Manufacturing and industrial facilities. Photo by office.microsoft.com.
The Type A sales tax is primarily intended for manufacturing and industrial development. EDCs may use Type A revenue to fund land, buildings, equipment, facilities expenditures, targeted infrastructure and improvements for projects including:
With voter approval, Type A EDCs may fund projects eligible under Type B without voting to abolish the Type A tax and impose the Type B tax. In this situation, a Type A EDC must publish notice of its intent to fund a Type B project, hold at least one public hearing and conduct a special election.
Type A EDCs also may seek voter approval to spend Type A sales tax funds to clean up contaminated property.
A Type A corporation cannot assume, or pay principal or interest on, debts that existed before voters agreed to establish the EDC.
This information should not be construed as, and is not a substitute for, legal advice.
Cities are urged to consult the Attorney General's Economic Development Handbook and their own legal counsel for any questions or interpretations of economic development laws.