Overview
A Tax Increment Reinvestment Zone (TIRZ) is a designated district where a portion of the increased property tax revenue—generated as property values rise—is reinvested back into the zone. This revenue is used to fund essential public infrastructure improvements such as water, sewer, drainage, roads, sidewalks, parks, and public spaces.
In Baytown, TIRZs play a key role in promoting redevelopment and investment in underdeveloped or strategically important areas. By improving local infrastructure, TIRZs help create more attractive and functional environments for business growth and community development.
How TIRZ Works
When a TIRZ is created, the base value of taxable property is established. As private development occurs and property values rise, the incremental increase in tax revenue is captured and used to fund projects within the zone. These funds do not raise taxes, but instead redirect a portion of new revenue for public benefit.
Purpose of the TIRZ Program
- Stimulate redevelopment and reinvestment in targeted areas
- Use incremental tax revenue to fund critical public improvements
- Encourage private investment by improving local infrastructure
- Align economic development with community planning priorities
Benefits to the Community and Businesses
- Improved infrastructure that supports development and growth
- Public investment in roads, utilities, and public spaces to enhance usability and accessibility
- Stronger business environment through coordinated planning and reinvestment
- Support for revitalization and long-term community improvements