Tax Increment Financing (TIF)

Tax Increment Financing (TIF)

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.

  1. TIF can be used to enhance infrastructures within certain areas
  2. Improvements are typically used to promote viability of existing business and to attract new commercial enterprise
  3. Costs are repaid by the contributions of future tax revenues, and taxing units that levies taxes against the property
  4. 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.
  5. TIF may be used on a private development for certain specific improvements on particular pieces of a project.

Interesting links below:

http://www.dallas-ecodev.org/wp-content/uploads/2012/04/FarmersMarket_marketing.pdf

http://www.dallasnews.com/business/commercial-real-estate/headlines/20120813-developers-get-loan-to-resume-lake-highlands-town-center-project.ece

http://www.dallas-ecodev.org/wp-content/uploads/2012/04/southwestern_marketing.pdf

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