TIF stands for Tax Increment Financing.  It is a tool that uses future gains in taxes to finance current improvements that will create those gains.  The increased tax revenues are the “tax increment”.  TIF's are designed to channel funding toward improvements in underdeveloped areas, where development would not otherwise occur.

How does the TIF work?

When a property qualifies to participate in the TIF district, the normal property taxes on the improvements go into the TIF account instead of the city’s general account.  If the improvements have a market value of $10,000,000; then your taxable value would be $10,000,000(3.22%) = $322,000.  You then take the taxable value and multiply it by the current mils and your annual taxes on your property would be $322,000(.704138) = $226,732.  This money would go into “the pot” to be used as TIF funds.

Who benefits from TIF financing?

The city will benefit from the TIF financing because these funds allow the city to finance the improvements of the property today with the increased taxes on the property in the future.  Potential users of the park also will benefit from the TIF financing. The funds must go to reduce or pay for the owner's SID (Special Improvement District) fees first.  The additional funds can be used to improve the lot (landscaping, signage, parking lot, lighting, etc...) or can be used to pay the initial land acquisition costs or latecomer's fees.

How do I know if my business will qualify for TIF funds?

You can now apply directly to the City of Kalispell for the TIF funds by filling out and submitting the below application.

» Tax Increment Financing Application «