TIF’s 💸

This week in Nashua 🗓️

Finance Committee Meets - October 16th
👉🏻 https://www.nashuanh.gov/AgendaCenter/ViewFile/Agenda/_10162024-7354

“TIF can make cities’ financial decisions less transparent by separating them from the normal budget process. In Chicago, for example, $660 million — nearly a third of the city’s property taxes — go to TIF districts, making public scrutiny of these funds more difficult and preventing elected officials from re-prioritizing the spending. TIF carries the same risks as other types of business tax incentives, which can lead to inter-city competition and short-term decision-making.”

Critics often charge that it funnels money out of the taxpayers’ pockets into a special fund that, by and large, works in a pretty opaque manner. While some of that money funds essential public works, much has also gone towards erecting new Whole Foods, renovating glitzy hotels, and building stadiums—the type of projects, one might argue, should not require such incentives. And the evidence Merriman analyzes suggest they may have a point. He shows that, in most cases around the country, the tool did not fulfill its main goal of boosting economic development.“

On average, [TIF] may be moving development from one part of the city to another, and changing the timing of the development, but there’s not more development than would have otherwise been made,” Merriman said.”

▪️https://www.nashuanh.gov/1125/Tax-Increment-Financing

▪️https://www.lincolninst.edu/publications/articles/why-tax-increment-financing-often-fails-how-communities-can-do-better

▪️https://www.bloomberg.com/news/articles/2018-09-12/does-tax-increment-financing-really-work-usually-no