It was the Senate that started the push for much-needed fixes to Tax Increment Financing (TIF) program; however, it was the House that got their bill through the chamber before the March 8 cut off.
Back in February, the Senate took big strides in moving TIF fixes forward via SB 5539, a bipartisan bill requested
by the State Treasurer. By mid-February, however, efforts with that bill stalled in the Ways & Means Committee rendering the bill dead. Except, the House had a companion bill ready that they quickly moved through the House Finance Committee in
mid-February. On March 6, HB 1527, sponsored by Reps. Sharon Wylie (D–Vancouver) and Bryan Sandlin (R–Zillah),
passed through the House unamended on a vote of 80-15. Let’s hope that the Senate can finish the job this time around.
As a reminder, Tax Increment Financing (TIF) captures a property’s appreciated value by using its increased property taxes to finance infrastructure improvements that benefit a designated area. Local jurisdictions that utilize TIF benefit from improved
public infrastructure, increased economic development, and local job growth. For a recent example of a city using TIF, check out this story from Wenatchee.
As written, the TIF fix bill would:
- Ensure private investments made on government-owned lands are included in the calculated increment value.
- Establish that the relocation and construction of a government-owned facility would be included as an eligible project.
- Clarify the definitions of ‘increment value’ and ‘tax allocation base value’ to be in-line with current law regarding add-on levies.
Dates to remember
HB 1527 is scheduled for executive session in the Senate Business, Financial Services, Gaming & Trade Committee on Tuesday, March 14 at 8 a.m.