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 creates 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. Additionally, the bill extends the sunset date of the STAR Bonds Financing Act to July 1, 2031, and outlines a certification process for the Secretary of Revenue to determine the additional sales and use tax revenue that would have been generated from food sales in these districts.

Moreover, the bill clarifies the definition and management of STAR bond project districts, allowing for non-contiguous parcels of real estate and multiple projects within these areas. It introduces new definitions related to project planning and approval, specifies how tax increments are calculated, and extends the expiration date for STAR bond project provisions to July 1, 2031. The legislation also allows cities that established redevelopment districts before the bill's enactment to opt into the new provisions and repeals certain sections of existing law to streamline the regulatory framework. Overall, the bill aims to enhance the flexibility and effectiveness of STAR bond financing for economic development initiatives.

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