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    Guide To Tax Increment Agency Dist Summ

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    Valerie F. Leonard
    The document provides a guide to understanding the Cook County Clerk's annual Tax Increment Agency Distribution Summary report. It explains that the report details how much money is distributed to TIF district funds from property taxes. Entries for many TIF districts consist of multiple lines due to how the Clerk calculates tax rates using over 2,500 tax codes. Each tax code covering part of a TIF district appears on its own line with corresponding information. The report is missing a column for "Incremental Valuation" between two other columns, which would make the figures easier to understand.

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    Guide To Tax Increment Agency Dist Summ

    Uploaded by

    Valerie F. Leonard
    23 views1 page
    The document provides a guide to understanding the Cook County Clerk's annual Tax Increment Agency Distribution Summary report. It explains that the report details how much money is distributed to TIF district funds from property taxes. Entries for many TIF districts consist of multiple lines due to how the Clerk calculates tax rates using over 2,500 tax codes. Each tax code covering part of a TIF district appears on its own line with corresponding information. The report is missing a column for "Incremental Valuation" between two other columns, which would make the figures easier to understand.

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    Guide to Tax Increment Agency Dist Summ[1]

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    The document provides a guide to understanding the Cook County Clerk's annual Tax Increment Agency Distribution Summary report. It explains that the report details how much money is distributed to TIF district funds from property taxes. Entries for many TIF districts consist of multiple lines due to how the Clerk calculates tax rates using over 2,500 tax codes. Each tax code covering part of a TIF district appears on its own line with corresponding information. The report is missing a column for "Incremental Valuation" between two other columns, which would make the figures easier to understand.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    23 views1 page

    Guide To Tax Increment Agency Dist Summ

    Uploaded by

    Valerie F. Leonard
    The document provides a guide to understanding the Cook County Clerk's annual Tax Increment Agency Distribution Summary report. It explains that the report details how much money is distributed to TIF district funds from property taxes. Entries for many TIF districts consist of multiple lines due to how the Clerk calculates tax rates using over 2,500 tax codes. Each tax code covering part of a TIF district appears on its own line with corresponding information. The report is missing a column for "Incremental Valuation" between two other columns, which would make the figures easier to understand.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    A Guide to the Cook County Clerk’s Tax Increment Agency Distribution Summary

    The County Clerk’s annual “Tax Increment Agency Distribution Summary” details how much money
    is distributed to TIF district funds from property taxes. (Note: In the Summary,
    “Agency” always means “TIF district,” not any other taxing agencies.) Confusingly, however, the
    entries for many TIF districts consist of multiple lines and amounts.

    This is due to the way the Clerk calculates tax rates in Cook County, using approximately 2,500 tax
    codes, each representing a different geographical area covered by a unique combination of taxing
    bodies, and, therefore, tax rates. (Calculating tax rates this way is far simpler than doing so on a
    parcel-level basis, given that there are over 1 million parcels in Cook County.)

    For example, the entry for the Wilson Yard TIF is composed of two lines—most likely, there is a
    Special Service Area that covers part of the TIF district, but not the rest, and so these two parts of
    the TIF district have different composite tax rates. The Clerk’s office must take the various tax rates
    into account when calculating the property tax revenue each TIF district will receive.

    Each tax code covering part of a TIF district appears on its own line, along with the corresponding
    tax rate and the property value/property tax information for the geographical area covered by that
    tax code.

    The four right-most columns display information related to property value and property taxes
    distributed. Curiously, however, a fifth piece of information is left off the report.

    • Equalized Valuation represents the current equalized assessed value (EAV) for the
    properties within the TIF district.
    • Frozen Valuation represents EAV at the time the TIF was created; sometimes this is called
    the “base.”
    • The missing column should probably appear between Frozen Valuation and Agency Tax
    Amount. What’s absent is “Incremental Valuation”—the amount by which property values
    have increased since the base was frozen. By subtracting the Frozen Valuation from the
    Equalized, one can easily determine the incremental property value, but given that the final
    two columns derive from this figure, its absence could confuse a reader trying to make
    sense of the report’s figures..
    • Agency Tax Amount is equal to the missing incremental property value multiplied by the
    tax rate for the given tax code. This is how much the TIF district fund receives in property
    tax revenue.
    • Agency Distribution Percent is equal to the missing incremental property value divided
    by the Equalized Valuation. It represents the percentage of every property tax dollar
    collected within each tax code in each TIF district that funds the TIF. The remainder is
    divided among the normal taxing bodies.

    The last line of each entry totals the Equalized Valuation, Frozen Valuation, and Agency Tax
    Amounts for the TIF as a whole, but Agency Distribution Percent is not and must be calculated from
    the total valuation amounts.

    —Jason Liechty, March 2009

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