Tax Increment Financing

What is Tax Increment Financing (TIF)?

  • A method of project funding where borrowed funds are collateralized by future tax revenues generated by new development.

Why create a TIF?

  • Stimulates the creation of new jobs
  • Attracts new investment to the community
  • Taxing bodies continue to receive the current tax revenue
  • Generates new Earned Income Tax revenue

What can TIF fund?

  • Typically infrastructure improvements required for a project , such as sewer expansion & repair, storm drainage, road construction and water supply

What is the process for creating a TIF?

  • Step 1: MCIDA makes a formal presentation to School District, Township/Borough and County.
  • Step 2: School District, Township/Borough and County designate a representative to serve on a TIF Committee with MCIDA to discuss and review the details of the project along with the analysis of the revenue to be generated.
  • Step 3: MCIDA submits a recommendation of the boundaries of the TIF along with the project plan to Township/Borough, County and School District. It must be decided which taxing body (the county or the borough) will be the creator of the TIF.
  • Step 4: School District must adopt a resolution and affirmatively agree to participate in whole or in part in the TIF. This vote must occur before the public hearing held by the Township/Borough or the County, whichever is the creator of the TIF.
  • Step 5: Township/Borough or County must hold a public meeting for interested parties to express their views on the proposed TIF. A 30-day notice of the public meeting must be sent to the School District and the other taxing body.
  • Step 6: At least three weeks later, the creating taxing body must adopt an ordinance or resolution to create the TIF.

What is the role of the TIF Planning Committee?

  • They review and provide input on the TIF Plan.
  • Keep their respective boards informed of the process and bring questions back to the committee
  • Decide which entity (the township or county) will actually create the TIF

What TIF is NOT:

  • A tax break or incentive for the developer or company who locates in the TIFdistrict. All property taxes are paid in full by the property owner.

Are there existing TIF’s in Monroe County?

  • Yes, there are two in Pocono Township, one in Tobyhanna Township and one in Smithfield Township.

Are there other TIFs being considered in Monroe County?

  • Yes, there is one under consideration in Tobyhanna Township.  The Pocono Springs TIF Plan in Tobyhanna Township is being developed and will be available at a later date.

Smithfield TIF – TIF Ordinance adopted by Smithfield Township on August 28, 2018.  

Click here to view a copy of the TIF Plan and the Exhibits: Smithfield TIF Plan 

Click here to view a copy of the TIF Plan Exhibits:

Smithfield TIF Plan Exhibits A through H

Smithfield TIF Plan Exhibits I through N

Click here for a Fact Sheet on the Smithfield TIF:TIF Summary and Smithfield Project Overview

Click here to view the July 10, 2018 Public Hearing Presentation:Smithfield Gateway – Township Presentation (7-10-18)