Community Redevelopment Tax Increment Financing Projects Tax Year 2020

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Community Redevelopment Tax Increment Financing Projects Tax Year 2020 Community Redevelopment Tax Increment Financing Projects Tax Year 2020 Report to the Legislature Nebraska Department of Revenue Property Assessment Division February 26, 2021 Ruth A. Sorensen, Property Tax Administrator February 23, 2021 Clerk of the Legislature: The 2020 Community Redevelopment Tax Increment Financing Projects report has been compiled pursuant to Neb. Rev. Stat. § 18-2117.01. The report provides an overview of the redevelopment projects using tax increment financing in each city in Nebraska. The report can be found at https://revenue.nebraska.gov/PAD/research-statistical-reports/tax-increment-financing-annual- reports-legislature. The information contained in the report was obtained from the county assessors through the filing of the Certificate of Taxes Levied Report and supplemented by city officials. Each project indicates the type of property, a history of yearly assessments, and the taxes levied. The remarks on each city project identify the specific name of the project, the location of the project, a short narrative description of the type of development undertaken by the city, and other pertinent information that will assist in understanding the data. Any comments regarding the format, content, and usefulness of the information provided in this report would be appreciated. For the Tax Commissioner Sincerely, Ruth A. Sorensen Property Tax Administrator 402-471-5962 [email protected] Community Redevelopment Law - Tax Increment Financing (TIF) Overview of the TIF Process The community redevelopment laws allow for the increased property taxes generated by the improvement of blighted property to be used to pay for the financing of the community redevelopment/TIF projects. The statutes for community redevelopment/TIF are found in Neb. Rev. Stat. §§ 18-2101 through 18-2155. Cities may act as the redevelopment “authority” or establish a community redevelopment authority (CRA). The CRA may levy a property tax separate from the city, but subject to levy allocation authority of the city government. The city/CRA may also acquire real property and declare it public property, which is exempt from property taxes, but subject to in lieu of tax payments. The TIF process begins with the city/CRA declaring an area as substandard, blighted, and in need of redevelopment. The city/CRA must hold a public hearing and provide notice of the hearing to all registered neighborhood associations located within a one-mile radius and to all political subdivisions affected by the redevelopment area. The city/CRA is required to prepare a redevelopment plan, which must show, for example, the boundaries of the redevelopment project area, proposed land uses, population, land and building intensities, changes in zoning, and traffic flow. After approval of the redevelopment plan and the project, TIF bonds may be issued for the acquisition of property, site preparation, and public improvements. The property is transferred to the developer at its fair market value for development and construction in accordance with the redevelopment plan. The properties in the project will have a base valuation, which is the last certified value prior to the division of tax effective date. The base property valuation remains assessable to all taxing entities. Any increase in value and resulting taxes must be accounted for separately and be used to pay off the debt incurred for the redevelopment project. The project must not exceed a 15-year period. Requirements for TIF include, but are not limited to: • The project is applicable to real property only; • The property must be within the corporate boundaries of the city; however, the city may annex noncontiguous land to develop agricultural processing facilities that will become a TIF project; • The division of tax for TIF may not exceed 15 years; • The taxes attributable to the excess value can only be used for the repayment of the debt related to the project; and • The city/CRA must provide written notice to both the county assessor and county treasurer to cease the division of tax when the debt on the project is paid in full. The city/CRA must file a Notice to Divide Tax for Community Redevelopment Project (Notice) with the county assessor on or before August 1 of the calendar year in which the division of the real property tax becomes effective. The Notice is a statutorily prescribed form of the Property Tax Administrator. Nebraska Department of Revenue, Property Assessment Division 2020 TIF Report i When the city/CRA files the Notice with the county assessor, the following occurs: 1) The base value is determined, which is the “total assessed value” of the properties last certified to the political subdivisions in the