TIF district
Tax Incremental Financing, or TIF, is a municipal financing policy whereby a city authorizes dedicated collections of property taxes, or tax increments, from economic development projects to pay off initial capital investments. City officials create a border around a development project, thereby creating a TIF district for future tax allocation.[1]
Background
Cities throughout the United States have used TIF districts to finance economic development projects since their first use in California in the 1950s. As of December 8, 2015, 48 states and the District of Columbia allowed TIF district creation within their borders. Arizona and Wyoming were the only states that did not allow TIF districts at that time. California suspended or reduced tax collection on existing TIF districts from 2011 to 2014.[2][3][4]
The Wyoming State Legislature considered implementing TIF districts in 2010 with HB0040, but the bill failed to leave the chamber.[5] The Arizona State Legislature approved the repeal of a law allowing TIF districts in 1999.[6]
See also
Footnotes
- ↑ City of Milwaukee, "Tax Incremental Financing-TIF-What is TIF and What is the approval process for TIF projects in the City of Milwaukee?" accessed December 8, 2015
- ↑ Smart Growth America, "Tax-Increment Financing: The Need for Increased Transparency and Accountability in Local Economic Development Subsidies," Fall 2011
- ↑ Tulsa World, "Restaurants, retail and renewal: Some 20 years later, Tax Increment Finance districts sparking redevelopment," March 8, 2015
- ↑ West Virginia Legislature, "House Concurrent Resolution No. 99," accessed December 14, 2015
- ↑ LegiScan, "Legislative Research: WY HB0040," accessed December 14, 2015
- ↑ Payson Roundup, "Tax-Increment Financing Now In The Hands Of Gov. Hull," April 29, 1999