(1) The board may establish one or more value capture areas within its boundaries to facilitate the financing and construction, operation, or maintenance of public highways within or without the boundaries of the authority. Such value capture areas may be established by the board whenever the market value of any area within the boundaries of the authority, in the opinion of the board, will increase as a result of the financing, construction, operation, or maintenance of a public highway.

(2) Prior to the creation of a value capture area, the board shall prepare a value capture plan which shall identify the public highway to be financed, constructed, operated, or maintained, the property to be included in the value capture area, the period of time which the value capture area shall be in effect, and the portion of the property taxes or sales taxes levied or collected within the value capture area which will be retained by the authority during the period the value capture area remains in effect. A copy of the value capture plan shall be submitted to the division, the department of revenue, and the governing body of each governmental unit which has the power to levy or impose a property tax or sales tax within the boundaries of the proposed value capture area. Not less than twenty days prior to the hearing on the value capture plan, notice of the time and place of the hearing on the value capture plan shall be published at least one time in a newspaper of general circulation in the proposed value capture area and shall be mailed to the division and the governmental units which receive the value capture plan.

(3) The board shall hold a hearing which shall be open to the public, and a record of the proceedings shall be made. All governmental units who receive notice of the hearing as set forth in subsection (2) of this section and each owner of property within the proposed value capture area shall be interested parties and shall be afforded an opportunity to be heard. Following the hearing, the board may approve or disapprove the value capture plan. After approval, any such value capture plan may be modified in substantially the same manner as the original approval.

(4) Any such value capture plan as originally adopted or later modified may contain a provision that property taxes, if any, levied or imposed by a governmental unit after the effective date of the value capture plan upon taxable property within the value capture area or that any sales taxes collected within said area after the effective date of the value capture plan, or all such taxes, shall be divided for a period set forth in the value capture plan after the effective date of the value capture plan, as follows:

(a) That portion of the property taxes which are produced by the levy at the rate fixed each year by or for each governmental unit upon the valuation for assessment of taxable property within the boundaries of the value capture area last certified prior to the effective date of the value capture plan, or that portion of the sales tax collected within the boundaries of the value capture area in the twelve-month period ending on the last day of the month prior to the effective date of the value capture plan, or both such portions shall be paid into the funds of each such governmental unit as are all other taxes collected by or for said governmental unit.

(b) Twenty-five percent, or such different amounts as may be agreed to by each affected governmental unit, of the amount of said property taxes or sales taxes, or both, which is in excess of the portion determined in paragraph (a) of this subsection (4) shall be allocated and, when collected, paid into a special fund of the authority for the payment of, or the funding of reserves, sinking, or other funds for the payment of, the principal of, interest on, and any premiums due in connection with the bonds of the authority incurred for the financing of a public highway. The balance, if any, of such excess shall be paid into the funds of each such governmental unit as are all other taxes collected by or for said governmental unit.

(5) In the event that there is a general reassessment of taxable property in any county, including all or part of a value capture area, or a change in the rate of the sales tax collected by a county or municipality in a value capture area, the portions of taxes specified in subsection (4) of this section shall be proportionately adjusted in accordance with such reassessment or change.

(6) When such bonds of the authority, including refunding bonds, have been paid, all taxes in such value capture area shall thereafter be paid into the funds of the respective governmental units.