The adoption and effects of different types of tax increment financing.

摘要

This study investigates the adoption and effects of different types of tax increment financing (TIF). TIF is classified into several categories based on the existence of development agreements and its purpose.;The results show that TIF with big projects, such as shopping malls and industrial parks, tended to be established in areas with advantaged economic conditions, lower population density, and lower percentages of renter-occupied houses. In contrast, TIF districts with other types of projects, such as affordable houses and neighborhood improvement fund (NIF), were adopted in areas with disadvantaged economic conditions, smaller white population, and more renters.;The results also show that TIF districts with proximity to the central business district, higher vacancy rates, newer structures, and lower population density have higher growth rates of the property tax base. In addition, the first big project increases the property tax base by about 23 percent during the third year after the big project is implemented. However, it has no long-term effect on the property tax base. The first housing project, such as affordable houses and mixed-use community development, not only significantly increases the property tax base by 26 percent during the third year, but also increases future property tax base growth rates by about 10 percent after the fourth year. The first other types of project, mainly comprised of NIF and small business improvement fund, has no significant effect on the property tax base.;Lastly, the results from the propensity score matching show that all types of TIF has no impact on individual housing value, although TIF with other types of projects seems to have more positive but insignificant effects on housing value.;The results of this study suggest that it is important to specify the goal of each TIF before adoption because the goal of TIF determines the projects implemented in the district, the location, and possible effects of TIF. The contribution of different types of TIF to the development in districts is not the same. In addition, it is important for a TIF district to acquire at least one big development project in order to make TIF financially sustainable.