Indiana mayors ask state lawmakers to stop proposing legislation to restrict TIF districts
State lawmakers have repeatedly proposed legislation that would restrict local governments' ability to use Tax Increment Finance (TIF) districts to improve communities and attract businesses. A panel of mayors from around the state recently talked about the benefits of the districts and the need for them.
The economic development tool is used by local governments to fund projects that will attract businesses and jobs to a specific area. TIFs take a portion of sales and property taxes from an area or business and put it into a special fund to offset some of a project's costs for developers.
A study by Ball State economists in 2016 was critical of TIF districts and said they were diverting as much as $320 million annually from other local services including schools.