By Beverly Fortune
\nLexington Herald-Leader
\nSept. 11, 2008<\/p>\n
How TIF works
\nTax-increment financing allows a portion of state and local tax revenue created by new private development in a blighted area to be used for public infrastructure improvements.<\/p>\n
PROJECT IDENTIFIED
\nCity officials identify an economically depressed area, and plan public improvements , such as sewers, streets, parking and art.<\/p>\n
CITY AND STATE APPROVAL
\nAfter identifying the project and developing a plan, the city pledges future tax revenues from the project to pay off bonds used for the up-front costs. The city also approaches the state and asks it to pledge its tax revenues.<\/p>\n
BONDS SOLD
\nAn investment company sells bonds to raise the funds for the public improvements.<\/p>\n
CONSTRUCTION
\nThe bond money is used to pay for the improvements.<\/p>\n
TAXES COLLECTED
\nA portion of new tax revenue generated by the project\u00e2\u20ac\u2122s success pays off the bonds. New taxes are not levied on residents.<\/p>\n
— By Beverly Fortune
\nThis piece was published by the Lexington Herald-Leader and can be found at www.kentucky.com<\/p>\n","protected":false},"excerpt":{"rendered":"
By Beverly Fortune Lexington Herald-Leader Sept. 11, 2008 How TIF works Tax-increment financing allows a portion of state and local tax revenue created by new private development in a blighted area to be used for public infrastructure improvements. PROJECT IDENTIFIED … Continue reading