Michael Hicks brings to us another Tale of TIF Districts. In case you missed it…
The required report has been submitted to the State of Indiana for the year 2015. If you’re interested in looking at the financials of TIF districts in Delaware County have at it.delaware-county-tif-districts-2015 Just for the record, the TIF debt which is slated to be paid off in, oh, say, 25 or more years will more than likely never be retired.
You see, once the debt load is decreased, the borrowing begins again and TIF revenue is never returned to the taxing entities. This includes schools, libraries, general fund, etc.
So what good is a TIF? If managed properly TIF can be a plus for the community with infrastructure and an increase in businesses and jobs. Paying off the districts, and in the case of Muncie, the return of tax dollars would be around $4 million today.
Considering Muncie had to pass an income tax just to make ends meet in 2015, doubt seriously Muncie will be able to pa the debt off early. At least not while it continues to spend more than it takes in. No doubt, everyone involved in local TIF will be out of office the debt will be left for someone else to handle and the people left will be footing the bill.
House Bill 1018
Introduced House Bill (H)
Authored by Rep. Robert Cherry.
Tax increment financing. Provides that if a redevelopment commission adopts a declaratory resolution or amendment after June 30, 2015, that establishes, renews, or expands an allocation provision or area, the base assessed value used to determine the amount of allocated tax proceeds for the redevelopment district must be increased each year so that the incremental assessed value is 50% of the incremental assessed value in the allocation area without the increase. Provides that for the allocation area in Marion County that is identified as the Consolidated Allocation Area, the expiration date for the allocation area is June 30, 2026, or the last date of any obligations that are outstanding on July 1, 2016, whichever is later.
You may be asking why the dislike of Tax Increment Financing. Used properly, it has the potential for economic impact. Unfortunately, too many Redevelopment Commissions have abused the funds. Read the rest of this entry »