HB345 Summary: Enhanced Use Lease Area Act of 2010

• Creates the Enhanced Use Lease Area Act of 2010 to extend tax increment financing to military installations with underutilized real or personal property leased under federal authority (Title 10 U.S.C. §2667).

• Establishes tax increment districts where at least 50% of the area is an enhanced use lease area, with duration up to 35 years (compared to 30 years for blighted areas), and allows project costs incurred within 3 years before district creation to be included.

• Entitles qualified property in enhanced use lease areas to abatement of state property taxes; owners must instead pay state property tax increments to the public entity to fund project costs and repay tax increment obligations.

• Requires property owners and deferred tax recipients to be notified and provided opportunity to participate in district creation process; state and local taxing authorities must pay tax increments into the tax increment fund.

• Applies retroactively to tax increment districts created on or after January 1, 2010, that meet the enhanced use lease area threshold requirement; effective immediately upon passage.