Reporting "Non-TIF" Bonds

The Debt Tab of the Annual Reporting Form allows development authorities to report “non-TIF bonds.” This debt type (type “D”) should be selected in column B of the debt table when applicable. When selected, the form will require slightly different data entry. Please see the detailed Annual Reporting Form instructions for further details.

A "non-TIF bond" is one not secured by a pledge of increment from any TIF district. A development authority must be able to establish that the use of tax increment to pay debt service on a non-TIF bond is legally authorized. One example of permissible tax increment usage for a non-TIF bond has been in housing districts, where increment has been used to pay debt service on improvement bonds backed by special assessments, averting the need for the special assessments and making the units affordable.

Development authorities should take note that non-TIF bonds are not obligations of a TIF district in the same manner as a TIF bond to which tax increment is pledged for the bond’s payment.

Last referenced May 21, 2021 in the State Auditor's E-Update