Tax Increment Reinvestment Zones (TIRZ)
The City of Killeen utilizes Tax Increment Reinvestment Zones (TIRZ) under Chapter 311 of the Texas Tax Code to finance public infrastructure and redevelopment projects that stimulate private investment. TIRZ allow the City to reinvest the incremental increase in property tax revenue generated within a designated zone to support improvements that advance long-term economic development goals.
Tax Increment Reinvestment Zones (TIRZ)
A TIRZ is a defined geographic area designated by the City Council in which the incremental growth in property tax revenue above a base year value is captured and reinvested back into the zone. These funds may be used to finance public improvements that support redevelopment and economic expansion.
How TIRZ Works
A base year taxable value is established when the zone is created.
As property values increase, the tax increment (the increase above the base value) is deposited into the TIRZ fund.
Increment revenues are used to pay for eligible project costs identified in an adopted Project Plan and Financing Plan.
TIRZ typically have a defined lifespan, often up to 30 years, depending on the zone.
Eligible Uses of TIRZ Funds
Under Chapter 311, eligible project costs may include:
Public infrastructure improvements (roads, drainage, utilities)
Site preparation and land acquisition
Public facilities and streetscape improvements
Parking structures and mobility improvements
Environmental remediation
Other improvements that enhance the value and viability of the zone
Governance & Approval
TIRZ are created by ordinance of the City Council.
A TIRZ Board of Directors may be appointed to oversee implementation.
A formal Project Plan and Financing Plan must be adopted.
Annual reporting and compliance with Chapter 311 are required.
TIRZ do not increase the tax rate. Instead, they dedicate future incremental growth within a defined area to fund improvements that would not otherwise occur.