Local Tax Increment Financing (TIF)
A financial tool authorized under Section 99.800 to 99.865 of the Revised Statutes of Missouri that is used to stimulate economic development by offsetting development costs for public improvements through appropriation of the incremental increase in property tax and 50% of the additional sales tax generated from the new development. A strict set of guidelines established in the State statutes control and limit the TIF application. The city is required to find that there exist conditions that cause the area to be classified as a blighted area, a conservation area, an economic development area, an enterprise zone or a combination of these findings, where the area only includes those parcels of real property directly and substantially benefitted by the proposed development. The property must also pass the “but for” test, which simply means “but for” the TIF the development would not have occurred.