TIF: Tax Increment Financing
What is Tax Increment Financing (TIF)?
TIF is a legislatively sanctioned economic development tool that cities can use to encourage development that the private market would not undertake on its own. It provides the opportunity to form public/private partnerships, and to achieve community goals such as business development, redevelopment, housing, etc. by leveraging TIF as a tool.
There are a multitude of types of Tax Increment Districts (TID), which is where the tool is used (the boundaries of the property), and they all have their own terms and rules.
Learn more about TIF (click links below):
- League of MN Cities (LMC) Handbook for MN Cities: Tax Increment Financing (TIF) See Chapter 14, Section III. E. (Last updated Dec. 2022)
- TIF Basics Primer Presentation at the 2/16/23 City Council Meeting (presentation starts at approx. 38:45)
- TIF Basics Primer Presentation Documents from 2/16/23 City Council Meeting Agenda (pages 43-52)