Tax Increment Financing (TIF)
Tax Increment Financing – or TIF – projects give cities and counties tools to retain, recruit, and grow business and industry. Tax Increment Financing is a method utilized by local governments to pay for community improvements with future tax revenues.
For example, a blighted neighborhood might have dilapidated buildings worth only $50,000 in property value. Using a TIF, the local government could build new infrastructure or even replace the run-down buildings with new ones as well as other improvements to increase total property values in the area to $750,000. The $700,000 difference in property value increases property tax collections. The increased property tax revenue is used to recover the cost of the TIF improvements. In short, it’s a way to allow new development to pay for itself.
You can view all of the Policies and Procedures for past and current TIF’s below:
- TIF Policy adopted by Chattanooga City Council in 2015
- Revisions from 2015 version to Nov 1 2022 here
- Exhibit A from 2015 Version to Nov 1 2022 Version
- TIF Policy was adopted by Chattanooga City Council on Nov 1st 2022
- Redlines proposed for Amended Policy adopted Nov 29 2022
- Amended TIF Policy adopted by Chattanooga City Council Nov 29 2022