Overview of Tax Increment Financing
COMMITTEE ON JOINT LOCAL GOVERNMENT
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02:42 PM -- Overview of Tax Increment Financing
Ms. JoAnn Groff, Property Tax Administrator, and Mr. Greg Schroeder, Property Tax Specialist III, both of the Division of Property Taxation, Department of Local Affairs, gave an overview of tax increment financing (TIF). Committee members received a summary of the presentation (Attachment D), and a list of active TIF projects in the state (Attachment E), both prepared by the Division of Property Taxation. Ms. Groff explained that some form of tax increment financing exists in every state. She said there are about 86 active TIF projects in the state. Ms. Groff explained that Colorado law authorizes the use of TIF by urban renewal authorities (URA) and downtown development authorities (DDA). She continued with an explanation of who is involved in TIF and how TIF revenue is collected. Ms. Groff explained some differences between URAs and DDAs. Mr. Schroeder explained how URAs can have multiple plan areas within their boundaries.
Ms. Groff said the more parameters added to a TIF district, the more complicated it becomes for the assessor to assess property taxes. Senator Foster expressed her support for TIF as a tool to address blight in cities.