OMAHA- More than a half-billion dollars in property tax collections were directed during the past five years to fund urban redevelopment across Nebraska, marking a “remarkable increase” in tax-increment financing use that has sparked a warning from State Auditor Mike Foley.

In a 26-page advisory letter to Nebraska lawmakers, Foley said that the growing use of the economic development incentive called TIF risks further upward pressure on “skyrocketing” local property taxes. Foley offered examples of how sometimes “loose and inconsistent” interpretations of governing statutes allowed cities “not only to accumulate significant amounts of unwarranted TIF proceeds," but also to engage in activities that pose legal concerns.

While debate over TIF has been long-running, Foley told lawmakers that the statewide review of related spending and statutes was spurred by “several concerns” that had been relayed to his office.

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