19- 100 C.M.R. ch. 1, § 5

Current through 2024-51, December 18, 2024

Section 100-1-5 - DEPARTMENT REVIEW AND CERTIFICATION

A.REVIEW BY COMMISSIONER

Upon receipt of an application for approval of the designation or amendment of a tax increment financing district, the Commissioner shall review the application to ensure that it is complete and satisfies the requirements of both 30-A M.R.S.A., Chapter 206, and this Chapter of the Department's rules.

B.ACTION ON APPLICATION

After reviewing an application, the Commissioner shall issue a Certificate of Approval, deny the application, stating in writing the reason or reasons for the denial or issue a conditional approval in accordance with section 5, subsection F.

C.CERTIFICATE OF APPROVAL

1. Contents - Original or Downtown designation

a. The name of the tax increment financing district;

b. The effective date of the approval

c. The term of the tax increment financing district, not to exceed 30 years from the date of designation of the district;

d. The requirements for capturing value;

e. The requirement that tax increment financing revenues be deposited and held in a project cost account and/or sinking fund account and be used only for approved project costs;

f. The requirement that the municipality notify the Department promptly if the tax increment financing district is terminated;

g. The requirement that, if tax increment revenues derived from the district are deposited into the municipality's general fund, the incremental property values generating the revenues deposited in the general fund be included with the municipality's equalized assessed value and not be captured;

h. The requirement that any amendment of the district comply with (1) the statutes governing approval of the original designation of the district and (2) this Chapter of the Department's rules; and

i. Any other information the Department determines necessary.

2. Contents - Amended designation

a. The name of the tax increment financing district;

b. The term of the tax increment financing district, not to exceed 30 years from the date of original designation of the district

c. The effective date of the approval;

d. If applicable, the Department's authorization to increase or reduce the original assessed value of the district and by what amounts;

e. The requirement that tax increment financing revenues be deposited and held in a project cost account and/or sinking fund account and be used only for approved project costs;

f. The requirement that the municipality notify the Department promptly if the tax increment financing district is terminated;

g. The requirement that, if tax increment revenues derived from the district are deposited into the municipality's general fund, the incremental property values generating the revenues deposited in the general fund be included with the municipality's equalized assessed value and not be captured;

h. The requirement that any additional amendment of the district comply with

(1) the statutes governing approval of the original designation of the district and

(2) this Chapter of the Department's rules; and

i. Any other information the Department determines necessary.

D.COMMENCEMENT TO DEVELOPMENT PROGRAM

The development program for a tax increment financing district begins on the date the Commissioner issues a Certificate giving final approval to the program, and on that date a municipality may begin expending funds and incurring obligations with respect to approved project costs. An amendment of a development program begins on the date the Commissioner issues a Certificate giving final approval to the amendment, and on that date a municipality may begin expending funds and incurring obligations with respect to any new project costs contained in the amendment. A municipality may not expend funds or incur obligations with respect to a project cost in an original or amended development program until the date the Commissioner gives final approval to the original development program or the amendment.

E.TERMINATION OF DISTRICT AND DEVELOPMENT PROGRAM

A development district and its development program end on the date specified in the Certificate giving final approval to the original designation or the amendment of the district and/or the program. After that date, a municipality may not use tax increment revenues to fund project costs in the development program.

F.CONDITIONAL APPROVAL

To ensure compliance with 30-A M.R.S.A., Chapter 206, while at the same time furthering the intent and goals of Chapter 206, the Commissioner may approve the designation or amendment of a tax increment financing district and conditionally approve a portion of the district's proposed original or amended development program. The Commissioner may require the municipality to submit additional information regarding those portions of the development program that were not conditionally approved.

If the Commissioner approves the designation or amendment of a tax increment financing district and approves only part of the development program, the municipality may expend funds only on the approved part of the development program. A municipality may not expend funds on any part of the development program that has not been approved in writing by the Commissioner.

19- 100 C.M.R. ch. 1, § 5