FAQs

With a TIA, each property within an increment area has a "base value" that is fixed at the time the tax increment area is formed. Each local taxing district (city, county, fire district, etc.) continues to receive revenues calculated on this base value.

However, any future increases in the assessed value of the property (the "increment value") are taxed at the levy rates for all taxing districts (with limited exceptions) in the increment area, referred to as the "tax allocation rate." This portion of the property tax is received by the city of Ridgefield to pay for infrastructure improvements.

The property taxes being levied on the current assessed value within the TIA boundary will continue to go to the overlapping taxing districts. In the proposed Ridgefield TIA, some property tax revenue from increases in assessed value after the TIA is established will go to the City to pay for improvements within the TIA boundary (called tax allocation revenues). This tax allocation revenue is from new development in the TIA and increases in assessed value from appreciation of existing properties.

Taxing districts temporarily forego some taxes raised from the increase in assessed value in the TIA, and the dollars are directed toward public infrastructure improvements in the TIA.

This allocation of some property tax revenues from the increased assessed value in the TIA each year will occur until the increment area expires, no more than 25 years after receiving its first increment. Once the TIA has expired, the overlapping taxing districts will receive the full amount of property taxes from the increased assessed value in the increment area.

Proposed TIA Boundary

TIAs receive funding from the property tax revenue generated by the growth in assessed value for properties located in a TIA. The property tax levies that would be impacted by the proposed Ridgefield TIA include:

• Clark County: General and Conservation Futures
• Fort Vancouver Regional Library
• City of Ridgefield
• Clark-Cowlitz Fire and Rescue
• Port of Ridgefield

State and local school levies are excluded and would not be impacted by the proposed TIA (see question below).

The investment starts off small and increases slightly as development occurs in the future, averaging between 2% and 3% of total Fire District property tax revenue over the 25-year period. After the 25 year period has expired, the district will receive the full amount of property taxes from the increased assessed value.

The City has developed a voluntary mitigation plan for the impact on CCFR. Read about this effort.

A TIA adds an additional funding source to complete needed infrastructure projects. These projects will provide the infrastructure needed to enable new development that will provide services and jobs for our community.

The governing body (the City of Ridgefield) adopting the TIA manages the revenues . The City will form a separate fund dedicated to the tax allocation revenues the increment area generates. The City is only allowed to spend the tax allocation revenues on specific projects within the increment area that were identified during the adoption process.

No, a TIA will not negatively impact schools, as both the state and local school levies are exempt by law from being included in this new financing tool. The property taxes from state and local school levies generated from increased assessed value from new development in the TIA will not go to the TIA, but will immediately be allocated to the state school fund and local school district, respectively.  

The TIA is expected to generate substantial positive economic impacts for the regional economy, because the funded improvements will enable new development that will bring new jobs and services to Ridgefield. As part of the preparation of the TIA’s project analysis report, a full economic analysis has been conducted, and the draft report is available here.

The estimates of impacts on a property tax bill were made for a property value of $100,000 as it is easily multiplied to show any property value. For $100,000 of property value, the TIA impact is projected to be a TOTAL of $22 over the 25 years of the TIA.  The impacts start out at 18 cents the first year and grow to $1.44 in 2049 with an average annual impact of less than a dollar. 

According to Redfin statistics, the median sale price of a home in Ridgefield in May of 2023 was $576,0000. On a house with this value, the estimated initial year of impact is one dollar and the TOTAL 25-year impact is $126 with an average annual impact of $5.

The projects being considered for TIA funding are new streets and the construction of a regional stormwater facility at the I-5 interchange. The specific projects being considered are shown below, but are subject to change prior to the adoption of the TIA, depending on final funding forecasts.

Proposed Projects & Project Timing

Proposed Projects Map

The City of Ridgefield is currently evaluating the feasibility of a TIA. Should the Council decide to move forward with adoption, it would be adopted by Fall 2023. The City will be participating in outreach to educate the community about and seek input on the TIA. The City will also be holding two official public briefings as part of the adoption.

The first public briefing was Thursday, July 13 at 5:00PM in the Columbia Assembly Room at the Ridgefield Administrative and Civic Center, 510 Pioneer Street.

The second public briefing will be Thursday, October 26 at 5:30PM in the Columbia Assembly Room at the Ridgefield Administrative and Civic Center, 510 Pioneer Street.