TIF Application Form

TIF Application Form

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Tax Increment Financing is a development tool designed to help finance certain eligible improvements to property in designated redevelopment areas (TIF districts) by utilizing the new, or incremental, tax revenues generated by the project after completion. Under TIF, property taxes within the TIF District are frozen for up to 23 years, the property owners then make Payments In Lieu of Taxes (PILOTS) to a "special allocation fund". Additionally, 50% of any new local Economic Activity Taxes (EATS), i.e. local sales taxes, earnings taxes, utility taxes, generated from the project are also paid to the fund while the District is in effect. The proceeds of the fund are then used to reimburse the developer for eligible project costs or to retire indebtedness incurred to cover those costs. Eligible project costs are the total of all reasonable or necessary costs incurred, or estimated to be incurred and any costs incidental to a redevelopment plan or project. Specifically, these costs include, but are not limited to:

• Costs of studies, surveys and plans
• Professional service costs (architectural, engineering, legal, financial, etc.)
• Property assembly costs (acquisition, demolition, clearing and grading)
• Costs of rehabilitating, reconstructing, remodeling of existing structures
• Costs of construction of public works
• Financing costs, including issuance interest and reserves.

In addition to the PILOTS and local EATS, TIF plans adopted after January 1, 1998 and located in an Enterprise Zone, Federal Empowerment Zone, or the Central Business District, can also use 50% of the "New State Revenues" generated from the project. The New State Revenues are the incremental increase in either state sales taxes resulting from the project or state income taxes withheld on behalf of the new employees in the district.