Mt. Zion Rt. 121 Tax Increment Financing District II

What is a Tax Increment Financing (TIF) District?

A Tax Increment Financing (TIF) District is a designated area within a community where future increases in property tax revenue are reinvested back into the district to support redevelopment and economic growth.

When a TIF district is established, the current property tax level is set as a “base value.” As development occurs and property values rise, the additional tax revenue (the “increment”) is captured and used to fund improvements within the district.

How Does a TIF Work?

• The base equalized assessed value (EAV) is established at the time the TIF is created
• Property taxes generated from that base continue to go to local taxing bodies (schools, county, etc.)
• Any increase in property tax revenue (the increment) is set aside in a special TIF fund
• These funds are then reinvested into the district to support redevelopment

TIF districts typically have a lifespan of up to 23 years under Illinois law.

Eligible Uses of TIF Funds

TIF funds can be used for a variety of redevelopment-related expenses, including:

• Public infrastructure improvements (roads, utilities, sidewalks)
• Site preparation, demolition, and environmental remediation
• Stormwater and drainage improvements
• Land acquisition and assembly
• Rehabilitation of existing buildings
• Job training and workforce development
• Financing assistance for private development projects

All expenditures must meet eligibility requirements established by state statute.

Benefits of a TIF District

Encourages Redevelopment
Helps make challenging or underdeveloped sites more attractive for investment.

Leverages Private Investment
Public improvements funded through TIF often stimulate additional private development.

Improves Infrastructure
Provides funding for necessary upgrades that might not otherwise be feasible.

No New Taxes Imposed
TIF does not create a new tax; it reallocates future growth in property tax revenue within the district.

Why Establish a TIF District?

Communities establish TIF districts to:

• Revitalize blighted or underutilized areas
• Support commercial, industrial, or mixed-use development
• Address infrastructure deficiencies
• Promote job creation and economic growth

TIF is a strategic tool to guide development and reinvest in key areas of the community.

District Boundaries & Oversight

Each TIF district has defined boundaries and a redevelopment plan adopted by ordinance. The municipality administers the district and ensures compliance with state requirements, including annual reporting and financial transparency.