TIF Funding and Budgets

Community Redevelopment Agencies receive funding from the very homeowners and business owners that benefit from the improvements. In this way, tax dollars in the CRA district are spent to help revitalize blighted areas of the city. Here's how it works: When a CRA is created, a baseline tax value is established. Then, as that value increases, the extra tax dollars go to the CRA, which must spend those dollars within the CRA district. For example, if a piece of land is worth $100,000, but the construction of a new building increases it's value to $150,000, the ad valorem taxes from the City and County on that $50,000 improvement go into the CRA's budget. This process allows the CRA to build upon successes and improvements made within the district.

Creating Redevelopment Revenue from Tax Value

Community Redevelopment Agencies receive funding from the very homeowners and business owners that benefit from the improvements. In this way, tax dollars in the CRA district are spent to help revitalize blighted areas of the city. Here's how it works: When a CRA is created, a baseline tax value is established. Then, as that value increases, the extra tax dollars go to the CRA, which must spend those dollars within the CRA district. For example, if a piece of land is worth $100,000, but the construction of a new building increases it's value to $150,000, the ad valorem taxes from the City and County on that $50,000 improvement go into the CRA's budget. This process allows the CRA to build upon successes and improvements made within the district.