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Tax Increment Financing and the Great Recession

Author

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  • Richard F. Dye
  • David F. Merriman
  • Katherine Goulde

Abstract

The Great Recession was accompanied by a large decline in real estate values. Tax increment fnancing (TIF) allocates future property tax growth to promote local real estate development and is thus particularly vulnerable to real estate market shocks. Data on the growth of TIF increments before, during, and after the recession is examined for Illinois and Nebraska. In both states there was rapid growth in TIF increments before the onset of the recession. There was a large decline post-onset that is very apparent in Illinois, but not as sharp or obvious in Nebraska.

Suggested Citation

  • Richard F. Dye & David F. Merriman & Katherine Goulde, 2014. "Tax Increment Financing and the Great Recession," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(3), pages 697-718, September.
    • Handle: RePEc:ntj:journl:v:67:y:2014:i:3:p:697-718
    DOI: 10.17310/ntj.2014.3.08
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    References listed on IDEAS

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    1. Robert T. Greenbaum & Jim Landers, 2014. "The Tiff Over TIF: A Review of the Literature Examining the Effectiveness of the Tax Increment Financing," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(3), pages 655-674, September.
    2. Byron F. Lutz, 2008. "The connection between house price appreciation and property tax revenues," Finance and Economics Discussion Series 2008-48, Board of Governors of the Federal Reserve System (U.S.).
    3. Lutz, Byron F., 2008. "The Connection Between House Price Appreciation and Property Tax Revenues," National Tax Journal, National Tax Association;National Tax Journal, vol. 61(3), pages 555-572, September.
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    Cited by:

    1. Yadavalli, Anita & Delgado, Michael, 2018. "Tax Increment Financing and Spatial Spillovers," 2018 Annual Meeting, August 5-7, Washington, D.C. 274490, Agricultural and Applied Economics Association.

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