Tax Increment Financing (TIF)
In 2021, Salt Lake County engaged a national expert to conduct an impartial analysis of current TIF activities and potential improvements.
What is TIF?
Tax increment financing (TIF) is a public financing tool that local municipalities use to incentivize private development in certain areas within their jurisdiction called “project areas,” which are created through the adoption of an ordinance or resolution by the local governing body or city council.
After a project area is created, the redevelopment agency that created the project area is entitled to receive all or a portion of the tax increment dollars generated from the project area for a specified period of time (usually 15 to 20 years).
Redevelopment projects are commonly used for land purchases, installing infrastructure, financial incentive agreements, property tax rebates, and more.
How Does it Work?
Tax increment dollars are property tax dollars received above and beyond an established baseline level of property taxes—typically, the level of property taxes generated from the project area prior to creation of the project area.
The redevelopment agency can then use the tax increment dollars it collects from the project area to incentivize development within the project area, which typically increases property values and, in turn, the total amount of property tax revenues generated from the project area.
After expiration of the tax increment collection period, the tax increment dollars that previously flowed to the redevelopment agency will flow to the taxing entities that levy the property taxes within the project area.
Contact Jevon Gibb, Salt Lake County Economic Development Director by email at email@example.com