Although originally used to
promote urban infill development, Tax Increment Development Districts (TIDDs)
have been being used to subsidize sprawling greenfield development, diverting communities’ tax bases and
encouraging unsustainable development that is contributing to global warming.
HB451 helps to close some of
the existing TIDD loopholes by:
- Lowering the
percentage of the incremental gross receipts taxes that can be distributed to a
TIDD from 75% to 50%
- Requiring that
distributions to TIDDs that are greater than needed for servicing the bonds and
building a reserve be returned to the relevant taxing authority
- Limiting gross
receipts tax distribution to a greenfield TIDD to 20%, with incentives to increase that
percentage by investing in workforce housing and transit-oriented development
- Requiring greater
state oversight
- Increasing
reporting requirements
- Creating a
taskforce to research and analyze issues related to TIDDs that must report to
the legislature by June 2009.
We're urging the Legislature to support HB 451 (Barela): Greenfield Tax Increment Districts.
