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During the life of the redevelopment area (30 years), other taxing agencies continue to receive base property tax revenues (the amount they were receiving at the time the redevelopment area was first created). If there is an increase in assessed value in the area and therefore in the property tax revenue, that increase only is redirected to the Redevelopment Agency for reinvestment in the area. If there is no increase in assessed value, the Redevelopment Agency receives no revenue. Once the area expires (after 30 years), the total combined property tax available (base plus the new increased amount) is once again distributed to all taxing bodies as it was prior to the area's creation. It is important to keep in mind that this tool provides for increases in property tax revenue WITHOUT increasing taxes in older, inactive areas. But for redevelopment activities, the property values would not increase. During the life of the redevelopment area, other taxing agencies will continue to receive non-property tax revenues and those revenues generated just outside the project area as a direct result of redevelopment activities, i.e., sales taxes, hotel room taxes and property taxes generated outside the redevelopment area.
(FAQ3750)
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