Tax Increment Financing (TIF) is an economic development mechanism available to local governments in Ohio to finance public infrastructure improvements.
Tax revenue generated by undeveloped or underutilized property does not change. It is allocated at the same amount to the same recipients. TIF applies to tax revenue that exists because of new development or redevelopment. TIF is not tax abatement. Payments derived from the increased assessed value of any improvement to real property beyond that amount are directed towards a separate fund to finance the construction of public infrastructure defined within the TIF legislation.
Benefits of TIFs:
- Encourages development and helps finance infrastructure projects and improvements, such as new roads and public works projects
- Communities receive more tax revenue, which increase economic activity and creates a more sustainable business environment for JEDD members and beyond.
- Adds value to new development and redeveloped properties, which then generates additional taxes to support infrastructure and level expenses