(a)  In the tax increment district master plan, a city or town may designate all or part of the tax increment revenues generated from the increased assessed value of a tax increment district for the purpose of financing all or part of the tax increment district master plan. The amount of tax increment revenues to be designated is determined by designating the captured assessed value, subject to any assessment agreements.

(b)  On or after the establishment of a tax increment district and the adoption of a tax increment district master plan, the assessor of a city or town in which it is located shall certify the original assessed value of the taxable real property within the boundaries of the tax increment district. Each year after the establishment of a tax increment district, the municipal assessor shall certify the amount of:

(1)  The current assessed value;

(2)  The amount by which the current assessed value has increased or decreased from the original assessed value, subject to any assessment agreements; and

(3)  The amount of the captured assessed value. Taxes shall be assessed in accordance with chapter 5 of Title 44. Nothing in this subsection allows for unequal apportionment or assessment of the taxes to be paid on real property in a city or town. Subject to any assessment agreements, an owner of real property within the tax increment district shall pay real property taxes apportioned equally with property taxes paid elsewhere in the city or town.

(c)  If a city or town has designated captured assessed value under § 45-33.2-26(a):

(1)  The city or town shall establish a tax increment district master plan fund that consists of:

(i)  A project cost account that is pledged to and charged with the payment of project costs that are outlined in the tax increment district financial plan, including the reimbursement of project cost expenditures incurred by a public body, including the city or town, a developer, any property owner, or any other third-party entity, and are paid in a manner other than as described in subsection (c)(1)(ii) of this section; and

(ii)  In instances of indebtedness issued by a city or town in accordance with § 45-33.2-6 to finance or refinance project costs, a development sinking fund account that is pledged to and charged with the:

(A)  Payment of the interest and principal as the interest and principal fall due, including any redemption premium;

(B)  Payment of the costs of providing or reimbursing any provider of any guarantee, letter of credit, policy of bond insurance, or other credit enhancement device used to secure payment of debt service on any such indebtedness; and

(C)  Funding any required reserve fund;

(2)  The city or town shall annually set aside all tax increment revenues on captured assessed values and deposit all these revenues to the appropriate tax increment district master plan fund account established under subsection (c)(1) of this section in the following order of priority:

(i)  To the development sinking fund account, an amount sufficient, together with estimated future revenues to be deposited to the account and earnings on the amount, to satisfy all annual debt service on the indebtedness issued in accordance with § 45-33.2-6 and the tax increment district financial plan; and

(ii)  To the project cost account, all such remaining tax increment revenues on captured assessed values;

(3)  The city or town shall make transfers between tax increment district master plan fund accounts established under subsection (c)(1) of this section, provided the transfers do not result in a balance in either account that is insufficient to cover the annual obligations of that account;

(4)  A city or town may, at any time during the term of the tax increment district, by vote of the city or town council, return to the municipal general fund any tax increment revenues remaining in either account established under subsection (c)(1) of this section in excess of those estimated to be required to satisfy the obligations of the account after taking into account any transfer made under subsection (c)(3) of this section; and

(5)  Any account or fund established pursuant to subsection (c)(1) of this section shall be audited as part of the annual audit required for municipalities by § 45-10-4.