HB 1646 Summary

• Allows municipalities to make additional distributions from special tax allocation funds to affected taxing districts before distributing surplus funds, provided the fund balance remains sufficient to cover pledged obligations.

• Permits affected taxing districts receiving additional distributions to use the funds for debt service on district obligations and to provide property tax relief.

• Enables affected taxing districts to enter into intergovernmental agreements with municipalities and reduce their property tax levy by an amount equal to the additional distributions received during the taxable year.

• Defines "affected taxing district" as community college districts, school districts, park districts, library districts, townships, fire protection districts, or counties with authority to levy taxes on redevelopment project area property.

• Takes effect immediately upon becoming law.