By Jeremy Duda | Arizona Capitol Times
Advocates of a financing mechanism that would allow cities to bond against future tax revenues to fund special projects are hoping 2013 will be a year of success after running into roadblocks in the past several legislative sessions.
But the foe who blocked a similar proposal two years ago appears poised to strike it down once again.
House Bill 2456 would allow local governments to create entities known as revenue allocation districts. Cities would be allowed to create the districts, which would issue bonds that would be paid off with future sales and property tax revenues.
Supporters say the districts would give cities a new way to build infrastructure projects for economic development without raising taxes. Opponents say it is too similar to tax increment financing, which some feel is too subject to abuse, among other objections.
The bill’s sponsor and other advocates say they’ve made changes that they believe will help it avoid Gov. Jan Brewer’s veto stamp, which struck down a similar proposal last year.
