An Act To Treat Plantations in the Same Manner as Towns for Purposes of Tax Increment Financing
Maine Legislature, Session 125, LD 0855
Committee: Taxation
Sponsors: THOMAS, COLLINS, MARTIN, SHERMAN, WHITTEMORE, COTTA, CRAY, GIFFORD, HARVELL
Amends: 30-A MRSA §5221, 30-A MRSA §5222, 30-A MRSA §5223, 30-A MRSA §5224, 30-A MRSA §5225, 30-A MRSA §5226, 30-A MRSA §5227, 30-A MRSA §5228, 30-A MRSA §5229, 30-A MRSA §5230, 30-A MRSA §5231, 30-A MRSA §5232, 30-A MRSA §5233, 30-A MRSA §5234, 30-A MRSA §7051

Legislative Document 
No. 855 
S.P. 259 
In Senate, March 3, 2011 
An Act To Treat Plantations in the Same Manner as Towns for 
Purposes of Tax Increment Financing 
Reference to the Committee on Taxation suggested and ordered printed. 
JOSEPH G. CARLETON, JR. 
Secretary of the Senate 
Presented by Senator THOMAS of Somerset. 
Cosponsored by Senators: COLLINS of York, MARTIN of Kennebec, SHERMAN of 
Aroostook, WHITTEMORE of Somerset, Representatives: COTTA of China, CRAY of 
Palmyra, GIFFORD of Lincoln, HARVELL of Farmington. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  30-A MRSA §5221, sub-§1, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
1.  Legislative finding.  The Legislature finds that there is a need for new 
development in areas of municipalities and plantations to: 
A.  Provide new employment opportunities; 
B.  Improve and broaden the tax base; and 
C.  Improve the general economy of the State. 
Sec. 2.  30-A MRSA §5221, sub-§2, as amended by PL 2009, c. 314, §1, is 
further amended to read: 
2.  Authorization.  For the reasons set out in subsection 1, municipalities and 
plantations may develop a program for improving a district of the municipality or 
plantation: 
A.  To provide impetus for industrial, commercial, transit-oriented or arts district 
development, or any combination; 
B.  To increase employment; and 
C.  To provide the facilities outlined in the development program adopted by the 
legislative body of the municipality or plantation. 
Sec. 3.  30-A MRSA §5222, sub-§1-A, as enacted by PL 2007, c. 413, §2, is 
amended to read: 
1-A.  Arts district.  "Arts district" means a specified area within the corporate limits 
of a municipality or plantation that has been designated by the municipality or plantation 
for the purpose of providing employment and cultural opportunities through the 
development of arts opportunities, including, but not limited to, museums, galleries, arts 
education, art studios, performing arts venues and associated businesses. 
Sec. 4.  30-A MRSA §5222, sub-§4, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
4.  Current assessed value.  "Current assessed value" means the assessed value of 
the district certified by the municipal or plantation assessor as of April 1st of each year 
that the development district remains in effect. 
Sec. 5.  30-A MRSA §5222, sub-§6, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
6.  Development district.  "Development district" means a specified area within the 
corporate limits of a municipality or plantation that has been designated as provided 
under sections 5223 and 5226 and that is to be developed under a development program. 
Sec. 6.  30-A MRSA §5222, sub-§15, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
15.  Tax increment.  "Tax increment" means real and personal property taxes 
assessed by a municipality or plantation, in excess of any state, county or special district 
tax, upon the increased assessed value of property in the development district. 
Sec. 7.  30-A MRSA §5222, sub-§17, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
17.  Tax shifts.  "Tax shifts" means the effect on a municipality's or plantation's state 
revenue sharing, education subsidies and county tax obligations that results from the 
designation of a tax increment financing district and the capture of increased assessed 
value. 
Sec. 8.  30-A MRSA §5223, as amended by PL 2009, c. 627, §1, is further 
amended to read: 
§5223.  Development districts 
1.  Creation.  A municipal or plantation legislative body may designate a 
development district within the boundaries of the municipality or plantation in 
accordance with the requirements of this chapter.  If the municipality has a charter, the 
designation of a development district may not be in conflict with the provisions of the 
municipal charter. 
