Overview TIF Pass Throughs

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Description

NOTE: This task may not apply to your jurisdiction.

Levy calculates county-wide, TAG, and TA level aggregate value types necessary for computing TAG allocation factors and debt rates.  Calculations include:

  1. TIF (RDA) Base Assessed Value (rdaBAV) - The sum of the assessed values established for the TIF in it's base year.

  2. TIF (RDA) Value Increment (rdaVI)- The difference between CYAV and RDABAV

  3. TIF (RDA) Tax Increment (rdaTI) - 1% of the RDAVI.  

The time the RDA was formulated determines the pass through logic and calculations that apply to the RDA. Prior to the implementation of AB1290, effective January 1, 1994, taxing jurisdictions within an RDA /TIF could either negotiate a pass through rate with the RDA or elect to receive their share of the annual increment on real property growth, up to 2% or whatever the inflationary growth limit for the year was. RDA/TIF projects implemented after AB1290 went into effect or modified after 1/1/94 receive a mandatory share amount that changes over the life of the RDA/TIF project, administered through tiers, and these projects require further annual calculations to determine the allocation factors for each taxing jurisdiction within the RDA/TIF.  In Aumentum, these TIFs are denoted by the presence of the Base Year Type, AB1290.  

NOTE: Some TIFs may be pure AB1290, whereas TIFs that predate AB1290’s passage but have been modified, could potentially have both pre and post AB1290 pass-through calculations, and amounts that apply to them are managed in the Aumentum Set TIF Participation Rates screen. Some RDA/TIF’s are also subject to H&S Code 33676, a mandatory up-to-2% pass through back to the County and to schools.

If the TIF uses the formation year of the TIF as the starting point for both the County and school calculations, then only the base year type, H&S 33676 is displayed in the Base Year Type grid of the Set TIF Participation Rates screen. However, if the school calculation is based on the year of the decision, an additional base year type, H&S 33676 - School Override displays in the grid.  

The base value types that are set up in the Maintain TIF District Details screen determine which calculations are required for each RDA/TIF. Aumentum Levy calculates the following:

  • Base values when not present for each TIF

  • Value increments for each TIF

  • Tax increments for each TIF.

Aumentum Levy also:

  1. Counts and stores the years of positive increment from the AB1290 Tier 1 base (AB1290 only).

  2. Compounds inflationary value from base. (H&S §33676 only).

  3. Computes the difference from the trended base back to the original base. (H&S §33676 only).

  4. Outputs the above values for the County to continue work off-line.

Steps