Municipal Tax Increment Financing Act

The act authorizes municipalities to establish tax increment districts and to finance development projects within them out of the tax increment revenues those districts produce. A municipality acts through a defined planning process — an advisory review, statutory conditions on district formation, and adoption of a district master plan and project plan — after which it may designate tax increment revenues to be applied to project costs. To fund the work it may issue special obligation bonds, temporary anticipation notes, and refunding bonds secured by pledged project revenues and trust agreements rather than the municipality's general credit, with accompanying provisions on bondholder remedies, investment and custody of funds, tax exemption, and annual reporting.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.