Land Use & Zoning

Texas law provides for 'reinvestment zones' and 'tax increment financing' (TIF) primarily to:

AProvide tax exemptions for low-income homeowners
BFinance public infrastructure improvements in designated redevelopment areas using the incremental increase in property tax revenues✓ Correct
CAllow cities to reduce property taxes for agricultural land
DCreate special school financing districts

Explanation

Tax Increment Financing (TIF) districts (called reinvestment zones in Texas) allow municipalities to capture the increase in property tax revenue generated by rising property values in a designated area and use that increment to finance public improvements within the district. This tool is used for urban redevelopment and infrastructure.

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