TAXPAYERS FOR TRANSPARENT CAPE GIRARDEAU

WHAT IS A TIF?

Tax increment financing is a method of redirecting tax revenues to enable the redevelopment of property that is “blighted”. The TIF Act authorizes the capture of 100% of the incremental increase in property taxes above the property taxes generated by the property prior to redevelopment, called “payments in lieu of taxes” (“PILOTs”) and 50% of the new economic activity taxes (“EATS”) generated from the redevelopment project through sales taxes, earnings taxes, and utility taxes. -David Bushek and Rich Wood, TIF 101: Advice for Municipalities considering the first use of tax increment financing.

A municipality must find the area to be blighted. A “blighted area” is defined as “an area which, by reason of the predominance of insanitary or unsafe conditions, deterioration of site improvements, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, or welfare in its present condition and use.” Additionally, the “but-for” test requires an assumption that without taxpayer subsidy, the Mall would never be redeveloped. Please review the Proposal, browse through this website, and consider links showing the effect of TIF Projects in Saint Louis and Kansas City. SPOILER ALERT: “In Kansas City, the estimated impact of TIF designation across all categories is very close to zero… In Saint Louis, the results are slightly negative…” -T. William Lester and A. Rachid El-Khattabi, Does Tax-Increment Financing Pass the But-For Test in Missouri?

REMEMBER: The TIF Proposal is just ONE of FIVE requested taxpayer subsidies associated with the Mall.

Then call your City Council member and tell them to STOP MORTGAGING OUR FUTURE.