|
In the past few years, Tax Increment Financing has
become Mayor Daley's favorite economic development
tool. TIFs were originally intended as a targeted
solution for the most distressed neighborhoods --
those parts of the City with little prospect of seeing
any private development. Increasingly, TIFs are being
used downtown and in the fast-growing neighborhoods
surrounding the Loop. While TIFs may be a good tool
for some areas, they are not a cure-all for all of
Chicago's economic development problems. NCBG's TIF
Almanac (- MS Word Format )
will help you understand how TIFs work and how they
affect your neighborhood.
Chicago TIF Overview
Tax Increment Financing (TIF) is a special tool that
the City of Chicago and other Illinois cities and
towns can use to generate property tax dollars for
economic development in specifically designated geographic
areas. TIF allows the City to re-invest all new property
tax dollars generated from the designated TIF district
for a 23-year period. There are 130 TIF districts
in Chicago, comprising nearly 30% of the land area
of the City.
TIF Dollars Can Be Used For:
• Infrastructure (streets, bridges, viaducts)
• Other public improvements (including improvements
to schools, parks, and other public buildings)
• Direct subsidies of private residential, commercial,
or industrial development.
• Redevelopment and renovation projects
• Job Training
• Day Care
• TIF cannot be used for the “bricks and
mortar” costs of construction (except for affordable
housing), or for privately owned equipment.
TIF Dollars Are Property Tax Dollars
Money for TIF-funded projects comes from the property
tax paid by owners of residential, commercial and
industrial property. Eight local taxing bodies, including
the City, Chicago Public Schools, the Chicago Park
District, and Cook County get revenue from property
tax.
When a TIF district is created, any additional revenues
over the base EAV go into the TIF fund, not to the
schools, parks, etc.
Most Property Tax Dollars Go to Schools
The chart below shows how property
tax revenues are divided by taxing body. Schools get
significantly more funds from property taxes and therefore
are the most impacted by TIF, which deprives taxing
bodies of new tax revenues during the 23-year life
of the TIF district.
To view information on all the TIF districts, check
out our TIF Profiles.
|
