TIF History

In the wake of the suburban migration of the 1950s and 1960s, many urban cores were left with reduced population and tax bases at the same time that development costs began to increase due to decaying infrastructure and the land clearance required to develop “Brownfield” areas. Cities inevitably found that tax abatement alone would not guarantee development. Simply removing blight left large swaths of vacant and unimproved land, and the remediation of these blighted areas did not create, nor sustain, taxes for any municipalities involved.

In the 1970s, Tax Increment Financing (TIF) appeared in California and since has spread to 49 states, including the following communities in Missouri:

• St. Louis
• Lee’s Summit
• Independence
• Springfield
• Kansas City

From the development community’s standpoint, TIF provides a greater incentive for economic development. There is potential for a greater revenue stream for development, and TIF may be used in blighted, conservation and economic development areas.

During fiscal year 2006-07, the TIF Commission approved $66,551,172,01 in infrastructure related construction costs, broken out as follows:

In addition to the aforementioned approved infrastructure related construction costs, non-infrastructure costs in the amount of $40,252,886.15 were certified by TIFC .  These costs are broken out as follows: