Start or Grow Your Business in Paris, Illinois
Tax Increment Financing
Tax Increment Financing is simple in concept. TIF calls for local taxing bodies to make a joint investment in the development or redevelopment in a specific area. This investment’s funds come from future tax revenues generated by increased public and private investment in identified, underperforming areas.
When a TIF redevelopment project area, TIF District, is created, the property value in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had. It is the growth of the value of the property over the base that generates the tax increment. This increment is collected into a special fund for the municipality to make additional investments in the TIF project area. This reinvestment generates further growth in property value, which results in even more revenue growth for reinvestment.
In this way, the TIF redevelopment project creates a vital cycle, increasing development and redevelopment in the area. When the TIF project ends (Illinois law allows a TIF project to exist for up to 23 years), all the taxing bodies benefit from the new growth.
206 S. Central Avenue
Paris, IL 61944
MON thru FRI:
8:00am to 12:00pm