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.