What is a "tax increment"?

When a redevelopment project area is established, the assessed valuation of the property within the area is documented as the base value of the district. Property taxes continue to be levied and revenues generated from the base value are distributed to local taxing bodies. Revenues generated from any increased property values above the base are set aside to be used for TIF eligible expenses as defined by State Statute. Tax increment is the difference between the amount of property tax revenue generated from the base and the increased assessed value.  

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1. What is a Tax Increment Financing District?
2. What is a "tax increment"?
3. Does TIF result in increased tax rates?
4. What is the “but for” test?
5. How is a TIF district created?
6. What costs are eligible for TIF funding?
7. Who monitors the TIF process?
8. How long is the area designated as a TIF district?
9. Does TIF divert money from schools?
10. What happened during Geneva’s previous TIF district?