Tax Increment Financing

(The following outline is from a presentation given by Timothy M. Anstine to the Lawrence County Chamber of Commerce on September 8, 2000)

Tax Increment Financing Act, 53 P.S. ¤6930.1 et seq.

Enacted in 1990

Intent is to eliminate and prevent the spread of "blight" by providing a mechanism to finance the cost of revitalization projects with increases in tax revenues created by the project.

Can be used to finance public works or improvements as well as residential, commercial or industrial development projects.

A detailed tax increment financing plan is prepared by a redevelopment authority or an industrial development authority, and then presented to the taxing bodies.

The governing body of the municipality, which may be a county, creates the Tax Increment District, which can have a life of up to 20 years, and can be extended.

The municipality must find conditions of blight in the district.

Public hearing is required.

Taxing bodies are free to participate or not participate in the TIF.

TIF and LERTA are mutually exclusive. You cannot have a TIF district where a LERTA has been established for the same taxing authority.

One taxing body may provide a LERTA program for the same properties in which other taxing bodies have established a TIF, and vice versa.