PRINTER'S NO. 2891
No. 2179 Session of 1989
INTRODUCED BY McNALLY, MANDERINO, F. TAYLOR, DeWEESE, MARKOSEK, VAN HORNE, TRICH, MORRIS, STABACK, KAISER, GIGLIOTTI, MELIO, GEIST, COY, KOSINSKI, PESCI, McCALL, DALEY, KUKOVICH, HERMAN, STISH, LEVDANSKY, TIGUE, PISTELLA, DOMBROWSKI, MICHLOVIC, VEON, TRELLO AND GAMBLE, DECEMBER 11, 1989
REFERRED TO COMMITTEE ON FINANCE, DECEMBER 11, 1989
AN ACT 1 Providing for the creation of tax increment districts; providing 2 for additional powers and duties to be exercised by 3 redevelopment authorities and by industrial and commercial 4 development authorities; authorizing the creation and 5 approval of project plans for tax increment financing; 6 providing for the establishment of a tax increment base; 7 allocating the payment of positive tax increments; providing 8 for the financing of project costs; and providing for the 9 issuance of tax increment bonds and notes. 10 The General Assembly of the Commonwealth of Pennsylvania 11 hereby enacts as follows: 12 Section 1. Short title. 13 This act shall be known and may be cited as the Tax Increment 14 Financing Act. 15 Section 2. Legislative findings and policy. 16 (a) Legislative findings.--The General Assembly finds and 17 declares as follows: 18 (1) The General Assembly previously found in the 19 enactment of the act of May 24, 1945 (P.L.991, No.385), known 20 as the Urban Redevelopment Law, that, among other things,
1 there exist in urban communities in this Commonwealth areas 2 which have become blighted because of: 3 (i) the unsafe, unsanitary, inadequate or 4 overcrowded condition of the dwellings in the area; 5 (ii) inadequate planning of the area or excessive 6 land coverage by the buildings thereon; 7 (iii) the lack of proper light and air and open 8 space; 9 (iv) the defective design and arrangement of the 10 buildings; 11 (v) faulty street or lot layout; or 12 (vi) economically or socially undesirable land uses. 13 (2) Despite the efforts exerted under the Urban 14 Redevelopment Law, the conditions found in these areas by the 15 General Assembly still exist. 16 (3) The authorization of tax increment financing will 17 provide an alternative method for use by authorities in 18 pursuing redevelopment efforts under the Urban Development 19 Law and other applicable laws. 20 (b) Purpose.--It is found and declared that, in order to 21 maintain the public health, safety, morals and welfare of the 22 people of this Commonwealth generally, and to increase their 23 commerce, welfare and prosperity, and in order to further remedy 24 the conditions found to exist in this Commonwealth as declared 25 in the Urban Redevelopment Law, it is essential to provide new 26 employment opportunities to prevent, arrest and alleviate 27 blighted, decayed and substandard areas in municipalities, to 28 increase the tax base and to improve the general economy of this 29 Commonwealth. It is the purpose of this act to provide an 30 additional and alternative means to finance public facilities 19890H2179B2891 - 2 -
1 and residential, commercial and industrial development and 2 revitalization, all to the public benefit and good, in the 3 manner provided in this act. 4 Section 3. Definitions. 5 The following words and phrases when used in this act shall 6 have the meanings given to them in this section unless the 7 context clearly indicates otherwise: 8 "Authority." An industrial and commercial development 9 authority or a redevelopment authority. 10 "Finance officer." The legally authorized agent of a 11 municipality or school district responsible by law for receipt 12 and disbursement of the revenues of the municipality or school 13 district. 14 "Governing body." The legislative body of a municipality 15 authorized by law to levy taxes. The term includes the board of 16 directors of a school district authorized by law to levy taxes. 17 "Industrial and commercial development authority." An 18 authority created pursuant to the act of August 23, 1967 19 (P.L.251, No.102), known as the Industrial and Commercial 20 Development Authority Law. 21 "Issuing authority." The industrial and commercial 22 development authority, municipal authority or redevelopment 23 authority that issues tax increment bonds or notes in accordance 24 with section 9. 25 "Municipal authority." A municipal authority organized 26 pursuant to the act of May 2, 1945 (P.L.382, No.164), known as 27 the Municipality Authorities Act of 1945. 28 "Municipality." A county, city, borough, incorporated town, 29 township or home rule municipality. 30 "Planning commission." A planning commission as defined by 19890H2179B2891 - 3 -
