Tax Increment Financing (TIF) Districts

The Town of Yarmouth Town Council, the Economic Development Advisory Board and Economic Development Director worked together to create three municipal Tax Increment Financing (TIF) Districts for Yarmouth.  The Town Council held public hearings on August 20, 2015, and voted to adopt the following three tax increment financing districts.  Maine Department of Economic and Community Development approved these districts March 31, 2016:   

1. Yarmouth Downtown Omnibus Municipal Development and Tax Increment Financing District to encompass approximately 209 acres along Main Street from Hillside Street to and including properties at the waterfront of Lafayette Street;

2. Yarmouth Route 1 North Omnibus Municipal Development and Tax Increment Financing District to encompass approximately 202 acres along Route 1 from the Royal River running north; and

3. Yarmouth Route 1 South Omnibus Municipal Development and Tax Increment Financing District to encompass approximately 201 acres along Route 1 from the Royal River running south.

Key features and benefits of municipal TIF and TIF districts:

  • Allow a municipality (Yarmouth) to "shelter" new value from Yarmouth's state valuation, essentially sheltering new tax revenue generated from development projects from the computation of its State subsidies and County taxes.  This sheltered new value is called Captured Assessed Value (CAV).
  • Allow a municipality to retain all or a portion of those new tax revenues, called "sheltering" (which would otherwise be passed onto the State or County).
  • By creating geographic TIF districts, it allows us to "freeze" the new tax value (known as the "increment"), and use the tax revenue generated to fund eligible economic development projects within those districts.  The new tax revenue generated is placed in a "development fund" to fund eligible projects. 
  • Calculations show that for every new tax dollar generated in Yarmouth, 47% or $0.47 on every dollar is lost to state revenue sharing reductions and increase in County taxes. 
  • A summary of the proposed projects that have been identified for approval include:  1) General Economic Development; 2) Municipal Equipment Costs Associated with Development; 3) Sidewalk Rehabilitation / Extension, Parking Improvements and Connectivity; 4) Bicycle and Pedestrian Residential to Business Community Connections and Improvements; 5) Bus Shelters and Transportation Amenities; 6) Underground Utilities; 7) Streetscape Improvements; 8) Road and Intersection Improvements; 9) Stormwater and Drainage Improvements; 10) Sewer Infrastructure; 11) Natural Gas; 12) 3-Phase Power; 13) Broadband Costs / 4GLTE; 14) Energy Generation and Transmission; 15) Harbormaster's Office; 16) Piers, Floats, and Visitor / Tourist Boater Amenities; 17) GIS / Mapping; 18) Credit Enhancement Agreements; 19) Public Safety Building and Public Safety Equipment / Infrastructure; 20) Land Acquisition / Redevelopment Costs.  
  • Benefits to a municipality (Yarmouth) include assisting Yarmouth to achieve goals of its comprehensive plan, and other planning documents that have been adopted - so long as the projects identified are related to and made necessary by economic development; attract new investment, business expansion; business retention; accomplish significant infrastructure projects; tax shift benefit.

For more information, to learn more about TIFs, contact Scott LaFlamme, Economic Development Director at 846-2401 Ext. 227