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the county and other taxing districts must contribute 50% of its sales
tax revenue in addition to its ad valorem tax, don't the county and
other taxing districts suffer from the creation of a TIF redevelopment
plan? |
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No.
This development is occurring in areas of the community that would
not otherwise develop without the TIF assistance. This is called the
"but for" test. The developer must certify by sworn affidavit and
the governing body must find that the proposed development would not
occur "but for" TIF assistance. The areas that qualify for tax increment
financing must be a blighted area, conservation area or economic development
area. The community must include this determination in their findings.
Therefore, since the area benefiting from the TIF assistance would
not have otherwise developed, the affected taxing districts actually
will receive substantial revenue from property that previously generated
little or no taxes upon dissolution of the Redevelopment Area. In
addition those taxing districts which levy economic activity taxes
(such as sales or earnings taxes), will receive 50% of the new taxes
generated by the redevelopment project. At the same time, areas that
do not qualify for TIF assistance will continue to develop and the
taxes generated will continue to go to the county and other taxing
jurisdictions. |
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