municipal tax increment financing

HB 4007 allows Arizona municipalities to create designated "municipal improvement areas" (up to 30 years) where they redirect tax revenue growth from increased property values to fund public infrastructure projects like roads, sewers, parks, and transit. It requires areas to meet specific criteria (e.g., blighted, needing redevelopment, or suitable for housing) and mandates approval from county, school, and community college districts. The bill specifies that captured tax increments - defined as the difference between current and original property tax values - must finance approved projects outlined in a development plan, including feasibility studies and revenue sources. This directly affects cities/towns seeking to finance public improvements through local tax growth, while prohibiting areas where residential taxes exceed state limits without state fund reimbursement.