Agreed TIF 'pass-through' nearly $160 million in Gibson County

The board agreed to “pass through” nearly $160 million of the assessed valuation of that TIF district created around the Toyota property, and capture slightly less than $425 million of the district’s AV.

Toyota pays property taxes based on the assessed valuation, and the TIF district captures a percentage of the taxes to make payments on bonds that financed some of the expansion and infrastructure for the company.

The redevelopment commission typically captures about 125 percent of the amount needed to pay the bonds each year, leaving some revenue for other qualifying projects.  

Redevelopment commission attorney Jim McDonald said the captured amount will be the same in 2017 as the past several years, but the assessed value has grown so the pass-through is up $11 million from last year.

The pass-through assessed valuation creates a larger tax base within Patoka Township in 2017 —which in theory, means  the net tax rate could be lower for people who own property in Patoka Township. 

The Montgomery Township/Gibson County Coal South Mine TIF district, created to fund infrastructure work for the new mine in 2014, will not pass through additional assessed valuation.