The short link for this page = http://tinyurl.com/27thWardForumPresentation.
Tom Tresser presented the research from the TIF Illumination Project's investigation of the 12 TIFs in the 27th Ward. This presentation was made at the February 12, 2013 TIF Town Meeting organized by the Tax Integrity and Fairness Alliance at the Chopin Theatre. http://tifalliance.weebly.com.
We upload all the TIF presentations to http://www.slideshare.net/tomtee. These presentations have been viewed over 44,000 times! The champ is the presentation on the 27th ward which has been viewed 4,292 times. So - if you are one of the people whose viewed these presentations and found them valuable - PLEASE support our work by (1) signing our email list at http://tinyurl.com/SignUp-CivicLab, (2) consider renting a desk with us (we're in Chicago's West Loop), and (3) making a deducible contribution via our fiscal agent, the Investigative News Network - http://tinyurl.com/SupportTheLab-INN. We are online at http://www.tifreports.com. Contact me - tom@civiclab.us.
3. What are TIFs?
• Created by municipality (state
statute)
• Boundaries cross political and
community boundaries
• Designed to subsidize some
business project in “blighted” or
under-served area
• Captures “incremental” property
taxes ABOVE base when district
was created
• Lasts 23 years
3
4. How Do TIFs Work?
When the TIF is created,
the city tallies up all the
property taxes
generated by district in
that year (called the
"base" amount). After
that, all property tax
increases above the
base (the "increment")
are channeled to the TIF
district.
The property taxes
collected from
properties inside the
district BEFORE the
district was created
that go to units of
government stays
FLAT for the life of the
TIF (23 years).
4
5. Where are TIFs?
• All over Chicago and Cook
County = 443 TIFs in 2011
• 163 in city of Chicago
• Additional 280 in suburban
Cook County
5
8. How Much Revenue Do TIFs Collect?
Source: Cook County Clerk TIF 101 8
9. How Much Revenue Do TIFs Collect?
2011 TOTAL TIF REVENUE FOR COOK COUNTY
City of Chicago
TIFs diverted $454 MILLION
Suburban Cook County
TIFs diverted $275 MILLION
TOTAL FOR 2011 = $729 MILLION
TIF 101 9
10. How Much Revenue Do TIFs Collect?
TIFs extracted $454 million in 2011.
That # is 53% of the TOTAL amount
of property taxes that went to the city
for its operations!
TIF 101 10
11. How Much Revenue Do TIFs Collect?
Ouch!
$4.5 BILLION
DIVERTED
SINCE 1986!
TIF 101 11
22. LET’S LOOK AT HOW TIFs WORK ON A
WARD-BY-WARD BASIS.
CODERS, RESEARCHERS, DESIGNERS,
INVESTIGATORS, ORGANIZERS.
ALL VOLUNTEERS RIGHT NOW.
22
23. First ward selected for investigation = 27th Ward, Near North Side – 12 TIFs
23
24. Need to know:
- Names of TIFs, annual report of revenue
- Property Index Number (PIN) data for the ward and for the 12 TIFs
- How much property taxes collected by each TIF
- Distribution formula for all PINs – where to send the property taxes
collected?
- Shape files for the ward
- Shape files for the 12 TIFs
- Projects funded by TIFs, regardless of the sponsoring agency
24
41. TO SUM UP:
• Impossible to find out how TIFs impact your ward
– have to work REALLY hard to get the complete
picture
• 12 TIFs in the 27th ward = 77% of the ward’s
land mass
• They extracted $36.8 million in property taxes
in 2011
• That was 33% of ALL property taxes collected
inside the ward
• 12 TIFs extracted $255.2 million over past 9
years (thru 2011) 41
42. TO SUM UP:
• $62 million from 27th ward was sitting in TIF
accounts on 1/1/12
• Of TIF $ coming back INTO ward same 9
years, only 42% went to public projects
• 58% went to private commercial and
nonprofit projects
• We lack details on most of the TIF funded
projects
42
43. The Problem Is State-Wide
In Illinois, 455 municipalities have
1,220 TIF Districts.
? In 2010 TIFs extracted $1.15
BILLION in property taxes!
In 2010, across the state, 414 TIF
districts were in “non-compliance” for
not filing any or proper financial
statements, according to The Office
of the State Comptroller. That’s 44%
of all Illinois TIFs!
43
45. The TIF Report Team
Stories on this project:
• Chicago Reader – 12/13/12
• Sunlight Foundation - 1/4/13
• Gaper’s Block – 1/10/13
• Outside The Loop Radio – 1/31/13
• Dick Kay’s Radio Show – 2/9/13
45
46. Tom Tresser – 312-804-3230
tom@civiclab.us
• TIF Project HQ = http://tifreports.com
• Get TIF news via Twitter @TIFreport
• Follow CivicLab @civiclabchicago
46