Tax-Increment Financing

Overview

Tax increment financing (TIF) is available in urban renewal districts only. The downtown core and Dubuque’s industrial parks have been designated as urban renewal districts. Any tax increment generated is a result of the increased property value the development project creates. In the case of new development, the property owner continues to pay property taxes on the current value for a period of generally 10 years. The tax increment (the increase above the initial value) may be awarded to the property owner in the form of a rebate as an incentive to develop the property. This causes no property tax increase for other properties – this applies only on the development property. After the 10-year incentive, the property owner pays the full, increased amount of property taxes.

Additional Background Information


TIF Triangle

Use of TIF

Cities can use Tax Increment Financing (TIF) to pay the cost of streets, water, sanitary and storm sewers, parks, trails, and related public improvements for new housing development by creating Housing TIF Districts.

Housing TIF Districts support reinvestment and redevelopment activities in the urban renewal area and support revitalization within the area and the community for low- and moderate-income families. Cities can establish Housing TIF Districts within their corporate limits and within two miles of their corporate boundaries with the consent of the County Board of Supervisors. 

By state law, when TIF is used for housing development, approximately 38 percent of the future tax increment revenues from the project must be used to provide housing assistance to low- and moderate-income families whose incomes are no greater than 80 percent of the median income anywhere in the city.  This is starter housing for Dubuque’s current and future workforce, and our most vulnerable residents, the elderly and disabled.

Urban Renewal Housing Tax Increment Financing (TIF)

Tax-increment financing (TIF) is an important and flexible tool used in communities for three main purposes: promoting economic development, eliminating slum and blight, and facilitating housing development.

Market Rate Residential Subdivision, Multi-Family Units

Owner-occupied, attached/detached single-family home, multi-family units/apartments. Requirements: installation of fiber conduit, accept housing choice vouchers. Term: 10 years. 

Mixed-Income Residential Subdivision

Owner-occupied, attached/detached single-family home, multi-family apartments. Requirements: installation of fiber conduit, accept housing choice vouchers. Term: 10 years.