Local & State Resources
Tax Increment Financing (TIF)
TIF is an economic development tool used frequently by communities through out the country and is available in Knoxville. Essentially TIF invests property tax revenues generated by new development back into the project. Depending on the needs of the development to make the project viable, TIF is often used to cover infrastructure costs required of a development (such as a new public street, a new sewer main, etc.) or can provide for property tax relief for a given period of time.
Iowa Code is very specific as to how a property becomes eligible for TIF, how long of a period it can be in effect, and additional restrictions or requirements of using TIF. For specific information regarding TIF please contact the City Manager. The basic requirements are as follows:
- TIF is only available in an Urban Renewal Area (URA)
- URA has TIF eligibility for a 20 year period
- The project must result in an increase of the property's assessed value, and only the increase is TIF eligible
- Commercial/Industrial Development
- Eligible for TIF for up to 20 years
- Residential Development
- Eligible for TIF for 10 years
- Requires a Low to Moderate Income set aside
Iowa Code requires that TIF agreements be accounted for in a community's certified debt limit, unless the agreement is subject to annual appropriations by the City Council (Council approves the agreed upon payment every year).
In 2012 the Iowa Legislature also implemented requirements of annual reporting to the State. Access information provided by the City of Knoxville regarding all URAs and TIF agreements.
Tax abatement is available for any improvement on any residential/commercial/industrial property that increases the assessed value of the property. To determine eligibility contact City staff. All tax abatement applications require approval of the City Council. The tax abatement applies only to the property tax due on the new improvement and is phased over a 5 year period as follows:
Residential Commercial Industrial
Year 1: 100% Abatement Year 1: 100% Abatement Year 1: 75% Abatement
Year 2: 80% Abatement Year 2: 100% Abatement Year 2: 60% Abatement
Year 3: 60% Abatement Year 3: 100% Abatement Year 3: 45% Abatement
Year 4: 40% Abatement Year 4: 30% Abatement
Year 5: 20% Abatement Year 5: 15% Abatement
Check out the Iowa Ecomomic Development Authority's website for information regarding state funding and incentives.