Local Tax Increment Financing

What is Local Tax Increment Financing?

In 2021, the Washington State Legislature passed Engrossed Substitute House Bill 1189 (ESHB1189) that allows counties, cities, towns and port districts to establish Local Tax Increment Financing (LTIF) areas to fund certain public improvements. This financing option provides sponsoring jurisdictions (county, city, town, port or any combination thereof) the authority to apportion funds from certain taxing districts regular property tax levies depending on the boundaries of the tax increment area. The property tax revenues apportioned by the tax increment area are used to finance specified infrastructure projects designed to promote economic development.

Active Tax Increment Areas

Starting in 2026, tax statements include a message notifying tax payers that their property is included in a LTIF area. Below is a listing of active LTIFs in Clark County. Questions about the LTIF or LTIF financed projects should be directed to the district(s) linked below.

Port of Vancouver

Terminal 1

22 Properties
Approved in 2021, base year 2021/2022
Apportionment began in the 2024 tax year

LTIF map — Click the image above to see a live map via our GIS site

City of Ridgefield

Pioneer Street along I-5 corridor

154 properties
Approved in 2024, base year 2023/2024
Apportionment begins in the 2025 tax year

Port of Ridgefield

Waterfront & Southern Business Park

544 properties
Approved in 2024, base year 2023/2024
Apportionment begins in the 2025 tax year

Administration of Tax Increment Financing

Per state statute, the Assessor's & Treasurer's Offices are tasked with administering Tax Increment Financing. See information about each Office's role below:

Assessor's Role

The Assessors Office role in local tax increment financing is to set up and administer the LTIF after the sponsoring jurisdiction approves their ordinance. This includes verifying the list of properties included in the LTIF and their geographical boundary along with determining the base year and assessed value of the base year which is limited to $200,000,000 or 20% of the districts total assessed value, setting up any tax code area changes or other tasks as determined by each Counties Computer-Assisted Mass Appraisal (CAMA) system. After the initial set up, the Assessors Office values all properties in the LTIF area along with administering all impacted levies to make sure they are levied correctly per Department of Revenue's guidance.

Treasurer's Role

The Treasurer's Office verifies levy amounts and apportions the funds collected from the Originating Districts to the Sponsoring LTIF Districts. This includes providing reports to Originating and Sponsoring LTIF Districts on revenues diverted and apportioned to each taxing district.

LTIF FAQs

There will be a banner on your account on the Property Information Center and beginning in 2026, there will be a message on your tax statement.

A Sponsoring jurisdiction must approve an ordinance to implement a tax increment area within its boundaries and complete a project analysis.

Each jurisdiction may approve up to two (2) tax increment areas.

A tax increment area may not exceed $200,000,000 in assessed value for either one or two combined increment areas.

Local tax increment financing is not a new tax. Tax increment financing allows sponsoring jurisdictions to collect a portion of funds that would otherwise have been levied and distributed to the originating taxing district.

State and local school levies as well as voter approved Port or Utility district debt service levies are not subject to Local Tax Increment Financing and apportionment.

Local taxing districts may receive less property tax revenues based upon the increment assessed value growth of properties within an approved Tax Increment Area.

If an increment area impacts at least 20% of the assessed value of a fire district or regional fire protection authority (RFA), the local government must negotiate a mitigation plan with the fire district or RFA.

There are currently three (3) active LTIFs in Clark County, they are as follows: