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January - 2010 Edition: Some information may be out of date.

Finance Investment 101—Tax Increment Financing (TIF)

Continuing our series of short, layman’s explanations of financing investments the City makes on behalf of the greater community, here’s a simple definition of TIF.

The City has used TIF to assist projects such as North College Marketplace, Union Place, Kaufman Robinson facility expansion and the soon-to-be-built permanent building for entrepreneurs, the Rocky Mountain Innovation Initiative. Amaze your friends at parties with this short explanation!

TIF is calculated based on the level of property tax and/or sales tax collected before redevelopment compared to the estimated, post-development new tax revenues. The difference between the base and the increased taxes collected as a result of the redevelopment project is the tax increment. It can be used to either pay off bonds issued to help pay for the project or to reimburse developers for a portion of their costs. The base is adjusted every two years in connection with the property tax reassessment process.

For more information on TIF, visit www.renewfortcollins.com.