Financial Incentives
Tax Increment Financing (TIF)
Tax increment Financing is a property tax rebate that property owners can apply for to be reimbursed for a percentage of their property taxes. To be eligible for TIF, your property must be located in one of the three TIF districts (see map). TIF can be quite complicated, and can be simply explained in the example below.
Example 1:
Building valued at $50,000
Annual Property Tax = $1500
Applicant is applying for $20,000 in TIF eligible expenses to renovate the building. Property owner signs an agreement with the City of Sullivan to receive 50% of his property tax increment back as a rebate. The application is approved and the work on the building completed.
The property owner must submit to the City of Sullivan Treasurer all of his paid receipts equaling $20,000. The assessed value of the building is now $70,000 and the annual property tax equals $3500. The tax increment is the difference between the annual property taxes ($3500-$1500 = $2000 tax increment). The property owner must submit a copy of his paid property tax receipt to the City of Sullivan and will be reimbursed $1000 (50% of his tax increment).
Each year when the owner submits a copy of his paid property tax receipt, he will receive a 50% rebate for the increment until he reaches a payout of $20,000 for all of his eligible expenses or until TIF expires.
Not all renovations are eligible within the TIF law for reimbursement. The list of work to be done, must be reviewed by our TIF consultant to identify the eligible expenses. If you have questions about TIF or would like to pick up an application, please contact
Stepheny McMahon, Director Sullivan Chamber & Economic Development 217-728-2684.