TIFs Explained – 2 Graphics
TIF Dollars Are Property Tax Dollars
Money for TIF-funded projects comes from the property tax paid by owners of residential, commercial and industrial property. Eight local taxing bodies, including the City, Chicago Public Schools, the Chicago Park District, and Cook County get revenue from property tax.
When a TIF district is created, any additional revenues over the base EAV (equalized assessed valuation) go into the TIF fund, not to the schools, parks, etc.
Tax Increment Finance districts divert property taxes from the units of government that rely on them for operations.