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| Jan 11, 2007 10:02 pm |
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re: re: re: |
greg cryns
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Lili,
JB is correct. LOL
"Tax Increment Financing" - the village draws a line around an area that is LEGALLY defined as "blighted". (the legal def. and reality do not always mesh). The village establishes the BASE tax (what the re taxes generated inside the TIF area). This base tax will always be sent to the taxing bodies (schools, FDP, library, etc).
Then the village goes out and gets financing for projects that need to be done. The village can also offer certain incentives (not cash) to lure new businesses to come into the area.
So, hopefully, the refurbishing of the TIF area will make the buildings be assed higher. Excess taxes produced by higher assessments are turned over to the village to finance the projects and pay back the loans.
Done right, a TIF can be a godsend. In the wrong hands, bad things like using eminent domain power as a revenge tool can spell disaster.
Overall, I think the TIF is a good idea. Our residents have been told that their RE taxes will go up due to the TIF. They may, but not as much as forecasted by people with agendas.
Hope this helps.
gregPrivate Reply to greg cryns (new win) |
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