COLUMBUS - 

State Representatives Jim Butler (R – Oakwood) and Tony Burkley (R – Payne) have introduced legislation which will establish a procedure to allow property owners to opt out of Tax Increment Financing (TIF) incentive districts.


About TIFs: TIF is a method which uses hypothetical gains in property taxes to sell bonds. The bond revenue is spent on improvements that are projected to create the conditions for said gains. The completion of a public or private project often results in an increase in the value of surrounding real estate, which generates additional tax revenue. TIF creates funding for public or private projects by borrowing against the future increase in these property-tax revenues.


Under continuing law, property owners do not have the ability to exclude their property from a TIF incentive district. House Bill 198 will give property owners the opportunity to opt out after receiving notice of a proposed district from a local government. Property owners who opt out would then retain eligibility for TIF financing to improve the infrastructure around their own property in what is known as a parcel TIF. A parcel TIF uses only the increased value of one parcel to fund improvements, unlike a district TIF that uses only
the increased value of multiple properties as its funding source.


“House Bill 198 will allow property owners to opt out of district TIFs so they can preserve their property’s value,” said Representative Butler. “It ensures that TIF financing will remain an option for improving their immediate parcel of land. Scenarios do arise where property owners who get included in district TIFs essentially end up assisting the financing of projects which will benefit their competitors. House Bill 198 gives them a voice in the matter and will help them make the best decision for their unique economic interests.”


House Bill 198 will be assigned to a standing committee of the Ohio House of Representatives in the near future. Representatives John Adams, Terry Boose, Andrew Brenner, Margaret Ann Ruhl, Rick Perales and Mike Henne have signed on as co-sponsors to this legislation.

 
 
 
  
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