An Act To Treat Plantations in the Same Manner as Towns for Purposes of Tax Increment Financing
Sec. 1. 30-A MRSA §5221, sub-§1, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 2. 30-A MRSA §5221, sub-§2, as amended by PL 2009, c. 314, §1, is further amended to read:
Sec. 3. 30-A MRSA §5222, sub-§1-A, as enacted by PL 2007, c. 413, §2, is amended to read:
Sec. 4. 30-A MRSA §5222, sub-§4, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 5. 30-A MRSA §5222, sub-§6, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 6. 30-A MRSA §5222, sub-§15, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 7. 30-A MRSA §5222, sub-§17, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 8. 30-A MRSA §5223, as amended by PL 2009, c. 627, §1, is further amended to read:
§ 5223. Development districts
(1) Must be a blighted area;
(2) Must be in need of rehabilitation, redevelopment or conservation work; or
(3) Must be suitable for commercial or arts district uses.
Excluded from the calculation in this paragraph is any district excluded from the calculation under former section 5253, subsection 1, paragraph C and any district designated on or after the effective date of this chapter that meets the following criteria:
(1) The development program contains project costs, authorized by section 5225, subsection 1, paragraph A, that exceed $10,000,000;
(2) The geographic area consists entirely of contiguous property owned by a single taxpayer;
(3) The assessed value exceeds 10% of the total value of taxable property within the municipality or plantation; and
(4) The development program does not contain project costs authorized by section 5225, subsection 1, paragraph C.
For the purpose of this paragraph, "contiguous property" includes a parcel or parcels of land divided by a road, power line or right-of-way.
(1) The commissioner may adopt rules necessary to allocate or apportion the designation of captured assessed value of property within proposed tax increment financing districts to permit compliance with the condition in this paragraph. Rules adopted pursuant to this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
(2) The acquisition, construction and installment of all real and personal property improvements, buildings, structures, fixtures and equipment included within the development program and financed through municipal or plantation bonded indebtedness must be completed within 5 years of the commissioner's approval of the designation of the tax increment financing district.
The conditions in paragraphs A to D do not apply to approved downtown tax increment financing districts, tax increment financing districts that consist solely of one or more community wind power generation facilities owned by a community wind power generator that has been certified by the Public Utilities Commission pursuant to Title 35-A, section 3403, subsection 3 or transit-oriented development districts.
Sec. 9. 30-A MRSA §5224, sub-§1, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 10. 30-A MRSA §5224, sub-§2, ¶I, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 11. 30-A MRSA §5224, sub-§5, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 12. 30-A MRSA §5225, sub-§1, ¶A, as corrected by RR 2009, c. 1, §22, is amended to read:
(1) Capital costs, including, but not limited to:
(a) The acquisition or construction of land, improvements, public ways, buildings, structures, fixtures and equipment for public, arts district, new or existing recreational trail, commercial or transit-oriented development district use.
(i) Eligible transit-oriented development district capital costs include but are not limited to: transit vehicles such as buses, ferries, vans, rail conveyances and related equipment; bus shelters and other transit-related structures; benches, signs and other transit-related infrastructure; bicycle lane construction and other bicycle-related improvements; pedestrian improvements such as crosswalks, crosswalk signals and warning systems and crosswalk curb treatments; and the nonresidential commercial portions of transit-oriented development projects ; .
(ii) Eligible recreational trail-related development district capital costs include but are not limited to new or existing trails, including bridges that are part of the trail corridor, used all or in part for all-terrain vehicles, snowmobiles, hiking, bicycling, cross-country skiing or other related multiple uses, signs, crosswalks, signals and warning systems and other related improvements.
