TIF Tax Increment Financing Transparency
Not later than 90 days after the end of the first fiscal year of an urban renewal authority (authority) after the governing body of a municipality has approved an urban renewal plan (plan) that allocates any incremental property or sales tax revenues of any taxing entity other than the municipality, and on the same day each year thereafter, the bill requires the authority to prepare a report for public distribution.
The authority is required to send a copy of the report by first class mail and by e-mail to each taxing entity other than the municipality whose incremental property or sales tax revenues will be allocated under the plan.
The bill specifies items the report is to address.
With the annual report, the bill also requires an authority to submit an independent audit of its financial status that is prepared by a certified public accountant attesting to the accuracy of the annual report. As part of the audit, the certified public accountant is also required to report whether the authority has used any incremental property or sales tax revenues for any unauthorized purposes other than for eligible costs. In connection with the preparation of the report, the authority must also provide any other financial information that is reasonably required by the governing body of the municipality.
If the audit finds that any incremental property or sales tax revenues have been used for any unauthorized purposes, the authority is liable for the repayment of such incremental tax revenues to the taxing entities whose incremental property or sales tax revenues were allocated under the plan.
(Note: This summary applies to this bill as introduced.)