The May 14 special session of the Indiana General Assembly saw passage of HEA 1242 in both chambers, and the bill was subsequently signed into law by Governor Holcomb. Included in this law are new requirements affecting redevelopment commissions.
Effective July 1st, all redevelopment commissions will be required to hold an annual meeting during which it must present certain financial information for the governing bodies of the taxing units that overlap with the boundaries of established Tax Increment Finance (TIF) allocation areas. The requirement, which mandates long-term planning for TIFs and direct engagement with other taxing authorities, encourages increased communication between redevelopment commissions and its other taxing units.
Although specific guidance from the state regarding timing and content requirements is not yet available, the bill outlines items that a redevelopment commission must address in its meeting with overlapping units. The commission’s meeting must address the following items:
Additionally, the new law states that the governing body of an overlapping taxing unit may request that a member of the redevelopment commission appear at a public meeting of that body.
This new law affects all redevelopment commissions in the State. Direct engagement with overlapping taxing units and the development of strategic financial plans for TIF areas, while always a best practice, now have greatly increased importance to redevelopment commissions.
Your community’s overall financial planning process can make use of the information developed to meet these new requirements. Moreover, the redevelopment commission will have access to additional information as it makes its annual assessed value pass-through determination each spring.
Please note: This article references the special session version of HEA 1242, which addresses State and Local Administration. View additional details on the bill.
Baker Tilly will assist your community with the development of TIF strategic financial plans, budgets and impact analyses so you are compliant with the new requirements.
For more information on this topic, or to learn how Baker Tilly municipal specialists can help, contact our team.
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax advice, if any, contained in this communication was not intended or written to be used by any taxpayer for the purpose of avoiding penalties.