"Tax Increment Financing" or TIF
OVERVIEW
By establishing a special “crony capitalism zone” (urban renewal area) allowed under state law, increased taxes since the area was designated (tax increment) are still collected, but for 25 years those new taxes are transferred from the taxing entity that collects the taxes to the “Urban Renewal Authority” (URA). The URA serves as a sort of money-laundering government agency to make it seem like public dollars aren’t being used for private development. The URA then takes out big loans as a government agency and gives the borrowed money to the developer to fund his development and makes the payments on those loans with the laundered tax money.
By establishing a special “crony capitalism zone” (urban renewal area) allowed under state law, increased taxes since the area was designated (tax increment) are still collected, but for 25 years those new taxes are transferred from the taxing entity that collects the taxes to the “Urban Renewal Authority” (URA). The URA serves as a sort of money-laundering government agency to make it seem like public dollars aren’t being used for private development. The URA then takes out big loans as a government agency and gives the borrowed money to the developer to fund his development and makes the payments on those loans with the laundered tax money.
FALLACIES USED TO JUSTIFY TIFs
Elected and unelected officials (county commissioners, city council members, PPLD and District 11 board members) who vote for the transfer of tax dollars for private development or those who encourage such votes will use a number of fallacies to justify the reason they so readily pledged to transfer the tax dollars they tell citizens are so desperately needed. Below is a list of fallacies and each is linked to more details and a video.
1. The “business friendly” Fallacy
2. The “Investing in the Community” Fallacy
3. The “it doesn’t cost us anything” Fallacy
4. The “it’s only for public improvements” Fallacy
1. The “business friendly” Fallacy
2. The “Investing in the Community” Fallacy
3. The “it doesn’t cost us anything” Fallacy
4. The “it’s only for public improvements” Fallacy