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Urban renewal is funded by Tax Increment Financing. It works like this:
When an urban renewal area is created, the County Assessor establishes the current assessed value of all property within the area. The Assessor “freezes” that tax base.
For the duration of the urban renewal area, the taxing districts receive revenue from that frozen base.
When the value of the properties increases, the income above the base (the “increment”) goes to the Urban Renewal Agency. This money is then spent on projects in the urban renewal area.
When the urban renewal area ends, the taxing districts receive the taxes on the full assessed value of the area.
Local taxing districts that accept a frozen tax base during the life of the urban renewal. They do this to encourage development. The development will increase property values, and increase future tax income for the districts.
The taxing districts directly impacted are the City of Grants Pass, Josephine County, and the 4H Extension. These districts accept income from a frozen tax base for the life of the urban renewal but do not receive taxes from increases in the assessed value.
Schools within the urban renewal area are not directly impacted. They are funded through the State School Fund. Property tax revenues are an offset under the statewide school funding formula. Property tax revenues foregone by school districts in the urban renewal area may be replaced with other State School Fund revenues.
No. This is not a new property tax. Tax bills for property within the urban renewal area do not increase because of urban renewal.
Urban renewal changes how the tax revenue is distributed. Property taxes will not increase due to urban renewal within the area.
The money to pay for projects is generated by the new development and property appreciation in the urban renewal area.
Yes. If you own property in Grants Pass, urban renewal will be listed as a line item on your tax bill
This line item lists the amount of income the Urban Renewal district receives from the property within your tax district.