Code of Maine Rules › 19 - DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT › 100 - ECONOMIC / COMMUNITY DEVELOPMENT › Chapter 1 - MUNICIPAL TAX INCREMENT FINANCING RULE › Section 100-1-1 - PURPOSE AND DEFINITIONS

Current through 2024-29, July 17, 2024
A.
PURPOSE
The municipal tax increment financing program, established
				  under 30-A M.R.S.A., Chapter 206, is designed to assist municipalities in
				  encouraging industrial, commercial, transit-oriented, or arts district
				  development, increasing or retaining employment opportunities, and broadening
				  tax bases. This chapter sets forth the provisions by which a municipality may
				  utilize these programs, and describes application requirements, review
				  procedures, designation procedures, and reporting requirements. It is the
				  intent of the Department of Economic and Community Development to ensure, to
				  the greatest extent possible, municipal control and responsibility for tax
				  increment financing districts. It is the intent of the Department of Economic
				  and Community Development to ensure that municipalities have the greatest
				  possible access to municipal tax increment financing.
B.
DEFINITIONS
All terms used but not defined in this Chapter shall have the
				  meanings ascribed to those terms in Chapter 207 of Title 30-A of the Maine
				  Revised Statutes, as amended. The following terms shall have the definitions
				  hereinafter set forth:
"Captured assessed value" means the valuation amount by which
				  the current assessed value of the development district exceeds the original
				  assessed value of the district and is sheltered for otherwise authorized tax
				  increment financing purposes
"Commissioner" means the Commissioner of the Department of
				  Economic and Community Development.
"Credit enhancement agreement" means a contract between a
				  municipality and a business that specifies (a) the project costs to which TIF
				  funds will be applied, and (b) the obligations of the municipality and the
				  business regarding the creation of a tax increment financing district and the
				  implementation of the development program.
"Department" means the Department of Economic and Community
				  Development.
"Development program" means a statement of means and
				  objectives designed to improve the quality of life, the physical facilities and
				  structures and the quality of pedestrian and vehicular traffic control and
				  transportation within the development district.
"Development program amendment" means any change to a state
				  approved development program, including but not limited to the
				  following:
(a) Alteration of the
				district boundaries;
(b) The
				addition or deletion of project costs to be financed through Tax Increment
				revenue;
(c) An increase or
				decrease in the amount of indebtedness or other project costs to be financed
				through Tax Increment revenue, and
(d) Municipal revaluation.
"Development program fund" means the account or accounts into
				  which municipal tax increment revenues are deposited.
"Downtown redevelopment plan" means a document adopted by a
				  municipal legislative body that describes the municipality's comprehensive plan
				  for the physical and economic redevelopment of its downtown.
"Financial plan" means a statement of the costs and sources
				  of revenue required to accomplish the development program.
"Fiscal year" means the period of time from April 1 through
				  March 31 of each year.
"Governing body of the municipality" means the legislative
				  body of a municipality at any regular, special or other duly constituted
				  meeting. In accordance with 30-A M.R.S.A. §5235, for tax increment
				  financing in an unorganized territory, the county commissioners shall act as
				  the municipal legislative body.
"Municipal 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.
"Physical description" means a description of the 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 tax increment financing district relative to the municipal
				boundaries;
"Project cost account" means an account established by a
				  municipality that is pledged to and charged with the payment of the project
				  costs that are outlined in an approved financial plan and that are paid in a
				  manner other than that described in subsection 5.
"Record of municipal approval" means the record of the series
				  of local actions required pursuant to 30-A M.R.S.A. §§5253, 5223 and
				  5226 to designate a development district.
"Retail Business operation" means a business engaged
				  primarily in making retail sales of consumer goods for household use to
				  consumers who personally visit the location to purchase the goods, or a
				  business providing consumer services for which sales tax is applicable.
"Sinking fund account" means an account established by a
				  municipality that is pledged to and charged with the payment of the interest
				  and principal for municipal indebtedness 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 an approved development program.