SOUTH BEND, Ind. (AP) — Special tax districts that were created to help redevelop economically depressed areas will expire as soon as 2025, and many Indiana cities are worried about the revenue they’ll lose.
Under current law, districts created before July 1, 1995, never expire. A new law taking effect July 1 requires all legacy TIF districts to expire in 2025, unless they are repaying bonds issued before July 1, 2015.
State Sen. Pete Miller tells the South Bend Tribune that the law is designed to get back to the original purpose of the districts. Lawmakers say many communities have used the districts as slush funds for lavish projects such as a 1,600-seat performing arts center in Carmel.
Leaders in Mishawaka and South Bend say the change will affect how they approach development.