Tax Increment Financing (TIF) is out of committee and headed to the Senate floor for a vote. Contact your senators today and urge them to pass this critical economic development tool for cities, counties, and ports.
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.
The bill was amended to address concerns that had been raised by some Ports. The amendments put additional reasonable restrictions on the size of the TIF area that can be formed.
Washington State is only one of two states that do not allow the use of TIF.
Call your senators and tell them local jurisdictions need:
- New, stable funding sources to promote economic development and improve infrastructure in communities around the state.
- A “Yes” vote on HB 1189 to establish a property-tax-based TIF program that meets
state constitutional requirements.
HB 1189 takes a unique approach to TIF, as it:
- Does not impact the state’s property tax rate or revenue.
- Protects current taxing districts’ authority and existing tax collections.
- Stipulates the TIF can only be used to pay for publicly owned infrastructure.
- Requires a study and mitigation of any impacts on local businesses and affordable housing.
With your voice, we can establish a TIF program in Washington and bring a new economic development tool to communities across the state.
For more information on TIF, please check out our fact sheet.