A bill to provide a local option authority for cities to voluntarily enter into interlocal agreements to share local sales tax from specific areas for economic development and infrastructure projects (HB 2428) passed the Legislature on February 29.
The interlocal agreement to share general sales tax revenue must include:
- The area or areas in which the agreement applies;
- How the parties will calculate the revenue collected in those areas;
- The amount or proportion of revenue to be shared; and
- The mechanism or method that will be used by the parties to share the revenue.
This bill provides a local option in addition to existing interlocal agreement authority that some jurisdictions have used for projects with regional impacts.