Land Use & Zoning

Texas cities use tax increment financing (TIF) districts (also called Tax Increment Reinvestment Zones or TIRZ) to:

AReduce property taxes for all landowners in the area
BCapture increased tax revenue from rising property values to fund public improvements in the district✓ Correct
CExempt new commercial development from property taxes
DFund statewide transportation projects

Explanation

A TIRZ captures the incremental increase in property tax revenue resulting from rising values and new development in the district, using it to fund public infrastructure improvements that support and attract further development.

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