TIF stands for Tax Increment Financing District. The tax money that a TIF property originally collected still goes to the taxing authorities in that district. The taxes from any increase in assessed value goes to the TIF district instead of going to the taxing units in that district (schools, county, library, solid waste, township, and other services). The houses in this TIF district do not help pay for these services, rather it is the rest of the community who pays for the services to the houses in the TIF district.
There are some seemingly obvious concerns. TIF districts for housing put an increased tax burden on the other taxpayers of the community and county that contain a TIF district. When a TIF district for housing is approved, there will be an increase in demand for services — more people, more demands such as children going to school, fire protection, police protection, etc. This will put more of a burden on other taxpayers and increase the amount of taxes they pay.
Last fall, Markle and the Northern Wells school board approved a TIF district for a housing development on Markle’s east side.
Markle has agreed to provide the developer $200,000 from the TIF to help with the infrastructure for 18 houses. As long as the residential TIF district is in place, the additional tax revenue from the homes will not go to pay for the services these houses will use. Incidentally, this TIF district was put in place for 20 years.
The idea is to spur growth with an increase in taxes paid later down the road. This seems wrong on many levels, but mainly that it forces other taxpayers to foot the bill for that time period.
If housing is needed that is one thing, but it doesn’t seem right to ask for others to pay for the infrastructure which is basically what happens with a residential TIF. It seems like the housing development should stand on its own and pay for itself rather than take tax revenue to pay for the development. It seems very unlikely an individual person building a new home could — or would — ask their neighbors to help pay for it. Neither should a housing development ask government and other taxpayers for a break or funding to pay for it.
There is another housing TIF being formed in Ossian on 66.1 acres behind Dollar General. The Wells County Commissioners voted to form this housing TIF district. The Ossian Town Council will vote on this Monday night Oct. 24. If they approve it then the Northern Wells School Board will vote Oct. 25.
If this is approved several groups of taxpayers in Wells County will be paying for the services for these houses for the length of time the TIF is in place (most likely 20 years). 120 houses (estimate) x $1000 per house equals $120,000 per year. $120,000 per year x 20 years equals $2,400,000. This is money to be made up by mostly Northern Wells Schools and Town of Ossian taxpayers, but there is some that is made up by every taxpayer in the county.
Thank you for your consideration,
Tim Baker
Wells County taxpayer
Farm Bureau board member
Jefferson Township Advisory
board member
