Lawmakers in Idaho have proposed a bill that seeks to limit urban renewal district abuses.
"The House Revenue and Taxation Committee voted today to introduce draft legislation that would prevent urban renewal districts from gerrymandering. The proposed legislation would prevent "shoestring" additions to urban renewal districts, said Rep. Phil Hart, R-Athol."
"A shoestring addition refers to an urban renewal district that expands its borders to pick up new areas that may not be blighted at all, often down major arterials, to collect the tax increment from big new developments."
"When urban renewal districts are formed, the property taxes the city and county receive within the district's boundaries are capped at that year's level. But property values in the district continue to grow. The property tax cities and counties collect on growth within the district is the tax increment, which goes to the urban renewal district."
FULL STORY: Legislation aims to curb urban renewal abuses
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