Politics & Government
Patch Guide: What's A Tax Incremental Finance District?
What you need to know to understand how municipalities use TIF Districts.
The is looking at expanding the Franksville Industrial Park, but they plan to use a . Here's how they work.
What is a TIF district?
A TIF district is a development tool municipalities can use to attract business. The way it works is that a financing district is created and a base value of that district is established by the taxing jurisdictions. The increased value of the property is still charged at the base rate, but the district uses the increased tax revenue to pay for the infrastructure projects.
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This means those taxing entities (Village, County, Racine Unified and Gateway) still receive the same amount of tax revenue before the district was created, but the increased tax revenue pays for the infrastructure costs over a 20-year period.
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