Tax Increment Financing

Tax Increment Financing

Tax Increment Financing (TIF) is a mechanism employed by local governments to facilitate community development and enhancement. Through the establishment of TIF districts, municipalities and counties can allocate incremental tax revenue toward necessary public infrastructure improvements. This approach offers incentives for attracting new businesses, housing developments, or supporting the growth of existing enterprises, without drawing from general funds.

A TIF district refers to a specifically defined geographic area designated by either a municipality or county for the targeted development. The tax increment represents the difference between property tax revenue generated prior to the creation of the district and the revenue generated subsequently. Properties within a TIF district are assessed and taxed in accordance with standard procedures applicable to all properties. The increment is used to finance the public improvement.

Below are useful resources pertaining to Tax Increment Financing: