TIF Program

Tax Increment Financing (TIF) helps municipal governments stimulate redevelopment in a designated area. Using this financing tool, the City can reimburse developers for certain expenses using the property tax revenue that new development in the TIF district generates. Examples of expenses eligible for reimbursement include

  • Architectural, engineering, legal, environmental, financial, planning, and other services
  • Property assembly costs, including acquisition of land, demolition of buildings and site preparation
  • Costs of rehabilitation, reconstruction or repair or remodeling of existing buildings, fixtures and leasehold improvements
  • Cost of financing during construction
  • A portion of the interest cost incurred by a developer related to the construction, renovation or rehabilitation of a redevelopment project

Centralia has four areas that have been designated as TIF Districts. Below is the link to the map including the four TIF Districts within the City.  Please complete the interested party registration form below if you would like to be notified of changes to a TIF District managed by the City of Centralia.

 

 

Tax Increment Financing Annual review Board Meeting Agendas

 

 How does a Tax Increment Finance (TIF) program work?


When a tax increment financing (TIF) district is established, the equalized assessed value (EAV) on each property within the TIF district is set at a “base” value.

For 23 years after the TIF district is established, property tax revenue generated by higher property values within the district is paid to the city’s special TIF fund, instead of the other taxing bodies. Those taxing bodies (the county, library district, school district, etc.) continue to get the tax revenue from the “base EAV” in the district, but not the revenue created by property values above the base.

The City of Centralia currently offers incentives for redevelopment in the TIF districts by reimbursing developers for eligible expenses through an annual rebate on property tax. The rebates are reimbursement for eligible project costs, and they are tied directly to the property tax increment created on the site of their new development. In several cases, the City has pledged to developers 40 – 60 percent of the property tax on the new improvements they create. This arrangement continues until the point at which the developer has been paid the agreed upon reimbursement.

TIF Facade Improvement Program