Tax Increment Finance Zone #1

The Terrell Tax Increment Finance Zone was created through an interlocal agreement between the City of Terrell and Kaufman County.

Tax Increment Financing (TIF):

• Creates a Tax Increment Reinvestment Zone (TIRZ)
• Uses the projected rise (increment) in property tax values to finance infrastructure or development improvements
• Allows future ad valorem revenue to pay for the construction of public infrastructure improvement
• Provides an economic stimulus that can be used to attract development or redevelopment in areas that currently are currently undeveloped

Increased tax revenue from the rise in property tax is deposited in a TIF fund, which is then used to reimburse costs for infrastructure improvements or to reimburse developers for specific costs on improvements made. Terrell will contribute 75% of the taxes captured; Kaufman County has pledged 50%.

The Tax Increment Finance funds are used exclusively for public improvements.

The Terrell Tax Increment Finance zone includes more than 4000 undeveloped acres. The Project Plan calls for a maximum of $158,500,000 in public improvements
over the 30 year life of the TIF.

Use the links below to view a map of the development area and/or to download an application form for projects within the zone.

• TIF Application (pdf format) (Word format)
  
• TIF Development Map