Large TIFs may be eligible for one-time extension opportunity

Jeffry Harris
Bricker & Eckler LLP

During fall 2019, the General Assembly changed Ohio law governing tax increment financing (“TIF”) exemptions in a big way.  For certain TIF projects, local communities can extend the exemptions – and therefore continue to redirect property tax millage to necessary public infrastructure improvements – up to 30 additional years.

Long used as a go-to project financing tool by Ohio’s local economic development practitioners, TIF allows communities to offset the costs of needed public infrastructure improvements with service payments in-lieu of taxes.  This most recent change is noteworthy.

The TIF law change – found in new Section 5709.51 of the Ohio Revised Code – allows municipalities, townships, and counties a one-time opportunity to amend their TIF ordinances by extending exemptions for up to another 30 years.

The law change only allows such extensions for large development projects.  Urban redevelopment TIFs and parcel TIFs created by municipalities, townships, and counties, for which service payments in-lieu of taxes were paid in excess of $1.5 million during 2019, may be extended under this change.

If an extension is adopted by the local community, the schools must be “made whole” by compensation payments during the extended term.

The Public Finance team of attorneys at Bricker & Eckler LLP are available to help local economic developers understand whether their TIF projects qualify, and how to employ these extensions of up to 30 years.  We welcome local development practitioners to reach out to our team at Bricker with questions or to obtain more information.

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