Tax incremental funding (TIF) is the use of tax revenues to address specific funding priorities. Most often TIF, also called tax incremental financing, involves the commitment of increased property-tax revenue from increased values of properties that are rehabilitated. Development funds are used to redevelop a “blighted” area, raising the value of the properties and adjoining properties. The increased PROPERTY TAXES are used to pay for the cost of redevelopment. Once a TIF district is created, the government agency can borrow against the anticipated tax revenue and use the funds for redevelopment. TIF districts are a method to fund and then recapture the cost of development, but they can adversely affect other parts of the municipality or county. The funds from increased property values that pay for redevelopment also decrease the general revenue to the city or county. The city or county then must either increase their tax rates or decrease government SERVICES. In most areas of the United States, property taxes are a significant portion of the funding for public schools. Decreased tax revenues to the city or county have the greatest impact on school funding. From a property owner’s perspective, TIF districts can be quite beneficial. Rather than pay taxes to pay for all government services, their taxes, specifically the increase in their taxes from increased property values, pay for the cost of increasing the property values in their area. Most TIF districts are created for a specific purpose and a defined time period, typically ranging from 10 to 25 years.