Tax Increment Reinvestment Zone Number 1

The Terrell Tax Increment Reinvestment Zone Number 1 is an inter-local agreement between the City of Terrell and Kaufman County.

Download the Tax Increment Financing Request for Funds (PDF).

Tax Increment Reinvestment Zone Number 1 Map

About Tax Increment Financing (TIF)

Tax increment financing:

  • Creates a Tax Increment Reinvestment Zone (TIRZ)
  • Uses the projected rise (increment) in property tax values to finance infrastructure or development improvements
  • Allows future ad valorem revenue to pay for the construction of public infrastructure improvement
  • Provides an economic stimulus that can be used to attract development or redevelopment in areas that currently are currently undeveloped

About Terrell Tax Increment Reinvestment Zone Number 1

Increased tax revenue from the rise in property tax is deposited in a TIF fund, which is then used to reimburse costs for infrastructure improvements or to reimburse developers for specific costs on improvements made. Terrell will contribute 75% of the taxes captured; Kaufman County has pledged 50%.

The Tax Increment Reinvestment Zone funds are used exclusively for public improvements.

The Terrell Tax Increment Reinvestment Zone includes more than 4,000 undeveloped acres. The Project Plan calls for a maximum of $158,500,000 in public improvements over the 30-year life of the TIRZ.

People with Shovels at Groundbreaking Ceremony