February 21, 2025 Local Stories in and Around St. Joseph, Illinois

How does a TIF work?

How does TIF work?
A geographic area is designated as a TIF district. 




Property owners in the district pay the same property taxes as those outside the district. 

The difference in tax collections is put into a special fund. 

The fund is used to pay for project costs. 

Once the TIF expires the additional tax revenue is shared by all taxing entities. 


Why is TIF used?
TIF is used to encourage developers to build new buildings. 





TIF is used to pay for public improvements like streets, sidewalks, and sewer and water. 

TIF is used to promote redevelopment of older parts of a community. 

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