What is a TIF?

Tax Increment Financing is a tool used to foster downtown redevelopment and is governed by Chapter 311 of the Texas Tax Code. It is established through adoption of an ordinance by the City Council that created a tax increment reinvestment zone (TIRZ).

As private reinvestment occurs in the zone occurs, the TIRZ captures the tax revenue from incremental increases in the property values in the area; it is not a new or additional tax.  In addition, the TIRZ captures 1% of the 1.5% sales tax increment in the same area - above the base year collections.  The half-cent sales tax for pay-as-you-go public infrastructure financing is not captured.  The amount of property tax and sales tax increment that is captured is then directly reinvested back into the TIRZ in the form of public improvements, revitalization and infrastructure projects.

Who decides how the funding is spent?

It is projected that the TIRZ will generate approximately $31.5 million over a thirty year period.  This revenue will be reinvested back into the zone.  A board of directors is appointed by the City Council and will make recommendations on how the funds will be reinvested in the zone.  The TIRZ Board is comprised of one appointee from each taxing jurisdiction that levies taxes on the real property in zone.  

The current board members include the Tyler City Council, Clint Roxburgh from the Tyler Junior College Board of Regents and Commissioner JoAnn Hampton representing Smith County.


Where is the Downtown TIRZ and what are its boundaries?

The TIRZ is located in downtown Tyler and is 382 acres.  It is comprised primarily of commercial and industrial properties.

The northern boundary of the TIRZ is Gentry Parkway; the southern boundary is Front Street; the western boundary is Palace and the eastern boundary is Beckham Ave.