Tax Increment Financing (TIF) is a State sanctioned economic development tool. TIF’s are designed to help towns be able reinvest money in an area that can have sustainable economic growth while keeping their tax baseline stable. TIFs allow the towns to designate an area. The town then identifies the taxable value of that area, which value is set as the baseline. The taxes at or under the baseline are divided up between the town’s general fund, the school district and the County as all of the taxes within the town are. The difference is that any growth in taxable value within the TIF district is not sent to the 3 areas (town’s general fund, school district and County). The growth portion of the taxable value for the designated area is made available for economic development programs to help spur development and long term growth of the area. If there is no growth in the designated area then the TIF has no impact.
Memo on what a TIF is, from the chairman of the Downtown TIF Committee - Click here
To review the State of Maine Department of Economic and Community Developement - Click here
To review the Town of Skowhegan's TIF Policy - Click here