Tax Increment Financing Example An example to help in understanding tax increment is to visualize a...
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Tax Increment Financing Example An example to help in understanding tax increment is to visualize a vacant or under- utilized property in an urban renewal district that generates $1,000 in property taxes annually. If the owner, tenant, or a developer improves the property so that it generates $1,500 in property taxes annually, the $500 increase is called the Tax Increment. That amount goes into a special fund for improving the urban renewal district. When authorized by City Council, MRA may also issue bonds secured by tax increment revenue.
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Transcript of Tax Increment Financing Example An example to help in understanding tax increment is to visualize a...
Tax Increment Financing Example
An example to help in understanding tax increment is to visualize a vacant or under-utilized property in an urban renewal district that generates $1,000 in property taxes annually. If the owner, tenant, or a developer improves the property so that it generates $1,500 in property taxes annually, the $500 increase is called the Tax Increment. That amount goes into a special fund for improving the urban renewal district. When authorized by City Council, MRA may also issue bonds secured by tax increment revenue.
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25,000.00
50,000.00
75,000.00
100,000.00
125,000.00
150,000.00
175,000.00
200,000.00
Base Year "Frozen" Value Incremental Increase in Taxable Vaue
MRAMRA Public Projects
Parks and TrailsCarasBess ReedClark Fork Natural Park
Bank Street Pedestrian Mall
Parking Structures and LotsCentral ParkBank Street Parking Deck
BridgesNorthside Railroad CrossingCalifornia Street BridgeOrange Street Bridge Upgrades
Farmers Market
Evelyn Johnson Park
Hilda St. Ditch CrossingMadison St. Pedestrian BridgeStation Drive Ditch Crossing
Ten Other Parking Lots Downtown
MRAMRA Public Projects (cont.)
Streets and Alleys
Sewer and Water Projects
Street Trees
Public Buildings
City HallCounty Courthouse
Partnership Health Center
City County Health BuildingHellgate High School
MUTD Transfer Center
Missoula Fire Station Headquarters(Window Project and Auditorium Project)
City/County Library
Russell Smith Courthouse Art Museum of Missoula
Purchase Central School
2005 Distribution w/ URD II
City, $18,524,357, 27%
County, $12,178,215, 18%
University, $568,968, 1%State, $8,960,812, 13%
Misc. + Fire Districts, $1,167,735, 2%
Countywide Schools, $4,466,257, 7%
Increment District, $553,445, 1%
Local Schools, $22,141,695, 31%
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Local Schools City County State Countywide Schools Urban Transp
TAXING JURISDICTION 2005 BUDGETS VS URD II INCREMENT RECIEVED
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Local Schools City County State Countywide Schools Urban Transp
TAXING JURISDICTIONS 2005 BUDGETS VS URD II I INCREMENT RECEIVED
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
Local Schools City County State Countywide Schools Urban Transp
TAXING JURISDICTIONS 2005 BUDGETS VS URD II + URD III