1 the act of May 24, 1945 (P.L.991, No.385), known as the Urban 2 Redevelopment Law. 3 "Project." The undertakings and activities of an authority 4 in a tax increment district for the elimination and prevention 5 of the development or spread of blight, which may include 6 property acquisition, clearance, redevelopment, rehabilitation 7 or conservation in a tax increment district, or a combination or 8 part thereof in accordance with a project plan. 9 "Project costs." Any expenditures made or estimated to be 10 made or monetary obligations incurred or estimated to be 11 incurred which are listed in a project plan as costs of public 12 works or improvements within a tax increment district, plus any 13 costs incidental thereto. Project costs include, but are not 14 limited to: 15 (1) Capital costs, including the actual costs of the 16 construction of public works or improvements, new buildings, 17 structures and fixtures; the demolition, alteration, 18 remodeling, repair or reconstruction of existing buildings, 19 structures and fixtures; the acquisition, upgrade or 20 rehabilitation of machinery and equipment; and the 21 acquisition, clearing and grading of land. Capital costs also 22 include the actual cost of the construction, rehabilitation 23 or repair of publicly owned infrastructure improvements 24 located outside the boundaries of a tax increment district 25 which are of direct benefit to a project. 26 (2) Financing costs, including all costs of issuance of 27 tax increment bonds or notes, reserve funds for tax increment 28 bonds or notes, all interest paid to holders of evidences of 29 indebtedness issued to pay for project costs, and any premium 30 paid over the principal amount thereof because of the 19890H2179B2891 - 4 -
1 redemption of such obligations prior to maturity. 2 (3) Real property assembly costs, meaning any deficit 3 incurred resulting from the sale or lease as lessor by the 4 authority of real property within a tax increment district 5 for consideration which is less than its cost to the 6 authority. 7 (4) Professional service costs, including those costs 8 incurred for architectural, planning, engineering and legal 9 advice and services. 10 (5) Administrative costs, including reasonable charges 11 for the time spent by employees of a municipality or an 12 authority in connection with the implementation of a project 13 plan. 14 (6) Relocation costs. 15 (7) Organizational costs, including the costs of 16 conducting environmental impact and other studies and the 17 costs of informing the public with respect to the creation of 18 tax increment districts and the implementation of project 19 plans. 20 (8) Costs which are found to be necessary or convenient 21 to the creation of tax increment districts or the 22 implementation of project plans, or for the reimbursement of 23 prior expenditures made for any of the costs under this 24 definition. 25 "Project plan." The properly approved plan for the 26 development or redevelopment of a tax increment district, 27 including all properly approved amendments to the plan. 28 "Redevelopment area." Any area, whether improved or 29 unimproved, which a planning commission may find to be blighted 30 because of the existence of the conditions enumerated in section 19890H2179B2891 - 5 -
1 2 of the Urban Redevelopment Law so as to require redevelopment 2 under the provisions of the Urban Redevelopment Law or this act. 3 "Redevelopment authority." An authority created pursuant to 4 the Urban Redevelopment Law. 5 "School district." The term includes school districts of all 6 classes as defined by the act of March 10, 1949 (P.L.30, No.14), 7 known as the Public School Code of 1949. 8 "Tax increment." Generally, the incremental tax revenues 9 resulting from the increase in property values or from the 10 increase in sales activity as a result of a project. More 11 specifically, the term includes the following: 12 (1) The tax levied on property situated in, or otherwise 13 assignable for the purposes of property taxation to, a tax 14 increment district to the extent that such tax is 15 attributable to an excess of the aggregate taxable valuation 16 as of the tax increment base date. The portion of the tax 17 levy attributable to the increased valuation after the tax 18 increment base date shall be calculated using the same 19 factors as were used as of the base date, or without these 20 factors if property was not classified for tax purposes as of 21 the base date. 22 (2) The payment in lieu of taxes assigned to or agreed 23 to be paid by governmental entities or nonprofit 24 organizations with property situated or otherwise assignable 25 to a tax increment district. Whether all or only a portion of 26 this payment is to be considered part of the tax increment 27 shall be determined at the time the tax increment district is 28 created. 29 (3) The tax paid on the sale or use of tangible personal 30 property within the tax increment district. Whether all or 19890H2179B2891 - 6 -
