Tyler Tax Increment Reinvestment Zone #4 – Downtown
The City of Tyler Tax Increment Reinvestment Zone (TlRZ) was established on September 28, 2016 and consists of approximately 574.64 acres of land located in the City’s central core.
City of Tyler TIRZ #4 is bounded by W. Queen Street to the north, Palace Avenue to the west, Front Street to the south, and Beckham Avenue on the eastern border.
What is Tax Increment Financing (TIF)?
Tax Increment Financing (TIF) is a tool to help finance public improvements and development projects within a defined area. A municipality makes an area eligible for TIF by designating it a Tax Increment Reinvestment Zone (TIRZ). Within the designated zone, all of the incremental tax revenue growth flows to an established tax increment fund to help pay for public improvements within the zone.
Following incremental growth in property values and the collection of tax revenue in the established TIRZ fund, the TIRZ board and the City Council disburse funds to promote revitalization efforts within the zone.
While TIRZ’s are generally established by cities, other taxing jurisdictions such as a county or junior college are allowed to participate in the zone at their own discretion.
Tax Increment Revenue Overview
The City of Tyler TIRZ #4 base value was established in 2016 with a real property taxable value base of $97,124,075. The City of Tyler has chosen to contribute 100% of its incremental tax revenue to the TIRZ fund for a period of 30 years, while Smith County and Tyler Junior College have agreed to contribute 50% of their incremental tax revenue to the TIRZ for years 1-5, and 75% of their incremental tax revenue for years 6-20.