Consultant to look into tax district revenues for county

Bartholomew County officials want to make sure that local governments are getting the money they are due from special taxing districts around the community.

The tax increment financing districts are a redevelopment tool that allows a community like Columbus to designate certain areas for development. When a TIF district is approved, the existing property tax revenue to the county, schools, library, township or other taxing units are supposed to be frozen, while the redevelopment commission will skim off the increasing tax revenue to be used to pay for improvements in the TIF district.

However through quirks in the funding formula, tax experts have found that in some communities that base amount paid to all the other government bodies are eroding. Which would mean less money, for example, going to schools, or county services.

Columbus has four TIF districts including the largest, the Central TIF which stretches from the U.S. 31 at Washington Street, through the downtown and all the way to Walesboro. Projects funded at least in part by TIF dollars have included The Commons, Fourth Street improvements, State Street improvements and downtown parking garages.

County Auditor Pia O’Connor asked the county commissioners yesterday to approve an annual “TIF neutralization” contract for up to $2,400 dollars with a consultant who will look over the tax revenues to see if that tax base has been eroding in the community TIF districts. She said the contractor, SEH of Indiana will crunch the numbers to makes sure everything is working the way it should.

County Commissioners approved the contract.