TIF (MN Statutes 469.174-496.1799)

Tax increment financing is a method local governments use to pay for the costs of qualifying improvements necessary to create new development, redevelopment, or publicly assisted housing.  The financing of the qualifying improvements is paid from the increased property taxes generated from the new development, redevelopment, or housing that would not occur "but for" such assistance.  Tax increment is the difference between the existing property taxes on a parcel of land before development occurs and the increased property taxes created by the new development.  The tax increment revenue is used by the local government for a term of years to finance qualifying improvements.

For more information on tax increment financing, please refer to the League of Minnesota Cities handbook at https://www.lmc.org/page/1/tif.jsp#tif2.