Iowa lawmakers study tax increment financing rules

News

January 17th, 2012 by Ric Hanson

DES MOINES, Iowa (AP) — Lawmakers in tax committees are considering changing an economic development tool that some say puts an unfair burden on property taxpayers and can be misused. Members of the Senate Ways and Means Committee heard a presentation Tuesday on tax increment financing, a system in which cities and counties can pay for infrastructure work in specified areas by dedicating future tax revenue to those projects. Some lawmakers say the practice, put in place in 1969, has been crucial to redeveloping urban areas. But others say the tool is being misused. One proposal would limit the manner and duration of the practice, as well as strengthen reporting requirements.