2.  Considerations for approval.  Before designating a development district within 
the boundaries of a municipality or plantation, or before establishing a development 
program for a designated development district, the legislative body of a municipality or 
plantation must consider whether the proposed district or program will contribute to the 
economic growth or well-being of the municipality or plantation or to the betterment of 
the health, welfare or safety of the inhabitants of the municipality or plantation.  
Interested parties must be given a reasonable opportunity to present testimony concerning 
the proposed district or program at the hearing provided for in section 5226, subsection 1.  
If an interested party claims at the public hearing that the proposed district or program 
will result in a substantial detriment to that party's existing business in the municipality or 
plantation and produces substantial evidence to that effect, the legislative body must 
consider that evidence.  When considering that evidence, the legislative body also shall 
consider whether any adverse economic effect of the proposed district or program on that 
interested party's existing business in the municipality or plantation is outweighed by the 
contribution made by the district or program to the economic growth or well-being of the 
municipality or plantation or to the betterment of the health, welfare or safety of the 
inhabitants of the municipality or plantation. 
3.  Conditions for approval.  Designation of a development district is subject to the 
following conditions. 
A.  At least 25%, by area, of the real property within a development district must 
meet at least one of the following criteria: 
(1)  Must be a blighted area; 
(2)  Must be in need of rehabilitation, redevelopment or conservation work; or 
(3)  Must be suitable for commercial or arts district uses. 
B.  The total area of a single development district may not exceed 2% of the total 
acreage of the municipality or plantation.  The total area of all development districts 
may not exceed 5% of the total acreage of the municipality or plantation. 
C.  The original assessed value of a proposed tax increment financing district plus the 
original assessed value of all existing tax increment financing districts within the 
municipality or plantation may not exceed 5% of the total value of taxable property 
within the municipality or plantation as of April 1st preceding the date of the 
commissioner's approval of the designation of the proposed tax increment financing 
district. 
Excluded from the calculation in this paragraph is any district excluded from the 
calculation under former section 5253, subsection 1, paragraph C and any district 
designated on or after the effective date of this chapter that meets the following 
criteria: 
(1)  The development program contains project costs, authorized by section 5225, 
subsection 1, paragraph A, that exceed $10,000,000; 
(2)  The geographic area consists entirely of contiguous property owned by a 
single taxpayer; 
(3)  The assessed value exceeds 10% of the total value of taxable property within 
the municipality or plantation; and 
(4)  The development program does not contain project costs authorized by 
section 5225, subsection 1, paragraph C. 
For the purpose of this paragraph, "contiguous property" includes a parcel or parcels 
of land divided by a road, power line or right-of-way. 
D.  The aggregate value of municipal and plantation general obligation indebtedness 
financed by the proceeds from tax increment financing districts within any county 
may not exceed $50,000,000 adjusted by a factor equal to the percentage change in 
the United States Bureau of Labor Statistics Consumer Price Index, United States 
City Average from January 1, 1996 to the date of calculation. 
(1)  The commissioner may adopt rules necessary to allocate or apportion the 
designation of captured assessed value of property within proposed tax increment 
financing districts to permit compliance with the condition in this paragraph.  
Rules adopted pursuant to this paragraph are routine technical rules as defined in 
Title 5, chapter 375, subchapter 2-A. 
(2)  The acquisition, construction and installment of all real and personal property 
improvements, buildings, structures, fixtures and equipment included within the 
development program and financed through municipal or plantation bonded 
indebtedness must be completed within 5 years of the commissioner's approval of 
the designation of the tax increment financing district. 
The conditions in paragraphs A to D do not apply to approved downtown tax increment 
financing districts, tax increment financing districts that consist solely of one or more 
community wind power generation facilities owned by a community wind power 
generator that has been certified by the Public Utilities Commission pursuant to Title 
35-A, section 3403, subsection 3 or transit-oriented development districts. 
