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Description: Tax Increment Financing, or TIF, is a geographically targeted economic development tool. It captures the increase in property taxes, and sometimes other taxes, resulting from new development, and diverts that revenue to subsidize that development. That diversion means local public services do not get the new revenue they would normally get from new re/development.Authorized under Chapter 311 of the Texas Tax Code, TIF legislation allows political subdivisions to create TIF Zones in order to use the increased tax value of land from a proposed development toward financing of the public improvements in the reinvestment zone.TIF Districts assist in financing development of unimproved or blighted land by dedicating the real estate property taxes to be generated by the built project to a TIF Fund for payment of the principal and interest on TIF Bonds.In Texas it can be referred to as Tax Increment Redevelopment Zones, or TIRZs.https://www.tarrantcountytx.gov/en/administration/staff/economic-development/tax-increment-financing-districts--tifs.htmlUpdated: April 29, 2024

Copyright Text: Tarrant County Administration

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