TIF stands for Tax Increment Financing. It is an economic development tool used by cities across the country to finance public infrastructure and facilitate new investment in the community.

Dayton’s new TIF covers a large portion of the Downtown area including the Central Business District along Main Street and the Webster Station area near the baseball stadium. It does not affect any other part of the city. 

No, not at all. The TIF only changes how the existing property taxes on certain properties are utilized for the benefit of the community.

In 2017, the Dayton City Commission authorized the creation of the new TIF at the recommendation of the City Manager. It was approved by the State of Ohio in 2022. The TIF now appears as a new line item noted as “RMTR72- REMOTE TIF” on eligible downtown property tax bills and the Montgomery County Auditor’s real estate website where applicable for tax year 2023.

The TIF captures the “increment” - or the increase in value on taxable real estate in the specified area. The property tax on that portion of the value is then redirected into a special purpose fund that is used to pay for public improvements.

The City’s plan is to use TIF funds for infrastructure projects and qualified economic development, guided by best practices and a financial analysis of each proposed project.

The legislation authorized the TIF to last for 30 years, and the resulting TIF funds collected each year will be held by the City until they have been spent on qualified projects.