Tax Increment Financing
What is Tax Increment Financing (TIF)?
- Enacted on August 13, 1975, Public Act 197 of 1975, otherwise Known as the “DDA Act,” authorized the use of Tax Increment Finance to correct and prevent the deterioration of downtown areas in the State of Michigan.
- Under P.A. 197, TIF Authorities capture the year-to-year growth in property values, on an annual basis, and reinvest those dollars in “public facilities,” as defined by the statute, within the TIF district.
- DDAs were created to solve an externality or “market failure” occurring in downtown areas.
- PA 57 of 2018, updated PA 197.
Downtown’s were in a state of decline Post WW II: Primarily due to Federal Policies -
- Federal Highway Administration
- Veterans Administration
- Housing & Urban Development Resulted in –
- Outward migration from cities
- Loss of investment in downtowns
- High levels of vacancy and abandonment
- Infrastructure improvements projects – Streetscapes, street lighting, floodwall protection, parks & open space etc.
- Catalytic Projects
- Historic Preservation
- Marketing & Promotions
For more information about TIF and the MDA's position on TIF reform, click on the links below:
The Importance of Tax Increment Financing for Downtown Revitalization: This presentation was given on Oct. 17, 2015 during a House of Representatives committee hearing in Lansing.
MDA's Position on TIF Reform
Quick View PA 57 Requirements
PA 57 2018
Link to the Department of Treasury TIF Reporting Site and DDA Reporting Form