Tax increment financing: A property-based tool for local regeneration?

Abstract

Tax increment financing (TIF) is a technique for harnessing future property tax revenues to pay for current expenditures that local governments in the US have used extensively to finance regeneration activities. The paper provides an overview of the mechanism and presents a case study — the mixed-use Atlantic Station in Atlanta, Georgia — to illustrate the mechanics of TIF use and to discuss when it is appropriate for public officials to rely on TIF. It ends with some thoughts on the potential for exporting this regeneration tool to countries with different fiscal structures.