General Overview

The Colorado General Assembly has authorized the use of a form of financing known as "tax increment financing" by urban renewal authorities (URA) and downtown development authorities (DDA) in the State of Colorado.

Tax increment financing (TIF) provides a method whereby certain types of public improvements intended to promote urban redevelopment may be financed through the issuance of tax exempt revenue bonds. It involves the creation of a special fund comprised of increases in ad valorem property taxes or municipal sales taxes, or both such taxes, generated within the tax increment financing area. The increases in such taxes presumably occur as a result of the expenditure of bond proceeds. The increases in tax proceeds are then pledged to pay debt service on the bonds.

A URA plan may contain a provision that property taxes levied upon taxable property in the urban renewal area (TIF area) after the effective date of the plan may be split between the authority and local taxing entities for a period that cannot exceed 25 years. A DDA plan may contain a provision that property taxes levied upon taxable property in the downtown development area (TIF area) after the effective date of the plan may be split between the authority and local taxing entities for a period that cannot exceed 30 years, except when a 20-year extension is enacted pursuant to 31-25-807(3)(a)(IV), C.R.S.

The division of property tax is made according to the "base" valuation of the area and any "increment" valuation that may have occurred in the area. The base valuation of the tax increment area begins as the total assessed valuation of all taxable property last certified by the assessor prior to the effective date of the approval of the urban renewal or downtown development tax increment financing plan. All property taxes attributable to the base valuation are paid to each taxing entity (school district, county, city, etc.) within the area according to the mill levy rates fixed each year by or for each such political body.

The "increment" valuation of the tax increment financing area is the amount of assessed valuation, if any, which exceeds the base valuation. All property taxes attributable to the "increment" valuation are paid into the special fund of the URA or DDA to pay debt service on the bonds and other indebtedness.

Timnath Development Authority (created in 2004)
4800 Goodman Road
Timnath, CO 80547
Phone: (970) 224-3211
Website
City Council members act as the ex-officio Authority commission

Loveland Urban Renewal Authority (created in 2002)
500 East Third Street, Suite 210 
Loveland, CO 80537
Phone: (970) 962-2525
Website
City Council members act as the ex-officio Authority commission

Fort Collins Urban Renewal Authority (created in 1982)
300 Laporte Ave.
Fort Collins, CO 80521
Phone: (970) 416-2231
Fax: (970) 224-6107
Website
City Council members act as the ex-officio Authority commission

Fort Collins Downtown Development Authority (created in 1981)
19 Old Town Square, Suite 230
Fort Collins, CO 80524
Phone: (970) 484-2020
Fax: (970) 484-2069
Website

The Downtown Development Authority is appointed by the City Council and serves as the primary planning and development advisor for downtown Fort Collins. The Authority is quasi-autonomous, has certain powers and duties granted to it by Colorado Statute, has authority to levy a property tax up to 5 mills for its operations and has the ability to issue tax increment bonds to provide public services within its boundaries.

Additional Information and Related Presentations

The following links are offered for those who wish to learn more about the nature of TIF, where TIF has worked and where it hasn't, and what some feel the proper role of TIF is in the arena of public/private partnerships and financing arrangements. The list contains fairly new links and some links that have been around for years.

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