Bill > LD1044

This bill clarifies and expands the rules for tax increment financing (TIF) districts in Maine, specifically focusing on how long these districts can exist and how they can use their financing. Currently, a development district using TIF cannot exceed 30 tax years, but the bill introduces a provision that allows districts to extend their life by an additional 20 years (for a total of 50 years) if they use at least 75% of their tax increment financing revenue for affordable housing projects or transit-oriented development. The bill provides specific definitions for these terms: "affordable housing" is defined as housing for households earning up to 120% of the area's median income, and "transit-oriented development" is broadened to include developments that link land use with transit facilities and rely on transit for transportation needs, regardless of their specific location. Additionally, the bill updates the reference date for when these extended district rules become effective from the "First Special Session of the 131st Legislature" to October 25, 2023, and allows districts that are extended under these new provisions to continue using their original assessed property value for tax calculations.

Budget and Finance

https://legislature.maine.gov/legis/bills/display_ps.asp?LD=1044&snum=132