Tax Increment Financing (TIF)
Lake Highlands Town Center
Basically TIF says revenue goes through a general fund, yet any increase goes into a separate account. This extra money can be used for public improvements that are not related to any private projects. It is a tool local governments use to publicly finance needed structural improvements.
- TIF can be used to enhance infrastructures within certain areas
- Improvements are typically used to promote viability of existing business and to attract new commercial enterprise
- Costs are repaid by the contributions of future tax revenues, and taxing units that levies taxes against the property
- Each tax unit can decide to use all, a portion, or none of the tax revenue that is attributed to the increase in property values, due to the improvements within the reinvestment zone.
- TIF may be used on a private development for certain specific improvements on particular pieces of a project.
Interesting links below: