What is a TIF district? County council weighs decision for Microsoft Data Center area

ST. JOSEPH COUNTY, Ind. (WSBT) — A major money decision is looming in St. Joseph County.

County leaders are considering expanding a TIF district to include the Granger Microsoft Data Center.

That move could determine where millions in future tax dollars go.

But not everyone on the County Council is sold.

So, what exactly is a TIF? It stands for Tax Increment Financing.

Here’s how it works: property taxes going to schools and other local services stay at their current baseline.

But as new development raises property values, the additional tax money generated inside the TIF district stays in that district.

That money can help pay for roads, sewer and water lines and other infrastructure needed to support new development.

“You keep reinvesting that area and it generates more growth there,” said Jeff Rea, South Bend Regional Chamber of Commerce President & CEO.

But there’s a…