4.  Powers of municipality or plantation.  Within development districts and 
consistent with the development program, the municipality or plantation may acquire, 
construct, reconstruct, improve, preserve, alter, extend, operate or maintain property or 
promote development intended to meet the objectives of the development program.  
Pursuant to the development program, the municipality or plantation may acquire 
property, land or easements through negotiation or by using eminent domain powers in 
the manner authorized for community development programs under section 5204.  The 
municipality's or plantation's legislative body may adopt ordinances regulating traffic in 
and access to any facilities constructed within the development district.  The municipality 
or plantation may install public improvements. 
Sec. 9.  30-A MRSA §5224, sub-§1, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
1.  Adoption.  The legislative body of a municipality or plantation shall adopt a 
development program for each development district.  The development program must be 
adopted at the same time as is the district, as part of the district adoption proceedings or, 
if at a different time, in the same manner as adoption of the district, with the same notice 
and hearing requirements of section 5226.  Before adopting a development program, the 
municipal or plantation legislative body shall consider the factors and evidence specified 
in section 5223, subsection 2. 
Sec. 10.  30-A MRSA §5224, sub-§2, ¶I, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
I.  All documentation submitted to or prepared by the municipality or plantation 
under section 5223, subsection 2. 
Sec. 11.  30-A MRSA §5224, sub-§5, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
5.  Limitation.  For tax increment financing districts, the municipality or plantation 
may expend the tax increments received for any development program only in accordance 
with the financial plan. 
Sec. 12.  30-A MRSA §5225, sub-§1, ¶A, as corrected by RR 2009, c. 1, §22, is 
amended to read: 
A.  Costs of improvements made within the tax increment financing district, 
including, but not limited to: 
(1)  Capital costs, including, but not limited to: 
(a)  The acquisition or construction of land, improvements, public ways, 
buildings, structures, fixtures and equipment for public, arts district, new or 
existing recreational trail, commercial or transit-oriented development district 
use. 
(i) Eligible transit-oriented development district capital costs include but 
are not limited to:  transit vehicles such as buses, ferries, vans, rail 
conveyances and related equipment; bus shelters and other transit-related 
structures; benches, signs and other transit-related infrastructure; bicycle 
lane construction and other bicycle-related improvements; pedestrian 
improvements such as crosswalks, crosswalk signals and warning 
systems and crosswalk curb treatments; and the nonresidential 
commercial portions of transit-oriented development projects;. 
(ii)  Eligible recreational trail-related development district capital costs 
include but are not limited to new or existing trails, including bridges that 
are part of the trail corridor, used all or in part for all-terrain vehicles, 
snowmobiles, hiking, bicycling, cross-country skiing or other related 
multiple uses, signs, crosswalks, signals and warning systems and other 
related improvements. 
(iii)  Eligible development district capital costs for public ways include 
but are not limited to scenic turnouts, signs, railing and other related 
improvements; 
(b)  The demolition, alteration, remodeling, repair or reconstruction of 
existing buildings, structures and fixtures; 
(c)  Site preparation and finishing work; and 
(d)  All fees and expenses that are eligible to be included in the capital cost of 
such improvements, including, but not limited to, licensing and permitting 
expenses and planning, engineering, architectural, testing, legal and 
accounting expenses; 
(2)  Financing costs, including, but not limited to, closing costs, issuance costs 
and interest paid to holders of evidences of indebtedness issued to pay for project 
costs and any premium paid over the principal amount of that indebtedness 
because of the redemption of the obligations before maturity; 
(3)  Real property assembly costs; 
(4)  Professional service costs, including, but not limited to, licensing, 
architectural, planning, engineering and legal expenses; 
(5)  Administrative costs, including, but not limited to, reasonable charges for the 
time spent by municipal or plantation employees in connection with the 
implementation of a development program; 
(6)  Relocation costs, including, but not limited to, relocation payments made 
following condemnation;  
(7)  Organizational costs relating to the establishment of the district, including, 
but not limited to, the costs of conducting environmental impact and other studies 
and the costs of informing the public about the creation of development districts 
