aking Better Use M Of Tax Increment Financing Gary E. Carlson, CED Tax increment financing (TIF isa valuable economic financing too. tis not dependent development ‘on outside funding, itis locally controled, and ts acosteflectve way torecycle older areas andcreat ‘nowones. While most developers have some knowledge of TIF, theroare new iechniques, which have ‘@xpanded the usefulness ofthis economic development instrument. tis hard to find anyone working inthe Economic Development fieldwhohas not heard of or does not have knowl- edge of Tax Increment Financing (TIF), Simply defined, TIF is the future property {ax revenue generated (allocated) from the {increase in taxable value, after an estab- lished date, which is usually the result of new development or redevelopment. TIF has been very successful and useful for a number of reasons particularly since it i fairly simple to explain to city cou legislators, businesses and the general public. ‘While the conceptis simple, making use of TIF is highly technical and requires passing several legal hurdles or limitations depending on the particular state's law. ‘There are many “new” ways TIF has been used to greatly expand the usefulness, application and value of this “tool” for economic development. HISTORICAL PERSPECTIVE ‘TIF has its roots in redevelopment, also referred toas “urbanrenewal,” asaresultof the Federal Housing Act of 1949. The federal goal wasthe elimination of blighted and substandard areas. That goal is sti ‘embodied in the Housing and Community Development Act of 1979 which provides federal funds in the form of community seg tr bee Caisonls Commun Dav proved (Claion unknowe) vision (TCA T3-20-205) or Deseo Vi Cay Ste ‘Nevada (1959) ‘CommunityRedevelopment Texas (1981) ‘Tax Increment Financing lowa. Heis.a! omic ‘Law (NRS 279.382) ‘Actof 1981 (Texas Revised Developer and a member of the cin ism) Roepe Tat Geismar ico! Amerean’ Eoonomic Development ThocpenFiarng (ORC Uuh(s69) —-‘NeghnatooiDelgment Coun, He canbe reached at S157 Soar) Mieiatcanenie — Seneasa ceen(s6ty Tar onomat Peso a Teascirceees hs: —Wicouin i978) Te enent Pacing fees ORS THD. toe ‘Wen Sune 460) 66.46) So. Carolina (1981) ‘TaxlocrementFiaancing for Redevelopment Projects * Volers approved in state-wide referendum 18-10) Economic Devetorwent Review ll Serine, 1992 37Copyright © 2002 EBSCO Publishing