The Port of Moses Lake Commissioners officially signed the "Tax Increment Area Resolution" at 10am on Monday, May 13, 2024 at a regularly scheduled Commission Meeting. Adopting the Tax Increment Financing (TIF) assists in funding economic development projects intended to enable new economic growth in our community.

TIF funding is not a new tax. The funding comes from the new property tax revenue generated by the growth in assessed value for properties located in a Tax Increment Area (TIA). Existing property tax revenue continues to be collected by the current taxing districts. Taxing districts temporarily forego some taxes raised from the increase in assessed value in the TIA, and the dollars are invested in public infrastructure improvements in the TIA. The intent of a TIA is to fund public projects that stimulate growth in assessed value that would not occur without those public projects. Thus, a portion of the foregone tax revenue would not exist without the TIA investments. Although this is not a new tax, there is a very small impact on local property tax rates projected. 

Establishing a TIA may result in slight changes to the calculation of existing property tax levy rates, including slight increases for some levies and slight decreases for others. For instance, the increase in taxes on a property valued at $100,000 is estimated to be approximately $1.20 per year. This is anticipated to be partially offset by reductions in school tax rates. A TIF does not negatively impact school funding. Private development anticipated to occur as a result of public improvements within the proposed TIA would generate increased property tax revenues for state school funding and reduce the levy rate for local school levies. 

Port staff have identified a preliminary list of eligible activities that would support continued taxable new development within the proposed TIA within the following broad categories:

• Transportation Improvements
• Wastewater Improvements
• Water Improvements
• Power Improvements
• Life and Safety Improvements
• Land Use - Environmental Improvements 

The total estimated economic impacts (direct, indirect, and induced) from the construction phase are 16,211 Full Time Employment (FTE) positions and $1.03 billion in labor income (2024 dollars). The overall increase in employment in the proposed TIA is estimated to be 15,118 FTE when completed and tenanted.

The Port participated in outreach throughout early 2024 to educate the community and seek input on the TIA. The Port of Moses Lake Tax Increment Area Project Analysis Report provides additional detail on the TIA, and is available here.