Planning development across Oklahoma City is crucial for progress and growth. We have gone to great lengths to improve blighted areas and encourage businesses to develop infill.
One method for encouraging development in these areas is through tax increment financing, or TIF. Amongst many other approaches, the use of TIF has created a positive impact over the years in OKC.
Oklahoma City has a broad economic development strategy that includes the MAPS programs, general obligation bond improvements for infrastructure, job creation incentives and TIF. Using economic incentives is vital to encourage development in areas where there currently is none. Once a TIF district is established, a portion of property taxes generated within the district can be used to improve infrastructure or to encourage developers and businesses to invest in the area.
A TIF district is a designated area that has exhibited a need for reinvestment, urban renewal or historic preservation. Over time and as development occurs, funds produced by an increase in property values can be used to invest back in the district. That increase above the base assessed value of the district is what funds improvements and, in turn, encourages private investment, creates jobs and spurs the local economy. TIFs are not a tax increase and do not take money away from existing entities.
Read the full article here in the March 23rd edition of The Journal Record.