BEATRICE – An Omaha lawmaker wants voters to consider a constitutional amendment that would expand the use of tax increment financing for up to twenty years, in areas considered “extremely blighted”.
Senator Justin Wayne’s proposed amendment was debated Monday morning, on the floor of the Legislature.
Current law allows payback of tax increment financing bonds for blighted areas, up to fifteen years.
:13 “extremely blighted areas”
Some senators question the use…and what some see as abuse of tax increment financing….at a time when property taxes are a key concern. Senator Steve Erdman, of Bayard acknowledges the need to have tax increment financing available.
:17 “economic development”
Tax increment financing involves using the difference in taxes paid on undeveloped property and the final developed property, to pay for infrastructure.
Senator Tom Briese, of Albion says the problem with it sometimes comes from whether the development would have occurred, without the use of TIF.
:35 “that “but for”, test”
Senator Mark Kolterman, of Seward says his district has made use of tax increment financing in the past.
:18 “old dilapidated housing”
Debate ended at the noon hour Monday, with an amendment pending and no vote on advancement.
Last year, Nebraska lawmakers approved a bill aimed at tightening the use of tax increment financing, which added requirements for local governments making use of the economic development tool.