SB474 Summary

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

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

• Allows municipalities settling boundary disputes to enter into contracts specifying the percentage ratio for sharing tax revenues, with such contracts permitted to have perpetual duration (unlike standard intergovernmental contracts limited to three years).

• Clarifies that revenue-sharing authority for taxes in designated areas may only be exercised as part of an approved revenue-sharing agreement under Section 11-102-1.

• Becomes effective immediately upon passage and approval by the Governor.