It is a mechanism for financing local economic development project in underdeveloped and blighted areas.
Taxes generated by the increased property values pay for land acquisition or needed public works.
If the municipality must provide public improvements to attract the development , the overlying tax districts that benefit from the resulting increase in the community's tax base should share in the cost of the public improvements. A city or village can designate a specific area within its boundaries as a TIF district and develop a plan to develop it. TIF projects must be approved by the municipality's planning commission and legislative body. At least 50 percent of the TIF district's property area must be blighted, in need of rehabilitation, or suitable as an industrial site. For more information, contact the Area Development Manager in your region, click here.