From Cary School Board President Scott Coffey:
What’s not mentioned in the above analysis is the fact that once a segment of the EAV base for taxing bodies is frozen (at $29.079 million), the rest of the community has to absorb the tax increases from the taxing bodies without the benefit of EAV growth coming from the TIF properties.
Assuming property growth rates match CPI of 2% in their scenario, it guarantees that taxpayers will see tax increases in excess CPI for the life of the TIF district.
Everything else being equal, Tax rates will always go up because the numerator (taxes) will grow faster than the denominator (taxable EAV).
As an example, I ran the D-200 impact for the next 23 years with the school district raising taxes at 2%/year and non-TIF EAV compounding at 2%/year.
By Year 23, D-200 taxpayers will be absorbing approximately $1 million per year more in taxes than they otherwise would have had the TIF not been put into place.
The same effect holds for every other taxing body on their tax bill (City, Fire, Township, etc.)
TIF districts are another reason why this County’s taxes are too high.