Land Use & Zoning

A Mississippi city uses 'tax increment financing' (TIF) to fund redevelopment. TIF works by:

AIncreasing property taxes in the redevelopment area
BUsing the incremental increase in property tax revenue generated by new development to finance redevelopment infrastructure costs✓ Correct
CProviding federal grants to cities for redevelopment
DRequiring developers to pay higher impact fees

Explanation

TIF uses the future increase in property tax revenues generated by rising property values in a redevelopment area (the 'increment') to finance public infrastructure improvements in that area, without raising current tax rates.

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