Missoula County oppose SB 388: Provide for infrastructure through tax increment financing, up for hearing this afternoon in the Senate Local Government Committee.
SB 388 changes definitions that have been the cornerstone of tax increment financing for Targeted Economic Development Districts. The reasoning behind these changes is unclear.
Of more concern is the reduction in the number of mills applied to the increment increase in taxable value within a TEDD. The bill excludes half of the elementary, high school and state equalization mills from the TIF calculation and a local government could choose to additionally exclude any portion of an existing mill levy. Reducing the increment by half will severely limit the ability of Missoula County to provide funding for needed large infrastructure projects that are necessary for development within its TIFID and TEDDs. As an example, Missoula County recently created the Wye TEDD. The projects within the TEDD are significant, involving a potential public sewer system and extending water. The TEDD must generate sufficient revenue to service bonds before the county can begin any of the projects. It will be significantly more difficult if the annual increment is drastically reduced. In addition, the increase in the tax base that eventually benefits the schools may be drastically impacted by the inability to improve the infrastructure.
The bill further reduces the ability to fund large infrastructure projects by reducing the number of years for issuing bonds from 25 to 20. It takes time for a TIF district to accrue sufficient revenue to even begin servicing bonds, and there are many factors, such as the economy, that impact the growth rate of a district. This reduction limits using this important infrastructure development tool.
Missoula County oppose SB 388: Provide for infrastructure through tax increment financing, up for hearing this afternoon in the Senate Local Government Committee.
SB 388 changes definitions that have been the cornerstone of tax increment financing for Targeted Economic Development Districts. The reasoning behind these changes is unclear.
Of more concern is the reduction in the number of mills applied to the increment increase in taxable value within a TEDD. The bill excludes half of the elementary, high school and state equalization mills from the TIF calculation and a local government could choose to additionally exclude any portion of an existing mill levy. Reducing the increment by half will severely limit the ability of Missoula County to provide funding for needed large infrastructure projects that are necessary for development within its TIFID and TEDDs. As an example, Missoula County recently created the Wye TEDD. The projects within the TEDD are significant, involving a potential public sewer system and extending water. The TEDD must generate sufficient revenue to service bonds before the county can begin any of the projects. It will be significantly more difficult if the annual increment is drastically reduced. In addition, the increase in the tax base that eventually benefits the schools may be drastically impacted by the inability to improve the infrastructure.
The bill further reduces the ability to fund large infrastructure projects by reducing the number of years for issuing bonds from 25 to 20. It takes time for a TIF district to accrue sufficient revenue to even begin servicing bonds, and there are many factors, such as the economy, that impact the growth rate of a district. This reduction limits using this important infrastructure development tool.
Missoula County opposes SB 388: Provide for infrastructure through tax increment financing, up for hearing tomorrow morning in the House Taxation Committee.
SB 388 changes definitions that have been the cornerstone of tax increment financing for Targeted Economic Development Districts. The reasoning behind these changes is unclear.
Of more concern is the reduction in the number of mills applied to the increment increase in taxable value within a TEDD. The bill excludes half of the elementary, high school and state equalization mills from the TIF calculation and a local government could choose to additionally exclude any portion of an existing mill levy. Reducing the increment by half will severely limit the ability of Missoula County to provide funding for needed large infrastructure projects that are necessary for development within new TEDDs. As an example, Missoula County recently created the Wye TEDD. The projects within the TEDD are significant, involving a potential public sewer system and extending water. The TEDD must generate sufficient revenue to service bonds before the county can begin any of the projects. It would be significantly more difficult if the annual increment is drastically reduced. In addition, the increase in the tax base that eventually benefits the schools may be drastically impacted by the inability to improve the infrastructure.
Missoula County continues to oppose, as amended, SB 388: Provide for infrastructure through tax increment financing, up for hearing in free conference committee this morning.
SB 388 changes definitions that have been the cornerstone of tax increment financing for Targeted Economic Development Districts. The reasoning behind these changes is unclear.
Of more concern is the reduction in the number of mills applied to the increment increase in taxable value within a TEDD. The bill excludes half of the elementary, high school and state equalization mills from the TIF calculation and a local government could choose to additionally exclude any portion of an existing mill levy. Reducing the increment by half will severely limit the ability of Missoula County to provide funding for needed large infrastructure projects that are necessary for development within new TEDDs. As an example, Missoula County recently created the Wye TEDD. The projects within the TEDD are significant, involving a potential public sewer system and extending water. The TEDD must generate sufficient revenue to service bonds before the county can begin any of the projects. It would be significantly more difficult if the annual increment is drastically reduced. In addition, the increase in the tax base that eventually benefits the schools may be drastically impacted by the inability to improve the infrastructure.
Sent March 29:
ReplyDeleteSenators Bolman and Morigeau,
Missoula County oppose SB 388: Provide for infrastructure through tax increment financing, up for hearing this afternoon in the Senate Local Government Committee.
