Wichita TIF projects: some background
Tax increment financing disrupts the usual flow of tax dollars, routing funds away from cash-strapped cities, counties, and schools back to the TIF-financed development. TIF creates distortions in the way cities develop, and researchers find that the use of TIF means lower economic growth. The consideration this week by the Wichita City Council of two project plans in tax increment financing districts offers an opportunity to examine the issues surrounding TIF. How TIF works A TIF district is a geographically-defined area. In Kansas, TIF takes two or more steps. The first step is that cities or counties establish the boundaries…