project districts, while extending the expiration date for STAR bond project provisions to July 1, 2031, thereby facilitating ongoing redevelopment efforts. The act will take effect upon publication in the statute book.

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