Tax increment financing
Tax increment financing uses the growth in property taxes from new development to pay for public improvements or incentives in that area.
Also called TIF, TIRZ, tax allocation district, or urban renewal area.
What it tells you
A new TIF district or agreement shows where a city is paying to make development happen, often downtown or in an industrial park. The agreement usually names the developer and what they must build.
How it moves through a city or county
- The city studies the area, often finding it blighted or underused, and drafts a plan.
- Other taxing bodies, like the county and school district, may get a say.
- The council holds a hearing and adopts the district and plan.
- Projects then sign agreements to be repaid from the increment.
Names, blight tests, and how long districts last differ by state: TIRZ in Texas, urban renewal in Oregon and Iowa, tax allocation districts in Georgia.
Recent tax increment filings
From public filings in Maine, Nebraska, and Utah.
| Project | Location | Developer | Type | Size | Stage | Latest meeting |
|---|---|---|---|---|---|---|
| 475-Unit Mixed-Use Transit-Oriented Development | South Salt Lake, UT | SSL Market Center QOZB, LLC | Affordable (LIHTC) housing | 475 units | Approved | |
| 233-Unit Apartment Development | Omaha, NE | L1 VS, LLC | Apartments | 233 apartments | Seeking approval | |
| 30-Unit Senior Affordable Housing Development | Fairfield, ME | Fairfield School Associates, LP | Multifamily | 30 units1.42 acres | Seeking approval |
As of How we count
Common questions
- Does tax increment financing raise taxes?
- Tax increment financing doesn't raise tax rates by itself. It sends the growth in tax revenue from the district to the TIF fund, instead of the general budgets of the city, county, or schools, for a set time.
- What is a TIF reimbursement agreement?
- A TIF reimbursement agreement is a contract in which the developer pays for public improvements, like roads or utilities, and is repaid over time from the district's tax increment. It usually names the project and what must be built.
Related terms
Rules vary by state, county, and city. These pages describe common practice, not legal advice.
See tax increment deals near you.
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