(iii) Eligible development district capital costs for public ways include but are not limited to scenic turnouts, signs, railing and other related improvements;
(b) The demolition, alteration, remodeling, repair or reconstruction of existing buildings, structures and fixtures;
(c) Site preparation and finishing work; and
(d) All fees and expenses that are eligible to be included in the capital cost of such improvements, including, but not limited to, licensing and permitting expenses and planning, engineering, architectural, testing, legal and accounting expenses;
(2) Financing costs, including, but not limited to, closing costs, issuance costs and 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;
(4) Professional service costs, including, but not limited to, licensing, architectural, planning, engineering and legal expenses;
(5) Administrative costs, including, but not limited to, reasonable charges for the time spent by municipal or plantation employees in connection with the implementation of a development program;
(6) Relocation costs, including, but not limited to, relocation payments made following condemnation;
(7) Organizational costs relating to the establishment of the district, 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; and
(8) In the case of transit-oriented development districts, ongoing costs of adding to an existing transit system or creating a new transit service and limited strictly to transit operator salaries, transit vehicle fuel and transit vehicle parts replacements;
Sec. 13. 30-A MRSA §5225, sub-§1, ¶B, as enacted by PL 2001, c. 669, §1, is amended to read:
(1) That portion of the costs reasonably related to the construction, alteration or expansion of any facilities not located within the district that are required due to improvements or activities within the district, including, but not limited to, sewage treatment plants, water treatment plants or other environmental protection devices; storm or sanitary sewer lines; water lines; electrical lines; improvements to fire stations; and amenities on streets;
(2) Costs of public safety improvements made necessary by the establishment of the district; and
(3) Costs of funding to mitigate any adverse impact of the district upon the municipality or plantation and its constituents. This funding may be used for public facilities and improvements if:
(a) The public facilities or improvements are located in a downtown tax increment financing district; and
(b) The entire tax increment from the downtown tax increment financing district is committed to the development program of the tax increment financing district;
Sec. 14. 30-A MRSA §5225, sub-§1, ¶C, as amended by PL 2009, c. 314, §11, is further amended to read:
(1) Costs of funding economic development programs or events developed by the municipality or plantation or funding the marketing of the municipality or plantation as a business or arts location;
(2) Costs of funding environmental improvement projects developed by the municipality or plantation for commercial or arts district use or related to such activities;
(3) Funding to establish permanent economic development revolving loan funds or investment funds;
(4) Costs of services to provide skills development and training for residents of the municipality or plantation. These costs may not exceed 20% of the total project costs and must be designated as training funds in the development program;
(5) Quality child care costs, including finance costs and construction, staffing, training, certification and accreditation costs related to child care;
(6) Costs relating to planning, design, construction, maintenance, grooming and improvements to new or existing recreational trails determined by the department to have significant potential to promote economic development, including bridges that are part of the trail corridor, used all or in part for all-terrain vehicles, snowmobiles, hiking, bicycling, cross-country skiing or other related multiple uses; and
(7) Costs associated with a new or expanded transit service, limited to:
(a) Transit service capital costs, including but not limited to: transit vehicles such as buses, ferries, vans, rail conveyances and related equipment; bus shelters and other transit-related structures; and benches, signs and other transit-related infrastructure; and
(b) In the case of transit-oriented development districts, ongoing costs of adding to an existing transit system or creating a new transit service and limited strictly to transit operator salaries, transit vehicle fuel and transit vehicle parts replacements; and
Sec. 15. 30-A MRSA §5225, sub-§1, ¶D, as amended by PL 2009, c. 126, §1, is further amended to read:
Sec. 16. 30-A MRSA §5226, sub-§1, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 17. 30-A MRSA §5226, sub-§3, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 18. 30-A MRSA §5226, sub-§4, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 19. 30-A MRSA §5226, sub-§5, as enacted by PL 2001, c. 669, §1, is amended to read:
Sec. 20. 30-A MRSA §5227, as enacted by PL 2001, c. 669, §1, is amended to read:
§ 5227. Tax increment financing
Nothing in this subsection allows or sanctions unequal apportionment or assessment of the taxes to be paid on real property in the State. An owner of real property within the tax increment financing district shall pay real property taxes apportioned equally with property taxes paid elsewhere in the municipality or plantation.
(1) A project cost account that is pledged to and charged with the payment of project costs that are outlined in the financial plan and are paid in a manner other than as described in subparagraph (2); and
(2) In instances of municipal or plantation indebtedness, 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 any notes, bonds or other evidences of indebtedness that were issued to fund or refund the cost of the development program fund;
(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 5231 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;
Sec. 21. 30-A MRSA §5228, as enacted by PL 2001, c. 669, §1, is amended to read:
§ 5228. Assessments
The notice may include a maximum number of years the assessments will be levied.
