Municipal fiscal stress and the use of Tax Increment Financing (TIF)

摘要

The Lead Paper in this policy and practice discussion begins by describing the current fiscal conditions of American cities and the constraints they face in financing both operation and capital expenditures. In particular, it comments on the effects of fiscal stress, tax limits, and state-imposed mandates. It then closely examines the use of tax increment financing (TIF) - a technique that is used by sub-state localities in all but one of the US states. After describing the steps in implementing a TIF district, the article examines the effects of its use, including its impact on redevelopment, new economic development, and on other jurisdictions.