Tax Increment Finance Authorities

Michigan law requires municipalities to publicly disclose a range of information about tax increment finance authorities (TIFAs).

Battle Creek has four TIFAs -- the Battle Creek Tax Increment Financing Authority, the Downtown Development Authority, the Lakeview Downtown Development Authority, and the Local Development Financing Authority.

Tax increment financing is a tool local governments use to promote economic development and redevelopment. The TIF process splits tax revenue from a property into two parts: 

1. Base revenues: the amount available before the TIF districts exist; these are shared among agencies that assess property taxes (schools, cities, counties).
2. Incremental revenues: new revenues beyond the base, generated by development projects and allocated to the government sponsoring the TIF project.

This process generates funding for projects within the TIF district, giving development subsidies to encourage growth.