Code of Maine Rules › 19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT › 100 - ECONOMIC / COMMUNITY DEVELOPMENT › Chapter 2 - PULP AND PAPER TAX INCREMENT FINANCING AND ENVIRONMENTAL INVESTMENT PROGRAM RULE › Section 100-2-1 - PURPOSE AND DEFINITIONS

Current through 2024-29, July 17, 2024
A. PURPOSE
The pulp and paper tax increment finance program and the
				  environmental investment program are designed to assist companies engaged in
				  the pulp and paper industry in the financing of substantial capital investments
				  in environmental improvement projects that are required by state and federal
				  regulation of the pulp and paper industry. This chapter sets forth the
				  provisions by which the pulp and paper industry may utilize these programs, and
				  describes application requirements, state review procedures, state designation
				  procedures, annual reporting requirements, calculation of valuation eligible
				  for tax increment financing, and calculation of distributive shares for the
				  pulp and paper environmental investment fund.
B. DEFINITIONS
All terms used but not defined in this Chapter shall have the
				  meanings ascribed to those terms in Chapter 207-A of Title 30-A of the Maine
				  Revised Statutes, as amended. The following terms shall have the definitions
				  hereinafter set forth:
Captured assessed value. "Captured assessed value" means the
				  valuation amount by which the current assessed value of a pulp and paper tax
				  increment financing district exceeds the original assessed value of the
				  district. If the current assessed value is equal to or less than the original,
				  there is no captured assessed value.
Certified Elements. "Certified Elements" means (1) those
				  elements identified under the certification by rule provisions of the Maine
				  Department of Environmental Protection Regulations to be adopted, as elements
				  of an environmental improvement project, and/or (2) any element otherwise
				  certified by the Commissioner of the Department of Environmental Protection
				  pursuant to 30-A M.R.S.A. §5264(3)(B) and for which an applicant is
				  eligible to apply for reimbursement of a portion of its costs pursuant to 30-A
				  M.R.S.A. §5270.
Commissioner. "Commissioner" means the Commissioner of the
				  Department of Economic and Community Development.
Department. "Department" means the Department of Economic and
				  Community Development.
Development program. "Development program" means a statement
				  of means and objectives designed to improve and modernize the manufacturing
				  facilities and related structures and equipment within the development
				  district. The statement must include:
(a) A financial plan;
(b) A complete list of public and private
				facilities to be constructed;
(c)
				The uses of private property within the development district;
(d) The environmental controls to be
				applied;
(e) An estimate of the
				number of jobs to be created, stabilized, retained or eliminated;
(f) The proposed operation of the development
				district after the planned capital improvements are completed;
(g) The duration of the program, which may
				not exceed twenty years from the date of designation of the development
				district;
(h) The district
				boundaries;
(i) Project costs to be
				financed through tax increment revenue; and
(j) The amount of indebtedness or other
				project costs to be financed through tax increment revenue.
Development program amendment. "Development program
				  amendment" means any change to a state approved development program, including
				  but not limited to any changes in items (a) through (j) of the definition of
				  "Development Program".:
Development program fund. "Development program fund" means
				  the account or accounts into which pulp and paper tax increment revenues are
				  deposited. These accounts must be managed in accord with the provisions of 30-A
				  M.R.S.A. §5265, sub-§3.
Environmental improvement project. "Environmental improvement
				  project" means a capital investment necessary to comply with the requirements
				  of federal regulation finally adopted by the United States Environmental
				  Protection Agency pursuant to its rulemaking initiated on December 17, 1993;
				  Federal Register, Vol. 58, No. 241, pages 66078 to 66216; or otherwise required
				  under the United States Clean Air Act or the United States Clean Water Act, as
				  amended, or under any legislation passed in replacement of such Acts or
				  regulations, or any regulations under such Acts, or under any state law or
				  regulation enacted or adopted to implement the requirements of these federal
				  laws and regulations.
