Agenda - Planning Commission - 09/04/2014

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Last revised July 24, 2014 Tax Base Revitalization Account TBRA provides $5 million annually to investigate and clean up brownfields - contaminated land, ground water, or buildings - for redevelopment. As one of the Metropolitan Council's Livable Communities funding accounts, TBRA provides key support for a wide range of projects, from affordable and market rate multifamily housing to commercial and industrial redevelopment. Council goals for TBRA include: • Clean up contaminated sites in the 7-county metropolitan region • Increase communities' local tax base • Add or preserve living wage jobs • Produce affordable housing • Expand each community's range of housing choices • Develop compactly • Efficiently use existing transit and sewer services • Encourage use of existing parks or walking trails • Support projects that are poised for redevelopment From 1996-2013, the Metropolitan Council awarded 370 pollution cleanup grants totaling over $99 million to projects in 45 cities and towns. New and completed projects are projected to net over $96 million increase in annual net tax capacity and more than 43,000 new and retained jobs. Tax Credit An item that reduces your actual tax. It differs from a tax deduction that reduces only your taxable income. A tax credit is generally much more valuable than a deduction, as the tax credit reduces the actual amount of tax that must be paid. A deduction, on the other hand, only reduces the taxable income. Therefore, the tax deduction is subject to the variation in the progressive tax rate. A tax credit does not depend on the tax rate and so it is of equal value to a taxpayer regardless of his income level. Tax Deduction Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax. A property tax deduction is a common form of this type of tax relief. Tax Exemption A deduction allowed by law to reduce the amount of income that would otherwise be taxed. An exemption is based on a status or circumstance rather than economic standing. Tax Increment Financing Financing procedure utilized by many local governments for redevelopment and improvement projects on existing structures. The cost of the improvements is assessed to future tax revenues by each taxing unit that levies taxes against the property. The taxing unit at the local level is responsible for determining how much of the increase in property tax due to the improvements will be used to repay the construction costs. The property that is seeking to use tax increment financing must be located with the city's jurisdiction. Tenant Protection Voucher Congress authorizes "tenant protection" vouchers to subsidize rents for tenants facing certain housing conversion actions not covered by enhanced vouchers (see enhanced vouchers above). These conversion actions include such events as conversions of public housing through demolition, sale or otherwise, foreclosures of HUD -subsidized mortgages, agency -initiated terminations of project -based Section 8 contracts, or, more recently, certain other prepayments. These tenant protection vouchers are ordinary Housing Choice Vouchers administered by the PHA, and include neither a higher payment standard nor a right to remain in occupancy. Sometimes, even though a conversion event might be nominally eligible for enhanced vouchers, because the condition of the property does not comply with 2040 HOUSING POLICY PLAN I METROPOLITAN COUNCIL DRAFT RELEASED FOR PUBLIC COMMENT Appendices I Page 98