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.