Maine Revised Statutes Title 30-A Sec. 5265 – Tax increment financing
Current as of: 2023 | Check for updates
|
Other versions
1. Captured assessed value. The municipality may retain all or part of the tax increment of a tax increment financing district for the purpose of financing the development program. The amount of tax increment to be retained is determined by designating the amount of captured assessed value to be retained. When a development program for a tax increment financing district is adopted, the municipal legislative body shall adopt a statement of the percentage of captured assessed value to be retained in accordance with the development program. The statement of percentage may establish a specific percentage or percentages or may describe a method or formula for determination of the percentage. The municipal assessor shall certify the amount of the captured assessed value to the municipality each year.
[PL 1993, c. 671, §2 (NEW).]
Terms Used In Maine Revised Statutes Title 30-A Sec. 5265
- Captured assessed value: means the valuation amount by which the current assessed value of a pulp and paper tax increment financing district exceeds the original assessed value of the district. See Maine Revised Statutes Title 30-A Sec. 5263
- Designee: means a business engaged in the pulp and paper industry that is selected by a municipality as a partner in a development district. See Maine Revised Statutes Title 30-A Sec. 5263
- Development district: means a specified area within the corporate limits of a municipality that has been designated as provided under section 5264 and that is to be developed by the municipality or its designee under a development program. See Maine Revised Statutes Title 30-A Sec. 5263
- Development program: means a statement of means and objectives designed to improve and modernize the manufacturing facilities and related structures and equipment within the development district. See Maine Revised Statutes Title 30-A Sec. 5263
- Financial plan: means a statement of the costs and sources of revenue required to accomplish the development program. See Maine Revised Statutes Title 30-A Sec. 5263
- Municipal legislative body: means :
A. See Maine Revised Statutes Title 30-A Sec. 2001Municipality: means a city or town, except as provided in chapter 225. See Maine Revised Statutes Title 30-A Sec. 2001 Original assessed value: means the assessed value of the development district as of March 31st of the preceding tax year. See Maine Revised Statutes Title 30-A Sec. 5263 project costs: includes , but is not limited to:
(1) Capital costs, including, but not limited to:
(a) The actual costs of the construction of public works or improvements, new buildings, structures and fixtures;
(b) The demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures and fixtures;
(c) The acquisition of equipment; and
(d) The clearing and grading of land;
(2) Financing costs, including, but not limited to, all interest paid to holders of evidences of indebtedness issued to pay for project costs and any premium paid over the principal amount of that indebtedness because of the redemption of the obligations before maturity;
(3) Real property assembly costs, meaning a deficit incurred resulting from the sale or lease as lessor by the municipality of real or personal property within a development district for consideration that is less than its cost to the municipality;
(4) Professional service costs, including, but not limited to, those costs incurred for architectural, planning, engineering and legal advice and services;
(5) Administrative costs, including, but not limited to, reasonable charges for the time spent by municipal employees in connection with the implementation of a project plan;
(6) Relocation costs, including, but not limited to, those relocation payments made following condemnation;
(7) Organizational costs, including, but not limited to, the costs of conducting environmental impact and other studies and the costs of informing the public about the creation of development districts and the implementation of project plans;
(8) Payments made, in the discretion of the local legislative body, that are found to be necessary or convenient to the creation of development districts or the implementation of project plans;
(9) That portion of the costs related to the construction or alteration of sewage treatment plants, water treatment plants or other environmental protection devices, storm or sanitary sewer lines or water lines, the rebuilding or expansion of which is required by the project plan for a development district, whether or not the construction, alteration, rebuilding or expansion is within the development district;
(10) Training costs, including, but not limited to, those costs associated with providing skills development and training for employees of businesses within the development district. See Maine Revised Statutes Title 30-A Sec. 5263Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land. Sinking fund: means a fund created for the purpose of paying a debt. See Maine Revised Statutes Title 30-A Sec. 2001 Tax increment: means that portion of all real and personal property taxes assessed by a municipality in excess of any state, county or special district tax upon the captured assessed value of property in the development district. See Maine Revised Statutes Title 30-A Sec. 5263 tax increment financing district: means a pulp and paper tax increment financing district. See Maine Revised Statutes Title 30-A Sec. 5263 Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
2. Original assessed value. On or after formation of a tax increment financing district, the assessor of the municipality in which it is located shall, on request of the municipal legislative body, certify the original assessed value of the taxable property within the boundaries of the tax increment financing district. Each year, after the formation of a tax increment financing district, the municipal assessor shall certify the amount by which the assessed value has increased or decreased from the original value. The amount of any increase in the captured assessed value must be reduced by the amount of any reduction in the most current total valuation of all properties that are within the municipality but outside the development district belonging to property owners with taxable property located within the development district as compared to the assessed valuation of the same properties on March 31st of the tax year immediately preceding the designation of the development district.
[PL 1993, c. 671, §2 (NEW).]
3. Development program fund; tax increment revenues. If a municipality has elected to retain all or a percentage of the retained captured assessed value under subsection 1, the municipality:
A. Shall establish a development program fund that consists of the following:
(1) A development sinking fund account that is pledged to and charged with the payment of the interest and principal as the interest and principal fall due and the necessary charges of paying interest and principal on notes, bonds or other evidences of indebtedness that were issued by the municipality or its designee to fund or refund the cost of the development program fund; and
(2) A project cost account that is pledged to and charged with the payment of project costs as outlined in the financial plan and are paid in a manner other than as described in subparagraph (1); [PL 1993, c. 671, §2 (NEW).]
B. Shall annually set aside all tax increment revenues on retained captured assessed values and deposit all such revenues to the appropriate development program fund account in the following order of priority:
(1) To the development sinking fund account, an amount sufficient together with estimated future revenues to be deposited to the account and earnings on the amount to satisfy all annual debt service on bonds and notes issued under section 5267 and the financial plan; and
(2) To the project cost account, an amount sufficient, together with estimated future revenues to be deposited to the account and earnings on the amount, to satisfy all annual project costs to be paid from the account; [PL 1993, c. 671, §2 (NEW).]
C. May make transfers between development program fund accounts as required, as long as the transfers do not result in a balance in the development sinking fund account that is insufficient to cover the annual obligations of that account; and [PL 1993, c. 671, §2 (NEW).]
D. Shall annually return to the municipal general fund any tax increment revenues in excess of those estimated to be required to satisfy the obligations of the development sinking fund account. The corresponding amount of local valuation may not be included as part of the retained captured assessed value as specified by the municipality. [PL 1993, c. 671, §2 (NEW).]
[PL 1993, c. 671, §2 (NEW).]
4. Limitations. The following limitations apply.
A. Nothing in this section allows or sanctions unequal apportionment or assessment of the taxes paid on real property in the State. Taxes on real property within the tax increment financing district must be apportioned equally with property taxes on real property elsewhere in the municipality. [PL 1993, c. 671, §2 (NEW).]
B. The municipality shall expend the tax increments received for a development program only in accordance with the financing plan. These revenues may not be used to circumvent existing tax laws. [PL 1993, c. 671, §2 (NEW).]
[PL 1993, c. 671, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 671, §2 (NEW).