1 only a portion of this tax is to be considered part of the 2 tax increment shall be determined at the time the tax 3 increment district is created. This paragraph applies only to 4 a sales or use tax levied by a governing body. 5 "Tax increment base." The aggregate value of all taxable 6 property located within a tax increment district on the date the 7 district is created, as determined in accordance with section 6. 8 "Tax increment district" or "district." A contiguous 9 geographic area within a redevelopment area defined and created 10 by resolution or ordinance of the governing body of the 11 municipality creating the district in accordance with section 5. 12 "Tax increment fund" or "fund." A fund into which are paid 13 all tax increments and into which are deposited all revenues 14 from the sale of tax increment finance bonds or notes, revenues 15 from the sale of any property acquired as part of a project plan 16 or revenues to be used in the district, and from which money is 17 disbursed to pay project costs for the district or to satisfy 18 claims of holders of tax increment bonds or notes issued for the 19 district. 20 "Taxable property." The term includes only taxable property 21 located within a tax increment district. 22 "Urban Redevelopment Law." The act of May 24, 1945 (P.L.991, 23 No.385), known as the Urban Redevelopment Law. 24 Section 4. Powers of authorities. 25 In addition to all other powers conferred by law, an 26 authority may exercise any powers necessary and convenient to 27 carry out the purposes of this act, including the power to: 28 (1) Propose tax increment districts and the boundaries 29 thereof. 30 (2) Cause project plans to be prepared and to implement 19890H2179B2891 - 7 -
1 the provisions and effectuate the purposes of the plans. 2 (3) Issue tax increment bonds and notes. 3 (4) Deposit moneys into the tax increment fund of any 4 tax increment district. 5 (5) Enter into any contracts or agreements, including 6 agreements with bondholders, as determined to be necessary or 7 convenient to implement the provisions and effectuate the 8 purposes of project plans. The contracts or agreements may 9 include conditions, restrictions or covenants which either 10 run with the land or otherwise regulate the use of the land. 11 Section 5. Creation of tax increment districts and approval of 12 project plans. 13 A tax increment district shall be created in the following 14 manner: 15 (1) The authority shall make a formal presentation to 16 the governing bodies of all municipalities and school 17 districts which levy property taxes within the area in which 18 the proposed tax increment district will be located. The 19 presentation shall include a description of the proposed 20 boundaries of the district, the tentative plans for the 21 development or redevelopment of the district, and an estimate 22 of the general impact of the proposed district on property 23 values and tax revenues. 24 (2) Each affected municipality and school district shall 25 designate a representative to meet with the authority to 26 discuss the project plan and the tax increment financing, and 27 shall notify the authority of its designated representative. 28 The authority shall meet with the designated representative 29 to discuss the creation of the district, the boundaries of 30 the district, development within the district, the tax 19890H2179B2891 - 8 -
