City Council voted to approve the creation of Tax Increment Reinvestment Zones (TIRZ) 11 and 12, and the expansion of TIRZ 10A in an effort to encourage new development and investment in specific areas of the community.
As if northwest El Paso wasn’t getting enough new development.
“The development of these TIRZs will help offset tax burden felt by many homeowners in the area. These zones will allow us to finance public improvements that will attract commercial development increasing our sales tax revenue and providing much needed relief to our residential taxpayers,” said Jessica Herrera, City of El Paso Economic and International Development Director.
Now how, exactly will “the development of these TIRZs . . . help offset [the] tax burden felt by many homeowners in the area”? Aren’t the homeowners in that area going to pay the exact same amount in taxes whether there was a TIRZ or not? I mean, the homeowners don’t get a tax refund just because they’re in a TIRZ. The only difference is that the rest of the City picks up the costs of the development and passes it on to the existing taxpayers, and the developers get a kickback from the City to cover some of the costs of developing the infrastructure.
And how about Ms. Herrera’s claim that attracting commercial development will increase sales tax revenue? Do more businesses create more business? Or will El Pasoans’ disposable income just get redistributed to this new, taxpayer-financed, commercial development?
That poor dear. You’d think that the City’s Economic Development Director would have a better understanding of Economics. But maybe that helps explain our city’s lack of significant economic development.