SB 5564 is AWC’s economic development priority bill that allows local governments to compete for state sales tax credits to finance public infrastructure improvements that spur private investments. Last week a substitute version of the bill was adopted and voted out of the Senate Financial Institutions, Economic Development & Trade Committee and referred to the Senate Ways & Means Committee. The substitute version of the bill reduced the state’s annual credit against the state sales and use tax from $15 million under the original version to $4,965,000 per year and limited the number of allowable projects to three.
AWC appreciates the work of the committee to keep the bill moving, but will be requesting an amendment to increase the state contribution rate and remove the limit on the number of projects.
Through a competitive grant process, SB 5564 would allow cities to create development areas where annual increases in revenues from local sales and use taxes and local property taxes would be measured. These increases in revenues and any additional funds from other local public sources would then be used to pay for public improvements in the development area and used to match a state contribution. State funding for the program is provided through a credit against the state sales tax. The state sales tax credit is then used to finance public improvements that encourage job creation and private development. Local government award recipients could receive up to:
- $1 million per year for 20 years;
- $800,000 per year for 25 years; or
- $665,000 per year for 30 years.
AWC wants to hear from you!
Please complete a short 4-question survey regarding your city’s interest in SB 5564. For more information on SB 5564, please visit AWC’s legislative priority webpage. We encourage cities to contact your Senators and ask them to support this proposal.