S.F. 610 extends the four year ‘knockdown’ rule for tax increment financing districts that were created on or after January 1, 2005 and before April 20, 2009. For those districts, the four-year period is deemed to end on December 31, 2016.
The four-year rule requires that development activity occur on a parcel in a TIF district within four years after its creation. If no activity is commenced within that period, additional increment may not be taken from that parcel and the original net tax capacity of that parcel is excluded from the original net tax capacity of the TIF district.
Effective the day following final enactment and applies only to those districts created within that specific time period.
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