Tax Increment Financing (TIF)

What Is a TIF?

A Tax Increment Financing (TIF) district allows the City to capture and reinvest the increase in property tax revenue - known as the increment - that results when new development occurs or property values rise. The funds generated are used to make public improvements that directly benefit the TIF area and support future growth. 

TIFs allow the City to make needed public infrastructure investments - such as roads, utilities, lighting, and safety facilities - without raising existing property tax rates.

Watch the video above to learn how Tax Increment Financing (TIF) helps fund community improvements in Huber Heights.

How It Works

  1. Designation – City Council designates a specific area as a TIF district.
  2. Investment – The City installs public infrastructure or encourages private development within that area.
  3. Value Growth – As properties are developed or improved, their assessed values rise.
  4. Capture – The increase in property tax revenue from that higher value—the increment—is directed into a TIF fund.
  5. Reinvestment – Those funds are reinvested to pay for public projects that enhance and sustain the district.

What TIF Funds Can Support

  • Street, sidewalk, and lighting improvements
  • Water and sewer infrastructure
  • Public safety and municipal facilities
  • Parks, trails, and public spaces
  • Other public improvements that benefit the district

What a TIF Does Not Do

  • Does not raise your tax rate. A TIF uses only the growth in property tax revenue generated within the district.
  • Does not reduce school funding. Huber Heights uses non-school TIFs, ensuring Huber Heights City Schools and the Miami Valley Career Technology Center continue to receive their full share of property tax revenue.

Why Huber Heights Uses TIFs

  • Revitalize underused or aging areas
  • Attract and support private investment
  • Deliver necessary public infrastructure sooner
  • Reduce pressure on the City’s general fund
  • Improve community amenities and quality of life

Oversight and Accountability

Each TIF district is established by City Council and operates under the authority of Chapter 5709 of the Ohio Revised Code (Sections 5709.40–5709.43), which governs municipal Tax Increment Financing in Ohio.

Every TIF district includes a clearly defined purpose, duration, and financial plan. Funds collected through a TIF can only be used for eligible public improvements that directly benefit the designated area. The City of Huber Heights carefully monitors and reports on each district to ensure that TIF revenues are used responsibly and in alignment with state law and local goals.