TID FAQ's

TIF Informational Video
TIF's Explained Video

What is a TID district?
TID: Tax Incremental District. This is the land area associated with development and redevelopment projects.

What is a TIF?
TIF: Tax Incremental Financing. This is how a municipality funds improvements and redevelopment projects. This tax money can only be used within the TID.

How does a TID work?
The TID gets to use is the extra tax money from the new, higher assessed value to afford improvements (roads, sewer, streets, etc.) made to the property. For example, if a $100,000 property goes through a TID and becomes worth $1 million, the taxing entity would be paid as if it was still valued at $100,000.

What can TIF money be used for?
TIF bonds have been used to fund land acquisition, sewer and water upgrades, environmental remediation, construction of parks, and road construction, among others. Over the past several decades in the United States, two project variations of TIF have evolved: bond financing and pay as you go.

What is pay as you go TIF?
In Pay-As-You-Go TIF (or Pay-Go TIF), the developer pays for upfront development cost and is reimbursed for TIF-eligible costs twice annually as the increment becomes available (when the tax base increases).