Tax Increment Financing Commission

Purpose

Tax Increment Financing (TIF) is a financing and development tool that allows future real property taxes and other taxes generated by new development to pay for costs of construction of public infrastructure and other improvements.

TIF encourages development of blighted, substandard and economically underutilized areas that would not be developed without public assistance.

The powers of TIF are exercised by its Board of Commissioners who are citizens of the city, appointed by the mayor, and representatives of the affected taxing districts.

Authorization: 99.800

Real Property Tax Increment Allocation Redevelopment Act

Eligibility Requirements:

Projects using TIF must have plans approved by both the TIF Commission and the Kansas City, Missouri, City Council. TIF can only be used for redevelopment projects that would not be reasonably expected to occur without the assistance of TIF (the “but for” test).

The redevelopment area much be determined by the city or county to be either a “blighted area,” “conservation area,” or “economic development area” as defined by the TIF Act.

The redevelopment plan must conform with the general development plans of the City of Kansas City, Missouri.

A cost benefit analysis must be completed and show that the economic benefits flowing to the City and other taxing districts as a result of the TIF plan are greater than the costs.

How the Program Works:

Projects using TIF must have plans approved by both the TIF Commission and the Kansas City, Missouri, City Council.

TIF can only be used for redevelopment projects that would not be reasonably expected to occur without the assistance of TIF (the “but for” test).

The redevelopment area much be determined by the city or county to be either a “blighted area,” “conservation area,” or “economic development area” as defined by the TIF Act.

The redevelopment plan must conform with the general development plans of the City of Kansas City, Missouri.

A cost benefit analysis must be completed and show that the economic benefits flowing to the City and other taxing districts as a result of the TIF plan are greater than the costs.