JOHN E. SETTLE Jr.
Editor
Focus SB News
Tax incentive financing (TIF) is a public financing method that is used as a subsidy for redevelopment, infrastructure and other community-improvement projects.
Through the use of TIF, a governmental entity typically diverts future property tax increases from a defined area toward an economic development project.
In most instances, TIF subsidies are not appropriated directly from a government entity budget, but that entity incurs loss through foregone tax revenue.
Shreveport’s Red River District, located under the Texas Street Bridge, is a TIF. This area has struggled for many years. The additional tax revenue has been used to spruce up the area and to maintain the area.
Another local TIF is Mall St. Vincent. An additional 1% sales tax is levied to pay the mall owners for $16 million of improvements. The TIF district does not include Dillard’s or the Sears buildings.
Currently, a major investment is planned for a Hosston travel plaza on a six-acre tract at the intersection of Highway 2 and I-49. The Caddo Commission is expected to approve this tract for a TIF in the very near future to provide additional economic assistance to the developer. In this instance, parish taxes will be abated on the value of the improvements once the construction is complete.
Much like fire districts, a TIF is a political subdivision of the parish. The TIF districts are drawn in areas where there are no residents and, thus, no citizen approval is required. Thus, the government entity makes the TIF authorizations.
The Caddo Economic Development Committee expressed interest in having all the vacant I-49 vacant interchanges in north Caddo designated as TIF areas to further spur economic development. The Commission may also look to south Caddo as well.