Cleveland Mayor Justin Bibb has a sweeping proposal to dramatically expand Cleveland’s use of special tax districts beyond downtown and into long-struggling east side neighborhoods.
It’s a policy debate that’s equal parts hopeful and potentially alarming — and Today in Ohio hosts argued both positions Thursday.
A tax-increment financing works like this: existing property taxes continue flowing normally to schools, libraries, MetroHealth, Children and Family Services, and other agencies. But when new development raises property values, the additional tax revenue generated by that growth gets diverted into a city-controlled fund rather than entering the normal tax pool. The city then uses that money to fund infrastructure and development projects meant to attract even more private investment…