tax increment financing

Definition

A public financing method using future property tax increases from development to fund current infrastructure improvements. Politicians love it because it looks like free money; critics note it's borrowing from tomorrow to pay for today, municipal style.

Example Usage

The city used tax increment financing to build parking structures for the new downtown development district.

Origin

Municipal finance tool developed in California in 1952

Fun Fact

TIF districts often divert property tax revenue from schools and other services, making them controversial despite funding development.

Source: Municipal finance and development terminology

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Assessed Value

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