What is tax increment financing?
Tax increment financing is a unique tool available to cities and counties for redevelopment activities. It is used to leverage public funds to promote private sector activity in the targeted area. The dollar value of all real property in the CRA is determined as of a fixed date, also known as the base year. Taxing authorities, which contribute to the tax increment, continue to receive property tax revenues based on the base year.

These revenues are available for general government purposes. However, any tax revenues from increases in real property value, referred to as increment, are deposited into the CRA Trust Fund and dedicated to the redevelopment area.

It is important to note that property tax revenue collected by the School Board and any special district are not affected under the tax increment financing process. Further, unlike in some states, Florida taxing entities write a check to the CRA trust fund, after monies are received from the tax collector.

The tax increment revenues can be used immediately, saved for a particular project, or can be bonded to maximize the funds available. Any funds received from a tax increment financing area must be used for specific redevelopment purposes within the targeted area, and not for general government purposes.

Show All Answers

1. What is a Community Redevelopment Area?
2. What is a Community Redevelopment Agency?
3. What is a Community Redevelopment Plan?
4. What is tax increment financing?
5. How does the CRA process work?
6. Why create a CRA?
7. Will my taxes rise as a result of creating a CRA?