and the implementation of project plans; and 
(8) In the case of transit-oriented development districts, ongoing costs of adding 
to an existing transit system or creating a new transit service and limited strictly 
to transit operator salaries, transit vehicle fuel and transit vehicle parts 
replacements; 
Sec. 13.  30-A MRSA §5225, sub-§1, ¶B, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
B.  Costs of improvements that are made outside the tax increment financing district 
but are directly related to or are made necessary by the establishment or operation of 
the district, including, but not limited to: 
(1) That portion of the costs reasonably related to the construction, alteration or 
expansion of any facilities not located within the district that are required due to 
improvements or activities within the district, including, but not limited to, 
sewage treatment plants, water treatment plants or other environmental protection 
devices; storm or sanitary sewer lines; water lines; electrical lines; improvements 
to fire stations; and amenities on streets; 
(2) Costs of public safety improvements made necessary by the establishment of 
the district; and 
(3) Costs of funding to mitigate any adverse impact of the district upon the 
municipality or plantation and its constituents.  This funding may be used for 
public facilities and improvements if: 
(a)  The public facilities or improvements are located in a downtown tax 
increment financing district; and 
(b)  The entire tax increment from the downtown tax increment financing 
district is committed to the development program of the tax increment 
financing district; 
Sec. 14.  30-A MRSA §5225, sub-§1, ¶C, as amended by PL 2009, c. 314, §11, 
is further amended to read: 
C.  Costs related to economic development, environmental improvements or 
employment training within the municipality or plantation, including, but not limited 
to: 
(1)  Costs of funding economic development programs or events developed by 
the municipality or plantation or funding the marketing of the municipality or 
plantation as a business or arts location; 
(2)  Costs of funding environmental improvement projects developed by the 
municipality or plantation for commercial or arts district use or related to such 
activities; 
(3)  Funding to establish permanent economic development revolving loan funds 
or investment funds; 
(4)  Costs of services to provide skills development and training for residents of 
the municipality or plantation.  These costs may not exceed 20% of the total 
project costs and must be designated as training funds in the development 
program;  
(5) Quality child care costs, including finance costs and construction, staffing, 
training, certification and accreditation costs related to child care;  
(6)  Costs relating to planning, design, construction, maintenance, grooming and 
improvements to new or existing recreational trails determined by the department 
to have significant potential to promote economic development, including bridges 
that are part of the trail corridor, used all or in part for all-terrain vehicles, 
snowmobiles, hiking, bicycling, cross-country skiing or other related multiple 
uses; and 
(7) Costs associated with a new or expanded transit service, limited to: 
(a) Transit service capital costs, including but not limited to:  transit vehicles 
such as buses, ferries, vans, rail conveyances and related equipment; bus 
shelters and other transit-related structures; and benches, signs and other 
transit-related infrastructure; and 
(b) In the case of transit-oriented development districts, ongoing costs of 
adding to an existing transit system or creating a new transit service and 
limited strictly to transit operator salaries, transit vehicle fuel and transit 
vehicle parts replacements; and 
Sec. 15.  30-A MRSA §5225, sub-§1, ¶D, as amended by PL 2009, c. 126, §1, is 
further amended to read: 
D.  Costs of constructing or improving facilities or buildings leased by State 
Government or a municipal or plantation government that are located in approved 
downtown tax increment financing districts. 
Sec. 16.  30-A MRSA §5226, sub-§1, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
1.  Notice and hearing.  Before designating a development district or adopting a 
development program, the municipal or plantation legislative body or the municipal or 
plantation legislative body's designee must hold at least one public hearing.  Notice of the 
hearing must be published at least 10 days before the hearing in a newspaper of general 
circulation within the municipality or plantation. 
Sec. 17.  30-A MRSA §5226, sub-§3, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
3.  Effective date.  A designation of a tax increment financing district is effective 
upon approval by the commissioner.  A designation of a development district other than a 
tax increment financing district is effective upon approval by the municipal or plantation 
legislative body. 
