What is tax increment financing or TIF?
Tax Increment Financing (TIF) is a financing mechanism for Urban Renewal. It involves freezing the tax base (property values) within a designated area. Property taxes levied against the frozen tax base continues to provide revenue to all taxing authorities (counties, cities, schools, etc.). Property taxes levied against the increased property values in the designated area provide revenue to the taxing authority that created the TIF to finance improvements made until the TIF ends. Once the TIF ends, property taxes are apportioned among all taxing authorities.
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Tax Increment Financing, Property Taxes