Showing posts with label TIF. Show all posts
Showing posts with label TIF. Show all posts

Sunday, April 15, 2007

Did you read this

Spring taxes delayed, says the News Sentinel. I reported Saturday that you would receive your tax bill in the mail in June. But, Robert Lee states, that I am wrong. That the bill that you should have received in MARCH, you will receive in JULY. But you will still have the NOVEMBER DATE FOR THE SECOND HALF.

Allen County Treasurer Robert Lee announced that spring taxes will be delayed this year because of adjustments to property values. This is the first time the adjustment has been implemented in Indiana, joining 48 other states.


Yeah right, the first time, my behind. The first time the adjustment is called trending. Remember all those computer glitches, instead of saying oops no we did not go out and assess all these properties in the proper manner.

However, Lee has started a property tax e-mail system to keep taxpayers updated on when tax amounts are in and when they are due. Register at www.allencounty.us/treasurer.Tax bills are expected to be ready the beginning of July.



I found that gem in the police brief in the newspaper. Right there in the criminal section of our newspaper, what a fitting place to locate such news for our taxpayers. Go see for yourself, I am not making this stuff up. Do you really want these folks to have your email address? These are the same folks who did not send a man a certified letter and his property was sold. Property sold at a tax sale. I don't think email is a good way of communicating with these folks.

Now the big question for me is why are our property tax bill so late? I know what Lee says, but I have my doubts. And it all points to this Harrison Square Park deal. It may be just me, but I suspect they have not priced the property for Jason and Chris. You know our friends at Hardball Capital. Because, the price of that property will determine how much taxes Hardball will have to pay for those condos. And it will determine how much will go into that special fund, TIF.

You know the fund, Jefferson Pointe TIF expansion. TIF will freeze the amount that Jason and Chris will have to pay on taxes. Had you ever played the game Freeze. Well that is exactly what is going to happen to the land, that Greg Leatherman, is now trying to do a better job of assessing.

You probably read where Leatherman, stated that he probably overpaid Bill Palace, $2.4 million dollars on property valued at a little over $600,000. Now Leatherman could probably play Mr. Big Spender with taxpayers dollars. But Jason and Chris, our friends, because we are so happy that they are spending $5 million and $15 million more on condos. I don't think Jason and Chris are going to spend an extra penny on over assessed property.

Yeah, I'm thinking that's what happened. Because, when have you known Leatherman, or any elected official, to admit they made a mistake? So, everybody should have went to their window, and saw all that snow falling, and thought it was an indication, that something is not right.

Anyways, back to TIF and our late tax bills from Robert Lee and friends. As you know City Council has not approved the extension of TIF yet. So if our friends, Jason and Chris, want to take advantage of this reassessment they need to move locking in the current value of their downtown investment. As soon as Chris and Jason sign the agreements surrounding property is going to skyrocket. But those who are already in the TIF designation is going to be protected from increases in their tax burden each and every business that's in the area. But, first City Council must approves the TIF district. What you say?

Nope, no new taxes. It is all the folks who comes in afterward. Yep, Hardball is to be the CATALYST to all these new businesses. Businesses drawn to greatness, the field of dreams. You know the saying about if you can't be a mountain, at least attach yourself to one. But you knew that, I'm not telling you nothing you didn't already know.

Why do you think Leatherman and his cliche are running around recalculating figures on land already sold ?!! They, city leaders, have not told you the value of the property for our friends, Jason or Chris. They can tell you everything else. They can tell you projection 20 years out. But they are scratching their heads on the value of that land that, you know the land they already bought by secretly going knocking on folks doors. Did not even tell City Council.

So, my theory is our tax bills are being delayed because we are waiting on our new neighbors. Our friends, Chris and Jason's property to be properly assessed. There is another saying, that you can fool some of the people some of the times, but you can't fool all the people all the time. I think our friends Chris and Jason are teaching our Room for Dreams city that very lesson. I could be wrong.

One of my readers said I sit on a throne of lies. He recently came over and apologized. He also told me he was impressed. But, this blog is all about recognizing, if you don't know you need to ask somebody. And if folks ask, tell them FWAAIW, told you so.

Thursday, March 01, 2007

Working Family and Property Taxes

The local officials will spread the property tax increase amongst the working families and retired seniors of lower valued homes. How will this take place? A home owned by a senior citizen, that is valued at $40,000 will see an increase in their property value. Although homes may not be selling in these neighborhood, the increase is needed to offset the homestead deduction for homeowners. The homestead deduction is a tax break provided by the State of Indiana to homeowners. The deduction can be as much as $45,000 depending of the value of the home. After the deduction, local officials calculates the property tax.

However to maximize the amount of property tax collected, local officials will artificially increase the home values by taking into account the homestead deduction. By artificially increasing the value of the home, it recaptures the deduction given to the homeowners from the State of Indiana. With this manipulating of the numbers, local official will tout that there was a increase in the homestead deduction bu tin fact reduced the deduction provided by the homestead deduction. So a home valued at $40,000 reduced by a homestead deduction to $20,000 taxable value will see their home value artificially raised above the $40,000 Why, you say? The answer from IDLFG: Read more click here.

Thursday, February 08, 2007

TIF Brain dread-Who Benefits

Hmmm Leo Morris writes:

The downtown baseball-plus project is not likely to cost me very much directly -- the taxes it uses will mostly be tax money already taken from me that will be used for something else if it isn't used for this.


That something else, school improvement according to Morris

Fort Wayne Community Schools' massive building rehabilitation project, on the other hand, will be money out of my pocket that wouldn't be taken without the project -- and a substantial increase over what I'm paying now.


Which comes first, the egg or the chicken? Property taxes will increase either/or. The question becomes when using tax payers' tax dollars who benefits from which project, the tax payer or the private developer? The answer the tax payer benefits from the public benefit of schools and the private developer benefits from the increases in his ownership of property paid for partly by tax payer dollars.

Here's another example: If in your neighborhood all property is taxed at S100. But your neighborhood becomes a TIF district. Well after the neighborhood becomes a TIF, your property values increases. Well guess what? If your property values increases so will your property taxes. So instead of paying a $100 in property taxes, you and all your neighborhoods are now paying $200 dollars in property taxes. But, because it is a TIF district, only $100 will go into the budget to support schools. So what happens to the extra $100. Well, it could have gone to help repair the school, but.. The Mayor's friend has a house in your neighborhood. So, the Mayor decided to give the extra $100 from all your neighbors to his friend to fix a vacant house owned by the Mayor's friend. Simply because it is in your TIF district instead of supporting your school. But that's okay you say, because it will improve the neighborhood and it will create a job for the handy man.

Who is the benefactor? Who paid for the project? And was this the best choice in spending your tax dollars?

This is TIF gone wild, no different than the Harrison Q project.

Tax incremental financing

Karen Goldner quote from the journal-gazette on TIF dollars.

While not claiming to be the most ardent supporter of the proposed Harrison Square project, Goldner said she believed it was a responsible development that doesn’t cost the property-tax payers of the city any money. The public-private $125 million proposal calls for a new downtown hotel, new shopping, new condominiums and a new city-owned baseball stadium. Goldner said that while people may be opposed to a new baseball stadium, it will serve as an incentive for other development.


It's obvious it is easy to spell TIF, but harder to understand that does involve property tax dollars. I care if other folks don't understand TIF you can keep on saying it won't cost the property tax payers, instead of explaining how the doggone thing really works.

Tuesday, January 30, 2007

The CRED and TIF -Fort Wayne Newspaper

DID said:

CRED
The Community Revitalization Enhancement District is a specific district that covers portions of downtown within which projects may qualify for up to 25% in state tax credits.

The size of the tax credit any project may qualify for is based upon these four criteria:

Condition and Need of the area is which the project is taking place

Return on investment the state will receive from the project

The extent of financial participation in the project from local government of other economic development entities

Whether the project will happen without state support


Review of the project is conducted by the Indiana Economic Development Corporation. They have recently changed their review policies to reflect the four objectives stated above and prospective investors are encouraged to contact either the DID office or Sharon Feasel with the City of Fort Wayne early in their due diligence phase.

Woodson spending $500,000 in downtown you would think the motorsport would have not only got the funding from the city, but a lot closer to the field of dream (stadium).

Tax Increment Financing

Much of downtown is within a tax increment finance district. Such districts capture the increase in property taxes created when a new investment takes place. The incremental increase in property taxes can be use in either of two ways:


Public improvements such as streetscaping or parking can be funded by the public sector that uses the increment to payback its front end investment.

Tax relief can be provided on the back end by using the increment to abate the increase in taxes caused by the project.


Developers may use either approach or a blend of both approaches to help fill financial gaps that prohibit a project from proceeding but may not use more funding than that resulting from the project.Press release February 2005 Fort Wayne Newspapers to Construct New Press Facility
$35 Million Reinvestment in Downtown Fort Wayne to be Completed in 2007

Fort Wayne’s downtown Community Reinvestment Enhancement District (CRED), property tax abatement, planning assistance and a $60,000 local training grant are among the areas of assistance offered to Fort Wayne Newspapers in exchange for this $35 million reinvestment. While no new jobs are associated with this project, Fort Wayne Newspapers currently employs approximately 470 workers, with as many as 115 dedicated to the press area and related operations.


Reduced taxes, Reduced taxes, talk about not carrying their own weight. How about the little business person getting such sweet deal. What do they care about funding schools when they are trying to keep a presence in the city?

Write a letter to them about their conflict of interest in the success of building a stadium downtown.

110 W. Berry Street
Suite 102
Fort Wayne, IN 46802
For Release: February 2, 2005