A bill being considered in the legislature would take much of the value away from a type of tax preferred financing. TIFF, or tax increment financing, allows developers to use property’s increased value to help pay the property taxes.
Senator Mike Groene of North Platte says it’s becoming a burden, “the overuse and misuse tax increment financing by irresponsible local city councils is costing the state of Nebraska tax dollars, to fund public education.”
Groene went on to say TIFF is not being used for it’s original purpose which was re-development of blighted areas. “They’re not even using it for infrastructure, tax dollars used for tax purposes, they’re using it to bribe companies to come to their communities.”
The bill, LB 4-32, would allow school districts to tax re-developed properties at their full market value, rather than the reduced value the law calls for currently.
Assistant Lincoln city Attorney Tim Sieh opposed the bill, saying Lincoln does use TIFF to fight blight. “These are tasks that the city of Lincoln is tasked with improving. That’s what TIFF was created for. We have taken that seriously and have gone out done those projects.”
Sieh also said that LB 4-32 is unneeded, adding “our staff has an ongoing conversation with LPS, when it comes to tax increment financing in Lincoln. We understand the concerns that LPS has.”
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