Land Use & Zoning

Colorado municipalities may use 'tax increment financing' (TIF) to:

AA. Raise property taxes in a specific area
BB. Fund urban renewal and redevelopment by capturing future increases in property tax revenue generated by improvements in a designated redevelopment area to repay bonds issued for the improvements✓ Correct
CC. Reduce taxes for new businesses
DD. Fund school construction statewide

Explanation

Tax increment financing (TIF) is a redevelopment tool: a redevelopment area is designated, and the existing property tax 'base' is frozen. As improvements occur and property values rise, the incremental increase in tax revenue (above the frozen base) is used to repay bonds that funded the redevelopment infrastructure.

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