Tax increment financing provides most of the funding for the Community Redevelopment Area (CRA). This special funding tool provides all increases in taxes within the CRA beyond the year the CRA was established into a redevelopment fund.
The year the CRA was established is the "base year." Any increases in taxes beyond the base year are provided to the redevelopment fund. Therefore, as the property taxes increase due to redevelopment projects, the redevelopment also increases. Tax increment financing is not an additional tax to the property owner.