A blogger at CoastalAlabama.tv explains Daphne’s involvement in the financing of an Eastern Shore shopping center, saying:
The issue is really does it put the city at financial risk should the municipal bond payments not be made by the district.
The development increases its taxes on users/customers to met the bond debt.
Eastern Shore Shopping Centers Financing Explained
There seems to be enough development on the Eastern Shore without the city needing to take any risk at all. There certainly shouldn’t be any increase in taxes for this. However, if the tax is only on users/customers then those who don’t want to pay this extra tax can just avoid patronizing these businesses, right?
1 comment so far ↓
That is corret, the taxes are increased only inside the Special Business District. That is why it is called tax incremental financing, it is an incremental increase in sales tax to cover the additional financed money.
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