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Tax Increment Financing in Minnesota <br /> • <br /> The Increment • <br /> A. Prior to forming the T1F district <br /> • "Estimated Market Value' of properties in proposed T1F <br /> district <br /> Estimated • <br /> Market <br /> Value <br /> • Translated into 'Net Tax Capacity' through statutory <br /> classifications • <br /> Estimated Net <br /> Market Tax <br /> Value Capacity <br /> • "Net Tax Capacity' times "Tax Capacity Rate' yields <br /> property taxes <br /> - County <br /> Net Tax Property - School District <br /> Tax X Capacity Taxes - City <br /> Capacity = - Special Districts <br /> Rate <br /> E. When a TIF district is established <br /> • The "Net Tax Capacity' is given the term "Original Net <br /> Tax Capacity (ONTC)." <br /> • Property taxes generated by the ONTC of the TIF <br /> district continue to go to each individual taxing <br /> jurisdiction. <br />