12-1742.   Conditions of leases and lease-purchaseagreements; originationfee; apportionment of payments in lieu of taxes; administrative costs.Such agreements shall provide for a rental sufficient to repay the principalof and the interest on the revenue bonds. Such agreements alsomay provide that the lessee shall reimburse the city or county forits actual costs of administering and supervising the issue. Thecity or county may charge an origination fee. Such feeshall not be deemed a payment in lieu of taxes hereunder. Such fee shallbe used exclusively for local economic development activities but shall notbe used to pay any administrative costs of the city or county. Except forthe origination fee, all other fees paidin excess of such actual costs and any other obligation assumed under thecontract shall be deemed payments in lieu of taxes and distributed as providedherein. If the agreement providesfor a payment in lieu of taxes to thecity or county, such payment, immediately upon receipt ofsame, shall be transmittedby the city or county to the county treasurer of the county in which thecity is located. Payments in lieu of taxes received pursuant to agreementsentered into after the effective date of this act shall include all feesor charges paid for services normally and customarily paid from the proceedsof general property tax levies, except for extraordinary services provided forthe facility or an extraordinary level of services required by a facility.Paymentsin lieu of taxes may be required only upon property for which an exemptionfrom ad valorem property taxes has been granted by the statecourt of tax appeals. The county treasurer shall apportion such paymentamong thetaxing subdivisions of this state in the territory in which the facility islocated. Any payment in lieu of taxes shall be divided by the county treasureramongsuch taxing subdivisions in the same proportion that the amount of the totalmill levy of each individual taxing subdivision bearsto the aggregate of such levies of all the taxing subdivisions amongwhich the division is to be made. The county treasurer shall pay suchamounts to the taxing subdivisions at the same time or timesas their regular operating tax rate mill levy is paid to them.Based upon the assessed valuation which such facility would have if it wereupon the tax rolls of the county, the county clerk shall compute the totalof the property taxes which would be levied upon such facility by all taxingsubdivisions within which the facility is located if such property weretaxable.

      History:   L. 1961, ch. 81, § 3; L. 1967, ch. 92, § 1; L. 1981,ch. 74, § 6; L. 1982, ch. 298, § 20;L. 1987, ch. 72, § 1;L. 1992, ch. 280, § 51;L. 2008, ch. 109, § 28; July 1.