EFFINGHAM TAX INCREMENT FINANCING DISTRICTS
In 1986, the Effingham City Council voted to begin using an economic tool approved by the State of Illinois known as "Tax Increment Financing" or TIF. TIF funds originate from the tax money generated from an improvement or development greater than the tax generated by the site before the improvement or development. This tax increment money is then allocated to the City for its use in making street, water, and sewer improvements in the District during the life of the District. At the end of the TIF term, all of the taxes will again be paid to the regular taxing bodies but at a much higher assessed valuation than would have been possible without the TIF.
The Effingham TIF#1 District generates taxes from three sources: property tax, city sales tax and state sales tax. Property and city sales tax monies are collected by the City and are put into a special fund. Approximately 20% of the state sales tax monies are appropriated to the City and are again placed into a special account. Effingham's TIF District has been very successful and has enabled the community to grow and prosper.
In addition to TIF #1, The City of Effingham has also created three property tax TIF districts. The Central Redevelopment Project Area (2000) was created to upgrade infrastructure in the downtown and the older areas surrounding it. The Outer Belt West Project Area (2001) was created to assist in infrastructure improvements on the new Outer Belt West; and the South Central Industrial Project Area (2003) was established to assist industries located in the eastern portion of the business park area.
For further information concerning the Effingham Tax Increment Financing District, please contact Todd Hull, TIF Administrator, at 217-342-5304.
TIF Districts Map
