SF261 Summary

• Expands the definition of "administrative expenses" to clarify what costs are eligible and creates exemptions from the 10% administrative expense limitation for certain categories of increments and county-paid expenses.

• Establishes a new "pay-as-you-go contract and note" definition for written obligations where reimbursement is made from tax increment revenues as collected, with risk of insufficient funds borne by the developer or note holder.

• Clarifies pooling provisions by allowing municipalities to transfer tax increments between districts to eliminate deficits, with specific rules for preexisting obligations and development authority requirements.

• Modifies the five-year rule and decertification requirements to account for pay-as-you-go contracts, allowing deferral of required decertification until such contracts are satisfied while requiring annual removal of parcels or prepayment of obligations.

• Expands violations and remedies to apply broadly across the tax increment financing chapter and clarifies reporting requirements for annual financial disclosures, including specific line items for pay-as-you-go contracts and bonds.