July 18th , 2013 10:00 am Leave a comment

Board members think TIF could woo potential employers

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In an effort to narrow its focus specifically on job creation, the city and county’s joint economic development board is exploring a revenue redistribution plan it hopes would attract outside businesses to Carter County

The proposed tax increment finance district between West Elk Avenue and the Watauga River is highlighted in yellow on Elizabethton Planning Director Jon Hartman’s map. The areas in green designate land that has been set aside for the Tennessee Wildlife Resources Agency for a proposed fish hatchery.

The proposed tax increment finance district between West Elk Avenue and the Watauga River is highlighted in yellow on Elizabethton Planning Director Jon Hartman’s map. The areas in green designate land that has been set aside for the Tennessee Wildlife Resources Agency for a proposed fish hatchery.

On Wednesday morning, the Carter County Tomorrow executive board heard a presentation from city Planning Director Jon Hartman and CCT President Tom Anderson on the institution of a tax increment finance district in western Elizabethton.

The purpose of a TIF district is to reallocate tax revenues collected from increases in property values within that district to offset the costs a potential business may incur.

After a TIF is established, a property’s value is fixed at its appraisal. As businesses relocate onto that property, and the value increases, the contribution in taxes to the city and county will remain at that original figure, while the amount of tax dollars collected for the increase will be redistributed within the district.

According to Anderson, the money collected from those increases could be put toward an incoming business’ expenses for building a new structure, or building publicly used utilities such as roads or water lines.

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