FUNDING RAIL TRANSIT THROUGH TAX INCREMENT FINANCING

Tax increment financing can supplement traditional funding sources to expand the typically-available local funding opportunities for fixed guideway transit capital projects. This paper presents a recently developed methodology for calculating tax increment financing revenue resulting from a potential fixed guideway transit investment. This methodology accounts for three components of property value increases to generate a more accurate estimation of tax increment financing revenues. The methodology applies recent research on the impact of new rail investment on property values to the financial planning of a fixed guideway project. The results are based on actual station area property data on the assessed value of land in a given region to generate an estimate of property value increases. Using various schedules of regional rail development and accounting for local constraints on annual property tax collection increases, various estimates of revenue cash flows have been generated based on different rail development scenarios.

• Corporate Authors:

  American Public Transportation Association

  1201 New York Avenue, NW
  Washington, DC    20005
• Authors:
  • Schneck, D
  • Diaz, R
• Conference:
  • 1999 Commuter Rail/Rapid Transit Conference, Proceedings
  • Location: Toronto, Canada
  • Date: 1999-5-22 to 1999-5-27
• Publication Date: 1999

Language

• English

Media Info

• Features: Figures; References; Tables;
• Pagination: p. 78-87

Subject/Index Terms

• TRT Terms: Accessibility; Financial responsibility; Guideways; Investments; Land use; Property values; Rail transit; Revenues; Sustainable development; Taxation
• Uncontrolled Terms: Fixed guideway transit
• Subject Areas: Finance; Law; Public Transportation; Terminals and Facilities;

Filing Info

• Accession Number: 00766371
• Record Type: Publication
• Files: TRIS
• Created Date: Jul 12 1999 12:00AM