Tax Increment Financing Example An example to help in understanding tax increment is to visualize a vacant or under-utilized property in an urban renewal district that generates $1,000 in property taxes annually. If the owner, tenant, or a developer improves the property so that it generates $1,500 in property taxes annually, the $500 increase is called the Tax Increment. That amount goes into a special fund for improving the urban renewal district. When authorized by City Council, MRA may also issue bonds secured by tax increment revenue.

MRA MRA Public Projects Parks and Trails  Caras  Bess Reed  Clark Fork Natural Park  Bank Street Pedestrian Mall Parking Structures and Lots  Central Park  Bank Street Parking Deck Bridges  Northside Railroad Crossing  California Street Bridge  Orange Street Bridge Upgrades  Farmers Market  Evelyn Johnson Park  Hilda St. Ditch Crossing  Madison St. Pedestrian Bridge  Station Drive Ditch Crossing  Ten Other Parking Lots Downtown

MRA MRA Public Projects (cont.) Streets and Alleys Sewer and Water Projects Street Trees Public Buildings  City Hall  County Courthouse  Partnership Health Center  City County Health Building  Hellgate High School  MUTD Transfer Center  Missoula Fire Station Headquarters (Window Project and Auditorium Project)  City/County Library  Russell Smith Courthouse  Art Museum of Missoula  Purchase Central School