Riverside Info

The TIF diverts all increases in property tax revenue within it’s boundaries away from the schools, and all other taxing bodies, into a Village-controlled fund typically used to aid developers. Property taxes may have to rise to make up the difference.

For example:

1. NEW 2/26/2007: “It’s hard to get voters worked up about something with a name so dull it makes their eyes glaze over: Tax Increment Financing or TIFs.” Read the full Sun-Times article here.
2. “When a municipality sets up a TIF in an area that’s not blighted, it robs other local governments of the tax revenue that would have been generated by natural growth. That forced those other governments to raise taxes to offset their losses.” See the full Chicago Tribune Editorial dated October 9, 2006.
3. “Unless the schools, parks, colleges, etc, are prepared to respond to inflation by cutting back, as the years pass they will find themselves having to raise their tax rates to compensate for the property taxes they are losing to the TIFs.” See the full Chicago Reader article dated August 18, 2006.
4. “And in effect TIFs amount to property tax hikes. Sucking up revenue as the do, TIFs present the schools, parks, county, etc, with a choice: cut programs to reduce spending or increase tax rates to compensate for the millions lost to the fund.” See the full Chicago Reader article dated September 29, 2006.
5. Rachel Weber, associate professor of the urban planning and policy program at the University of Illinois at Chicago, said “taxing bodies such as schools, libraries and parks have their tax revenue frozen, with any increases going to the TIF district. For example, if a school collects $1,000 from a property at the time a TIF is created, it will be collecting that same amount until the TIF expires, which could be up to 23 years.” See the full Chicago Tribune article dated October 25, 2006.
6. “More TIF districts mean higher taxes and fees. Currently, the combined debt service for our four TIF districts is approximately 5 million dollars per year.” See the full Des Plaines Residents for Responsible Taxation flyer.
7. “Saukville’s experiences serve as a cautionary tale for other communities about the hidden costs of development and the long-term impact of changing the character of a community for the sake of industrial development.” See the full article from the Milwaukee Journal Sentinel dated June 15, 1998
8. “The taxing body may have to burden all taxpayers in the taxing district to compensate for being frozen out of what would have been the natural increment in the TIF district.” See the full Quick Guide to TIFS.
9. “Potential adverse effects of a TIF: Hidden tax that evades any referendum requirement.” See the full Quick Guide to TIFS.
10. From the Illinois Association of School Boards, —œTIF costs to schools are rising as abuses of the TIF law become increasingly costly and common. In LaSalle County, a $600 real estate tax bill last year included $399 to be diverted to the local TIF. — Read the full article here.