US-27 DEVELOPMENT AREA

“Highland Heights’ implementation of a tax increment financing (TIF) district exemplifies how serious our City is about encouraging growth through progress. Through this tool, our community seeks to actively encourage new development and redevelopment opportunities in key target areas.”

WHAT IS TIF?
Incentive Overview & Use in Highland Heights

A TIF district is an economic development incentive where public agencies set aside a percentage of new tax revenue derived from the future value of improved property or new businesses to pay for the current costs of development. For this area TIF, the City and County essentially reserve the pledged revenues separate from normal tax revenues, and those pledged monies may only be used to make improvements in the TIF district. In Highland Heights, Kentucky, the City has pledged 80% of new property, payroll, and occupational license taxes to the district; Campbell County also participates by pledging 60% of new property and payroll taxes for parcels and businesses in the targeted areas. TIF districts are critical to development because necessary infrastructure that is pivotal to a project’s success is usually prohibitively costly for a developer or business to bear out exclusively. TIF is the key public sector assistance mechanism to aid in significant real property development.

HOW DOES TIF WORK?
Implications for Businesses and Developers

If a property or business falls within the bounds of a TIF district, there is no difference in what property or business owners pay in any type of tax. Rather, on the back end, the City and County reserve the proper allocation of new taxes for potential use each year the TIF is active. Since TIF is an incentive, those seeking to do major projects within the TIF generally request the City leverage TIF as part of financing approved costs in their project. However, absent an active project, a committee of City and County representatives meet annually to make recommendations to City Council on how any new funds might be applied to public improvements in the TIF area.

HOW WILL TIF HELP?
Anticipated Benefits and Applications

A TIF district is an economic development incentive where public agencies set aside a percentage of new tax revenue derived from the future value of improved property or new businesses to pay for the current costs of development. For this area TIF, the City and County essentially reserve the pledged revenues separate from normal tax revenues, and those pledged monies may only be used to make improvements in the TIF district. In Highland Heights, Kentucky, the City has pledged 80% of new property, payroll, and occupational license taxes to the district; Campbell County also participates by pledging 60% of new property and payroll taxes for parcels and businesses in the targeted areas. TIF districts are critical to development because necessary infrastructure that is pivotal to a project’s success is usually prohibitively costly for a developer or business to bear out exclusively. TIF is the key public sector assistance mechanism to aid in significant real property development.

FOR MORE INFORMATION
Campbell County’s economic development office assists in administering six active TIF districts. Contact Will Weber at (859) 547-1806 or JWWeber@CampbellCountyKY.org if you would like to know more.

CAMPBELL COUNTY FISCAL COURT - 1098 MONMOUTH STREET - NEWPORT, KENTUCKY 41071