How is Tax Increment Calculated?
When a TIF district is created, the county certifies both the original tax capacity and the original local tax rate. The original tax capacity is considered the “base” value and the property taxes generated from the “base” value are distributed to the appropriate taxing jurisdictions. As the development occurs, the increase in the tax capacity is captured. This is referred to as the captured tax capacity. As of the 2001, the city and county portion of the property taxes generated from the captured tax capacity are paid to the TIF authority to be used for qualified TIF expenditures. Below is a brief illustration on how tax increment is calculatedAdditional information may be obtained by clicking here.
