TIF PROCESS EXPLAINED
• What is the Tax Increment Financing process? An economic development area is defined, then an allocation area equal to or less than and within the original space. The base assessed value for property taxes is frozen. As development comes, the increase from the base to the new assessed value is determined. Those extra taxes that are spun off go to pay for infrastructure development in that area for the number of years designated. After the time period for the TIF district expires (25 years or less from the time debt, such as a bond, is issued), the original taxing units receive the additional taxes.