1 increment that the municipality and school district would 2 contribute to the tax increment fund, the exclusion of 3 particular parcels of property from the district, tax 4 collection for the district, and any other matter relevant to 5 the proposed tax increment district. 6 (3) The authority shall recommend the boundaries of a 7 tax increment district to be created and shall submit the 8 recommendation to the governing body of the municipality 9 which will create the district. The municipality may be a 10 county. 11 (4) The authority shall prepare a project plan for each 12 tax increment district and submit the plan to the governing 13 body of the municipality which will create the district and 14 to the governing body of any other municipality or school 15 district that levies property taxes within the boundaries of 16 the proposed district. The plan shall include the following: 17 (i) A statement listing the kind, number and 18 location of all proposed public works or improvements 19 within the district. 20 (ii) An economic feasibility study of the project 21 and the fiscal effects on the municipal tax base. 22 (iii) A detailed list of estimated project costs. 23 (iv) A description of the methods of financing all 24 estimated project costs and the time when related costs 25 or monetary obligations are to be incurred. 26 (v) A map showing existing uses and conditions of 27 real property in the district. 28 (vi) A map showing proposed improvements and uses 29 therein. 30 (vii) Proposed changes of any zoning ordinance, 19890H2179B2891 - 9 -
1 master plan, map, building code or ordinance. 2 (viii) A list of estimated nonproject costs. 3 (ix) A statement of a proposed method for the 4 relocation of families, persons and businesses to be 5 temporarily or permanently displaced from housing or 6 commercial facilities in the project area by 7 implementation of the plan. 8 (5) The governing body of the municipality which will 9 create the tax increment district shall hold at least one 10 public hearing at which interested parties are afforded a 11 reasonable opportunity to express their views on the concept 12 of tax increment financing, on the proposed creation of a tax 13 increment district and its proposed boundaries, on the 14 proposed adoption of a project plan for the district and the 15 benefits to the municipality. Notice of the hearing shall be 16 published in accordance with the terms of the act of July 3, 17 1986 (P.L.388, No.84), known as the Sunshine Act, and said 18 notice shall be provided by first class mail, postage 19 prepaid, to the governing body of any municipality or school 20 district that levies property taxes within the boundaries of 21 a proposed tax increment district. This notice shall be 22 provided not less than 30 days before the date of the 23 hearing. 24 (6) In order to create a district and adopt a project 25 plan, the governing body of the municipality which will 26 create the tax increment district shall adopt, not earlier 27 than three weeks after the public hearing described in 28 paragraph (5) has been held, a resolution or ordinance which: 29 (i) Describes the boundaries of a tax increment 30 district with sufficient definiteness to identify with 19890H2179B2891 - 10 -
1 ordinary and reasonable certainty the territory included. 2 The governing body shall take care that the boundaries 3 include only those whole units of property assessed for 4 general property tax purposes. 5 (ii) Creates the district as of a given date. A tax 6 increment district may exist for a period not to exceed 7 20 years, unless an amendment is made to the project plan 8 under paragraph (8). 9 (iii) Assigns a name to the district for 10 identification purposes. 11 (iv) Contains findings that, among other things: 12 (A) The district is a contiguous geographic area 13 within a redevelopment area. 14 (B) The improvement of the area is likely to 15 enhance significantly the value of substantially all 16 of the other real property in the district. It is not 17 necessary to identify the specific parcels meeting 18 this criterion. 19 (C) The aggregate value of equalized taxable 20 property of the district, plus all existing tax 21 increment districts, does not exceed 10% of the total 22 value of equalized taxable property within the 23 municipality. 24 (D) The area comprising the district as a whole 25 has not been subject to adequate growth and 26 development through investment by private enterprise 27 and would not reasonably be anticipated to be 28 adequately developed without the adoption of the 29 plan. 30 (E) A feasible method exists for the 19890H2179B2891 - 11 -
