Testing the Effects of Tax Increment Financing in Springfield, Illinois : The Assessor's Role in Determining Policy Outcomes

In 1981, Springfield, Illinois, implemented a tax increment financing (TIF) plan to stem the decline of the downtown business area. Local officials claim this TIF district has been extremely successful, based on an increase of $11.8 million in aggregated assessed values from 1981 through 1987. However, this study finds the data inadequate for such claims and, based on an assessment-sales price ratio study of 1985-87 figures, argues that local assessors are doing poorly in estimating the market values of parcels located within the TIF district. The policy implications of these findings are discussed, including suggestions on how to improve data collection procedures for TIP districts in Illinois