Portland tax increases are on the rise and city administrators aren’t dealing with it. Instead of adopting spending cuts to match projected revenue, they are hatching a scheme to remove valuable properties in Portland from the state valuation formulas by adding them to TIF (tax increment financing) districts, the Portland Press Herald reported Sept. 18. This is not a solution for taxpayers!

TIFs were originally a tool to finance improvements to blighted areas in municipalities throughout the U.S. The program added value through infrastructure improvements to make the properties attractive for economic development, which, in turn, attracted businesses, helped create jobs and enhanced the tax base, adding new tax revenue. Everybody in those municipalities benefited and essential services were maintained.

Portland’s most current audited financial document is the 2017 Comprehensive Annual Financial Report, and it’s accessible on the city’s website. Page 72 details TIF information as of June 30, 2017. The page lists tax revenue purposely not available to lower your property taxes. It amounted to $2.1 million, of which over $1 million was paid back as credit enhancements to the likes of Avesta, Pierce Atwood LLP, Power Pay and, eventually, Thompson’s Point transit-oriented development. This is corporate welfare and benefits a few at the expense of Portland taxpayers.

We are well into fiscal year 2019 and taxpayers are seeing their new tax bills, realizing how much a 3.8 percent property tax increase has added to last year’s tax bill. Many will see increased mortgage payments to cover the additional taxes.

For a better understanding about TIF realities, read Cindi Ross Scoppe’s July 30, 2016, column in The State newspaper, describing TIF fiascos in Columbia, South Carolina. Also available are columns by Orlando Delogu, a former Portland city councilor. Then please email or call your city councilor explaining your own conclusions about TIFs.

Stephen Kirby

Portland

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