TIF Map

BLIGHTED AREA

"Blighted area" , an area which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use.

"BUT FOR" TEST

The "but for" test is a required statutory finding that each governing body must make for each TIF redevelopment plan. The governing body must find that the redevelopment area has not been subject to growth and development through private investment and is not reasonably anticipated to be developed "but for" the adoption of tax increment financing. To make such a finding, there must be detailed evidence of the factors that support the finding and a signed affidavit of the developer attesting to the conditions supporting this finding

CONSERVATION AREA

"Conservation area" , any improved area within the boundaries of a redevelopment area located within the territorial limits of a municipality in which fifty percent or more of the structures in the area have an age of thirty-five years or more. Such an area is not yet a blighted area but is detrimental to the public health, safety, morals, or welfare and may become a blighted area because of any one or more of the following factors: dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of structures below minimum code standards; abandonment; excessive vacancies; overcrowding of structures and community facilities; lack of ventilation, light or sanitary facilities; inadequate utilities; excessive land coverage; deleterious land use or layout; depreciation of physical maintenance; and lack of community planning. A conservation area shall meet at least three of the factors provided in this subdivision for projects approved on or after December 23, 1997.

ECONOMIC ACTIVITY TAXES (EATS)

"Economic activity taxes" , the total additional revenue from taxes which are imposed by a municipality and other taxing districts, and which are generated by economic activities within a redevelopment area over the amount of such taxes generated by economic activities within such redevelopment area in the calendar year prior to the adoption of the ordinance designating such a redevelopment area, while tax increment financing remains in effect, but excluding personal property taxes, taxes imposed on sales or charges for sleeping rooms paid by transient guests of hotels and motels, licenses, fees or special assessments. For redevelopment projects or redevelopment plans approved after December 23, 1997, if a retail establishment relocates within one year from one facility to another facility within the same county and the governing body of the municipality finds that the relocation is a direct beneficiary of tax increment financing, then for purposes of this definition, the economic activity taxes generated by the retail establishment shall equal the total additional revenues from economic activity taxes which are imposed by a municipality or other taxing district over the amount of economic activity taxes generated by the retail establishment in the calendar year prior to its relocation to the redevelopment area.

PAYMENT IN LIEU OF TAXES (PILOTS)

"Payment in lieu of taxes" , those estimated revenues from real property in the area selected for a redevelopment project, which revenues according to the redevelopment project or plan are to be used for a private use, which taxing districts would have received had a municipality not adopted tax increment allocation financing, and which would result from levies made after the time of the adoption of tax increment allocation financing during the time the current equalized value of real property in the area selected for the redevelopment project exceeds the total initial equalized value of real property in such area until the designation is terminated pursuant to subsection 2 of section 99.850.

TAX INCREMENT FINANCING

Tax increment financing (TIF) is an economic development and redevelopment tool that generates a pool of money, which is used for reinvestment within a designated area. The money is generated by freezing the assessed value of property that is to be developed. Taxing districts (municipal, county, school) continue to collect property tax based on the frozen assessed value. As property values in the TIF district increase as a result of the development, additional tax reserves resulting from the increased values are placed into a TIF dun for TIF development projects. That additional reserve from increased property values is the "increment." A municipality establishes a TIF district and the increment created may be utilized to develop the TIF district. TIF is political process that results from the partnering of developers with local government entities; it is not a matter of filling out forms and checking boxes.