Resolves

Chapter 127

H.P. 179 - L.D. 208

Resolve, Directing the Department of Economic and Community Development To Analyze and Evaluate the Effect of Tax Increment Financing for Retail Businesses on Economic Development

Sec. 1. Analysis and evaluation. Resolved: That the Department of Economic and Community Development shall analyze and evaluate the effect of tax increment financing for retail businesses on economic development in Maine. In performing this analysis and evaluation, the department shall:

A. Determine the most appropriate definition of "retail business" for purposes of analysis and evaluation;

B. Identify and analyze the impact of approved tax increment financing for retail businesses on decisions to initiate or expand retail businesses in the State, on the impact on other existing businesses and on economic development in the State generally;

C. With assistance from the Department of Administrative and Financial Services, Bureau of Revenue Services, identify and analyze the property tax shifts resulting from the approval of tax increment financing for retail businesses and the sheltering of captured assessed value; and

D. Research the practices of other jurisdictions regarding the use of tax increment financing for retail businesses; and be it further

Sec. 2. Report. Resolved: That the Department of Economic and Community Development shall submit a written report detailing its evaluation and analysis to the Joint Standing Committee on Taxation by November 1, 2007. The joint standing committee may submit legislation to the Second Regular Session of the 123rd Legislature to implement its recommendations regarding the report.