Tax increment financing (TIF) is a tool that local governments can use to publicly finance needed structural improvements and enhanced infrastructure within a reinvestment zone.
A reinvestment zone can be initiated by petition of the affected property owners. A municipality or county can initiate a reinvestment zone without the need for a petition. Restrictions on the creation of a reinvestment zone include:
No more than 10 percent of the property may be used for residential purposes (does not apply if the district is created by a petition of the landowners).
May not contain property that cumulatively would exceed 15 percent of the total appraised property value within the city and its industrial districts.
May not create or change the boundaries of an existing zone if the zone would contain more than 15 percent of the total appraised value or real property taxable by a county or school district.
Learn more about Tax Increment Financing Registry.