HB654 Summary

• Authorizes municipalities that annex territory in settlement of boundary disputes with overlapping police jurisdictions to levy sales and use tax at different rates in designated annexed areas versus other parts of the municipality.

• Permits municipalities to share sales and use tax revenues collected within designated areas through written revenue-sharing agreements approved by each municipality's governing body.

• Allows tax revenue-sharing contracts between municipalities to have perpetual duration, unlike other intergovernmental contracts which are limited to three-year terms.

• Clarifies that municipalities may only exercise differential tax rates and revenue sharing authority as part of an approved revenue-sharing agreement authorized by state law.

• Becomes effective immediately upon passage and gubernatorial approval.