Tuesday, November 4, 2008

Court says taxpayers can sue to stop TIF abuse

A new Illinois appellate court case gives ordinary citizen taxpayers the right to sue to stop abusive TIF practices by a municipality.  

In Malec v. City of Belleville, the City of Belleville passed an ordinance to enter into a TIF agreement to develop vacant property that it said was "blighted."  Steven Malec, a citizen and taxpayer, sued to declare the city's TIF ordinance invalid because the area was not in fact "blighted" as required by the TIF law.

The city moved to dismiss Malec's claim, trotting out the familiar but untrue argument that TIF does not raise taxes because TIF funds would not exist but for the creation of the TIF.  Thus, according the the city, the general funds of the city were not impacted, taxpayers were not affected, and Malec had no standing to sue.  The local trial court agreed with the city and dismissed Malec's suit.

The appellate court reversed the trial court and reinstated Malec's lawsuit.  The appellate court rejected the city's argument, finding that  TIF does impact taxes and general revenues.  Accordingly, taxpayers are permitted to sue to stop cities from violating the TIF law, even if they don't live in the TIF district.

Finally, a court sees through the patently false (but often repeated) assertion that TIF does not raise taxes.  


6 comments:

Anonymous said...

Is the fix in for the TIF extension? I hear on the radio that mayor and school district(s) are working something out. Does this mean that I, living outside city limits, should get the K-Y out again?

Anonymous said...

skeptical morris is still alive.

Anonymous said...

What do you think about the city going forward with building their new taj mahal? Don't you think in times as bad as these the building should be put on hold. Does the city realize there is a plant that is closing and 190 people are losing their job????

Anonymous said...

Brian Fenney is the alderman that came up with financing the Taj Mahal using TIF dollars.

His committee is also responsible for the mayor’s 22% pay raise this year alone.

This will be the first time i will not be voting for Brian.

Anonymous said...

Hey sledge, have you heard anything around town about the MDH taking a page out Smurfit's business play book?

Anonymous said...

C'mon Sledge - What about the city's purchase of the paper mill property? Brian's stunt before the election...perfect timing...