TIF Districts

A Tax Increment Financing (TIF) district is a designated area where local governments encourage economic development by investing in improvements like infrastructure or facilities. When a TIF district is created, the property's assessed value may be relatively low. As development occurs and properties increase in value, the additional property tax revenue—called the "tax increment"—is used to fund projects within the district, rather than going to general city funds. This mechanism helps stimulate growth and revitalization without immediately raising taxes for existing residents or businesses.