Sec. 18.  30-A MRSA §5226, sub-§4, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
4.  Administration of district.  The legislative body of a municipality or plantation 
may create a department, designate an existing department, office, agency, municipal 
housing or redevelopment authority or enter into a contractual arrangement with a private 
entity to administer activities authorized under this chapter. 
Sec. 19.  30-A MRSA §5226, sub-§5, as enacted by PL 2001, c. 669, §1, is 
amended to read: 
5.  Amendments.  A municipality or plantation may amend a designated 
development district or an adopted development program only after meeting the 
requirements of this section for designation of a development district or adoption of a 
development program.  A municipality or plantation may not amend the designation of a 
development district if the amendment would result in the district's being out of 
compliance with any of the conditions in section 5223, subsection 3. 
Sec. 20.  30-A MRSA §5227, as enacted by PL 2001, c. 669, §1, is amended to 
read: 
§5227.  Tax increment financing 
1.  Designation of captured assessed value.  A municipality or plantation may retain 
all or part of the tax increment revenues generated from the increased assessed value of a 
tax increment financing district for the purpose of financing the development program.  
The amount of tax increment revenues to be retained is determined by designating the 
captured assessed value.  When a development program for a tax increment financing 
district is adopted, the municipal or plantation legislative body shall adopt a statement of 
the percentage of increased assessed value to be retained as captured assessed value in 
accordance with the development program.  The statement of percentage may establish a 
specific percentage or percentages or may describe a method or formula for determination 
of the percentage.  The municipal assessor or plantation assessor shall certify the amount 
of the captured assessed value to the municipality or plantation each year. 
2.  Certification of assessed value.  On or after formation of a tax increment 
financing district, the assessor of the municipality or plantation in which it is located shall 
certify the original assessed value of the taxable property within the boundaries of the tax 
increment financing district.  Each year after the designation of a tax increment financing 
district, the municipal assessor or plantation assessor shall certify the amount by which 
the assessed value has increased or decreased from the original value. 
Nothing in this subsection allows or sanctions unequal apportionment or assessment of 
the taxes to be paid on real property in the State.  An owner of real property within the tax 
increment financing district shall pay real property taxes apportioned equally with 
property taxes paid elsewhere in the municipality or plantation. 
3.  Development program fund; tax increment revenues.  If a municipality or 
plantation has designated captured assessed value under subsection 1, the municipality or 
plantation shall: 
A.  Establish a development program fund that consists of the following: 
(1) A project cost account that is pledged to and charged with the payment of 
project costs that are outlined in the financial plan and are paid in a manner other 
than as described in subparagraph (2); and 
(2)  In instances of municipal or plantation indebtedness, a development sinking 
fund account that is pledged to and charged with the payment of the interest and 
principal as the interest and principal fall due and the necessary charges of paying 
interest and principal on any notes, bonds or other evidences of indebtedness that 
were issued to fund or refund the cost of the development program fund; 
B.  Annually set aside all tax increment revenues on captured assessed values and 
deposit all such revenues to the appropriate development program fund account 
established under paragraph A in the following order of priority: 
(1)  To the development sinking fund account, an amount sufficient, together 
with estimated future revenues to be deposited to the account and earnings on the 
amount, to satisfy all annual debt service on bonds and notes issued under section 
5231 and the financial plan; and 
(2)  To the project cost account, an amount sufficient, together with estimated 
future revenues to be deposited to the account and earnings on the amount, to 
satisfy all annual project costs to be paid from the account; 
C.  Make transfers between development program fund accounts established under 
paragraph A as required, provided that the transfers do not result in a balance in the 
development sinking fund account that is insufficient to cover the annual obligations 
of that account; and 
D.  Annually return to the municipal or plantation general fund any tax increment 
revenues remaining in the development sinking fund account established under 
paragraph A in excess of those estimated to be required to satisfy the obligations of 
the development sinking fund account after taking into account any transfers made 
under paragraph C.  The municipality or plantation, at any time during the term of the 
district, by vote of the municipal or plantation officers, may return to the municipal or 
plantation general fund any tax increment revenues remaining in the project cost 
account established under paragraph A in excess of those estimated to be required to 
satisfy the obligations of the development project cost account after taking into 
account any transfer made under paragraph C.  In either case, the corresponding 
amount of local valuation may not be included as part of the captured assessed value 
as specified by the municipality or plantation. 
