Things are looking good for Tax Increment Financing (TIF) in Washington as two bills move forward, ahead of the next legislative cutoff.

Last week, HB 1189 passed the House Finance Committee and SB 5211 passed the Senate Ways & Means Committee. Both bills are companion bills and are generally alike to one another.

TIF is an economic development tool that captures a property’s appreciated value by using its increased property taxes, generated by the increase in assessed value, to finance infrastructure improvements that benefit a designated area. Local jurisdictions that have used TIF report improved public infrastructure, increased economic activity, and local job growth. Unfortunately, Washington State is only one of two states that do not allow the use of TIF.

The bills provide a new method for cities, counties, and ports to use TIF to finance infrastructure improvement projects within their communities. Previous attempts to enact TIF programs in Washington were struck down due to constitutional constraints. However, the new approach to TIF, reflected in HB 1189 and SB 5211, allows development to pay for much-needed public infrastructure without impacting the state’s budget.

Both bills now await floor action in their respective chambers and need to receive a vote by the next cutoff deadline on March 9.

AWC asks that you continue to communicate to your legislators about the need for this economic development tool.