Community Redevelopment Tax Increment Financing Projects Tax Year 2017
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Community Redevelopment Tax Increment Financing Projects Tax Year 2017 Report to the Legislature Nebraska Department of Revenue Property Assessment Division March 1, 2018 Ruth A. Sorensen, Property Tax Administrator February 20, 2018 Clerk of the Legislature: The 2017 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 revenue.nebraska.gov/PAD/research/tif_reports.html. 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 18-2150. 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 2017 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 2017 TIF Report ii Alphabetical List of Cities with TIF and associated County City County City County City County Adams……………Gage Fullerton ……….…Nance Pawnee City………Pawnee Ainsworth…………Brown Geneva ……….… Fillmore Pender……………Thurston Albion……………Boone Genoa.……………Nance Petersburg…………Boone Alliance……………Box Butte Gering ……….……Scotts Bluff Phillips …….…… Hamilton Alma ………………Harlan Gordon……..….…Sheridan Plattsmouth………Cass Anselmo………… Custer Gothenburg ………Dawson Potter………………Cheyenne Arapahoe ……….…Furnas Grand Island ………Hall Ralston ……….… Douglas Arnold……………Custer Greenwood……… Cass Ravenna ……….…Buffalo Atkinson ……….…Holt Gretna.……………Sarpy Roseland……….…Adams Atlanta.……………Phelps Hartington…………Cedar Saline………………Saline Auburn ……………Nemaha Hastings ……….…Adams Schuyler..…………Colfax Aurora ……….……Hamilton Hebron……………Thayer Scottsbluff ……… Scotts Bluff Bartley……………Red Willow Henderson ……… York Scribner……………Dodge Bayard ……………Morrill Hickman………… Lancaster Seward City….……Seward Beatrice ……….…Gage Holdrege ……….…Phelps Sidney ……….……Cheyenne Bellevue ……….…Sarpy Hooper……………Dodge Snyder……………Dodge Benkelman ………Dundy Imperial..…………Chase So. Sioux City ……Dakota Bennington……… Douglas Jackson……………Dakota Spalding………… Greeley Blair………………Washington Juniata ……….……Adams St. Edward…………Boone Blue Hill …………Webster Kearney ……….…Buffalo St. Paul……………Howard Brady ……….……Lincoln Kimball ……………Kimball Stromsburg ………Polk Bridgeport…………Morrill Laurel…………… Cedar Superior.………… Nuckolls Broken Bow ………Custer Lexington ………. Dawson Tecumseh ………. Johnson Burwell……………Garfield Lincoln ……….… Lancaster Tekamah……….…Burt Cairo ……….…… Hall Litchfield…………Sherman Tilden.……………Antelope Cambridge ……… Furnas Louisville…...……Cass Utica……..….……Seward Carleton……………Thayer Loup City…………Sherman Valentine…………Cherry Cedar Rapids…..…Boone Madison…….……Madison Valley…………… Douglas Central City ………Merrick McCook ……….…Red Willow Venango…..………Perkins Chadron ……….…Dawes McCool Junction …York Verdigre………… Knox Columbus …………Platte Mead………………Saunders Wahoo ……………Saunders Cozad ……….……Dawson Minden ……………Kearney Wakefield…………Dixon Creighton…………Knox Nebraska City……Otoe Waterbury…………Dixon Crofton……………Knox Neligh ……….……Antelope Waterloo ……….…Douglas Curtis ……….……Frontier Newman Grove……Madison Waverly……………Lancaster David City ……… Butler Norfolk ……….… Madison Wayne ……….……Wayne Eagle………… Cass North Loup.………Valley West Point ……… Cuming Elwood……………Gosper North Platte ………Lincoln Wilsonville ………Furnas Fairbury ………… Jefferson Ogallala ……….…Keith Wood River………Hall Fairmont ……….…Fillmore Omaha ……….……Douglas Wymore……………Gage Falls City ……….…Richardson O'Neill ……….……Holt York ……….………York Farnum……….……Dawson Ord ……….………Valley Yutan………………Saunders Fremont……………Dodge Osceola ……….… Polk Friend…………… Saline Osmond……………Pierce Totals: 130 Cities in 72 Counties Nebraska Department of Revenue, Property Assessment Division Annual TIF Report 2017 iii Cities - Taxable Value and TIF Excess Value for 2017 City TIF City %TIF of Co# County Name City Name Taxable Value Excess Value Total Value Total City 1 ADAMS HASTINGS 1,324,483,526 15,679,445 1,340,162,971 1.17% 1 ADAMS JUNIATA 31,033,674 980,490 32,014,164 3.06% 1 ADAMS ROSELAND 10,363,575