TIF seen as incentive for business growth

In 2008 the city of Hillsboro approved the formation of a tax increment financing district to help pay for the cost of developing the new Hillsboro Business Park on the city?s north edge. The district also includes the former AMPI property to the south.

The project driving the decision was the construction of a new dealership for Midway Motors within the park.

With a TIF, property taxes from the original value of the property follows the usual distribution between city, school district and county. But as the property is developed, the additional taxes generated by the significantly increased land value is deposited into a TIF district account.

A small percentage of those funds are then forwarded to the state?s general education fund, but the rest is applied toward the developer?s infrastructure costs.

The intent of a TIF is to encourage land development by reducing the upfront investment of business owners who develop individual projects within the district.

The business owner will pay the same amount of taxes to cover the cost of streets, sewer and electrical, but over a 20-year period.