Does TIF divert money from schools?

No. Schools continue to receive all the tax revenue they were entitled to before the creation of the TIF district. As a tax capped taxing body, the school district will receive the full levy amount with or without TIF. 

During the life of a TIF district, the tax increment is invested in the TIF district. Once the district expires, the school district will have access to “new” money. Without the TIF district, development would not occur and the tax increment would not be produced. Not only would new tax money for schools not be generated, but the area itself would remain economically stagnant.

Show All Answers

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?