FAQs

TIF is a method to capture and use a portion of the property tax revenues generated by the increase in value from new development in a blighted and substandard area.

TIF is not an exemption from paying property taxes, but rather a redirection of property taxes generated by new development towards paying off a TIF loan, which pays for TIF-eligible expenses such as site acquisition and public infrastructure.

Yes.  Taxing entities, such as the city and school district, collect a base amount of taxes throughout the 15-year TIF time period.  After 15 years, the taxing entities will collect the full amount of property taxes generated by increase in value from the new development.

Tax Increment Financing is a program that supplements a developer's project through deferring taxes on the property.  A portion of the property's taxes go towards paying off the TIF loan that was used to finance the project.

For a complete process, visit the storymap linked on this page.  Generally, a project is able to request TIF financing if it is within a blighted and substandard area and has an approved redevelopment plan.  Once those steps are completed, the county assessor can divide a property's taxes to be used to pay off the TIF loan.

If a project does not take the entire 15-year period, the county assessor is notified once the TIF loan is paid off and will no longer divide taxes.  The entire tax amount will then go towards taxing entities like the city, schools, etc.  On average, TIF projects in Hastings take about 12 years.