TO: Chair and Members of the Board
FROM: Diane Colonna, Executive Director
DATE: March 11, 2015
Title
RESPONSE TO REQUEST FOR EXPLANATION OF CRA TAX INCREMENT REVENUES
Body
BACKGROUND:
At the February 11th MCRA meeting a comment was made referring to CRA funds as taxpayer dollars. Commissioner Peerman asked that a clarification of CRA revenues be provided at the next meeting.
CRAs are not taxing districts and do not collect property taxes. CRA revenues are, however, based on increases in property tax revenues that accrue from increased property values. The dollar value of all real property in a Community Redevelopment Area is determined as of the date a CRA is created (the CRA's base year). The taxing authorities retain the tax revenues that accrue from that "frozen" value. The tax revenues that accrue due to the increase in property values over that base year are the increment revenues. Each December during the life of the MCRA, local taxing authorities (County, City, and Hospital District) make payments to the MCRA's Trust Fund equal to 95% of those increment revenues. Those funds are then used for redevelopment activities within the MCRA district pursuant to Florida Statutes 163 Part III.
RECOMMENDATION: N/A
FISCAL IMPACT: N/A
CONTACT PERSON: Diane Colonna, Executive Director