New legislation could impact compensation for joint vocational school districts in enterprise zones

A new legislative proposal may impact the amount of compensation that must be paid to joint vocational school districts located in enterprise zones. Currently, when a legislative authority and a board of education enter into an agreement to compensate the city, local, or exempted village school district for all or part of the taxes exempted due to an enterprise zone tax exemption, the terms of the compensation agreement do not automatically affect any joint vocational school districts within the enterprise zone. Under the new language contained in S.B. 89, if a city, local, or exempted village school district negotiates such a compensation agreement, then any joint vocational school district located in the enterprise zone must also receive similar compensation. Specifically, this requires that the joint vocational school district receive the same rate of compensation under the same terms that the relevant school district receives under the compensation agreement. This change would apply to enterprise zones designated by municipal corporations as well as those designated by counties. 

Economic Development, Financial Incentives, State Updates