When I wrote my article on how TIF would affect you, I was using information supplied by consultants pushing the TIF usage, interpretations from legal counsel, interpretations from entities using the TIF, and our own interpretation of how TIF would work.  

The Department of Revenue has a different interpretation of how TIF monies are collected.  Under their interpretation the TIF bill does not appear to have as great an effect on fire districts.  I would try to explain how they have directed to collect and distribute monies from TIF but I can not do that without just causing more confusion.  

Effectively, your county assessor does a collection that adds previous new constructions to present new construction.  They then do a calculation that effectively allows a fire district (or another affected district) to go above the 101% limitation without a vote of the public.  When this is done, they make a subtraction that removes some of the new construction for the following year.  

Without a few years of using the Department of Revenue’s method, we cannot be sure of the effect or lack of effect on fire districts. What if does do is have the entire district pay for the TIF established in a specific area.  

AS an example, the City of Ridgefield and the Port of Ridgefield (both within our fire district boundaries) have established a TIA (Tax Implement Area) per the TIF legislation.  By using the Department of Revenue’s method, our district is able to raise our tax rate slightly above the 101% limitation.  Effectively everyone in our district now sees a slight increase in fire department tax collections with the money going to the port and city in the above TIA’s.  

This has a greater effect if you look at our multi county library district. Now tax payers in several counties are paying slightly higher taxes to support the TIA’s in the city and port.  

I believe this method of bypassing the 101% citizen voted limit is simply a way to get around this limit.