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Tax Increment Financing
What is a Tax Increment Financing Zone? |
It's a financial tool used by cities, in accordance with state statutes, to implement a redevelopment within a designated area - the reinvestment zone. Essentially, it is a way of turning a portion of the taxes collected from an area of the city back into that area for improvements. A reinvestment zone is a contiguous geographic area within a city which is designated for redevelopment by the governing body via ordinance. Tax increment financing doesn't produce a tax break for property owners within the zone nor does it freeze tax rates or tax values. The property owners will continue to be taxed, and their taxes will continue to be appropriately increased as improvements are made. The only difference in that all tax revenue above the base value is designated for development projects in the reinvestment zone. |