Tallmadge council approves service fees in lieu of taxes
Future homeowners of the new Tallmadge Reserve development will pay service fees instead of property taxes in order to fund East Avenue improvements between the Tallmadge Recreation Center and the Brimfield line.
Tallmadge City Council unanimously approved the tax increment financing incentive district, or TIF, during Dec. 10 meeting.
"We have received inquiries from residents to help understand it. There are interested people looking to build in that area, so I think it's going to be a very effective tool for us to use to get that roadwork completed," Tallmadge Finance Director Mollie Gilbride said.
New homeowners would initially pay regular property taxes and would transition to paying service fees instead starting in tax year 2024.
Service fees in lieu of taxes would continue until the revenues pay off an estimated $3.2 million in improvements, including a new traffic light, the widening of East Avenue and the addition of sidewalks.
The TIF legislation states that it would last for 30 years, but Gilbride estimates the projects could be paid off in 10 years — at which point the TIF would end.
The TIF will not affect school district revenues.