SB 388 changes definitions that have been the cornerstone of tax increment financing for Targeted Economic Development Districts. The reasoning behind these changes is unclear.
Of more concern is the reduction in the number of mills applied to the increment increase in taxable value within a TEDD. The bill excludes half of the elementary, high school and state equalization mills from the TIF calculation and a local government could choose to additionally exclude any portion of an existing mill levy. Reducing the increment by half will severely limit the ability of Missoula County to provide funding for needed large infrastructure projects that are necessary for development within its TIFID and TEDDs. As an example, Missoula County recently created the Wye TEDD. The projects within the TEDD are significant, involving a potential public sewer system and extending water. The TEDD must generate sufficient revenue to service bonds before the county can begin any of the projects. It will be significantly more difficult if the annual increment is drastically reduced. In addition, the increase in the tax base that eventually benefits the schools may be drastically impacted by the inability to improve the infrastructure.
The bill further reduces the ability to fund large infrastructure projects by reducing the number of years for issuing bonds from 25 to 20. It takes time for a TIF district to accrue sufficient revenue to even begin servicing bonds, and there are many factors, such as the economy, that impact the growth rate of a district. This reduction limits using this important infrastructure development tool.
Please oppose SB 388.
Sent April 6:
ReplyDeleteSenators Bolman and Morigeau,
Missoula County oppose SB 388: Provide for infrastructure through tax increment financing, up for hearing this afternoon in the Senate Local Government Committee.
SB 388 changes definitions that have been the cornerstone of tax increment financing for Targeted Economic Development Districts. The reasoning behind these changes is unclear.
Of more concern is the reduction in the number of mills applied to the increment increase in taxable value within a TEDD. The bill excludes half of the elementary, high school and state equalization mills from the TIF calculation and a local government could choose to additionally exclude any portion of an existing mill levy. Reducing the increment by half will severely limit the ability of Missoula County to provide funding for needed large infrastructure projects that are necessary for development within its TIFID and TEDDs. As an example, Missoula County recently created the Wye TEDD. The projects within the TEDD are significant, involving a potential public sewer system and extending water. The TEDD must generate sufficient revenue to service bonds before the county can begin any of the projects. It will be significantly more difficult if the annual increment is drastically reduced. In addition, the increase in the tax base that eventually benefits the schools may be drastically impacted by the inability to improve the infrastructure.
The bill further reduces the ability to fund large infrastructure projects by reducing the number of years for issuing bonds from 25 to 20. It takes time for a TIF district to accrue sufficient revenue to even begin servicing bonds, and there are many factors, such as the economy, that impact the growth rate of a district. This reduction limits using this important infrastructure development tool.
Please oppose SB 388.
Sent April 12:
ReplyDeleteRepresentatives Marler and Thane,
Missoula County opposes SB 388: Provide for infrastructure through tax increment financing, up for hearing tomorrow morning in the House Taxation Committee.
SB 388 changes definitions that have been the cornerstone of tax increment financing for Targeted Economic Development Districts. The reasoning behind these changes is unclear.
Of more concern is the reduction in the number of mills applied to the increment increase in taxable value within a TEDD. The bill excludes half of the elementary, high school and state equalization mills from the TIF calculation and a local government could choose to additionally exclude any portion of an existing mill levy. Reducing the increment by half will severely limit the ability of Missoula County to provide funding for needed large infrastructure projects that are necessary for development within new TEDDs. As an example, Missoula County recently created the Wye TEDD. The projects within the TEDD are significant, involving a potential public sewer system and extending water. The TEDD must generate sufficient revenue to service bonds before the county can begin any of the projects. It would be significantly more difficult if the annual increment is drastically reduced. In addition, the increase in the tax base that eventually benefits the schools may be drastically impacted by the inability to improve the infrastructure.
Representatives,
ReplyDeleteMissoula County continues to oppose, as amended, SB 388: Provide for infrastructure through tax increment financing, up for hearing in free conference committee this morning.
SB 388 changes definitions that have been the cornerstone of tax increment financing for Targeted Economic Development Districts. The reasoning behind these changes is unclear.
Of more concern is the reduction in the number of mills applied to the increment increase in taxable value within a TEDD. The bill excludes half of the elementary, high school and state equalization mills from the TIF calculation and a local government could choose to additionally exclude any portion of an existing mill levy. Reducing the increment by half will severely limit the ability of Missoula County to provide funding for needed large infrastructure projects that are necessary for development within new TEDDs. As an example, Missoula County recently created the Wye TEDD. The projects within the TEDD are significant, involving a potential public sewer system and extending water. The TEDD must generate sufficient revenue to service bonds before the county can begin any of the projects. It would be significantly more difficult if the annual increment is drastically reduced. In addition, the increase in the tax base that eventually benefits the schools may be drastically impacted by the inability to improve the infrastructure.