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Tax Increment Financing (TIF)
Program Overview
Tax increment financing is a redevelopment tool authorized by state statute to help revitalize certain areas by eliminating conditions of blight and instituting conservation measures in order to encourage private investment and to enhance the tax base. At the time a TIF project is approved, current property values are frozen and remains at the level for the term of the TIF.

However, property values are not really frozen. The governmental entities continue to get their respective portions of tax for the term of the district even though the property has increased in value. As the value of the property increases, the property owner pays the frozen amount plus the increased amount due to improvements. The difference between the frozen amount and the increased amount is used to repay bonds or loans. Once the bonds or loans are paid off, the governments will receive the full, increased value of the district.

TIF's also provide economic incentives for new businesses and industries interested in relocating within the district.

Guidelines & Criteria for TIFs in Aberdeen

Note: All sections of South Dakota Codified Laws are incorporated into this criteria by reference 11-09-01 to 11-09-47.