1. An Introduction to Tax Increment Financing Districts
Stuart Arnett
Arnett Development Group LLC
February 28, 2007

2. What a TIF is Not Tax rate or tax bill change
Subsidy for private property
Cure for a bad project
100% risk-free
Complicated idea
Simple “what ifs….”

3. What is a TIF? Town invests borrowed funds in a district
New funds allow additional tax base
Higher base means more tax receipts
Pre-TIF tax receipts: no change
New tax receipts go:
1st. Pay new debt off
2nd. Could go into the district – optional
3rd. General fund
Sunsets when paid off; 100% $ then to Gen Fund

4. Who ? Federal? State? Private – in New Hampshire? Communities ? No
Yes: allowed, not required, smart to consider

5. Why ? Accelerates public investment in public infrastructure
Opens other opportunities
More tax revenues
Economic opportunities
More control of project
Avoids “cost creep”

6. When is a TIF a Success? A good project Shared infrastructure needs
Strong, honest partner “in-hand”
Risk-management measures adopted
Open communications with public
Competent Municipal team
Trust

7. Questions? Stuart Arnett Stuart@ArnettDevelopmentGroup.com
Office
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