Tax Increment Financing Districts

Tax Increment Financing (TIF) Districts are special areas designated by local governments to stimulate economic development. When a TIF district is created, the current property tax revenue is frozen for existing properties. As development occurs and property values increase, the additional tax revenue— the "increment"— is used to fund public improvements like infrastructure, parks, or roads within the district. This reinvestment aims to attract more businesses and residents, ultimately benefiting the community. TIF helps revitalize areas without raising taxes upfront, as the funding comes from the increased property values generated by the development.