TIF Tax Increment Financing

What is a TIF (Tax Increment Financing)?

Tax increment financing or TIF is a public financing method generally used to finance infrastructure improvements. Municipalities typically divert future property tax revenue increases from a district toward an economic development project or public improvement project in the community. TIFs are implemented by ordinance or resolution and must be submitted to the county Auditor with a DTE24 application. The Auditor sends the TIF application to the Ohio Department of Taxation for approval.

Does a TIF effect the value of my property?

No. The same methods used for valuation of a property that has a TIF attached to it, is the same as those with the same property class that do not have TIF attached to it.

Does a TIF impact my taxes?

No. The TIF only redirects the destination that the collected tax dollars go.

How can I recognize a TIF parcel when doing a property search?

The Permanent Parcel Numbers, or PPN, for a property that has a TIF will be exactly the same except for the last character. A PPN with a TIF will have a “T” at the end of the PPN string (see below). This is only used for tax purpose and allows the Auditor’s office to separate the value attributed to the TIF. The value of both parcels must be summed to achieve the full appraised value.

Where are the Owner Occupancy and Homestead credits applied?

If a property owner qualifies for these two credits, they will be applied to both PPN’s.

Does the TIF parcel effect a parcel transfer?

No. You will not be charged the $0.50 transfer tax for transferring a parcel with a TIF. The Auditor’s office does request being notified of the TIF parcel at time of transfer either by verbal notification or including the PPN on the transfer.