Baker Tilly previews June 15 TIF pass-through decision; warns of state law changes

Emma Adlam of Baker Tilly gave a preparatory briefing on the annual pass-through determination the commission must make by June 15. Adlam outlined the process: the commission must decide its pass-through level, sign pass-through letters, mail them to overlapping taxing units and post them on the DLGF gateway, and warned that missing the deadline would trigger an automatic 5% pass-through by the county auditor.

Adlam reviewed the commission's 2024 phase-out strategy and its four pillars, noting the intent to incrementally release assessed value so the expiration of large TIF areas (for example Six Points or Ronald Reagan) does not cause abrupt tax-rate shifts. She said updated TIF estimates using pay 26 data have been prepared and staff will provide a formal recommendation at the next meeting.

Adlam also summarized the principal impacts of Senate Enrolled Act 1: apartment and senior-living property deductions will increase (she said a 6% automatic deduction applies this year, rising to 33.4% by 2031) and recent homestead deduction changes will reduce captured value in the Vandalia TIF area. She said the commission should weigh how much assessed value to release versus anticipated projects coming through the pipeline.

Members asked when materials would be provided; Adlam said staff expects to deliver information about a week before the next meeting so commissioners can review in advance.

No formal pass-through determination was made at the May 4 meeting; staff and Baker Tilly will return with a recommendation.