What is Tax Increment Financing?
A Tax Increment Financing District or commonly referred to as a TIF District, has been a buzz phrase in Bowman County the last few months. Tax Increment Financing is a tool that cities may implement as a public financing option. The property taxes collected from the district are used solely for outlined improvements or developments.
The extremely high cost of installing infrastructure is one reason for exploring Tax Increment Financing. It can assist in enticing developers for new residential and commercial development or assist a city in updating and repairing already developed areas.
The city of Scranton is currently implementing a TIF district for the North Butte Addition to assist with the cost of installing streets, curbs, and gutters. The city owned Addition currently has four lots occupied of the 11 total available and are expecting more interest. Bowman currently has 4 land areas that could potentially qualify for a TIF District. While the city of Bowman has not committed to offering this to a developer, the Bowman County Development Corporation is assisting in exploring this option.