Tax Increment Financing (TIF)
The Community redevelopment laws allow for the increased property tax generated by the improvement of blighted property to be used to pay for the financing of the community redevelopment/TIF Projects. The statues for community redevelopment /TIF are found in Neb. Rev. Stat. §§ 18-2101 through 18-2150.
Requirements for TIF include, but are not limited to:
- The project is applicable to real property only;
- The property must be within the corporate boundaries of the city; however, the city may annex noncontagious land to develop agricultural processing facilities that will become a TIF project;
- The diversion of tax for TIF may not exceed 15 years;
- The taxes attributable to the excess value can only be used for the repayment of the debt related to the project; and
- The city/CRA must provide written notice to both the county assessor and county treasurer to cease the division of tax when the debt on the project is paid in full.