Senate Bill 289 Summary

• Military base reuse authorities may designate sales tax increment financing (STIF) areas if significant redevelopment obstacles exist, such as obsolete buildings, insufficient infrastructure, environmental contamination, or transportation problems.

• Reuse authorities must submit STIF area designations to the budget committee and budget agency for approval; areas must terminate within 15 years of initial approval but may be extended once for an additional 15 years.

• The Department of State Revenue calculates incremental sales tax amounts annually (the difference between current sales tax collections and a baseline "base period" amount), and the Auditor of State distributes these amounts to the reuse authority from the state general fund.

• Reuse authorities may use incremental sales tax funds exclusively for infrastructure costs within the STIF area, including roads, utilities, drainage systems, and debt service or lease payments on bonds financing infrastructure projects.

• STIF areas cannot overlap with other areas capturing incremental state taxes under different laws, and must consist of contiguous territory within the military base reuse area boundaries.