1 compensation of individuals, families and small 2 businesses that will be displaced by the project and 3 for their relocation to decent, safe and sanitary 4 dwelling accommodations within their means, without 5 undue hardship to such individuals, families and 6 businesses. 7 (F) The project plan conforms to the municipal 8 or county master plan, if any. 9 (G) The project plan will afford maximum 10 opportunity, consistent with the sound needs of the 11 community as a whole, for the rehabilitation or 12 redevelopment of the tax increment district by 13 private enterprise. 14 (7) The governing body of a municipality or school 15 district that levies property taxes within the boundaries of 16 a proposed tax increment district shall, by ordinance or 17 resolution, agree to participate or opt not to participate in 18 the tax increment district. Such ordinance or resolution 19 shall be adopted and a copy thereof delivered to the 20 governing body of the municipality which will create the 21 district on or before the date on which the public hearing 22 described in paragraph (5) is held. 23 (8) The governing body of the municipality creating the 24 tax increment district may at any time, subject to the 25 provisions of section 6(c), adopt an amendment to a project 26 plan which shall be subject to approval in the same manner as 27 the original project plan. 28 Section 6. Determination of tax increment and tax increment 29 base. 30 (a) Tax increment base.--Upon the creation of a tax 19890H2179B2891 - 12 -
1 increment district or the adoption of any amendment to a project 2 plan subject to subsection (c), the tax increment base of the 3 district shall be determined. 4 (b) Determination of base.--Upon application in writing by 5 the finance officer of the municipality which created the 6 district, the assessor for that municipality shall determine, 7 according to its best judgment from all sources available to it, 8 the full aggregate value of the taxable property in the 9 district, which aggregate valuation constitutes the tax 10 increment base of the district. 11 (c) Amendment of plan.--If the original project plan for any 12 district is amended and the amendment includes additional 13 project costs for which tax increments may be received by the 14 municipality, to the extent reimbursement of previously incurred 15 costs and debt has been made as described in section 7(a), the 16 tax increment base for the district shall be redetermined 17 pursuant to subsection (b) within 90 days following the 18 effective date of the amendment. The tax increment base, as 19 redetermined under this subsection, is effective for the 20 purposes of this act only if it exceeds the original tax 21 increment base. 22 (d) Rebuttable presumption.--It is a rebuttable presumption 23 that any property within a tax increment district acquired or 24 leased as lessee by the authority within one year immediately 25 preceding the date of the creation of the district was so 26 acquired or leased in contemplation of the creation of the 27 district. The presumption may be rebutted by the authority with 28 proof that the property was leased or acquired primarily for a 29 purpose other than to reduce the tax increment base. If the 30 presumption is not rebutted, in determining the tax increment 19890H2179B2891 - 13 -
1 base of the district, but for no other purpose, the taxable 2 status of the property shall be determined as though such lease 3 or acquisition had not occurred. 4 (e) Identification.--The assessor for the municipality which 5 created the district shall identify upon the assessment roll, 6 returned and examined in accordance with law, those parcels of 7 property which are within each existing tax increment district, 8 specifying the name of each district. A similar notation shall 9 also appear on the tax roll made by the finance officer for the 10 municipality creating the district and by the finance officer 11 for any municipality or school district that participates in a 12 tax increment district. 13 Section 7. Allocation of positive tax increments. 14 (a) Allocation of positive tax increments.--Positive tax 15 increments of a tax increment district shall be allocated to the 16 issuing authority for each year from the date when the district 17 is created until that time, after the completion of all public 18 improvements specified in the plan or amendments thereto, when 19 the issuing authority has received aggregate tax increments of 20 the district in an amount equal to the aggregate of all 21 expenditures made or monetary obligations incurred for project 22 costs for the district, including the payment of tax increment 23 bonds or notes. 24 (b) Collection and payment of tax increments.-- 25 Notwithstanding any other provision of law, the finance officer 26 for the municipality which created the district and the finance 27 officer for any municipality or school district which 28 participates in a tax increment district shall, on the next 29 settlement date provided by law, pay over to the issuing 30 authority, out of all such taxes which have been collected, that 19890H2179B2891 - 14 -
