According to taxfoundation.org, Alabama's property taxes are the lowest in the nation. These low property taxes make it difficult for ideas like Tax Increment Financing (TIF) to be successful. TIF allows any increase in property taxes in a certain district to be reinvested in that district. The idea behind TIF is to encourage development in a particular district by rewarding them for improvements that raise property value (leading to more property taxes). The problem in Alabama is that since property taxes are low, even doubling or tripling the property values does not result in much money to put back into the district.
But, I guess it is not a good time for more taxes. Or, maybe it is.
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