Planning includes setting goals and priorities, collaborating with neighborhood communities and the private sector, and streamlining regulations. These areas are selected by the individual communities, and must meet one of four statutory criteria for designation.
Prospective candidates submit an application to the community project liaison for consideration.
In year one, the tax is zero percent of the existing and new assessed value of the real estate. The Special Tax Assessment is for a period of no less than five and no more than twenty years. The TIF Plan, completed by the municipality, describes proposed public and private investment in the TIF Zone, and is agreed upon by the municipality and all the private owners in the TIF Zone. The municipality and the prospective Certified Project candidate agree to a property tax exemption based on a percentage of the value added through new construction or significant improvement for a period of no less than five and no more than twenty years. The real estate taxes generated by the new increased assessed value, is then allocated by the percentage to one or more of three categories.