The hidden costs of Tax Increment Financing: Subsidies that drain prosperity
GUEST COLUMN, Vance Ginn, Kansas Policy Institute
Tax Increment Financing (TIF) districts have long been used as a development tool by local governments, including in Kansas, where the Legislature first authorized their use in 1976. TIFs allow cities to designate areas for development, freezing property tax levels in those districts and using the increased tax revenue generated by new development to fund the project. In theory, TIFs are designed to encourage growth in otherwise stagnant areas. While this concept sounds beneficial, a recent audit in Kansas reveals the substantial flaws and opportunity costs of these subsidies.