Sec. 21.  30-A MRSA §5228, as enacted by PL 2001, c. 669, §1, is amended to 
read: 
§5228.  Assessments 
1.  Assessments.  A municipality or plantation may estimate and make the following 
assessments: 
A.  A development assessment upon lots or property within the development district.  
The assessment must be made upon lots or property that have been benefited by 
improvements constructed or created under the development program and may not 
exceed a just and equitable proportionate share of the cost of the improvement.  All 
revenues from assessments under this paragraph are paid into the appropriate 
development fund program account established under section 5227, subsection 3; 
B.  A maintenance assessment upon all lots or property within the development 
district.  The assessment must be assessed equally and uniformly on all lots or 
property receiving benefits from the development program and the continued 
operation of the public facilities.  The total maintenance assessments may not exceed 
the cost of maintenance and operation of the public facilities within the district.  The 
cost of maintenance and operation must be in addition to the cost of maintenance and 
operation already being performed by the municipality or plantation within the 
district when the development district was adopted; and 
C.  An implementation assessment upon all lots or property within the development 
district.  The assessment must be assessed equally and uniformly on all lots or 
property receiving benefits from the development program.  The implementation 
assessments may be used to fund activities that, in the opinion of the municipal or 
plantation legislative body, are reasonably necessary to achieve the purposes of the 
development program.  The activities funded by implementation assessments must be 
in addition to those already conducted within the district by the municipality or 
plantation when the development district was adopted. 
2.  Notice and hearing.  Before estimating and making an assessment under 
subsection 1, the municipality or plantation must give notice and hold a hearing.  Notice 
of the hearing must be published at least 10 days before the hearing in a newspaper of 
general circulation within the municipality or plantation.  The notice must include: 
A.  The date, time and place of hearing; 
B.  The boundaries of the development district by legal description; 
C.  A statement that all interested persons owning real estate or taxable property 
located within the district will be given an opportunity to be heard at the hearing and 
an opportunity to file objections to the amount of the assessment; 
D.  The maximum rate of assessments to be extended in any one year; and 
E.  A statement indicating that a proposed list of properties to be assessed and the 
estimated assessments against those properties is available at the city or town office 
or at the office of the assessor. 
The notice may include a maximum number of years the assessments will be levied. 
3.  Apportionment formula.  A municipality or plantation may adopt ordinances 
apportioning the value of improvements within a development district according to a 
formula that reflects actual benefits that accrue to the various properties because of the 
development and maintenance. 
4.  Increase of assessments and extension of time limits.  A municipality or 
plantation may increase assessments or extend the specified period after notice and 
hearing as required under subsection 2. 
5.  Collection.  Assessments made under this section must be collected in the same 
manner as municipal or plantation taxes.  The constable or municipal tax collector or 
plantation assessor has all the authority and powers by law to collect the assessments.  If 
any property owner fails to pay any assessment or part of an assessment on or before the 
dates required, the municipality or plantation has all the authority and powers to collect 
the delinquent assessments vested in the municipality or plantation by law to collect 
delinquent municipal or plantation taxes. 
Sec. 22.  30-A MRSA §5229, as enacted by PL 2001, c. 669, §1, is amended to 
read: 
§5229.  Rules 
The commissioner may adopt rules necessary to carry out the duties imposed by this 
chapter and to ensure municipal or plantation compliance with this subchapter following 
designation of a tax increment financing district.  Rules adopted pursuant to this section 
are routine technical rules as defined in Title 5, chapter 375, subchapter II-A 2-A. 
