What about schools?

School districts are not directly affected by TIF. Under Oregon's school funding law, the Oregon Department of Education combines property tax revenues with State School Fund revenues to achieve per-student funding targets. Under this system, property taxes foregone due to the use of tax increment financing are replaced with State School Fund revenues, as determined by the state funding formula. While TIF statewide has an impact on the amount of funding in the State School Fund, the legislature can re-allocate other funding sources to the State School Fund.

In theory, a successful urban renewal area will result in more income taxes resulting from job creation and increased property taxes than might have occurred without urban renewal, resulting in more net tax dollars for school funding in the long term.

Show All Answers

1. How is an Urban Renewal Plan financed?
2. How does Tax Increment Financing work?
3. What is Maximum Indebtedness?
4. When does it make sense to use urban renewal?
5. What can urban renewal pay for and what can it not pay for?
6. Does urban renewal increase property taxes?
7. How does “Tax Increment Financing” affect overlapping taxing districts?
8. What about schools?
9. How is an urban renewal area created?
10. What are the steps to amend a TIF area/plan?
11. What types of projects are typically completed?
12. How has urban renewal been used in Oregon City?
13. What are the benefits of TIF?
14. Why was the Urban Renewal Plan amended?
15. How long does an urban renewal plan last?
16. What are some examples of how urban renewal has been used elsewhere in Oregon?
17. What About the Downtown / North End District?
18. What do I do if I have more questions?