Tax Increment Financing (TIF)
"TIF" stands for Tax Increment Financing. TIF is a redevelopment tool authorized by State statute and used to assist a municipality in the redevelopment of a specific area that is blighted or showing signs of becoming blighted. A tax increment is the difference between the amount of property tax revenue generated before TIF district designation and the amount of property tax revenue generated after TIF designation. The TIF redevelopment project creates a vital cycle, increasing development and redevelopment in the area, such that when the TIF project ends all of the taxing bodies benefit from the new growth. Only property taxes generated by the incremental increase in value of TIF district are available for TIF projects. Tax rates do not change when a TIF is created. TIF districts do not increase taxes.
Each year the Village is required to file a report with the Illinois Comptroller’s Office for each TIF District within