The Indianola City Council continued the process of working with developers regarding building projects in the city on Monday, including approval of the use of Tax Increment Financing known as TIF. City Clerk Jackie Raffety tells KNIA News TIF is a common process working with developers to incentivize building in the area, and is essentially a rebate to developers after paying property taxes after the property grows in valuation due to the new buildings, either residential or commercial. Raffety also said the city can also use TIF funds towards infrastructure improvements so they don’t come at the cost of the city taxpayers.
“In the cases of the development agreement where the city has to do some work, some of that increased tax revenue, that TIF, is used by the city to pay off any indebtedness that may come from adding infrastructure. The city can use that tax revenue from this one development to pay off the infrastructure project, instead of raising property taxes for the whole community.”
To listen to the full interview and see a presentation on Tax Increment Financing, click below.
https://www.kniakrls.com/2024/12/12/lets-talk-indianola-tax-increment-financing/