You might here the acronym TIF around town, but you might not know what it is and how is it being used to create some amazing projects in Carmel & Fishers. Below is an overview of TIF and how our communities use it to create some incredible placemaking amenities we use throughout the community.
Tax Increment Financing (TIF) is a tool that local governments use to finance community development projects by earmarking the increased property tax revenues generated by a project to pay off the financing. TIF allows local governments to finance new development projects without relying on traditional tax revenue sources. It is a powerful tool for economic development that can have a positive impact on a community in many ways.
One of the most significant benefits of TIF is that it can help spur economic growth in a community. When a new development project is financed using TIF, it creates new jobs and increases the value of the property. This, in turn, generates new tax revenues for the local government. This cycle of development and increased tax revenue can help revitalize a struggling community and make it more attractive to investors.
TIF can also be used to fund infrastructure improvements that benefit the entire community. For example, a TIF district could be used to finance the construction of a new public park, street improvements, or a new library. By using TIF to fund these types of projects, the burden of paying for them is spread out over time and is shared by all property owners in the district, not just the ones who directly benefit from the project.
In addition to funding economic development and infrastructure improvements, TIF can also be used to help address blight in a community. By targeting specific areas for redevelopment and offering incentives to developers, TIF can help attract investment to neighborhoods that have been neglected or have fallen into disrepair. This can lead to the renovation of existing buildings, the construction of new ones, and an overall improvement in the quality of life for residents.
In conclusion, Tax Increment Financing is a powerful tool that local governments can use to finance community development projects. TIF can spur economic growth, fund infrastructure improvements, address blight, and support affordable housing. When done the right way TIF can be used to promote sustainable, equitable growth and improve the quality of life for residents in a community.
Below is a 4 Part series provided by Henry Mestetsky, Director of the Carmel Redevelopment. He gives some insight on how Carmel uses TIF in their community.
Part 1: Building a Better City
Part 2: Carmel’s Tax Increment Finance Strategy
Part 3: How Has TIF Been Successful?
Part 4: How Does TIF Impact Schools in Carmel?