Correction of TIF Errors

The TIF Act allows a county auditor to correct errors or mistakes that result in improper decertification of a district, failure to certify a district, incorrect certification of a district, or failure to correctly compute the amount of increment.

After notifying the authority and municipality in writing at least 30 days before taking any action, the county auditor may correct an error by taking one or more of the following actions:

1. Certify the original tax capacity of affected parcels at the appropriate value for a later taxes-payable year and extend the duration of the district, in whole or in part, to compensate;

2. Recertify the affected parcels and extend duration of the district, in whole or in part, to compensate;

3. Recertify or correct the original tax capacity rate for the district;

4. Adjust the tax rates of one or more of the taxing districts imposing taxes in the TIF districts for one or more years to recoup amounts advanced by the county or other entity to the authority to replace the reduced increments; or

5. Take other appropriate action so that the amount of increment compensates for or offsets the error or mistake and correctly reflects application of the law.

Please note that these corrective processes only apply to situations arising from errors or mistakes, not changes in circumstances or decisions. County Auditors must notify the Commissioner of Revenue and the State Auditor of any corrections made. Documentation may be sent to our office by mail, fax or email.

For more information regarding correction of TIF errors, please see our Statement of Position entitled Correction of TIF Errors.

Last referenced March 19, 2021 in the State Auditor's E-Update