One State Representative warns of dire consequences should a proposed change for an economic development program pass the legislature. But, the sponsor insists change is necessary. Tax Increment Financing, known as TIF, has come under fire almost since its inception in 1984. Alleged abuse in the St. Louis area has prompted a call for change – change not favored by Representative Henry Rizzo of Kansas City who claims a new definition of blight will throw the law in the courts. Complaints have arisen that too many TIFs in the St. Louis area have gone to retailers in less than blighted areas, not to the distressed urban areas that need incentives to attract business and factories. St. Louis Representative Tim Green, who sponsors the proposed change, counters the definition of blight must be changed. Under the bill, public funding could make up only 30-percent of a project and TIFs couldn’t be used to advance urban sprawl. TIFs can be used when a business makes a substantial investment and promises to create at least 100 jobs. The House has approved the bill and sent it to the Senate.
Leave a Reply