Tax Increment Reinvestment Zone #1
Fund Description
Established in 2015, the Tax Increment Reinvestment Zone Fund accounts for funds collected from ad valorem tax revenues within the Tax Increment Reinvestment Zone (TIRZ). A TIRZ is a method Texas municipalities utilize to subsidize improvement projects in defined areas within their jurisdiction. In creating a TIRZ, a city establishes a “base tax value” for a designated geographic area. Once that base tax value is exceeded, the TIRZ reallocates some or all of the additional ad valorem property taxes in the zone and deposits them into the TIRZ Fund. A TIRZ can last any time but typically lasts a 20-25-year term. As properties in the TIRZ develop and increase in value, property taxes collected over and above the “base tax value” go directly into a TIRZ fund. Those TIRZ property taxes can only be used within the TIRZ to fund infrastructure, facade programs, landscaping, streetscaping, or other public enhancements within the zone.