Commentary: TIFs Benefit More Than Business

TIF, or tax increment financing, can benefit more than just businesses as is commonly thought, according to the author. Communities benefit when a new business succeeds, new businesses can create new property tax revenue, new jobs, and spawn new development. Additionally, about one half of the existing TIF districts in the state do not have payments going to private companies, rather they go to the municipalities where the monies can be invested in municipal economic development programs. Also, municipalities with TIF districts benefit from the “tax shift,” which allows municipalities to enjoy the full dollar of benefit from new property taxes paid on TIF district property