Tax Increment Financing

• 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.
• Under a TIF, the property owner pays taxes on the full value of the property, and the taxing entities pay into the TIF Fund the taxes attributed to the added value of the land due to the new development.
• TIF Bonds may be issued for a maximum of 20 years and may be used to pay for public improvements associated with a development (ie. parking, infrastructure, land acquisition, utilities, etc).
• A TIF Reinvestment Zone must meet set criteria for designation, including substandard or blighted conditions, open area due to obsolete platting or deterioration, or by petition of 50% of property owners in the district.
• The municipality establishes the TIF Reinvestment Zone and other taxing entities approve agreements to participate in the TIF District and set forth the percentage of tax increment they are willing to dedicate to the TIF Fund, up to a maximum of 100%.
• A TIF Board, consisting of 9 to 15 members, is established with representatives from the participating taxing entities and other representatives as set forth in the TIF statute.
• Tarrant County TIF District projects include the Downtown Euless TIF District, the Grapevine Mills TIF District, the Southlake TIF District and the Downtown Fort Worth TIF District. Other TIF Districts under consideration include the Fort Worth South TIF District.