What does TIF mean?
TIF stands for Tax Increment Financing. Under Indiana law, an area can be designated by a Town or County to be a TIF area. This causes all new taxes paid from TIF’d areas (commercial or industrial) to go to retiring the debt that town or county government or utilities incur to facilitate the building of commercial or industrial properties. The assessed valuation (AV) increases of TIF’d land that result from the new commercial or industrial development does not result in additional tax levy for schools, and so, does not lower the tax rate for residential property owners.
