HB 2712 Summary

• Establishes a new tax increment financing (TIF) program for municipalities allowing designated "municipal improvement areas" to capture property tax increases for approved infrastructure projects.

• Permits areas to be designated for up to 30 years; requires joint review board approval consisting of representatives from the municipality, county, school districts, and community college districts, plus a public member.

• Allows municipalities to divert "tax increment monies" (the difference between current and original assessed property values) to fund authorized project costs including public infrastructure, land acquisition, public transit, affordable housing improvements, and related professional services.

• Requires municipal voter approval, public hearings with notice to state and local officials, a detailed development and financial plan demonstrating public benefit, and annual independent audits of all financial transactions.

• Prohibits tax increment monies from being used for debt service on bonds, commingled with other municipal funds, or diverted from state education property tax levies; requires municipalities to reimburse the state general fund if area designation causes increased school aid payments.