SB 303 - This act will allow a Transportation Development District (TDD) to be formed by property owners in any area in which there are no residents, as opposed to using a petition by residents. New procedures are created for applications for ballots in all TDDs. Special board election procedures are provided for TDDs formed by property owners instead of area residents. A property owner will have a vote for each acre owned within the district when electing board members.

The act revises the funding methods for a TDD, deleting the use of tax increment financing.

(1) No transportation sales tax shall be imposed on motor vehicles, trailers, boats or motors;

(2) Public utilities are excluded from the sales tax;

(3) The maximum sales tax rate of the TDD shall be 1%;

(4) The TDD need not inform the Department of Revenue (DOR) of a sales tax adoption;

(5) The sales tax moneys shall be remitted directly to the TDD rather than to DOR; and

(6) All provisions for DOR handling the sales tax proceeds are removed.

A sales tax may be repealed only if it will not impair the ability of the TDD to repay any liabilities which the district has incurred, money which it has borrowed or revenue bonds, notes or other obligations issued by the commission or any local transportation authority to finance any project or projects.

A TDD may be formed in an area smaller than an entire city or an entire county. The act deletes the requirement that the district include all areas to be served by each project and to be large enough to adequately fund the project.

TOM MORTON