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    Tax Increment Financing or TIF is an economic development tool the City of Chicago uses to develop a community with property taxes. In 2008, the TIF accounts generated $495 million. However they spent less than $495 million, creating a surplus. In 2005, TIFPs displaced 70% of property taxes that would have gone to CPS +If all TIF Funds returned to the tax base in 2006, the city property tax rate would have been 11% lower

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    Tax Increment Financing or TIF is an economic development tool the City of Chicago uses to develop a community with property taxes. In 2008, the TIF accounts generated $495 million. However they spent less than $495 million, creating a surplus. In 2005, TIFPs displaced 70% of property taxes that would have gone to CPS +If all TIF Funds returned to the tax base in 2006, the city property tax rate would have been 11% lower

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    13 views19 pages

    TIF Breakdown & Impact

    Uploaded by

    ereztellez
    Tax Increment Financing or TIF is an economic development tool the City of Chicago uses to develop a community with property taxes. In 2008, the TIF accounts generated $495 million. However they spent less than $495 million, creating a surplus. In 2005, TIFPs displaced 70% of property taxes that would have gone to CPS +If all TIF Funds returned to the tax base in 2006, the city property tax rate would have been 11% lower

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    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 19

    TIF Diagrams and Information from Chicago Coalition for the Homeless contributed to this Presentation

    What is TIF TIF?

    What does TIF do?


    Tax Increment Financing or TIF is an economic development tool the City of Chicago uses to develop a community with property taxes.

    Why was TIF Invented?


    To leverage local property tax dollars as a development generator in blighted communities; provide money for development where investors would not go but for this incentive

    How is a TIF district created?


    In a simplified scenario

    $100

    $100

    $100

    $100

    $100

    $100

    General Expenses:
    Schools Libraries Parks Other City Services

    $100

    $100

    $100

    TOTAL:

    $100

    $600

    $100

    $100

    Total Money Collected (After TIF):

    $1350
    $50 $100
    General Expenses:
    Schools Libraries Parks Other City Services

    $50 $100 $150 $50 $100 $150 $150 NEW $150

    $50 $100 $150 $50 $100 $150 $150 $150 NEW TIF Fund:
    TOTAL:

    $150 $50 $100 $150 $150 NEW $150

    TOTAL:

    $600

    $750

    TIF (Tax Increment Financing) District


    (Can last for up to 23 years)

    What Can TIF Money Be Spent On?


    1. Public Improvements
     Public facilities or services  Streets/Infrastucture

    2. Development / Redevelopment / Rehabilitation


     Fixing-up existing buildings  Purchase & Preparing Land for development

    How much do TIFs Impact Chicago? There are currently 160 active TIFs in Chicago

    Chicago TIF

    In 2008, the TIF accounts generated $495 million. However they spent less than $495 million, creating a surplus. Every year the city spends less of the TIF fund than is generated. This creates a bigger and bigger pot of TIF funds.

    SURPLUS $1.2 BILLION 2008 SURPLUS

    2008 2007 SURPLUS Right now, the TIF Pot equals $495M2006

    TIF

    Why was TIF Invented?


    To leverage local property tax dollars as a development generator in blighted communities; provide money for development where investors would not go but for this incentive

    Bad Examples of TIF Usage

    SEARS TOWER

    to fix up their offices

    Bad Examples of TIF Usage


    Train to Nowhere

    train station in downtown with no tracks

    County Assessors Report


    Some TIFs create debt for communities through front bonding In 2005, TIFs displaced 70% of property taxes that would have gone to CPS If all TIF Funds returned to the tax base in 2006, the City property tax rate would have been 11% lower
    Source: Cook County Assessors Office

    TIF Impact in Englewood


    Median Income: $0 - $25,000 Median Property Tax Increase: 25 % Property Tax Increase in Cook County: 4.2 % Englewood TIF: Since being created in 2001, it has taken $20,930,651!!!
    Sources: Chicago Tribune, Cook County Assessors Office, Chicago Department of Community Development

    Attempts to Make TIFs Work for the Greater Good


    Good Jobs Chicago
    Require large corporate entities who take public money to pay their workers Living Wages

    Sweet Home Chicago


    Dedicate 20% of TIF funds to the creation of Affordable Housing through fixing abandoned homes

    Chicagos Budget Crisis

    Citys Budget deficit = $655 million Collective TIF fund = $1.2 billion

    What do you think should happen?

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