TIF Districts

Navigate: ClosedTax > Levy Management > TIF District Maintenance > TIF Districts

Description

A tax increment financing (TIF) district is a geographical area, usually economically depressed, where the tax levies from incremental increases in property value are used to finance economic development projects. A TIF district does not itself levy taxes, but instead receives the incremental portion of taxes from the tax authorities within the district, depending on their level of participation.

Use this task to maintain the details of TIF districts, including related tax authority groups and value mappings, as well as to maintain the revenue objects which are associated with the TIF district.

California

  • Two distribution rules, set via Distribution > Setup > Distribution Rules, are required to use the TIF Participation Percent from Levy Management along with the Distribution Apportionment Factor Group, set via Distribution > Setup > Apportionment Factor Group, to accommodate the option to distribute supplemental collections based on TAF participation percentage in a TIF:

    1. One rule for the Current Year (CY).  This rule should be set to TIF-TAG TAG does not contain TIF. This rule processes distributions as normal with the Apportionment Factors.

    2. One rule for the Prior Year (PY). This rule should be set to TIF-TAG TAG contains TIF. This rule checks the Levy Participation Percent (via an API) to see the Participation Percent for:

      • TAG - TAF (factor TAF that would have gone to SubDistDetail)

      • TIF (from TagTif table) for the given year.  

If the Participation Percent is 100%, all distribution is moved from the TAF to the TIF.

The Distribution Report includes the following for this distribution option:

    • Whether there are no Participation Percents for the given year.

    • If a TAG contains more than 1 TIF.

    • If the TAG/TAF/TIF combination is not found in the Levy Participation Percent API.

  • To accommodate separate area wide school factors for the city and county allocate area wide school revenues on the J29 report, perform the following setup:

    1. Click Tax > Distribution > Setup > J29 Distribution Rules > Manage Distribution Rules and Add a new rule and description for City, County, and Other.

    2. Click Edit on each rule to advance to the Edit Distribution Rules screen and select the Rule Process of J29 Report. Click Edit in the Collections Criteria panel header and Include the Item Types of Contributing TIF Fund Category and Tax Authority. Click Add in the Calculation Rule List panel to select and define the rules as applicable for each.

    3. Next, click Tax > Levy Management > TIF District Maintenance > TIF Districts > Maintain TIF District Details and select the User-Defined Fields Tab. Select the RDA Fund Category field to correspond to the Contributing TIF Fund Category on the J29 Distribution Reporting for each of the City, County, and Other rules.

    4. Run the report via Tax > Distribution > Reports > J29 Report > Print J29 Report, and select the Report Period of Estimate and define the other details as applicable.

Steps

  1. On the Search for TIF Districts screen, enter search criteria and click Search.

    • The TIF Code and TIF Description fields offer auto-complete suggestions when you start typing.

  2. In the TIF tab, select the checkbox for one or more items in the grid and click Next.

  3. On the Maintain TIF District Details screen, enter or select information in the header panel.

    • Select the TAGs that participate in the TIF district on Maintain TIF Participation in order to set the participation rate of each tax authority-fund-rate in the TIF on Set TIF Participation Rates.

    • Select the value types which should be substituted for the regular taxable values when calculating base and incremental TIF taxes on Set Up TIF Value Mappings.

  4. Associate revenue objects with a TIF district on Maintain TIF District Revenue Objects.

  5. Maintain TIF pass throughs back to fund using the TIF Pass Throughs task.

Tips

Various TIF reports are available through the SRS Levy Management Reports.

Prerequisites

Levy Management

  • Tax Authorities
    Tax Authority Fund Rates
    TAG/Tax Authority Associations
    Set up tax authorities and tax authority fund rates, and TAG/tax authority associations before setting up TIF participation.

  • In this task: Set up primary TIF districts first before creating sub-districts, and select TAGs for TIF participation before maintaining TIF district revenue objects.

Records

  • Tax Authority Groups - Set up the tax authority groups which will participate in TIF districts.

Configuration Menu

  • Systype Maintenance
    Set up any TIF Type systypes you will need to use for reporting.
    TIF Category and TIF Rate Source are system-defined systype categories and cannot be modified by the user.

  • User-Defined Fields Maintenance - The user-defined fields must be set up for the Levy Management module and the Tax Increment Financing object type before they will be available for entry here.

Other Sources

  • TIF Value Mappings are defined in ValueTypeList tab of MCCC-BEC AA Setup.xls.

Dependencies

TIF districts must be set up and associated with revenue objects before calculating taxes in Tax Roll Processing.