|Rep. Burkley introduces bill to modify financing of certain infrastructure projects|
|Wednesday, June 05, 2013 6:34 PM|
COLUMBUS – State Representative Tony Burkley (R-Payne) today introduced legislation that would make changes to how local infrastructure projects are funded by providing property owners with the option of not having their property included as part of a Tax Increment Financing (TIF) district.
Tax Increment Financing allows local governments to sell bonds, borrowing against increased property tax revenues in the future in order to fund an infrastructure project that will attract a business or enable the building of new facilities. Under current law, if a piece of property is part of a particular TIF district, additional TIF financing is not available until the original bonds are paid for.
“This legislation, House Bill 198, would allow property owners to opt out of a TIF district in order to preserve the value of their property,” Rep. Burkley said. “By providing this option, the property owners can be sure that TIF financing will be available to improve their immediate parcel of land, rather than helping to finance projects near a business down the road that could be competing with their own. This gives them a say.”
A parcel TIF uses only the increased value of one parcel of land to fund improvements, unlike a district TIF, which uses the increased value of multiple properties as its funding source.
House Bill 198 is being joint sponsored with Rep. Jim Butler (R-Oakwood) and will soon be referred to the appropriate House standing committee for further consideration.
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