Land Use & Zoning

In Texas, a 'reinvestment zone' (tax increment financing zone/TIRZ) is created by a city to:

AProvide free zoning for all development within the zone
BCapture increased tax revenue from rising property values within the zone for reinvestment in public improvements✓ Correct
CExempt all properties in the zone from property taxes
DProvide TREC licensing benefits to developers

Explanation

A Tax Increment Reinvestment Zone (TIRZ) captures the incremental increase in property tax revenues from new development and rising values within the zone, reinvesting those funds into public infrastructure within the zone rather than distributing them to general revenue.

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