This policy limits approved millage or tax rate increases to only new or add-on construction within a geographically defined service area. The concept is designed to place the burden for approving such a tax increase solely upon those businesses or property owners sitused within the TIF geographic boundaries. Imposition of TIF is typically done through referendum.MSBU or Municipal Service Benefit Unit
This form of revenue enhancement is done as a special fee levy against properties identified as being direct beneficiaries of services to be provided and paid by the MSBU levy. MSBU’s are not millage based nor are they determined by a property’s value.MSTU or Municipal Service Tax Unit
In concept, it is identical to the MSBU except that the dollars raised are done through the application of a millage or tax rate multiplied against the value of a property.Sale of Delinquent Taxes
The sale of delinquent tax bills to private third party investors as a mechanism for recouping sorely needed revenues is a longstanding practice within the United States.
An unpaid tax bill is considered an account receivable until the debt is satisfied and the delinquency has been monetized. This monetization of tax debt is accomplished on a large scale through the administration of auctions governed by state statutes.
The methodologies in use for orchestrating these tax lien sales are many and varied but generally fall into one of the following formats.
The goal with such incentive programs is to expand the long term tax base for a community by attracting new businesses to the area complete with new employees and their families. Very often these deferral or abatement contracts will include a mandate that a specific percentage of new hires come from the existing populace. The solutions listed are but a few of the tools at hand for developing, maintaining, and increasing the cash flow critical to quality of life issues for towns, cities, and counties across America. The local government tax management group at DRECS has been assisting local governments with the development and implementation of responsible property tax management solutions since 1978.