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The CURA publications library is currently being digitized by the University of Minnesota Digital Conservancy. When the project is complete, the entire CURA publications library will be online and fully searchable. Unfortunately, during this process we are not able to honor individual requests for publications . Additionally, we no longer have physical copies of publications to send out.

New publications are digitized daily and the publications catalog on the CURA website is not automatically updated with links to scanned copies, so please search the CURA collection at the Digital Conservancy for the publications you are looking for:

Tax Increment Financing: Its Effect on Local Government Finances.

Author: 
Kriz, Kenneth A.

Tax increment financing (TIF) is a widely used economic development and urban redevelopment tool. However, practitioners and researchers have struggled with the question of how TIF affects local government finances. Two theories prevail. The pure capture theory views TIF as simply a means to redirect public resources to subsidize development that would likely occur without the use of public subsidy. The pure attribution theory sees TIF as a necessary incentive to lure businesses to areas that would likely never be developed, at least for a period of several years. The author of this article takes a different approach. Using a probability-based analysis technique called Monte Carlo simulation, Kriz investigates the probabilities of a positive financial outcome from TIF. Based on his analysis, Kriz concludes that local governments face significant financial risks when they implement TIF projects, but that under some circumstances, they can potentially reap financial rewards.

Journal: 
CURA Reporter
Publication date: 
2003
Publisher: 
Minneapolis: Center for Urban and Regional Affairs, University of Minnesota.
Sponsor: 
Supported in part through a New Initiative grant from CURA.
Pages: 
33 (2): 1-7.
Online availability
Download from CURA: 
CURA call number: 
Reporter 33 (2)

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