tax increment financing

Definition

Financing procedure utilized by many local governments for redevelopment and improvement projects on existing structures. The cost of the improvements is assessed to future tax revenues by each taxing unit that levies taxes against the property. The taxing unit at the local level is responsible for determining how much of the increase in property tax due to the improvements will be used to repay the construction costs. The property that is seeking to use tax increment financing must be located with the city's jurisdiction.

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You may need to figure out if you will have to do tax increment financing and find a way to adapt with it.

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The tax increment financing was used to improve the community so it was an altruistic enterprise or event to be occurring.

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The town decided to increase taxes in accordance with their policy of utilizing tax increment financing for projects and development.

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