| |
No.
TIF is not a tax abatement program. All property owners and business
located in a TIF project area must pay the same amount of taxes that
would have been paid if the area was not a TIF project. The TIF designation
does not reduce the amount of taxes collected, it instead alters the
distribution of the tax revenue stream. The taxes existing prior to
TIF designation continue to flow to the taxing districts that previously
receive those tax dollars. The incremental taxes, the difference between
the amount of taxes paid in a TIF project area in the year prior to
the establishment of the TIF project area and future years, are set
aside in a special allocation fund to either reimburse the developer
for amounts expended to construct certain authorized improvements
or to make periodic payments to retire the TIF bonds issued to pay
for those improvements. |
