NEW BOARD MEMBER FACT SHEET

 

T.I.F. District

Tax Increment Financing District

 

Tax increment financing (TIF) is a unique tool available to cities for redevelopment of urban areas.  It is used to leverage public funds and to promote private sector activity.  Property values in a certain defined area are capped or frozen at the assessed value for a particular base year.  Thereafter, any tax revenues due to increases in value in excess of the base are dedicated to the redevelopment area.  Taxing entities that contribute to the tax increment continue to receive property tax revenues based on the frozen value.  These base revenues are available for general government purposes. 

 

The tax increment revenues can be used immediately, saved for particular projects, or can be bonded to maximize the funds available.  Any funds received from a tax increment financing area, however, must be used for specific redevelopment purposes outlined in the statute, and not for general government purposes. 

                                                            Tax Increment Revenues

 

In accordance with Florida Statutes Chapter 163.387 and various adopted special legislative acts, Redevelopment Trust Funds have been established by the Bradenton City Council to fund the activities of the DDA/CRA within each redevelopment area.  These trust funds received tax increment revenues (defined as 95% of the difference between the current ad valorem millage rate applied to the real property assessed values within the redevelopment area and the current rate applied to the “frozen” level of aggregate property assessments, established at the adoption of the authorizing ordinance of the trust fund) for both the City of Bradenton and Manatee County, Florida. 

 

Trust fund money may only be used in the redevelopment area (see CRA map) that produced the tax increment revenues.  Trust funds must be appropriated to a specific redevelopment capital project within twelve months of receipt of funds and to a specific redevelopment project, (or expenses approved under subsection 6, FS Chapter 163.387) pursuant to an approved community redevelopment plan, which project will be completed within 3 years from the date of such appropriation. 

For the fiscal year ended September 30,2001, the Bradenton District DDA/CRA received $485,622 from the City of Bradenton and $913,609 from Manatee County.  The 14th Street District received $87,516 from the County and $46,519.