HB 1326 Summary

• Requires municipalities to obtain approval from each affected city, county, and school district before granting property tax exemptions or payments in lieu of taxes for development projects, renaissance zones, and residential improvements.

• Modifies tax increment financing procedures to require municipalities to receive written letters of support from counties and school districts before approving development or renewal plans, and allows other taxing entities to submit letters requesting exclusion from participation.

• Changes renaissance zone application requirements to require letters of support from counties and school districts for applications submitted after December 31, 2016, and reduces the maximum duration from fifteen years to five years.

• Applies the impacted municipality approval requirement to multiple tax exemption programs including those for new residential construction (subsection 35), early childhood services facilities (subsection 36), unoccupied builder properties (subsection 42), and commercial or residential building improvements.

• Restricts home rule authority preventing cities and counties from superseding or expanding the provisions related to tax exemptions and incentives.