What is tax increment?
The funding mechanism created by state law to finance redevelopment activities. The amount of tax increment allocated to the agency is equal to the difference between property taxes in a given year and property taxes generated in the “base year” in which the redevelopment plan was adopted, allowing for the maximum 2 percent annual increase, less any mandated “pass-through” to other taxing entities. The CRA has no taxing authority, but receives its tax increment from the County. Redevelopment generates new investment within a project area, which results in new development. Thus, new development generates new tax revenue that CRA, in turn, plows back into the community to help underwrite the cost of redevelopment and public improvements. Commercial development creates jobs and economic opportunities in the community. Public improvements upgrade the infrastructure- streets, sidewalks, street lighting, etc. to serve development. CRA also uses tax increment to subsidize low-cost housing. In
