Sec. 1. 20-A MRSA §1, sub-§37-A, as enacted by PL 1985, c. 650, §1, is amended to read:

37-A. State valuation. "State valuation" means the value certified to the Secretary of State as provided in Title 36, section 305, subsection 1 1-A.

Sec. 2. 36 MRSA §305, sub-§1-A is enacted to read:

1-A.__Just value for purposes of education funding.__Certify to the Secretary of State before the first day of February the equalized just value of all real and personal property in each municipality and unorganized place that is subject to taxation under the laws of this State, including that percentage of captured assessed value located within a tax increment financing district, approved after October 1, 1999, that is used to finance that district's development plan and the valuation amount by which the current assessed value of commercial and industrial property within a municipal incentive development zone, as determined in Title 30-A, section 5284, approved after October 1, 1999, exceeds the assessed value of commercial and industrial property within the zone as of the date the zone is approved by the Commissioner of Economic and Community Development up to the amount invested by a municipality in infrastructure improvements under an infrastructure improvement plan adopted pursuant to Title 30-A, section 5283.__The just value certified under this subsection is the amount used for education funding purposes under Title 20-A;

SUMMARY

This bill provides that property in a tax increment financing district is included in state valuation for purposes of calculating and distributing state education funding.