MicroTIF resembles regular tax increment financing in allowing owners of older homes or commercial buildings to recover property taxes generated when they're rehabilitated, repaired, or replaced. LB 790 would lengthen the maximum time for older buildings' owners to recover those refunds from 10 years to the 15-year period applying to regular TIF.

Legislation filed this week by Sen. Dewayne Pemberton, would address growing concerns with an economic development tool available to local governments. Senate Bill 1319 was requested by constituents concerned about the use of tax increment district financing. Pemberton said the measure would address concerns about location and duration of a TIF district.

The City of Lathrop is taking the lead on the formation of a special financing district that will help provide flood protection for a wide swath of San Joaquin County. The formation of an Enhanced Infrastructure Financing District for the Mossdale area will collect funding from new development that will help overhaul the existing RD-17 levee along the San Joaquin River to provide 200-year flood protected mandated by the State of California.

A TIF district is used to divert future property-tax revenue increases toward an economic development project or public improvement project — often for infrastructure creation. The village's latest TIF district would encompass 45 to 50 acres on farmland west of the village.

The urban renewal plan consists of an agreement to build a new, 50,000-square-foot building north of Co-Line's existing campus in Jasper County. Co-Line estimates the new plant could bring up to 20 new skilled jobs. And if the new product line sells well, there is a possibility of further expansion.

Alexandria City Council approved an economic development TIF request from Innovative Enterprises of Alexandria. Situated on 7.63 acres of land in Alexandria, the manufacturing and warehouse property will be owned by Innovative Enterprises and leased to Douglas Machine for 10 years. The new TIF district will cover about $1.5 million of the project's cost. The project is expected to increase the city's tax base by $4.7 million.

Sen. Mike Flood of Norfolk introduced Legislative Bill 713 to prohibit redevelopment plans with TIF related to casinos and licensed racetracks, such as the City of Omaha approved $17.5 million in TIF incentives for the casino there. LB713 likely will be assigned to the Urban Affairs Committee, with a hearing yet to be scheduled.

State lawmakers have repeatedly proposed legislation that would restrict local governments' ability to use TIF districts to improve communities and attract businesses. A panel of mayors from around the state recently talked about the benefits of the districts and the need for them. A study by Ball State economists in 2016 was critical of TIF districts and said they were diverting as much as $320 million annually from other local services including schools.

Intro Bond Finance Course
February 14-15, 2022 - Daily: 12:00 - 5:00 PM Eastern

Advanced Bond Finance Course
February 16-17, 2022 - Daily: 12:00 - 5:00 PM Eastern

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