Q: What is the TIF program?
- It’s a program (a tool really) that municipalities to use to help areas that are slow to develop (or re-develop).
- A community is allowed to adopt ordinances that describe a specific (redevelopment) area that needs help.
- The areas eligible for TIF funding are shown in the maps in this section
Q: How is the TIF program funded?
- For a period of 23 years all new real estate tax dollars generated from increases in property values within the redevelopment area (the increment) are put in to a “special tax allocation fund”.
- Then, TIF fund dollars can be used for statutorily authorized expenditures within the redevelopment area.
- The TIF fund is not an additional tax, just a separated portion of the total property tax paid.
Q: What are the uses for TIF funds?
Statutorily authorized uses for tax increment funds include improvements as parking lots, utilities, streets, sidewalks, building demolition and/or rehabilitation, site preparation, job training, interest write-downs, or land assemblage.
