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 (except any debt service, school PPEL, and school ISL) levied by the taxing authorities (counties, cities, schools, etc.) against the increased property values in the designated area are remitted to the taxing authority that created the TIF in the amount necessary to repay debt incurred to finance improvements made until the TIF ends. Once the TIF ends, property taxes are apportioned among all taxing authorities.
|Program Area|| |
Tax Increment Financing, Property Taxes