TIF laws need to be amended

TIF laws identify and financially fund village TIF districts by reallocating funds from property taxes to encourage investment within that district. When this law was first enacted in the late 1970s (later amended in the 1980s), it was a good law. Today, its concept and intent are still good, but the law has many flaws and is open to abuses, and many times, TIFs needlessly increase our property taxes.

TIFs shift funds around to encourage development by freezing allocations to schools, libraries and parks at their levels as of the start of the TIF.

During the 23-year life of the TIF, the amount received by these taxing bodies from property taxes collected within the TIF will remain constant. To make up the difference, our property taxes are raised to make up the shortfall, especially in the later years of the enacted freeze.

Thankfully, 0ur Illinois legislatures have recently created a Senate Bill 2938. It does the following ...

Changes the definition of "blighted area" to make it stricter.

Changes the length of any new TIF to 10 years with the ability to extend the TIF 5 years (currently, 23 with the option to extend it by 12);

Requires the Joint Review Board to work with the municipality to approve surplus funds and the extension of a TIF; and

Prohibits any new TIF from overlapping with any existing TIF district.

What is important to understand is that Senate Bill 2938 should ease the burden we pay through our property taxes while giving our schools, libraries and parks needed future funding. We must contact our legislators to move this bill forward to a vote with their support. Doing so would be an important step in getting additional needed funding to public schools, libraries and parks while easing our property tax burden.

Richard Rosen

Wheeling