Land Use & Zoning

A Pittsburgh Urban Redevelopment Authority (URA) uses tax increment financing (TIF) to fund infrastructure for a development project. TIF works by:

AIncreasing taxes in the project area to fund improvements
BPledging future increases in property tax revenue from the improved area to repay bonds used for infrastructure✓ Correct
CReducing taxes on the project for 10 years
DCombining federal and state tax dollars for local improvements

Explanation

Tax Increment Financing (TIF) captures the increased property tax revenue (the 'increment') from a redevelopment area — the difference between taxes before and after development — to repay bonds issued to fund infrastructure improvements. It's a self-financing tool used in Pennsylvania urban revitalization projects.

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