year prior to the division of tax effective date; and 2) The 15-year maximum time period begins for the division of tax for the TIF project. Redevelopment project valuation, also known as the base value, means the assessed value of the taxable real property in a redevelopment project last certified to the political subdivisions in the year prior to the effective date of the provision authorizing the dividing of ad valorem tax. This means the taxable value for the real property last certified by the county assessor as of August 20th in the prior year. Redevelopment project excess value means the total assessed value of the real property in a redevelopment project for the current year, less the redevelopment project base value. When certifying values to political subdivisions, the county assessor may include no more than the base value for political subdivisions to levy upon. The division of the real property tax is determined by subtracting the base value from the current year total assessed value to arrive at the redevelopment project’s excess value. The base value and the excess value of the TIF property are taxed at the same consolidated tax rate. The division of tax identifies the portion of tax attributable to the base value and is distributed to all political subdivisions within the consolidated tax district where the TIF property is located. The portion of tax attributable to the excess value, if any, is distributed to the TIF fund for repayment of debt incurred on the specific project. Additional information related to TIF projects can be found in Title 350, Administrative Code, Chapter 18, Community Redevelopment Law Regulations, and at revenue.nebraska.gov/PAD. Nebraska Department of Revenue, Property Assessment Division 2020 TIF Report ii Alphabetical List of Cities with TIF and associated County City County City County City County Adams……………Gage Friend…………… Saline Osceola ……….… Polk Alliance……………Box Butte Fullerton ……….…Nance Osmond……………Pierce Alma ………………Harlan Geneva ……….… Fillmore Pender……………Thurston Anselmo………… Custer Genoa.……………Nance Petersburg…………Boone Arapahoe ……….…Furnas Gering ……….……Scotts Bluff Phillips …….…… Hamilton Arnold……………Custer Gibbon……………Buffalo Plattsmouth………Cass Atkinson ……….…Holt Gothenburg ………Dawson Ponca…………. Dixon Atlanta.……………Phelps Grand Island ………Hall Potter………………Cheyenne Auburn ……………Nemaha Greenwood……… Cass Ralston ……….… Douglas Aurora ……….……Hamilton Gretna.……………Sarpy Randolph…………Cedar Axtell………………Kearney Hallman………… Lancaster Ravenna ……….…Buffalo Bartley……………Red Willow Hartington…………Cedar Schuyler..…………Colfax Bayard ……………Morrill Hastings ……….…Adams Scottsbluff ……… Scotts Bluff Beatrice ……….…Gage Hebron……………Thayer Scribner……………Dodge Bellevue ……….…Sarpy Hemingford………Box Butte Seward City….……Seward Benkelman ………Dundy Henderson ……… York Sidney ……….……Cheyenne Bennington……… Douglas Hickman………… Lancaster Snyder……………Dodge Blair………………Washington Holdrege ……….…Phelps So. Sioux City ……Dakota Blue Hill …………Webster Hooper……………Dodge Spalding………… Greeley Brady ……….……Lincoln Imperial..…………Chase St. Edward…………Boone Bridgeport…………Morrill Jackson……………Dakota St. Paul……………Howard Broken Bow ………Custer Juniata ……….……Adams Stromsburg ………Polk Burwell……………Garfield Kearney ……….…Buffalo Superior.………… Nuckolls Cairo ……….…… Hall La Vista.………… Sarpy Sutherland ……… Lincoln Cambridge ……… Furnas Laurel…………… Cedar Syracuse City…….Otoe Carleton……………Thayer Lexington ………. Dawson Tecumseh ………. Johnson Cedar Rapids…..…Boone Lincoln ……….… Lancaster Tekamah……….…Burt Central City ………Merrick Litchfield…………Sherman Tilden.……………Antelope Chadron ……….…Dawes Louisville…...……Cass Utica……..….……Seward Columbus …………Platte Loup City…………Sherman Valentine…………Cherry Cozad ……….……Dawson Madison…….……Madison Valley…………… Douglas Creighton…………Knox Malcolm ….………Lancaster Venango…..………Perkins Crete………………Saline McCook ……….…Red Willow Verdigre………… Knox Crofton……………Knox McCool Junction …York Wahoo ……………Saunders Curtis ……….……Frontier Mead………………Saunders Wakefield…………Dixon David City ……… Butler Milford……………Seward Waterbury…………Dixon Eagle………… Cass Minden ……………Kearney Waterloo ……….…Douglas Elm Creek ..………Buffalo Nebraska City……Otoe Waverly……………Lancaster Elmwoode…………Cass Neligh ……….……Antelope Wayne ……….……Wayne Elsie…..………. Perkins Newman Grove……Madison West Point ……… Cuming Elwood……………Gosper Norfolk ……….… Madison Wilsonville ………Furnas Fairbury ………… Jefferson North Loup.………Valley York ……….………York Fairmont ……….…Fillmore North Platte ………Lincoln Yutan………………Saunders Falls City ……….…Richardson Ogallala ……….…Keith Farnum……….……Dawson Omaha ……….……Douglas Firth…………… Lancaster O'Neill ……….……Holt Fremont……………Dodge Ord ……….………Valley Totals: 137 Cities in 69 Counties Nebraska Department of Revenue, Property Assessment Division Annual TIF Report 2020 iii Counties Alphabetical, List of Cities with TIF County City County City County
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