Redevelopment law allows counties, cities, and towns to enhance communities through strategic public investments. A unique mechanism called tax increment financing (TIF) enables communities to use the net new tax revenues generated by the redevelopment to help establish projects and capital investments. Utah state law permits local governments to use TIF to leverage private development within a community.
When a redevelopment project is being planned, the County analyzes how much additional taxes would be generated once it is completed. That projection is compared to the existing taxes generated. The difference, or increased tax generation is called the "tax increment." Some or all of the tax increment then can be used to reimburse developers for a portion of their project financing, or can be used to construct needed infrastructure.
TIF is used on a post-performance basis. This means a company must pay their taxes in full, make their initial capital investment, and adhere to other stipulation put on by the County, before they can utilize the TIF incentive.
TIF is used only when an area or property can't be redeveloped without public investment and when it meets a public objective. The use of TIF allows projects to be established that may otherwise not occur. Thus, the communities benefit from the creation of revitalized, productive properties and the taxing entities get new, permanent sources of revenue that wouldn't have existed if the County had not enabled the project to be undertaken.
While the County manages the process, each taxing entity affected by TIF has the option to opt-into the program through an inter-local agreement.
Beaver County, along with the School District, Milford Memorial Hospital District, and Fire District #2 are considering the use of TIF to attract and retain projects within the County. These projects will benefit our communities through increased tax revenue to be used in our communities and to educate our children.