Expanding the limited sales and use tax incentive program to encourage redevelopment of underutilized property.
What changed between versions
The definition of 'City' was updated to increase the maximum population cap from 250,000 to 275,000, allowing larger cities to participate in the program.
A new definition for 'Area of reduced affordability requirements' was added to create a specific category for areas with designated reduced affordability standards.
The definition of 'Underdeveloped property' was slightly adjusted to remove the exclusion of state-owned lands held under lease, trust, or specific purposes, potentially broadening the types of properties eligible for the program.
New criteria were established for designating 'residential targeted areas,' requiring proof of insufficient housing supply and high numbers of underutilized properties before tax incentives can be applied.
The bill now mandates that cities adopt standards for prevailing wages, apprenticeship utilization, and minority/women business enterprise contracting as prerequisites for receiving tax deferrals.
The penalty structure for non-compliance was modified to include a sliding scale where a percentage of deferred taxes becomes due each year if the project is no longer eligible, rather than requiring immediate full repayment.
The expiration date for applications under the program was set to June 30, 2032, with the section itself expiring on July 1, 2032.
