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Tax
increment financing (TIF) is an economic development tool authorized
by Missouri statutes at 99.800 R.S.Mo. It allows cities and counties
to encourage development in areas of the community that would not
otherwise develop or redevelop "but for" TIF financial assistance
some type of financial assistance. The financial assistance under
TIF is the ability to use a portion of the new property taxes, sales,
earnings and other locally collected taxes resulting from the new
development to pay for certain authorized improvements. Existing taxes
are not impacted. Because of the Federal government's policy shift
in the 1980's, funding for the redevelopment costs is no longer available
from the Federal government except for those cities which already
experience severely distressed conditions. TIF is now one of the few
sources of redevelopment financing assistance available to local governments.
The creation, approval and implementation of redevelopment plans and
projects are entirely under local control and local responsibility. |
