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What is Tax Increment Financing (TIF) and how does it work?

April 26, 2017financing Increment tax TIF

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What is Tax Increment Financing (TIF) and how does it work?

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Tax increment financing (“TIF”) allows communities to create special districts in which a percentage of future gains in tax revenues helps finance development projects within the district. The Arena TIF District is a 6-square-mile district around the Arena site. The Arena will share the incremental state property and sales taxes generated within that district with the state. The TIF District also includes state income taxes generated from salaries and wages paid to employees within the Arena complex itself. From now until 2010, the Arena project is expected to generate an additional $6.8 million (approximate) in sales, income and state property taxes, with increases annually thereafter. This income will be used solely for debt service on the Arena bonds.