Sec. 23.  30-A MRSA §5230, as enacted by PL 2001, c. 669, §1, is amended to 
read: 
§5230.  Grants 
A municipality or plantation may receive grants or gifts for any of the purposes of 
this chapter.  The tax increment revenues within a development district may be used as 
the local match for certain grant programs. 
Sec. 24.  30-A MRSA §5231, as enacted by PL 2001, c. 669, §1, is amended to 
read: 
§5231.  Bond financing 
The legislative body of a municipality or plantation may authorize, issue and sell 
bonds, including, but not limited to, general obligation or revenue bonds or notes, that 
mature within 20 years from the date of issue to finance all project costs needed to carry 
out the development program within the development district.  The plantation or 
municipal officers authorized to issue the bonds or notes may borrow money in 
anticipation of the sale of the bonds for a period of up to 3 years by issuing temporary 
notes and notes in renewal of the bonds.  All revenues derived under section 5227 or 
under section 5228, subsection 1 received by the municipality or plantation are pledged 
for the payment of the activities described in the development program and used to 
reduce or cancel the taxes that may otherwise be required to be expended for that 
purpose.  The notes, bonds or other forms of financing may not be included when 
computing the municipality's or plantation's net debt.  Nothing in this section restricts the 
ability of the municipality or plantation to raise revenue for the payment of project costs 
in any manner otherwise authorized by law. 
Sec. 25.  30-A MRSA §5232, as enacted by PL 2001, c. 669, §1, is amended to 
read: 
§5232.  Tax exemption 
All publicly owned parking structures and pedestrian skyway systems are exempt 
from taxation by the municipality or plantation, county and State.  This section does not 
exempt any lessee or person in possession from taxes or assessments payable under Title 
36, section 551. 
Sec. 26.  30-A MRSA §5233, as enacted by PL 2001, c. 669, §1, is amended to 
read: 
§5233.  Advisory board 
The legislative body of a municipality or plantation may create an advisory board, a 
majority of whose members must be owners or occupants of real property located in or 
adjacent to the development district they serve.  The advisory board shall advise the 
legislative body and the designated administrative entity on the planning, construction 
and implementation of the development program and maintenance and operation of the 
district after the program has been completed. 
Sec. 27.  30-A MRSA §5234, as enacted by PL 2001, c. 669, §1, is amended to 
read: 
§5234.  Special provisions 
Notwithstanding the provisions of section 5223, subsection 1 and any other provision 
of law, in the case of investments exceeding $100,000,000 in shipyard facilities in 
districts authorized prior to June 30, 1999, revenues must be set aside and deposited by 
the municipality or plantation to the appropriate development program fund account 
established under section 5227, subsection 3 and expended to satisfy the obligations of 
the accounts without the need for further action by the municipality or plantation by 
appropriation or otherwise.  Unless otherwise provided by the municipality or plantation 
in connection with its approval of the district, tax increment revenues on all captured 
assessed value may not be taken into account for purposes of calculating any limitation 
on the municipality's or plantation's annual expenditures or appropriations, and the 
payment of tax increment revenues on captured assessed value is not subject to any 
limitation or restriction on the municipality's or plantation's authority or power to enter 
into contracts with respect to making payments for a term equal to the term of the district. 
Sec. 28.  30-A MRSA §7051, sub-§9-A is enacted to read: 
9-A.  Development districts for municipalities and plantations.  Chapter 206, 
subchapter 1; 
Sec. 29.  Maine Revised Statutes headnote amended; revision clause.  In 
the Maine Revised Statutes, Title 30-A, chapter 206, subchapter 1, in the subchapter 
headnote, the words "municipal development districts" are amended to read 
"development districts for municipalities and plantations" and the Revisor of Statutes 
shall implement this revision when updating, publishing or republishing the statutes. 
SUMMARY 
This bill authorizes plantations to implement tax increment financing development 
districts and development programs in the same manner as is currently available to 
municipalities under the Maine Revised Statutes, Title 30-A, chapter 206.  The bill also 
allows authorized project costs to include certain capital costs associated with public 
ways and recreational trails within the tax increment financing development district.