Land Use & Zoning
A Kentucky municipality uses tax increment financing (TIF) to fund infrastructure in a blighted area. TIF works by:
ARaising tax rates in the designated area
BDedicating increases in property tax revenue from the development to repay the infrastructure investment✓ Correct
CProviding tax exemptions to new businesses
DRequiring developers to pay a special improvement tax
Explanation
Tax increment financing (TIF) captures the increase in property tax revenues generated by new development within a designated district and dedicates those incremental revenues to repaying bonds issued to finance public infrastructure in the area.
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Key Terms to Know
Zoning
Local government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
VarianceOfficial permission to use land in a way that does not conform to the applicable zoning ordinance, granted by a zoning board when strict enforcement would cause undue hardship.
Eminent DomainThe power of government to take private property for public use, with the requirement to pay the owner just compensation.
Adverse PossessionA doctrine by which a person can gain legal title to another's land by openly, continuously, and adversely occupying it for a statutory period.
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