07-08-1996 Council Packet - Laserfiche WebLink

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1 1 1 1 1 ] ] 1 ] ] ^‘But-for” Test Modifled - Tax Increment Financing - Municipalities are required to show that the use of a TIF district would increase the taxable market value of a site over what would have occurred without TIF. The present value of the tax increment subsidies is deducted from the projected market value of the TIF development in making this determination. Housing districts providing assistance to low-income rental projects are exempt from the “but-for” test. Pooling of Tax Increment Revenues - Up to 20% of increment revenue collections within a TIF district may be spent outside of a non-development TIF district. However, redevelopment districts will continue to have a 25% limitation. Green Acres, Metropolitan Agricultural Preserves, and Open Space - Properties that were enrolled in a deferred assessment program within the last five years may not be included within a TIF district. Newspaper Disclosure - Additional details about TIF districts must now be included in the legal sections of newspapers: the amount of tax increment paid to other governmental units, the amount paid for administrative costs, the amount of incremen. spent outside the TIF district, and the effect on property taxes due to the election to pay the fiscal disparities contribution out of a general tax on the municipality. “Targeting” Refund Program - A state property tax refund program once scheduled to end after the tax year w ill be made permanent and fully funded by the state. This “targeting” refund program helps property owners whose taxes go up more than 12% and increase by at least SI00 over the previous year. The maximum refund under the targeting program is $1,000. Liquor Store Sales - Liquor stores can now sell food products that contain more than 0.5% of alcohol by volume (such as ice cream blended with liqueur), home brewing equipment, and magazines “published primarily for information and education on alcoholic beverages”. Temporar>’ Liquor Licenses - Cities can now issue four-day on-sale intoxicating liquor licenses to non-profit organizations and to registered political comminees. Before the law change, the temporary licenses were only good for three consecutive days. Pension Funds - Communities receiving more than enough aid to pay police and salaried firefighter pensions will see half of the excess money redistributed to other such community pension funds. Because the 2% automobile insurance tax that partially funds this aid raises more money than is needed for the pension funds in some communities, the excess funds will be redistributed to municipalities in need of the extra aid, rather than depositing such amounts into the state’s general fund. Workers’ Compensation Reform - Changes designed lo reduce workers’ compensation insurance premiums were passed by the 1995 legislanire. The three main changes include: a cut in the automatic cost-of-living increases in the benefits paid to injured workers, regulation changes making it more difficult to qualify for permanent total disability benefits, and limited regulation of the workers’ compensation insurance industr}’. -2-