What is TIF (Tax Increment Financing)?
TIF or Tax Increment Financing is a state wide program designed to allow local governments to capture the increase in property tax due to improvements to properties. TIF funds can only be used for capital improvements and are available for a defined period of time. Use of TIF funds does not increase taxes, but diverts the tax revenues from other sources, such as Hamilton County. Anderson passes the portion of TIF funds attributable to schools to Forest Hills Local School district. Anderson uses TIF revenues to encourage economic development, promote increased property values through improvements to public spaces, and to purchase equipment and fund facilities that otherwise would be paid for from regular tax levies. TIF funds have allowed Anderson to provide significantly more value to residents and to stretch voter approved levies. Anderson’s current TIF program is under a special state provision, no long available, that allowed the township to TIF all unimproved properties at one time