Sec. 22. 30-A MRSA §5229, as enacted by PL 2001, c. 669, §1, is amended to read:
§ 5229. Rules
The commissioner may adopt rules necessary to carry out the duties imposed by this chapter and to ensure municipal or plantation compliance with this subchapter following designation of a tax increment financing district. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter II-A 2-A.
Sec. 23. 30-A MRSA §5230, as enacted by PL 2001, c. 669, §1, is amended to read:
§ 5230. Grants
A municipality or plantation may receive grants or gifts for any of the purposes of this chapter. The tax increment revenues within a development district may be used as the local match for certain grant programs.
Sec. 24. 30-A MRSA §5231, as enacted by PL 2001, c. 669, §1, is amended to read:
§ 5231. Bond financing
The legislative body of a municipality or plantation may authorize, issue and sell bonds, including, but not limited to, general obligation or revenue bonds or notes, that mature within 20 years from the date of issue to finance all project costs needed to carry out the development program within the development district. The plantation or municipal officers authorized to issue the bonds or notes may borrow money in anticipation of the sale of the bonds for a period of up to 3 years by issuing temporary notes and notes in renewal of the bonds. All revenues derived under section 5227 or under section 5228, subsection 1 received by the municipality or plantation are pledged for the payment of the activities described in the development program and used to reduce or cancel the taxes that may otherwise be required to be expended for that purpose. The notes, bonds or other forms of financing may not be included when computing the municipality's or plantation's net debt. Nothing in this section restricts the ability of the municipality or plantation to raise revenue for the payment of project costs in any manner otherwise authorized by law.
Sec. 25. 30-A MRSA §5232, as enacted by PL 2001, c. 669, §1, is amended to read:
§ 5232. Tax exemption
All publicly owned parking structures and pedestrian skyway systems are exempt from taxation by the municipality or plantation, county and State. This section does not exempt any lessee or person in possession from taxes or assessments payable under Title 36, section 551.
Sec. 26. 30-A MRSA §5233, as enacted by PL 2001, c. 669, §1, is amended to read:
§ 5233. Advisory board
The legislative body of a municipality or plantation may create an advisory board, a majority of whose members must be owners or occupants of real property located in or adjacent to the development district they serve. The advisory board shall advise the legislative body and the designated administrative entity on the planning, construction and implementation of the development program and maintenance and operation of the district after the program has been completed.
Sec. 27. 30-A MRSA §5234, as enacted by PL 2001, c. 669, §1, is amended to read:
§ 5234. Special provisions
Notwithstanding the provisions of section 5223, subsection 1 and any other provision of law, in the case of investments exceeding $100,000,000 in shipyard facilities in districts authorized prior to June 30, 1999, revenues must be set aside and deposited by the municipality or plantation to the appropriate development program fund account established under section 5227, subsection 3 and expended to satisfy the obligations of the accounts without the need for further action by the municipality or plantation by appropriation or otherwise. Unless otherwise provided by the municipality or plantation in connection with its approval of the district, tax increment revenues on all captured assessed value may not be taken into account for purposes of calculating any limitation on the municipality's or plantation's annual expenditures or appropriations, and the payment of tax increment revenues on captured assessed value is not subject to any limitation or restriction on the municipality's or plantation's authority or power to enter into contracts with respect to making payments for a term equal to the term of the district.
Sec. 28. 30-A MRSA §7051, sub-§9-A is enacted to read:
Sec. 29. Maine Revised Statutes headnote amended; revision clause. In the Maine Revised Statutes, Title 30-A, chapter 206, subchapter 1, in the subchapter headnote, the words "municipal development districts" are amended to read "development districts for municipalities and plantations" and the Revisor of Statutes shall implement this revision when updating, publishing or republishing the statutes.
SUMMARY
This bill authorizes plantations to implement tax increment financing development districts and development programs in the same manner as is currently available to municipalities under the Maine Revised Statutes, Title 30-A, chapter 206. The bill also allows authorized project costs to include certain capital costs associated with public ways and recreational trails within the tax increment financing development district.