1 portion which represents the tax increment allocable to the 2 issuing authority. 3 (c) Deposit of tax increments.--All tax increments received 4 by the issuing authority shall be deposited into the tax 5 increment fund for the district. Each finance officer may also 6 transmit, for deposit into the fund, additional moneys pursuant 7 to an appropriation by the governing body the officer represents 8 or from any other source. Moneys shall be paid out of the fund 9 by the issuing authority in accordance with section 9(h). To the 10 extent that any moneys remain in the fund after all foregoing 11 costs have been paid or satisfied, the remaining moneys shall be 12 distributed on an equal basis to all municipalities and school 13 districts which participated in the tax increment district. 14 Section 8. Termination of tax increment districts. 15 The existence of a tax increment district shall terminate 16 when either of the following occurs: 17 (1) Positive tax increments are no longer allocable to a 18 district under section 7(a). 19 (2) The governing body of the municipality which created 20 the district, by resolution, dissolves the district. The 21 district may not be dissolved as long as tax increment bonds 22 or notes for the district remain outstanding. 23 Section 9. Financing of project costs. 24 (a) Payment of costs.--Payment of project costs may be made 25 by any of the following methods or combination thereof: 26 (1) Payment out of the municipality's general funds. 27 (2) Payment out of the proceeds of the sale of tax 28 increment bonds or notes. 29 (3) Payment as otherwise permitted by law. 30 (b) Tax increment bonds and notes.-- 19890H2179B2891 - 15 -
1 (1) For the purposes of paying project costs or of 2 refunding bonds or notes issued under this section, an 3 authority may issue tax increment bonds or notes payable from 4 positive tax increments. 5 (2) A redevelopment authority may enter into an 6 agreement with an industrial and commercial development 7 authority or a municipal authority whereby the redevelopment 8 authority appoints or authorizes the industrial and 9 commercial development authority or the municipal authority 10 to act as the agent of the redevelopment authority in the 11 issuance of tax increment bonds and notes. If such an 12 agreement is entered into, the industrial and commercial 13 development authority or municipal authority shall have the 14 power to issue tax increment bonds and notes in accordance 15 with the provisions of this section. Nothing contained in 16 this paragraph shall be construed to limit the powers 17 otherwise granted to an industrial and commercial development 18 authority by this act. 19 (c) Resolution.--Tax increment bonds or notes shall be 20 authorized by resolution of the issuing authority. The 21 resolution shall state the name of the tax increment district, 22 the amount of bonds or notes authorized and the interest rate or 23 rates to be borne by the bonds or notes. The resolution may 24 prescribe the terms, form and content of the bonds or notes and 25 other matters as the authority deems useful. 26 (d) Amount and term.--Tax increment bonds or notes may not 27 be issued in an amount exceeding the aggregate project costs. 28 The bonds or notes shall mature over a period not exceeding 20 29 years from the date of issue. The principal and interest on the 30 bonds and notes may be payable at any time and at any place. The 19890H2179B2891 - 16 -
1 bonds or notes may be payable to bearer or may be registered as 2 to the principal or principal and interest. The bonds or notes 3 may be in any denominations. The bonds or notes may be sold at 4 public or private sale. 5 (e) Exempt from taxation.--The tax increment bonds issued 6 hereunder and the income therefrom shall at all times be free 7 from taxation for State or local purposes under any law of this 8 Commonwealth. The interest on the bonds or notes may or may not 9 be excluded from gross income for purposes of Federal income 10 taxation. 11 (f) Liability; presumption.--Neither the members of an 12 issuing authority nor any person executing the bonds shall be 13 liable personally on any such bonds by reason of the issuance 14 thereof. Any bond reciting in substance that it has been issued 15 to accomplish the public purposes of this act shall be 16 conclusively deemed, in any suit, action or proceeding involving 17 the validity or enforceability of such bond or security 18 therefor, to have been issued for such purpose. 