As Tax Increment Financing Districts Sunset in Iowa City, Questions Abound

Iowa state law requires tax increment financing to sunset after 20 years. Cedar Rapids is in the process of evaluating some of its TIF districts after they expired this summer.

1 minute read

October 3, 2018, 7:00 AM PDT

By James Brasuell @CasualBrasuell


Iowa

barteverett / Shutterstock

B.A. Morelli has produced a couple of tax increment financing-related articles as the city of Cedar Rapids grapples with the consequences of its retiring TIF program.

Since the first wave of special taxing districts in the city expired in June, the Linn County Auditor's Office has discovered $2.7 million in overpayments to the city of Cedar Rapids, reports Morelli. "The accounts date back several years in six urban renewal areas in which TIF — tax increment financing — districts are established, some of which expired June 30." Despite those issues, the city and the county have indicated that they expect to clear up the discrepancy by the end of the year.

The city's TIF districts are expiring because of a state law that limits the duration of TIFs to 20 years. As reported in a separate article, also by Morelli, the state of Iowa leads the nation in the use of TIF.

According to the "Improving Tax Increment Financing for Economic Development" report by University of Illinois Chicago professor David Merriman for the Lincoln Institute of Land Policy, Iowa has 3,340 TIF districts. That's more than twice the number of the next most prolific TIF state, Minnesota.

Sunday, September 30, 2018 in Cedar Rapids Gazette

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

King County Supportive Housing Program Offers Hope for Unhoused Residents

The county is taking a ‘Housing First’ approach that prioritizes getting people into housing, then offering wraparound supportive services.

July 11 - Real Change

Aerial view of suburban housing near Las Vegas, Nevada.

Researchers Use AI to Get Clearer Picture of US Housing

Analysts are using artificial intelligence to supercharge their research by allowing them to comb through data faster. Though these AI tools can be error prone, they save time and housing researchers are optimistic about the future.

July 11 - Shelterforce Magazine

Green bike share bikes parked in a row on a commercial street with outdoor dining and greenery.

Making Shared Micromobility More Inclusive

Cities and shared mobility system operators can do more to include people with disabilities in planning and operations, per a new report.

July 11 - Cities Today