Tax Increment Financing for Businesses
Tax increment financing (TIF) diverts a portion of business taxes to help finance development in an area or project site. TIF typically helps to pay for infrastructure improvements near a new development.
Helping You Understand Tif Funds
Core Bank’s team of friendly professionals is committed to helping you understand tax increment financing and providing the guidance your business needs to utilize TIF funds.
How Tax Increment Financing Works
If you own a business located in a TIF district and the area redevelops, the property values rise. Rather than collecting the increased taxes from TIF district properties, the city splits the property tax revenues into two streams.
The first stream is tax revenue set at the original amount of the property value before redevelopment, known as the “base rate.” This stream continues to go where it did before, which is typically a city’s general fund that pays for local services such as police and fire departments.
The second stream contains the additional tax money generated by the higher property value, or the “tax increment.” This stream is kept separate and used to pay for the redevelopment.
TIFs are typically targeted at areas with declining property values, new public improvements, and developer subsidies to help attract new businesses.
Tax Increment Financing FAQs
How does a TIF district work?
A TIF district works to reallocate funds from property taxes to encourage investment and property development within the district.
How long does a TIF district last?
TIF districts typically last 23 years. In some cases, the State Legislature may extend this time to cover the taxes levied.
Find a Core Bank Near You
Core Bank proudly offers personal and business banking solutions made for you. With banking centers in Omaha, Overland Park, and Mesa, we’re here to help you borrow and save confidently. Discover your nearest Core Bank today!
Contact Core Bank
Get in touch with our team to learn more about tax increment financing and how we can help you! We’re here to answer your questions.
Latest From the Blog
Michael James Joins Core Bank at Granite Falls Location
Core Bank is proud to add Michael James to the mortgage lending team! With 30 years of banking experience, Michael has cultivated a passion for helping individuals and families turn their homeownership dreams into reality.
ACH Quarterly Business Newsletter: Payments Edition
Embedded payments are a powerful way to simplify payment processing, improve cash flow and elevate your customer experience. Here’s why they could be a smart addition to your business. Read more in the Payments Edition of the Quarterly Business Newsletter.