MACo Opposes Legislation Creating Business Improvement Districts

MACo Associate Director Andrea Mansfield offered testimony in opposition to HB 1182 before the House Environmental Matters Committee this week.  This bill would set criteria for the establishment of Business Improvement Districts (BID).

MACo’s paramount concern is the mandate on local government to pass a resolution if the bill criteria are met, without the local government actually approving the BID itself.   It is also unclear how the taxes imposed by the BID would be treated with respect to property tax caps and whether BID issued debt would be considered an obligation of the local government.

During the hearing, many committee members expressed concern with the ability of the BID to impose taxes on businesses that did not support its creation.  The bill requires at least 51% interest in the BID’s creation.  Members asked about the impact on the other 49%.

MACo has been working with the bill sponsor to address its concerns and a number of amendments were submitted at the hearing.  However, more concerns remain.

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