Expanding a tax-increment financing district and including a company’s recent building projects in the area to be taxed shouldn’t be stopped for the sake of a school district’s debt, an attorney representing the Greenwood mayor said.
Greenwood plans to expand its eastside tax-increment financing district, which currently surrounds Interstate 65 exits at Main Street and County Line Road, to include more of downtown and the southern side of the city. The current TIF district earns about $6 million per year.
TIF districts collect property taxes on new development in a designated area, to be spent on redevelopment projects such as street widening and other infrastructure work. Schools, the library and other property-tax funded entities do not collect property taxes on the new development as they would if the TIF district didn’t exist.