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Tax Increment Financing in Minnesota <br /> Primary Impacts <br /> If the fiscal disparities contribution comes from the TIF district, less • <br /> increment income results which restricts the level of funding for the <br /> project. <br /> • <br /> If the fiscal disparities contribution comes from outside the TIF <br /> district, the converse is true, that being an increase in the level of <br /> funding. <br /> Secondary Impacts <br /> With the fiscal disparities contribution being made from outside the <br /> TIF district, the amount of the contribution must come from other <br /> commercial-industrial properties within the City. <br /> • The potential exists for City tax rate increases dependent on <br /> the relative magnitude of the new development to the City's <br /> • total tax capacity. With the fiscal disparities contribution <br /> coming from outside of the TIF district, the City's total gross <br /> tax capacity is reduced by both the TIF captured tax capacity <br /> and the fiscal disparities contribution. The fiscal disparities <br /> contribution exists no matter which option is chosen. <br /> However, the compounding of both of these situations can <br /> lead to a potentially higher City tax rate. <br /> SPRINGSTED _ _ <br />