As you know, PDI has been active all legislative session in working with legislators to provide feedback on their efforts to make some changes to tax increment financing (TIF). On Tuesday, the House distributed an amendment that will become the House’s new TIF bill. As you’ll see in your review of the attached amendment, the language goes very far and is quite damaging to TIF as a tool. The amendment will be discussed today (Thursday) in a subcommittee of the House Ways & Means Committee. PDI will have a few members in attendance to talk about the bill, and we are hoping legislators choose to change the language either in subcommittee or full committee. In the meantime, we wanted to make sure you see the language and have a chance to contact your businesses, your banks and others in your community who might have an interest in the legislation. We want to ensure that PDI members and their partners in the community have a chance to weigh in.
You’ll see many parts to the bill. Of particular concern to PDI’s Legislative Committee Chairs and other PDI members working on this issue are some sections that would do the following:
- limits a city's TIF area to 25% of its assessed value
- includes in Section 10 on Page 11 a requirement that the city prove that a project cannot be done without TIF and contains some other similar requirements
- requires any changes to a TIF district to have county and school signoff
- slows any possible project by requiring three readings of the ordinance which cannot be waived and includes other procedural hurdles
- places sunsets on all TIFs
- bans the use of TIF for housing unless the city is less than 10,000
Thanks for your attention to this alert, and we’ll keep you posted as this issue progresses.
TIF amendment attachment
PDI Legislative Co-Chairs
Craig T Patterson/Amy Campbell
Partner, Campbell-Patterson Consulting LLP
Craig@IALobby.com / Amy@IALobby.com