Bill to raise TIF cap for Class 2 municipalities debated; no final vote recorded

Summary

Lawmakers discussed House PO 567, sponsored by Reverend Wilcox, which would raise the allowable total value for tax increment financing districts in Class 2 municipalities from 10% to 50% of taxable real property; discussion included existing TIFs in Mobile and uses for TIF funds, but no final vote was recorded in the transcript.

House members discussed House PO 567, sponsored by Reverend Wilcox, a bill that would permit Class 2 municipalities to allocate up to 50% of a city’s taxable real property value to tax increment financing (TIF) districts, matching a cap already allowed for Class 3 municipalities.

Reverend Wilcox, sponsor of House PO 567, told the committee, “Under existing law, county municipalities may create a tax increment districts,” and said the bill would allow Class 2 cities the same 50% cap that Class 3 cities have. He said that “right now, it’s only 10% for class 2 cities,” and that raising the cap would “give us some more room to do a few more TIFs.”

The bill drew questions from several representatives about how TIFs operate and where they currently exist in Mobile. Representative Clark asked whether Mobile already has TIFs and was told there are two: one “downtown on Broad…

Bill to raise TIF cap for Class 2 municipalities debated; no final vote recorded

Summary

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