Paying for Planning

This book chapter explores the design of TIFs and the impact of their financial volatility on municipal revenues and the subsequent practicality of their use. TIF districts in Wisconsion and their share of municipal tax base are examined throughout the start, period of implementation, and dissolvement to see the change in growth rate. TIFs are generally targeted for mild blight neighborhoods in anticipation of rapid real estate development but when randomly selected, an increase in both neighborhood and municipal growth rates is observed. However, the main weaknesses of TIF are lost revenue to outlying governments at time of dissolvement and the absence of a national comprehensive database for TIF districts.