QUOTE Local governments in Indiana, most specifically redevelopment commissions, have been aggressive in using TIF districts for debt-financed development. In the five years ending in 2010, Indiana’s TIF districts sold $430 million in TIF bonds, placing the state seventh highest in the nation, ahead of Illinois, Ohio and Michigan. Indiana’s TIF districts expect to collect $580 million this year. But a key assurance behind TIF has not been met here. Instead of protecting the tax bases of local schools, libraries and the city and county general-purpose governments, TIF districts work to drain them, causing higher than necessary property-tax rates — even on property beyond TIF boundaries. Indiana appears unique in allowing the erosion of the TIF “Base” (one of two calculated parts of the total tax base within a district). The Base is supposed to continue producing revenues for school, libraries, cities and counties. The Base erosion occurs in a series of steps termed “neutralization,” the complexity of which acts to shield the Base erosion — and its adverse effects — from the view of legislators, journalists and the public. UNQUOTE
Posted on: Mon, 01 Jul 2013 00:41:39 +0000