One point that is being overlooked in the ongoing debate about Tax-Increment Socialism, I mean, Financing, I mean Self-Financed Bonds, er. . I mean Amendment One is the potential impact it will have on local school districts.
Should Amendment One pass, the new TIF districts will not pay any new revenue to the locality (city or county) until the bond is paid off. So when the new kids come with their family to your TIF district, how does the county end up funding the local portion of their education?
In Iowa, their leadership was at least sharp enough to realize this and thus reimburse localities about half of the diverted revenue that TIFs create.
And in oft cited South Carolina, TIF districts must still pay the school taxes and thus the “increment” used to finance the bonds is only after school taxes have been paid. Interestingly enough SC also gives manufacturing a 5-yr tax free exemption in their start up time.
North Carolina makes no such distinction in Amendment One.
