On the relationship between tax increment finance and property taxation

Skidmore, Mark; Kashian, Russ

doi:10.1016/j.regsciurbeco.2010.05.002

Cited by 15 publications

(6 citation statements)

References 5 publications

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“…The concern is that this practice negatively affects the city, particularly the most distressed communities. By permitting TIF in these communities, cities sacrifice a considerable amount of tax revenue that would otherwise contribute to the city’s general fund (Briffault, 2010; Skidmore & Kashian, 2010). The extensive range in blight scores supports claims that several of the city’s TIF districts would not be considered blighted according to the conventional definitions from which the “but-for” standard for TIF adoption emerged.…”

Section: Resultsmentioning

confidence: 99%

Tax Increment Financing in Chicago: The Perplexing Relationship Between Blight, Race, and Property Values

Larnell

Downey

2019

Economic Development Quarterly

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Cities use tax increment financing (TIF) to trigger growth in blighted communities. Critics argue that Chicago’s broad conceptualization of “blight” facilitates the designation of TIF districts that do not resemble conventional notions of blight, bolstering their natural ability to generate capital, thereby exacerbating the gap between wealthy and poor minority spaces. This study examines Chicago’s TIF districts to determine whether blight levels and percentage of non-White residents interact to reduce the effectiveness of TIFs measured as the change in the equalized assessed valuation (EAV) of properties. Using composite indices to measure physical and economic blight, the results of a quantile regression analysis indicate that economically blighted TIFs with predominantly non-White populations outperform other districts. These findings run counter to expectations given that TIFs report high rates of growth in property values, yet they remain substantially blighted. This suggests a need to reconsider change in equalized assessed valuation as the measure of TIF effectiveness given that the “growth” in TIFs does not seem to reflect a higher quality of life for residents.

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Section: Resultsmentioning

confidence: 99%

Tax Increment Financing in Chicago: The Perplexing Relationship Between Blight, Race, and Property Values

Larnell

Downey

2019

Economic Development Quarterly

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“…Indeed, Wisconsin applies a 'but-for' test, which has the potential to be abused because of the subjective nature of the concept, and the challenges associated with evaluating whether proposed projects are conditioned on the implementation of a TIF or not (Kashian, et. al, 2007;Skidmore & Kashian, 2010).…”

Section: The 'But-for' Testmentioning

confidence: 98%

“…Using it as a simple economic tool may be explored as a means to attract employment, certain uses, or industries. However, in this situation it is important to consider whether TIF is simply shifting employment patterns around within a municipality, or actually attracting new development (Skidmore & Kashian, 2010). Further, analyzing the impact a TIF may have on property values in a depressed market is fundamental.…”

Section: Economic Environmentmentioning

confidence: 99%

Implementing tax increment financing in Toronto learning from the Alberta experience

Schwartz¹

2021

Preprint

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In Toronto, and cities across Canada, increasing population intensification in urban centres has put pressure on municipalities and created uneven patterns of growth. Tax increment financing (TIF) is a flexible tool that can direct and manage growth, fund infrastructure investments, and revitalize communities. In 2006, the Government of Ontario passed the Tax Increment Financing Act, yet no jurisdiction in the province has implemented the tool. This report identifies and analyzes how TIF can be implemented in Toronto to effectively achieve positive outcomes. To do this, a combination of literature, best practices and case studies were explored. As the municipality with the most extensive experience with TIF in Canada, Calgary’s case is a focus of the report. The findings of the research are presented in the form of recommendations guiding how the City of Toronto could most effectively implement a TIF scheme.

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“…Using annual aggregate property values for 533 Wisconsin municipalities from 1990 to 2003, Skidmore and Kashian (2010) found that overlapping local governments adjust their tax rates upward during the life of a TIF district but that the host city typically reduces its tax rate. However, once the district is terminated, property tax rates of both the host city and overlapping local governments revert to their pre-TIF levels.…”

Section: What We Know From Research On Tifmentioning

confidence: 99%

Assessing the Contributions of Collaborators in Public–Private Partnerships

Bland

Overton

2014

The American Review of Public Administration

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Partnerships that bring together public, private, and nonprofit organizations have become widely used by local governments. But we lack knowledge about the distinct contributions of collaborators to the partnership. This study uses tax increment financing (TIF) in Dallas, Texas, to assess the distinctive roles of public and private partners in achieving mutually beneficial policy outcomes. We find that, while public investment is essential to the partnership’s success, private investment directly increases property values. The city’s greatest contribution is to leverage private investment to create added taxable value in the TIF district. The increased property value provides revenue that is used for public purposes benefiting TIF district occupants. As with other quasi-private institutions that have gained popularity in the new order of governance, the appeal of TIF is its capacity to create public goods with bounded benefits. In addition, both institutional and operational knowledge contribute to the partnership’s success. The city’s experience at establishing new TIF districts and administering existing ones increases taxable value.

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On the relationship between tax increment finance and property taxation

Cited by 15 publications

References 5 publications

Tax Increment Financing in Chicago: The Perplexing Relationship Between Blight, Race, and Property Values

Tax Increment Financing in Chicago: The Perplexing Relationship Between Blight, Race, and Property Values

Implementing tax increment financing in Toronto learning from the Alberta experience

Assessing the Contributions of Collaborators in Public–Private Partnerships

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