19 (g) Negotiable instruments.--The tax increment bonds issued 20 in this act are hereby declared to have all the qualities of 21 negotiable instruments under the law merchant and the negotiable 22 instruments law of this Commonwealth. 23 (h) Payment of bonds and notes.--Tax increment bonds or 24 notes are payable in whole or in part from the tax increment 25 fund. To the extent that bonds or notes are payable in whole, 26 each bond or note shall contain recitals as are necessary to 27 show that it is only so payable and that it does not constitute 28 an indebtedness of any municipality or school district or a 29 charge against the general taxing power thereof. The issuing 30 authority shall irrevocably pledge all or a part of the tax 19890H2179B2891 - 17 -
1 increment fund to the payment of the bonds or notes. The fund or 2 designated part thereof may thereafter be used only for the 3 payment of the bonds or notes and interest until they have been 4 fully paid, and a holder of the bonds or notes or of any coupons 5 appertaining thereto shall have a lien against the fund for 6 payment of the bonds or notes and interest, and may either at 7 law or in equity protect and enforce the lien. Notwithstanding 8 the foregoing, a municipality or school district may guarantee 9 the payment of tax increment bonds or notes pursuant to the 10 provisions of the act of July 12, 1972 (P.L.781, No.185), known 11 as the Local Government Unit Debt Act. In such instance, 12 appropriate notation of such shall be reflected in the recitals 13 of each bond or note. 14 (i) Security of bonds or notes.--To increase the security 15 and marketability of tax increment bonds or notes, the issuing 16 authority may: 17 (1) Create a lien for the benefit of the bondholders 18 upon any public improvements or public works financed thereby 19 or the revenues therefrom. 20 (2) Make covenants and do any and all acts not 21 inconsistent with law as may be necessary or convenient or 22 desirable in order to additionally secure bonds or notes or 23 tend to make the bonds or notes more marketable according to 24 the best judgment of the authority or the governing body of 25 the municipality which created the district. 26 (j) Additional payment method.--For the purpose of paying 27 project costs, the governing body of the municipality may also 28 allow payments to be made in full at the time such costs accrue, 29 thus allowing the project to be all or partially funded on a 30 pay-as-you-go basis. 19890H2179B2891 - 18 -
1 (k) Applicability of other laws.-- 2 (1) Tax increment bonds and notes issued under this act 3 shall be subject to the provisions of the act of December 20, 4 1985 (P.L.483, No.113), known as the Tax-Exempt Bond 5 Allocation Act, to the extent required by Federal law. 6 (2) Except for guarantees of tax increment bonds and 7 notes as provided in subsection (h), tax increment bonds and 8 notes issued under this act shall not be subject to the 9 provisions of the Local Government Unit Debt Act. 10 (3) With respect to property located within a tax 11 increment district, a governing body may not grant, prior to 12 the dissolution of the district, any tax exemptions pursuant 13 to the provisions of the act of December 1, 1977 (P.L.237, 14 No.76), known as the Local Economic Revitalization Tax 15 Assistance Act. 16 Section 10. Comprehensive report. 17 The Department of Commerce, in cooperation with other State 18 agencies and local governments, shall make a comprehensive 19 report to the Governor and the General Assembly every two years 20 commencing January 1, 1992, as to the social, economic, and 21 financial effects and impact of tax increment financing 22 projects. 23 Section 11. Severability. 24 The provisions of this act are severable. If any provision of 25 this act or its application to any person or circumstance is 26 held invalid, the invalidity shall not affect other provisions 27 or applications of this act which can be given effect without 28 the invalid provision or application. 29 Section 12. Repeals. 30 All acts and parts of acts are repealed insofar as they are 19890H2179B2891 - 19 -
1 inconsistent with this act. 2 Section 13. Effective date. 3 This act shall take effect January 1, 1990, or immediately, 4 if enacted after January 1, 1990. K21L12RZ/19890H2179B2891 - 20 -