Tax increment financing is an economic development tool available to local governments to finance needed public improvements within a defined area. The improvements usually are undertaken to promote the viability of existing businesses and to attract new commercial enterprises to the area. The cost of improvements to the area is repaid by the contribution of future tax revenues by each taxing unit that levies taxes against the property. Specifically, each taxing unit can choose to dedicate all, a portion of, or none of the tax revenue that is attributable to the increase in property values due to the improvements within the reinvestment zone.
The Flower Mound Tax Increment Financing Zone
The Town of Flower Mound established its tax increment reinvestment zone (TIRZ) in September 2005 to provide funds for public infrastructure within the Town’s FM 2499 corridor. The TIRZ consists of approximately 1,465 acres and ad valorem tax revenues collected above the base value established in 2005 go toward funding proposed improvement projects over a 20-year period.