Can I award a TIF benefit to a JOBZ parcel within a TIF district?
No, this property is generally exempt from taxation and, therefore, is not included in captured tax capacity under the TIF Act. Captured tax capacity is the value that generates tax increment. Thus, exclusion from captured tax capacity prevents the generation of increment even though the property pays some debt levies. (School operating referenda, the other category of taxes that continue to apply, are calculated on market value, rather than tax capacity, and do no enter in TIF calculations at all.) In addition, if a TIF district is created within a zone, when the zone designation expires and the property becomes taxable, the value at the time of the expiration of the exemption will be included in “original tax capacity” of the TIF district. This will prevent capturing of increases in the value of the property that occur during the zone designation.
