Section 11-99-6 Allocation of Positive Tax Increments; Payment to Local Finance Officer; Tax Increment Fund.
AI-assisted research summary: Tax increment revenues must be paid and deposited into the district’s tax increment fund, and the provision sets timing and spending limits for project-plan expenditures.
(a) Positive tax increments of a tax increment district shall be allocated and paid over to the public entity that created the district for each year commencing on the October 1 following the date when the district is created until the earlier of: (1) That time, after: (i) The period of duration of the tax increment district, as established pursuant to this chapter, has expired, and (ii) the completion of all projects and public improvements specified in, or purposes of, the project plan or amendments thereto, when the public entity has received aggregate tax increments from the district in an amount equal to the aggregate of all expenditures previously made or monetary obligations previously incurred for project costs for the district; or (2) Thirty-five years after the last expenditure identified in the project plan is made. No expenditure may be provided for in the project plan to be made more than five years after the district is created, except as may be provided in an amendment to the project plan, and except in Class 3 municipalities where the expenditures may be made not more than 10 years thereafter if so provided and in tax increment districts in which not less than 50 percent, by area, of the real property within the tax increment district is an enhanced use lease area where the expenditures may be made not more than 15 years thereafter if so provided, unless an amendment is adopted by the local governing body under Section 11-99-4(7). (b) Notwithstanding any other provision of law, every officer charged by law to collect and pay over or retain local general property taxes in the case of a tax increment district in which not less than 50 percent, by area, of the real property within the tax increment district is a blighted or economically distressed area, or state and local general property taxes in the case of a tax increment district in which not less than 50 percent, by area, of the real property within the tax increment district is an enhanced use lease area or which includes an area that a local governing body has determined to be a Major 21st Century Manufacturing Zone, shall first, on the next settlement date provided by law, pay over to the local finance officer out of all the taxes that have been collected, that portion that represents a tax increment allocable to a tax increment district, identifying the amount for each district. (c) All tax increments received for a tax increment district, upon receipt by the local finance officer, shall be deposited into the tax increment fund for that district. The local finance officer may deposit additional monies into the fund pursuant to an appropriation by the local governing body. Monies shall be paid out of the fund only for direct payment of, or to reimburse the public entity for payments theretofore made by it for principal of or interest on tax increment obligations for that district if the obligations are general obligations of the public entity, or to satisfy claims of holders of tax increment obligations issued for that district, or for direct payment of, or to reimburse the public entity for payments theretofore made by the public entity that are used to pay project costs. Subject to any agreement with security holders, monies in the fund may be temporarily invested in the same manner as other surplus funds of the public entity. After the principal of and interest on all tax increment obligations of the district have been paid or provided for, subject to any agreement with security holders, if there remains in the fund any monies, they shall be paid over to the chief finance officer of the state, each county, each municipality, each school district, and to the general fund of the public entity in amounts as are due to each respectively, having due regard for what portion of these monies, if any, represents tax increments not allocated to the public entity and what portion thereof, if any, represents voluntary deposits of the public entity into the fund.