Do taxing entities serving the project area lose tax revenue?
No. Taxing entities such as the county, school districts, and special districts that serve the project area continue to receive all the tax revenues they were receiving the year the redevelopment project was formed (the base year). In addition, taxing entities receive a portion of the incremental increase in property tax revenues from a redevelopment project area. Over the long term, entities will benefit from the redevelopment project and the tax increment financing process because at the end of the redevelopment project life (typically 40 to 45 years), the taxing agencies receive property tax revenues based on the increased value in the redevelopment project area. The tax increment that was flowing to the redevelopment agency, to repay their debt, then flows to all of the taxing agencies. Ultimately, other taxing agencies reap the revenue benefits of the redeveloped and revitalized project area when the project is completed.
Related Questions
- I have a project in a very small area of a jurisdiction. Can I purchase the GIS version of the tax maps and the parcel data for just this area instead of paying for the entire jurisdictions data?
- How will the establishment of a redevelopment project affect the city/county and other taxing agencies in regard to tax revenue loss?
- Do taxing entities serving the project area lose tax revenue?
