Committee probes tax abatements, TIFs and auditor calculations to prevent 'ghost' revenue

A sustained portion of the meeting focused on tax abatements and how they are treated in levy calculations. Representative Keith Lee explained the concern: when abatements (including TIFs) are not reported or properly calculated by the auditor's office, the taxing jurisdiction's levy can be set as if the abated revenue still existed, creating what one member called "ghost money." Representative Keith Lee said the bill's language is intended to require abatements to be calculated out of the total revenue so that the rest of the jurisdiction's taxpayers do not make up the difference.

Why it matters: if abatements are not subtracted from baseline revenue calculations, taxing jurisdictions can appear to have more revenue than they actually receive, potentially increasing levies or shifting burdens to other taxpayers. The committee discussed TIFs, Chapter 100 abatements and other incentive structures.

Points of disagreement: some members argued abatements are local decisions tied to redevelopment goals and voter intent; others said auditors already try to treat abatements fairly and the statute should reflect that practice. Representative Boiko asked whether a later local decision (for a TIF) should override the voters' earlier decision to set a baseline levy. Representative Keith Lee said the auditor's office needs statutory clarity and that the bill aims to prevent shifting abatement costs to other taxpayers.

Follow-up: members asked staff to tighten language to ensure the measure applies to the entities that adopt abatements and to seek clearer definitions so school, fire or ambulance districts inadvertently affected can be identified. No formal action was taken; the committee requested drafting refinements.