Chicago property tax revenue diverted from schools, parks, day-to-day city expenses and other local government operations to city development projects increased by about $55 million in 2007 to $555 million, an 11 percent jump from the previous year, according to a report released today by Cook County Clerk David Orr.
Some critics of tax increment finance districts, known as TIFs, say they are partly responsible for the city's current budget shortfall, pegged at $469 million. To address the gap, Mayor Richard Daley has proposed layoffs and increased fees and taxes for 2009.
"While TIF districts are intended to help blighted areas, they also place a greater burden on other taxpayers to support the schools, parks and other services," Orr said.
When a TIF is formed, property taxes paid to all local governments in the development area are frozen for up to 23 years. The increment—additional property tax collections that result from rising property values—are then placed in a fund to subsidize development, with the aim of getting developers to invest in areas they would ignore without TIF assistance.
Dispatches from Chicago's south side.
Wednesday, October 29, 2008
Study says special taxing districts costing Chicago coffers $555 million
Clout St:
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
PLEASE READ FIRST!!!! Comment Moderating and Anonymous Comment Policy
While anonymous comments are not prohibited we do encourage you to help readers identify you so that other commenters may respond to you. Either read the moderating policy for how or leave an identifier (which could be a nickname for example) at the end of the comment.
Also note that this blog is NOT associated with any public or political officials including Alderman Roderick T. Sawyer!