2021 TIF Legislation

The 2021 Legislature enacted special laws providing exceptions to the TIF Act for nine authorities. The Legislature also made the following changes to the TIF Act:

Temporary Use of Increment Authority An authority may transfer unobligated tax increments for purposes of assisting private development consisting of the construction or substantial rehabilitation of buildings and ancillary facilities, if doing so will create or retain jobs in the state. The authority to make transfers expires December 31, 2022. Written spending plans and approvals are required, and various parameters and limitations apply. Please refer to our Statement of Position on Temporary TIF Transfer Authority for more information.

Expenditures Outside District An authority that elects to increase pooling by ten percent for a district may also use the increment for owner-occupied housing that meets the income limits for housing districts. Prior law had limited the use of this additional pooling to assisting low-income rental housing.

Five-Year Rule The Five-Year Rule is extended to eight years for redevelopment districts that were certified after December 31, 2017, and before June 30, 2020.

Six-Year Rule The Six-Year Rule is extended to a nine-year provision for districts whose Five-Year Rule is extended to eight years.

Last referenced August 13, 2021 in the State Auditor's E-Update