Tax Increment Financing (TIF) is a tool of urban renewal that allows an urban renewal authority to leverage future increased sales and property taxes to help finance urban renewal projects. TIF funds can be generated using sales and/or property taxes in the redevelopment area. When an urban renewal plan is adopted, a tax base for that area is established and the existing taxing agencies (counties, metropolitan districts, schools, etc.) continue to receive that tax base during the urban renewal period. As redevelopment happens, any of the incremental taxes collected above that base amount are invested in the redevelopment itself, through infrastructure, environmental remediation, or other amenities for the public good.
Read articles from the Front Porch: