Tax Increment Finance - TIF Policy in Hamilton County Indiana

04/29/2024

From a property taxpayer's perspective outside the TIF Economic Development Area, it can be important to understand how a TIF bond security is backed. Security means who will pay any shortfall should the property tax collected not meet the bond payment. In simple terms, a co-signer of the loan.

- TIF Developer Backed (Developer Pays any Difference)
- TIF and Special Benefits Tax (The Non-TIF district Taxpayers pay any difference)
- TIF and LIT (The funds from taxable local income tax distributions pay any difference)

Most bonds must have reserves. A special benefits levy will be imposed on non-allocation areas to replenish the reserve fund if the reserve is used. The same is true for LIT, which is used to replenish the fund.

In other words, non-TIF properties and local taxable income are used as co-signers unless the bond is a developer-pledged bond.

Can a property get into a situation where the property tax collected in the allocation area is not enough to pay the bond? Absolutely.

An example is the Crosspoint TIF in Fishers. This bond is a developer-backed bond, meaning the developer pays the shortfall. If this TIF was NOT a developer-backed bond, other TIF properties in the Consolidated Fishers/I-69 Economic Development area funds could make up the shortfall.

04/02/2024

The Tax Increment Finance concept started in the 1940's. California voters decided in 1952.

Clipping found in The Modesto Bee published in Modesto, California on 12/24/1952. California Voted for TIF 2.5 million yes and 1.3 million No

05/11/2023

This is the updated TIF for Fishers.

Several years ago, the neutralization calculation caused the base to drop and the TIF to gain even if no growth. This was changed by the state.

The neutralization factor is to protect bond payments, so the general fund is not used for any differences. Once the base is zero, it is possible for the General funds to make up the difference.

Commercial properties have been dropping in value for several years, as you can see in the base on this chart.

06/26/2022

You can now see how TIF is destroying the property tax process. These are not approved by city councils. There is no oversight to the redevelopment commissions.

By a stroke of luck, the vehicles already equipped with "police package" options were available immediately despite nationwide auto supply issues.

05/06/2022

This is how you eliminate the “base” and not a good TIF practice.

The Carmel City Council’s finance committee took a closer look May 4 at plans to redevelop the former AT&T building in Midtown with a mixed-use development, as several residents who live nearby and a city councilor raised questions about the project and plans to finance it. Working in conjuncti

02/21/2022

Are we ready for a Super TIF?
This sounds like a way the State "pays” Mega Companies with your Income Tax, sales tax, and property tax to create jobs.

"Under SB 361, the state could not only create economic development districts without local approval, but the legislation would also then capture the growth in local income, sales, and property taxes and then take those funds and spend them anywhere else in Indiana. "

Today in Indiana, only property tax increments are captured. I was waiting for Indiana to now take income tax and sales taxes. Well, here ya go...

https://indypolitics.org/say-hello-to-the-super-tif/?

Indiana lawmakers are on the verge of turning the state into a giant tax increment financing district, or a “super-TIF” as a way to make ...

01/25/2022

How does a taxing authority get around TIF assessed valuation being captured for 25 years and tax caps?

Create a New Fire Territory! See Pendleton, IN.

The more you TIF, the more properties move into constitutional tax caps (circuit breaker credits). Many Policymakers believe, “A Circuit breaker is our lost revenue” pleading with State legislators to give the more loopholes. Well, here is your solution to taxing selected properties more.

It combines areas of lower rate with those with higher rate resulting in tax increases for those under the caps.

https://news.yahoo.com/townships-moving-forward-creating-fire-121100397.html?

Jan. 24—PENDLETON — The first of three public meetings about the creation of a fire territory in southwestern Madison County is set for Tuesday at the Pendleton Fire Department. The proposed fire territory would include Pendleton plus Fall Creek and Green townships. If the proposal is approved, ...

01/23/2022

Southern Handcock School should not be concerned. This school district has two levies, debt, and operations.

- The Operational levy is taking the maximum allowed by law. It's called a Levy Limited Fund. It can only increase in tax dollars what the state tells you it can increase. The factor for ALL units in Indiana for 2022 is an increase of 4.3%. If the increment AV was added back into the calculation, the consequence is a lower tax rate. The same dollars are collected no matter TIF, or NO TIF. It is a matter of who pays those dollars.

- The Debt levy is exactly what the debt payment should be... and If an increment AV was added back into the calculation, the tax rate would be lower. The same dollars are collected it is just a matter of who pays those dollars.

If the school needs more money, pass a referendum. That is the ONLY way to get more money.

TIF is just too complicated for local policymakers to figure out and IMO lasts WAY too long. IF they ever end.

I don't follow Handcock County, but if the TIF's are capturing spillover properties like here in Hamilton County, then sure, someone else is paying for the business incentive.

In Hamilton County, about every new commercial property is captured in a TIF district. This means those under the tax caps, rental properties, and business taxes are captured to pay for the incentives.

NEW PALESTINE — Southern Hancock schools Superintendent Lisa Lantrip is in favor of growth and development. However, she is raising concerns over tax breaks offered to developers that she says short-change the school district of revenue.

12/28/2021

You can now see how cities are using TIF for about anything. It’s a matter of tax dollar distribution.

Nice public donation though!

A Franklin park is drawing interest from city residents and business owners who want to support it.

12/22/2021

Mayors want no restrictions on TIF.

State lawmakers have repeatedly proposed legislation that would restrict local governments' ability to use Tax Increment Finance (TIF) districts to improve

12/18/2021

This TIF spend will never have a measurable ROI. A blatant misuse of TIF funds.

CARMEL, Ind. (WISH) -- Many of Carmel's more than 100 roundabouts are adorned with some type of artwork. Carmel government is getting ready to put four new pieces of art on four roundabouts on 96th Street, and the funding for the art is coming into question.