Tag: Revenue Cap

THE 82 SQUARE MILES OF TIRZS SPONGING UP SOME OF THAT REVENUE CAP SPILLOVER A couple of state senators are mulling over potential reform options for Houston’s ballooning tax increment reinvestment zones, which have more than tripled in area in the past decade according to Mike Morris and Rebecca Elliot’s article in Friday’s Chronicle (which includes a peek-a-boo-style before-and-after slider map for reference).  The zones, shown here on the city’s own map, collected around $109 million dollars of woulda-been property tax money this year for use on development projects inside their boundaries, which (in theory) are supposed to encompass blighted areas in need of an additional redevelopment boost.  Morris and Elliot also point out, however, that much of the tax money being collected by TIRZs would be lost altogether if the zones were disbanded at the moment, as the sudden influx would pass Houston’s revenue cap (which limits the amount of cash the city is allowed to collect each year to what was collected in the previous year, scaled up by 4.5% or by inflation and population increases, whichever is less). They also mention that Mayor Turner is pushing for a new vote on the revenue cap in 2017; Turner tells the duo that the city council has stuck with the TIRZ system to make up for some of the potential funds lost by the revenue cap, but notes that “you can only do that for so long without hurting the city as a whole.” [Houston Chronicle; previously on Swamplot] Map of Tax Increment Reinvestment Zones: City of Houston