: ) This will not make the 'WHO WHO of Norman Happy' : )

FOR IMMEDIATE RELEASE:
Contact: State Rep.Randy Terrill Capitol: (405) 557-7346
Contact: State Rep. Joe Dorman Capitol: (405) 557-7305

TIF Reforms Get House Approval

Legislation that would reform an economic incentive
program has passed out of the Oklahoma House of
Representatives.

House Bill 3352, authored by Reps. Randy Terrill
and Joe Dorman, would clean up provisions of the
Local Development Act, primarily focusing on
revisions to the law regarding Tax Increment
Financing (TIF) Districts.

The legislation is the result of a House interim
study conducted in the past year.

"TIF districts are an excellent economic development tool when used properly," said Terrill, R-Moore. "These districts can be used to spur economic growth through manufacturing or retail establishments in an area that might not otherwise see that business growth."

Tax Increment Financing allows property taxation to be frozen at the level set before the creation of a development project within the TIF district. Once a project is completed and growth occurs in the
surrounding area, increasing property valuations on neighboring land and boosting sales tax collection in the area, the taxes generated through that growth are separated and directed to pay off bonding for the development.

Normally, TIFs are meant to encourage development
funding in economically distressed areas that would
not be available otherwise.

House Bill 3352 establishes within the Oklahoma
Tax Commission and the State Department of
Commerce the responsibility of collecting data on
all TIF Districts within Oklahoma and generating
reports on the successes and failures of each district.
Further language with the legislation is currently being
worked on by a group comprised of economic
development experts, municipal officials and school
administrators.

"I requested the interim study to review suggestions
posed by economic development officers from around
the state," said Dorman, D-Rush Springs. "These men
and women working to spur economic growth for their
communities saw revisions were needed and I was
absolutely willing to work with them and other
involved parties to make TIFs fairer and more successful."

Currently, there is no data collection point regarding
TIFs, including information on how many TIFs are
currently in effect or being proposed around the state.
Under the provisions of the bill, TIF District data will
be reported to the Tax Commission and reports will be
generated by the Department of Commerce.

House Bill 3352 passed the House of Representatives
by a vote of 98-2. The bill now proceeds to the state Senate.