SB 677 - Tax Increment Financing Districts

• Authorizes municipalities to establish tax increment financing districts (TIFs) to finance economic development projects including industrial, commercial, residential, retail, downtown development, and transit-oriented development.

• Requires municipalities to adopt a district master plan and financial plan; hold public hearings; and verify the TIF does not exceed 10% of the municipality's total taxable property value before establishment.

• Allows municipalities to capture tax revenues from increased property values within the TIF to fund project costs including infrastructure, building improvements, environmental remediation, and related professional services, with a maximum duration of 50 tax years.

• Permits municipalities to issue bonds secured by TIF revenues or municipal full faith and credit to finance district improvements, and to impose benefit assessments on properties within the TIF for public improvements with repayment periods up to 30 years.

• Requires annual certification of original and current assessed values by municipal assessors, annual audits of TIF accounts by independent licensed public accountants, and encourages creation of advisory boards including property owners to guide TIF implementation.