Tax Increment Financing Example

1. Tax Increment Financing Example • An example to help in understanding tax increment is to visualize a vacant or under-utilized property in an urban renewal district that generates $1,000 in property taxes annually. If the owner, tenant, or a developer improves the property so that it generates $1,500 in property taxes annually, the $500 increase is called the Tax Increment. That amount goes into a special fund for improving the urban renewal district. When authorized by City Council, MRA may also issue bonds secured by tax increment revenue.

3. MRAPublic Projects Parks and Trails Bridges • Caras • Northside Railroad Crossing • Bess Reed • California Street Bridge • Clark Fork Natural Park • Orange Street Bridge Upgrades • Farmers Market • Hilda St. Ditch Crossing • Bank Street Pedestrian Mall • Madison St. Pedestrian Bridge • Evelyn Johnson Park • Station Drive Ditch Crossing Parking Structures and Lots • Central Park • Bank Street Parking Deck • Ten Other Parking Lots Downtown

4. MRAPublic Projects (cont.) Streets and Alleys Sewer and Water Projects Street Trees Public Buildings • City Hall • Partnership Health Center • County Courthouse • MUTD Transfer Center • City County Health Building • City/County Library • Hellgate High School • Art Museum of Missoula (Window Project and Auditorium Project) • Russell Smith Courthouse • Missoula Fire Station Headquarters • Purchase Central School