Community Redevelopment Tax Increment Financing Projects ...?Nebraska Department of Revenue, Property Assessment Division 2014 TIF Report i Community Redevelopment Law - Tax Increment

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  • Community Redevelopment Tax Increment Financing Projects

    Tax Year 2014

    Report to the Legislature Nebraska Department of Revenue

    Property Assessment Division

    March 1, 2015

    Ruth A. Sorensen, Property Tax Administrator

  • February 24, 2015

    Clerk of the Legislature: The Property Tax Administrator has compiled the 2014 Community Redevelopment Tax Increment Financing Projects report, 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

    http://nebraskalegislature.gov/laws/statutes.php?statute=18-2117.01http://www.revenue.nebraska.gov/PAD/research/tif_reports.html

  • Nebraska Department of Revenue, Property Assessment Division 2014 TIF Report i

    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 approving 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 is not to 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.

    http://nebraskalegislature.gov/laws/statutes.php?statute=18-2101http://www.revenue.nebraska.gov/PAD/forms/Notice_to_Divide_Tax_for_TIF.pdf

  • Nebraska Department of Revenue, Property Assessment Division 2014 TIF Report ii

    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 valuation means the total assessed value of the real property in a redevelopment project for the current year, less the redevelopment project base valuation. 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 redevelopment project valuation, or base value, from the current year assessed value to arrive at the redevelopment projects 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.

    http://www.revenue.nebraska.gov/PAD/legal/regs/Chapter18_Community_Redevelopment_Law(TIF)_3-15-2009.pdfhttp://www.revenue.nebraska.gov/PAD/index.html

  • Nebraska Department of Revenue, Property Assessment Division Annual TIF Report 2014 iii

    Alphabetical List of Cities with TIF and associated CountyCity County City County Adams..Gage Lexington .Dawson Ainsworth Brown Lincoln .LancasterAlbionBoone Louisville...Cass AllianceBox Butte Loup City.ShermanAlma Harlan Madison.Madison AnselmoCuster McCook .Red WillowArnoldCuster McCool Junction York Atkinson . Holt Mead Saunders Atlanta. Phelps Minden KearneyAuburn Nemaha Nebraska City. OtoeAurora .Hamilton Neligh . Antelope Bartley. Red Willow Newman Grove Madison Bayard Morrill Norfolk .Madison Beatrice .Gage North Platte .LincolnBellevue .Sarpy Ogallala .Keith Benkelman .Dundy Omaha .DouglasBenningtonDouglas O'Neill .HoltBlairWashington Ord .ValleyBlue Hill Webster OsmondPierceBrady .Lincoln Pawnee City. PawneeBridgeport Morrill Pender,. ThurstonBroken Bow Custer Petersburg BooneCairo .Hall PlattsmouthCass Cambridge .Furnas PotterCheyenne CarletonThayer Ralston .Douglas Cedar Rapids... Boone Ravenna .Buffalo Central City Merrick Red CloudWebsterColumbus Platte Roseland.Adams Cozad .Dawson Schuyler... ColfaxCrofton.Knox Scottsbluff .Scotts Bluff Curtis .Frontier ScribnerDodgeDavid City .Butler Seward City. SewardElwood Gosper Sidney . Cheyenne Fairbury Jefferson So. Sioux City DakotaFairmont . Fillmore SpaldingGreeleyFalls City .Richardson St. EdwardBooneFarnum.Dawson St. Paul HowardFremontDodge Stromsburg . PolkFriendSaline Superior... NuckollsFullerton . Nance Sutherland .Lincoln Genoa.. Nance Tecumseh .Johnson Gering . Scotts Bluff Tekamah.BurtGothenburg . Dawson Tilden.Antelope Grand Island Hall Utica.... SewardGreenwoodCass Valentine..CherryGretna.. Sarpy ValleyDouglasHartingtonCedar Venango...PerkinsHastings .Adams Wahoo Saunders HebronThayer Waterbury Dixon Henderson York Waterloo . Douglas HickmanLancaster Wausa.Knox Holdrege . Phelps WaverlyLancasterImperial... Chase Wayne .Wayne Jackson Dakota West Point .Cuming Kearney .Buffalo Wood River. Hall Kenesaw . Adams WymoreGage Kimball Kimball York .YorkLaurelCedar YutanSaunders

    Totals: 116 Cities in 69 Counties

  • Nebraska Department of Revenue, Property Assessment Division 2014 TIF Report iv

    Cities - Taxable Value and TIF Excess Value for 2014

    City TIF City %TIF of Co# County Name City Name Taxable Value Excess Value Total Value Total City

    1 ADAMS HASTINGS $1,153,674,512 $17,757,450 $1,171,431,962 1.52%1 ADAMS KENESAW 35,469,920 1,802,655 37,272,575 4.84%1 ADAMS ROSELAND 9,571,385 1,791,660 11,363,045 15.77%2 ANTELOPE NELIGH 52,605,030 1,399,935 54,004,965 2.59%2 ANTELOPE TILDEN 31,160,429 1,855,985 33,016,414 5.62%6 BOONE ALBION 82,307,485 39,707,045 122,014,530 32