California, United States of America
The following excerpt is from Arcadia Redevelopment Agency v. Ikemoto, 10 Cal.App.4th 437, 284 Cal.Rptr. 216 (Cal. App. 1991):
1 In "tax increment financing," explains Redevelopment Agency v. County of San Bernardino (1978) 21 Cal.3d 255, 259, 145 Cal.Rptr. 886, 578 P.2d 133, "... if, after a redevelopment project has been approved, the assessed valuation of taxable property in the project increases, the taxes levied on such property in the project area are divided between the taxing agency and the redevelopment agency. The taxing agency receives the same amount of money it would have realized under the assessed valuation existing at the time the project was approved, while the additional money resulting from the rise in assessed valuation is placed in a special fund for repayment of indebtedness incurred in financing the project." (Original italics.)
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