Hull's Signature Seals Fate Of Main Street Financing

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Gov. Jane Dee Hull has basically put to rest an argument between some town officials and the Payson Unified School District.

Hull signed a bill repealing tax-increment financing Wednesday, a move that takes away the ability of cities and towns to recapture sales and property tax money for special projects.

Before it was repealed, the law would have allowed Payson to form a special district to use property tax money otherwise earmarked for the school district to finance the Green Valley Improvement District.

PUSD officials objected to the idea, citing a loss of future revenue. School officials took their argument to the Town Council and eventually to the state Legislature.

A bill to repeal tax-increment financing squeaked by in the Senate, but passed handily in the House.

Francie Noyes, Hull's press secretary, said this legislation, which exempts three Valley projects, will wipe out legislation that passed three years ago allowing municipalities to create special districts to finance projects using state sales tax.

One line in the latest legislation also repealed property tax increment financing statewide.

That statute had been in place for at least 20 years, said Payson Town Manager Rich Underkofler. "It basically wipes out projects that had been planned in Casa Grande and Apache Junction."

Payson officials were looking at the statute as a way to help fund improvements to the Main Street area. Underkofler said the repeal on this legislation is retroactive and is now in effect.

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