Land Use & Zoning

A Maine municipality adopts a TIF (Tax Increment Financing) district to fund infrastructure improvements. In a TIF district:

AAll property taxes are frozen permanently
BThe increase in tax revenues from new development finances public improvements✓ Correct
CProperties are exempt from all taxes for 20 years
DPrivate developers pay no taxes

Explanation

In a TIF district, the additional (incremental) property taxes generated by new development within the district are used to finance public infrastructure improvements that support the development.

Related Maine Land Use & Zoning Questions

Practice More Maine Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Maine Quiz →