Do Tax Increment Finance Districts Stimulate Growth in Real Estate Values?
Posted: 31 Aug 2010 Last revised: 15 Sep 2011
There are 2 versions of this paper
Do Tax Increment Finance Districts Stimulate Growth in Real Estate Values?
Date Written: August 30, 2010
Abstract
We use data on all Wisconsin municipalities during the period 1990 to 2003 to study the effect of tax increment finance (TIF) on economic development. We use appropriate statistical techniques to measure the impact of TIF and control variables on aggregate property values. We also examine the possibility communities that use TIF are self-selected. We find little evidence that TIF has led to significant increases in aggregate property values or that TIF increases the total value of residential and manufacturing property within a community. Surprisingly, we find positive impacts for commercial TIF districts.
Keywords: tax increment finance, economic development, property tax
JEL Classification: R00, R12, R28
Suggested Citation: Suggested Citation