in the past, I’ve tried to let people how what Tax Increment Financing Districts affect their tax bills.
That’s why I am printing what the Monday Chicago Sun-Times editorial said on the subject. Its context is the impact on the Chicago Public Schools (CPS), but I’m sure readers can figure out how it would affect them.
Irregardless of the existence of TIFs, CPS requests a set property tax revenue amount each year.–and that amount is capped by law.
When TIFs remove money from the overall property tax revenue pot, the tax rate is raised to generate the amount CPS requests.
In other words, there is no loss for CPS.
Tax rates go up, yes, but overall revenue for CPS does not go down.
But, the Sun-Times does not point out the obvious:
Everyone outside of the TIF District pays more money because their tax rates are higher than they would be if the TIF was not there.