What is a TIF District?
What is Tax Increment Financing (TIF?)
Tax increment financing is a powerful tool that enables municipalities to self finance their redevelopment programs. It is a local incentive program controlled by the municipality. The increased property tax revenues are the source of TIF increment. These TIF funds are used as incentives to help promote public and private development.
To retain and attract new businesses and manufacturing operations,as well as a highly qualified labor force, Illinois communities must enhance their competitive positions in the marketplace by rebuilding their aging infrastructure and upgrading older commercial centers, industrial propertis and residential neighborhoods. Tax Increment Financing is the only locally controlled economic development tool available to Illinois communities.
The municipality can make improvements as the money becomes available. They can reimburse a private developer for qualified costs that are incurred in the redevelopment of the district, or it can borrow against the future revenues in order to make large scale improvements today.
Municipalities can use tax increment revenues for all of the following:
- Studies, surveys, redevelopment plans, etc;
- Property assembly costs;
- Construction of public works or improvements;
- Financing costs;
- A taxing district capital costs resulting from the redevelopment project;
- Payment in lieu of taxes;
- Job training;
- Up to 30% of interest costs incurred by the developer
TIF redevelopment agreements with the City of Monticello are subject to City Council approval. Redevelopment ideas are encouraged to be discussed with City Staff.