Board members think TIF could woo potential employers10:00 am | July 18, 2013
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
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.