Evidences of indebtedness. "Evidences of indebtedness" as
				  used in 30-A M.R.S.A. §§265(3)(A)(1) means any notes, long-term or
				  short-term, bonds, leases, contractual commitments for the payment of money
				  over a pre-established term, or any other evidences of indebtedness whatsoever
				  issued, established or otherwise entered into by the municipality or its
				  designee in connection with an environmental improvement project.
Financial plan. "Financial plan" means a statement of the
				  costs and sources of revenue required to accomplish the development program.
				  The statement must include:
(a) Cost
				estimates for the development program;
(b) The amount of any indebtedness to be
				incurred;
(c) Sources of
				anticipated revenues;
(d) Estimates
				of captured assessed values of the development district;
(e) The portion of the captured assessed
				values to be applied to the development program and resulting tax increments in
				each year of the development program; and
(f) A statement of the estimated impact of
				tax increment financing on all tax jurisdictions in which the development
				district is located.
Fiscal year. "Fiscal year" means the period of time from
				  April 1 through March 31 of each year, which corresponds to the municipal tax
				  year.
Governing body of the municipality. "Governing body of the
				  municipality" means the legislative body of a municipality at any regular,
				  special or other duly constituted meeting. For pulp and paper tax increment
				  financing in an unorganized territory, the county commissioners shall act as
				  the municipal legislative body.
Manufacturing facilities. "Manufacturing facilities" as used
				  in 30-A M.R.S.A. §5263(5) includes all improvements of any nature
				  whatsoever located within the boundaries of a development district and owned or
				  used by any business engaged in the pulp and paper industry including, without
				  limiting the generality of the foregoing, all transportation, staging,
				  warehousing, preparation, processing and office facilities related to
				  manufacturing facilities, even if located in separate structures.
Original assessed value. "Original assessed value" means the
				  assessed value of the development district as of the March 31 immediately
				  preceding the date of designation of the district.
Partner. "Partner" as used in 30-A M.R.S.A.
				§5263(3) means any company, business organization or other entity within
				the pulp and paper industry that has been selected by a municipality to
				participate in a pulp and paper tax increment financing district.
Physical description. "Physical description" means a
				  description of the pulp and paper tax increment financing district,
				  including:
(a) Tax maps delineating
				the property in the proposed tax increment financing district;
(b) A municipal map showing the site location
				of the proposed pulp and paper tax increment financing district relative to the
				municipal boundaries;
(c)
				Certification by the municipal tax assessor that this information is accurate,
				and
(d) The information required
				and as depicted in Table 1 in the Appendix.
Pulp and paper industry. "Pulp and paper industry" means any
				  industrial activity currently described by the United States Office of
				  Management and Budget under Standard Industrial Classification, 261, 262 or 263
				  or those activities classified under 2679 that press or mold wood pulp or
				  recycled fiber to make products, including, without limitation, any related
				  activity involving the treatment, recycling or disposal of wastewater, air
				  emissions, solid residues or other related manufacturing by-products. This term
				  does not include activity relating to, associated with or otherwise involving
				  the growth, harvesting, transportation or preparation of timber, pulpwood or
				  other wood products prior to the manufacture of pulp, paper or paperboard;
				  provided, however, that all transportation and preparation of timber, pulpwood
				  or other wood products shall be included in the term "pulp and paper industry"
				  if such activity occurs within the boundaries of the development
				  district.
Pulp and paper tax increment. "Pulp and paper tax increment"
				  means that portion of all real and personal property taxes assessed by a
				  municipality, apart from any state, county or special district tax, upon the
				  captured assessed value of property in a development district.
Pulp and paper tax increment financing district. "Pulp and
				  paper tax increment financing district" means a type of development district,
				  or portion of a development district designated to use tax increment financing
				  in accord with 30-A M.R.S.A. §5265.
Record of municipal approval. "Record of municipal approval"
				  means the record of the local actions required pursuant to 30-A M.R.S.A.
				  §5264 to designate a development district.