Tax Increment Financing (TIF) DistrictsTIF is an instrument created by the State of Illinois to promote the economic development or redevelopment of high priority areas within a community, which meet specific State designated criteria. TIFs are financed through a portion of property tax in the given district, dedicated to pay for redevelopment activities through: financing of public improvements and providing economic incentives to businesses that will undertake improvements to parcels of land in the district.
In a TIF district, incremental property tax, that is tax above a designated threshold, goes entirely to the municipality. This increment is dedicated to the payment of redevelopment costs. At the end of a TIF district's 23-year life, all real estate tax revenues, including increments generated, are again shared proportionately by the taxing bodies based on their individual tax rates.
The City of Olney has 2 established TIF Districts: State Route 130 Corridor Redevelopment Project Area & South Olney Redevelopment Project Area.