TIF is a way to use some of the property taxes you already pay to improve the community. When a TIF district is created, the City and County “freeze” the amount of taxes they collect from the area within the district boundary. Over time, as the tax base increases from new development and rising property values, that increase may be used to fund improvements in housing and urban and economic development, within that boundary, for the next 20-30 years.
When a TIF district is set up, the property taxes from that area are split into two parts: the “frozen base” and the “increment.”
- Frozen Base: This money keeps going to local government agencies, like the City of Portland, Multnomah County, and school districts (such as Portland Public Schools, David Douglas, and Parkrose).
- Increment: As property values go up, the extra property tax money (called the “increment”) goes to Prosper Portland and the Portland Housing Bureau to invest in improvements to the district.
Once the TIF district ends, the property tax increment is given back to the local agencies.
