58.1-3245.2 - Tax increment financing.
§ 58.1-3245.2. Tax increment financing.
A. The governing body of any county, city or town may adopt tax incrementfinancing by passing an ordinance designating a development project area andproviding that real estate taxes in the development project area shall beassessed, collected and allocated in the following manner for so long as anyobligations or development project cost commitments secured by the TaxIncrement Financing Fund, hereinafter authorized, are outstanding and unpaid.
1. The local assessing officer shall record in the land book both the baseassessed value and the current assessed value of the real estate in thedevelopment project area.
2. Real estate taxes attributable to the lower of the current assessed valueor base assessed value of real estate located in a development project areashall be allocated by the treasurer or director of finance pursuant to theprovisions of this chapter.
3. Real estate taxes attributable to the increased value between the currentassessed value of any parcel of real estate and the base assessed value ofsuch real estate shall be allocated by the treasurer or director of financeand paid into a special fund entitled the "Tax Increment Financing Fund" topay the principal and interest on obligations issued or development projectcost commitments entered into to finance the development project costs.
B. The governing body shall hold a public hearing on the need for taxincrement financing in the county, city or town prior to adopting a taxincrement financing ordinance. Notice of the public hearing shall bepublished once each week for three consecutive weeks immediately precedingthe public hearing in each newspaper of general circulation in such county,city or town. The notice shall include the time, place and purpose of thepublic hearing, define tax increment financing, indicate the proposedboundaries of the development project area, and propose obligations to beissued to finance the development project area costs.
(1988, c. 776; 1990, c. 296; 1994, c. 667.)