A comprehensive approach to the assessment of tax increment financing (TIF) projects
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 1 March 2004
Abstract
One of the most popular economic development incentive tools used today is Tax Increment Financing (TIF). Proponents of TIF argue that these incentive programs have fostered new investment and increased property tax revenues in areas that would otherwise have experienced negative growth. Opponents argue that TIF is now used in non-blighted areas-on projects that could have been completed with no special government subsidies. This paper describes a number of perverse incentives that are inherent with TIF projects. It then outlines a comprehensive framework for estimating the net future fiscal impacts with and without proposed TIF projects for all affected jurisdictions. Finally, it illustrates how the framework can be used to reach better economic development policy decisions at both the state and local levels.
Citation
Johnson, T.G. and Scott, J.K. (2004), "A comprehensive approach to the assessment of tax increment financing (TIF) projects", Journal of Public Budgeting, Accounting & Financial Management, Vol. 16 No. 3, pp. 394-412. https://doi.org/10.1108/JPBAFM-16-03-2004-B005
Publisher
:Emerald Publishing Limited
Copyright © 2004 by PrAcademics Press