County Road Improvement Costs

When a county board receives a proposed TIF plan, the board may require that the TIF authority include county road improvements in the plan, under certain circumstances.

The board may require an authority to pay all or part of the cost of county road improvements from tax increment if:

(1) The proposed plan or an amendment to the plan contemplates construction of a development that will, in the judgment of the county, substantially increase the use of county roads, requiring construction of road improvements or other road costs; and

(2) The road improvements or other road costs are not scheduled for construction within five years under the county capital improvement plan or another formally-adopted county plan and, in the opinion of the county, would not be needed within the reasonably foreseeable future if the proposed TIF plan were not implemented.

If a county elects to use tax increment to finance county road improvements, it must notify the authority and municipality within 45 days after receiving the proposed TIF plan. The notice must include the estimated cost of the road improvements and a schedule for construction and payment of the cost. If the costs exceed the projected amount of the tax increment, the county and the authority must negotiate an agreement before the TIF plan can be approved.

Last referenced October 14, 2022 in the State Auditor's E-Update.