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This presentation was given at the 11th Ward TIF Illumination on December 4, 2014 by Tom Tresser. The TIF Illumination Project is online at http://www.tifreports.com. You can reach us at [email protected]. The full presentation, with all the particulars on the 11th Ward, is available for purchase at the TIF Data Store at http://www.tifreports.com/store. You can make a tax-deductible investment in the CivicLab through our fiscal agent, the Investigative News Network at http://tinyurl.com/SupportTheLab-INN.
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December 4, 2013Tom Tresser
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What are TIFs?
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What are TIFs?
• Created by municipality (state
statute)
• Boundaries cross political and
community boundaries
• Designed to subsidize some
business project in “blighted” or
under-served area
• Captures “incremental” property
taxes ABOVE base when district
was created
• Lasts 23 years
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How Do TIFs Work?When the TIF is created,
the city tallies up all the
property taxes
generated by district in
that year (called the
"base" amount). After
that, all property tax
increases above the
base (the "increment")
are channeled to the TIF
district.
The property taxes
collected from
properties inside the
district BEFORE the
district was created
that go to units of
government stays
FLAT for the life of the
TIF (23 years).
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What are TIFs?
Under state law, areas proposed for TIF designation
must possess numerous blighting factors to be
eligible:
• Age
• Obsolescence
• Code violations
• Excessive vacancies
• Overcrowding of facilities
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TIFs Used to support commercial projects in these “Blighted” Areas
40 S. Halsted
Apple Store
7Better Government Association
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Where are TIFs?
• All over Chicago and Cook
County = 435 TIFs in 2013
• 151 in city of Chicago
• Additional 284 in suburban
Cook County
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Where are TIFs?
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How Much Revenue Do TIFs Collect?
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How Much Revenue Have TIFs Collected?
Ouch!
Source: Cook County Clerk
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2013 TOTAL TIF REVENUE FOR COOK COUNTY
City of Chicago
TIFs diverted $422 MILLION
Suburban Cook County where
91 municipalities have TIFs
TIFs diverted $261 MILLION
TOTAL FOR 2013 = $683 MILLION
How Much Revenue Do TIFs Collect?
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How Much Revenue Have TIFs CollectedSince TIFs Introduced Here?
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Volunteer TIF Researchers Open TIF Reports Look
Up Designated Numbers and Place Then Into
Shared Spreadsheet…
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THE CITY HAD
$1.71 BILLION IN
UNSPENT TIF FUNDS
AT THE END OF 2013!
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What are TIFs doing to us?
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• # TIFs in your ward
• How much property tax $ extracted by those
TIF from ward
• How much $ left in those TIFs FROM ward at
end of year
• What projects in ward funded by TIFs
• Lifetime extraction of TIFs which are mostly in
your ward
• Any transfers of $ in or out of your TIFs
• $ extracted by city for “admin” costs
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TO GET THE FULL PRESENTATION WITH THE
PARTICULARS ON THE 11TH WARD, PLEASE
VISIT THE TIF DATA STORE @
http://www.tifreports.com/store.
ALL TIF PRESENTATIONS ARE AVAILABLE
THERE FOR DOWNLOAD @ $2.50 EACH.
TO MAKE A TAX DEDUCTIBLE INVESTMENT
IN OUR WORK VIA OUR FISCAL AGENT, THE
INVESTIGATIVE NEWS NETWORK, PLEASE
GO TO http://tinyurl.com/SupportTheLab-INN.
TO LEARN MORE ABOUT OUR TRAININGS,
RESEARCH AND COMMUNITY MEETINGS,
EMAIL [email protected].
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