TAX INCREMENT FINANCING (TIF): A REVIEW OF TIF’S ECONOMIC AND FISCAL EFFECTS

S. Allen Hartt, Jonathan Nash, Catherine Plante

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

Local governments use taxes on future increases in property values to pay for current economic development through tax incremental financing (TIF). TIF is a powerful tax tool used to spur improvements to a designated area. Proponents of TIF argue that it allows local governments to make investments without affecting previously established government and school district programs. Detractors argue that because the TIF designation denies existing overlapping districts (e.g., schools) the benefits of increases in property values, TIF can have a negative impact on a community. Empirical evidence on the economic and fiscal effects of TIF is mixed. This paper describes the potential costs and benefits associated with the use of TIF and then summarizes prior research on outcomes associated with this widely used property tax program.

Original languageEnglish
Title of host publicationAdvances in Taxation
PublisherEmerald Publishing
Pages209-227
Number of pages19
DOIs
StatePublished - 20 Jun 2024

Publication series

NameAdvances in Taxation
Volume31
ISSN (Print)1058-7497

Keywords

  • Economic development
  • local government debt
  • local government taxation
  • property taxes
  • real estate values
  • tax increment financing

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