Revenue for tax incremental financing districts was a mixed bag last year in the south and southwest suburbs, with some record gains in tax revenue and other losses, according to a report by Cook County Clerk Karen Yarbrough.
The report, released last week, is based on 2021 property tax levies, with calculations of taxes anticipated to be collected in 2022.
Two districts in Blue Island expected to collect TIF revenue of $3.1 million in 2022, up from $2.9 million in 2021, according to the clerk’s report.
Three TIF districts in Calumet City had $3.9 million in taxes collected in 2021, but that dropped to $2.3 million in taxes expected to be collected in 2022, according to the report.
in Chicago Heightsfive TIF districts recorded tax collections of $3.3 million in 2022, down from $4.8 million the prior year, according to the report.
Two TIF districts in Country Club Hills showed no tax revenue collected in 2021, but that shot up to nearly $13 million in anticipated 2022 collections, according to the clerk.
One of the TIF districts includes warehouses constructed on the east side of Interstate 57 near 183rd Street.
Dolton’s three TIF districts recorded $1.7 million collected in 2021, with that figure inching up to $1.8 million for 2022, according to the clerk’s report.
The eight TIF districts in Glenwood saw a slight drop in revenue, with $3.4 million expected to be realized last year compared to $3.5 million in 2021, according to the report.
Harvey saw a drop in TIF revenue among its six TIF districts, although one, near the city’s Metra Electric Line station at Park Avenue and 154th Street, was established in 2021 and had yet to be included. That TIF was created to spur transit-oriented development, including housing and commercial space, near the commuter rail station.
For 2021, taxes collected among the then-existing five TIF districts was $3.2 million, but that was anticipated to be $2.5 million in 2022, according to the clerk’s report.
in Homewooda new TIF district was established for an area around Kedzie Avenue and 183rd Street, bringing to seven the total TIF districts in that village.
Revenues from the new TIFs were not reflected on the clerk’s report, but revenue from the six existing TIFs was expected to inch up to $1.4 million in 2022, compared with $1.3 million for the prior year.
Five TIF districts in Lansing were expected to bring in $7.5 million last year, down from $7.8 million collected in 2021, according to the clerk’s report.
Lynwood’s two TIF districts were anticipated to bring in $400,000 in 2022, up slightly from the $381,000 raised in 2021, according to the report.
Five TIF districts in Markham were expected to collect $4.2 million last year, down from $4.9 million in 2021, according to the report. One TIF that brought in nearly $650,000 in 2021 was canceled that year by the city and showed no collection for 2022.
Matteson has seven TIFs, with one established in 2021 covering portions of the community around the intersection of Harlem Avenue and US 30.
Property tax revenue from the new district won’t show up until property tax receipts for 2023 are received, but the clerk’s report showed taxes collected from the six existing TIFs fell to $3.5 million in 2022 compared with $7.1 million the prior year.
A TIF district taking in commercial property around the intersection of US 30 and Cicero Avenue showed 2021 collections of $2.4 million, but that shrank to $3,361 last year, according to the report. That TIF district is separate from one that takes in the former Lincoln Mall property southeast of the intersection.
Tax revenue from six TIF districts in Oak Forest was essentially flat year over year, at $1.6 million, although Oak Lawn saw taxes collected from its six TIFs drop to $3.5 million last year from $4.6 million the prior year, according to the report.
The clerk’s report showed that revenue from a TIF district around Oak Lawn’s 95th Street Metra station dropped to just under $1 million last year from $2.5 million the prior year.
Revenue from Orland Park’s single TIF, covering the downtown Main Street Triangle area, was essentially flat year over year at $1.3 million, according to the clerk’s report. The area is northwest of La Grange Road and 143rd Street and takes in a vacant village-owned land that Orland Park hopes to see developed.
Richton Park’s two TIF districts were expected to record tax revenue last year of $4.1 million compared with $4.2 million the prior year, and the eight TIFs in South Holland were expected to take in $3.2 million last year compared with $4 million the prior year, according to the report .
Tinley Park’s five TIF districts were expected to see property tax revenue last year, based on 2021 levies, of $3.2 million compared to $3.4 million the previous year, according to the report.
With tax levies established one year for collection the following year, actual collections can vary, with factors such as increasing or decreasing in property values and property tax appeals affecting the final total.
Increases and decreases in TIF revenues don’t necessarily translate into a particular community having more cash to spend on municipal services, with that TIF money earmarked for defined uses as outlined by state statute.
TIF districts are used by communities to spark economic development in what are deemed blighted areas, with increased tax revenues within the districts being used to help finance costs such as property acquisition and demolition of buildings, as well as public improvements such as utilities.
When a TIF is established, the value of land and buildings in the district is set at a base level for property tax purposes, with incremental increases in property tax revenue due to development or other factors set aside in a special fund and not available for a community’s general spending.
Apart from the community that establishes the TIF, other taxing bodies, such as school districts, don’t see that increased revenue until after the TIF expires. TIF districts typically have a life span of 23 years, but they can be ended earlier than that or extended.
A community has to get other taxing bodies to agree to create a TIF, pointing out that they will be in line for higher tax revenue down the road once development within the district raises property values.