TIF stands for Tax Increment Financing. A tax increment is the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after TIF designation. Only property taxes generated by the incremental increase in value of these properties after that time are available for use by the TIF. Establishment of a TIF does not reduce property tax revenues available to the overlapping taxing bodies. Property taxes collected on properties included in the TIF at the time of its designation continue to be distributed to the school districts, county, community college, and other taxing districts in the same manner as if the TIF did not exist.
It is a way to pay for improvements to vacant and underused land in the City, to enable it to become productive again. The City of Wood River has established two TIF districts to help develop blighted areas, build and repair roads and infrastructure, and put vacant properties to work for the people. By returning formerly vacant or underused properties to the tax rolls, the City creates new sources of revenue within the TIF district, generating the funds needed to make necessary improvements without raising taxes in the community. The City’s investments in these areas are repaid through improved, productive properties that become new, permanent revenue generators.
TIF’s create short and long term benefits for communities, which include:
No. On the contrary, TIF’s create money for schools. First, schools continue to receive all the tax revenue they were entitled to before the creation of the TIF district. Second, under most circumstances, a school’s state aid is greater when a school district overlaps a successful TIF. The incremental growth in property values is excluded from the property tax base when the state calculates the amount of aid it should award to a school district. The "poorer" a school district, the more it stands to benefit from having a TIF district.
In the 1960’s and 1970’s, the federal and state governments, including Illinois, began cutting back economic development programs that cities could use to revitalize communities. TIF districts are one of the few remaining tools that local governments can use to attract new business, invest in infrastructure and rebuild blighted areas. TIF districts are a popular and effective redevelopment tool, used in 47 states across the country and in over 250 Illinois cities.
The City of Wood River provides TIF assistance by entering into "redevelopment agreements" with businesses that either locate within the City’s TIF district or make substantial improvements within the TIF district. Currently, two programs are in effect.
The first program is General TIF Assistance, which requires the business/property owner to make certain improvements. The amount of negotiated assistance is based upon the following criteria:
Allowable uses include:
For more information on TIF or TIF assistance, contact:
111 North Wood River Avenue
Wood River, IL 62095
Phone (618) 251-3131
Fax (618) 251-3191