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 -