Bill
SB 1695
Overview: SB 1695 - TIF-INITIAL & TOTAL EAVPurpose and Intent: This bill aims to clarify the calculation of the initial and total equalized assessed valuation (EAV) within a tax in
Overview: SB 1695 - TIF-INITIAL & TOTAL EAV
Purpose and Intent: This bill aims to clarify the calculation of the initial and total equalized assessed valuation (EAV) within a tax increment financing (TIF) district. The goal is to provide more consistent and transparent rules for determining these key TIF district metrics.
Key Provisions:
- Defines the "initial EAV" of a TIF district as the total EAV of all taxable real property within the district at the time the district was established.
- Requires the "total EAV" of a TIF district to be calculated annually based on the EAV of all taxable real property within the district, including any new development or improvements.
- Prohibits the total EAV from being reduced below the initial EAV, even if the EAV of individual properties within the district decreases.
Affected Parties and Impacts:
- Local governments that establish TIF districts, as the bill will provide clearer guidelines for calculating the initial and total EAV.
- Developers and property owners within TIF districts, as the bill's provisions may impact the amount of tax increment revenue generated and how it is distributed.
- Taxpayers, as the bill's rules for calculating the total EAV may affect the overall tax burden within a TIF district.
Procedural and Timeline Considerations:
The bill has been re-referred to the Assignments committee for further consideration. If passed, the new rules for calculating the initial and total EAV within TIF districts would apply to all districts established on or after the effective date of the bill.
Compiled from official sources — confirm details with the bill’s official record.
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