How are the proceeds of a unit’s property tax assessed against property in a project development financing district distributed?

The proceeds of a unit’s property tax assessed against property in a project development financing district are distributed as follows:

• First, the net proceeds are calculated, which represent the gross proceeds less refunds, releases, and any collection fees.
• Second, the net proceeds of the following taxes are paid to the taxing unit that levied the tax:
  • Taxes levied specifically to repay general obligation debt;
  • Nonschool taxes levied pursuant to a vote of the people;
  • Taxes levied for a municipal or county service district; and
  • Taxes levied by a taxing unit in a development financing district established by a different unit for which no increment agreement exists.
• Third, the remaining taxes are multiplied by a fraction in which the base valuation is the numerator and the current assessed valuation is the denominator. The product of this multiplication is retained by the municipality, county, or special district as if the development financing district did not exist.
• Fourth, the remaining proceeds are turned over to the finance officer for the taxing unit that established the district and issued the financing instruments to be deposited in the revenue increment fund.