I have googled and read a lot about TIF, and am looking for a simple spreadsheet to dumb down the concept for me. I should understand this given my day job but am struggling here.
In short, I understand the tax increment difference can be leveraged to finance projects. Looking for an excel file that goes over the before and after simply
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TIF as in tax increment financing?
Property tax is based on land value. Undeveloped land is worth less than developed land. Someone builds some houses on the land. They get the extra taxes earned on the now-developed land.
So say some undeveloped land is paying $1000 a year in taxes.
Someone builds a couple of houses on the land. Now that land is paying $1800 a year in taxes.
That someone gets $800 a year from the government for developing the land (not forever, only for a certain amount of time).
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