No, TIF is not a tax and does not generate tax revenues by increasing tax rates; it generates revenues by allowing the municipality to capture, temporarily, the new tax revenues produced by the increased value of properties in the Project Area. 

These districts dedicate the increased property tax revenues generated within the TIF for improvements within the district to encourage new economic development and job creation.  Funds may be used for costs associated with the development or redevelopment of property within the TIF, allowing blighted, declining and underperforming areas to again become viable.

TIF is an acronym for Tax Increment Financing and it is an economic development tool authorized by the TIF Act allowing municipalities to reallocate property tax dollars in a specific geographic area for specific purposes and for a specified period of time.

• Public infrastructure improvements including roads, sidewalks, utilities, water, sanitary sewer, storm sewer, detention/retention, parking, street lighting, etc.
• Acquisition of property, land assembly, demolition, site preparation, etc.
• Rehabilitation of older buildings
• Correction and mitigation of environmental issues Job training, workforce readiness and other related educational and training programs
• Incentives to retain or attract private development

No--TIF Districts encourage long term growth that provides a healthy tax base to support local government services,. TIF districts are a tool to attract redevelopment to areas where the tax base is declining.  New commercial development revitalize and grown the tax base for the future. 

Additionally, when the assessed value of an area is in decline, schools collect less and less money each year.  TIF Districts put a stop to declining property values and acts as a source of growth for properties that would otherwise not experience investment. A TIF district stabilizes a tax base by freezing the assessed value of the properties within the TIF, which helps school districts fulfill their tax collections. When the redevelopment project is complete, the overall tax base experiences a higher assessed value as a result of the investment put forth into the TIF.

A healthy, growing tax base is what allows schools and other taxing districts to continue to provide services to residents without needing to increase their property tax rate, which is why the Village has unanimous support from the other taxing bodies. 

Property tax revenue generated from private development within a TIF District is new money. Without TIF, the development would not have occurred and the tax increment would not have been produced.

These incentives will potentially help lead to new developments occur in Downtown Itasca, which have not occurred for years.

Unlike home rule communities which are given broader powers with respect to tax collection and the power to regulate and financial incentives they may offer, Itasca has limited resources with which to stimulate and assist economic development in the community. The TIF technique is particularly helpful to non-home rule communities like Itasca. 

In Illinois, TIF districts are used by communities with populations as small as 138 and as large as 2.8 million and every size community in between. TIF can help any size community rebuild infrastructure and attract private investment. TIFs are found throughout Illinois. A complete list of Illinois communities with TIFs is available on the Illinois Comptroller's website. 

The maximum life of a TIF District is 23 years. However, it can be shorter if the municipality determines that a shorter period is more appropriate. The municipality has the ability throughout the life of the TIF District to terminate the District at any time, subject to any contractual obligations that may exist. 

Local governments monitor the progress of the TIF district. By law, all the school districts and major local taxing bodies meet with the TIF municipality annually to review the progress of each TIF. Under Illinois law, municipalities have an obligation to cooperate with other taxing bodies in monitoring TIFs. By law, the Joint Review Board must meet annually to review the effectiveness and status of the TIF district. 

The Joint Review Board is consisted of representatives of the various taxing bodies that assess taxes in the proposed TIF District. The Joint Review Board consists of the following agencies:

1. Village of Itasca
2. Itasca School District #10
3. Itasca Park District
4. Itasca Fire Protection District
5. Lake Park Community High School District #108
6. Addison Township
7. DuPage County
8. College of DuPage
9. Public Member appointed by the Joint Review Board

On December 6, 2022, the Village entered into an agreement with Kane, McKenna, and Associates, Inc. to assist the Village with establishing a TIF District in the Downtown area.  

Interested parties and organizations may register with the Village to receive information on the proposed designation of a Redevelopment Project Area and the approval of Redevelopment Plan and other related matters as provided by the law to receive information about the TIF activities and redevelopment project areas for which they register. For more information, please click here.