Economic Incentives

Below is a description of two of the Village's economic incentive programs; the Tax Increment Financing District and Business District.  The Village has and will also use other incentives including permit fee reductions and sales tax rebates.

For information on any development project, please contact Karl Warwick, Village Administrator at 847-356-6100 or kwarwick@lake-villa.org

TAX INCREMENT FINANCING DISTRICT (TIF)

When was the Village's TIF District Created?

The Village's TIF district was adopted in June of 2016 and would expire in 2039.

What is a TIF District?

TIF Districts use the incremental increase in property taxes to pay for eligible costs including land acquisition, building rehabilitation, public improvements, job training and site improvements. The term lasts for 23 years after the creation of the TIF district at which time all taxing bodies receive all of the property taxes generated by the area. TIF districts do not create any additional tax to any property owner.

How does a TIF District work?

  • For the district's duration, the incremental increase in property tax can be used for TIF eligible expenses as an economic incentive tool.
  • Taxing bodies continue to receive the same property taxes from the area as they did when the TIF district was created.
  • At the conclusion of the TIF (23 years), all taxing bodies will receive the full amount of property taxes generated by the area, as described in the chart below.

TIF Diagram

What are the boundaries of the TIF District?

View the Downtown TIF District Boundaries here

BUSINESS DISTRICT

When was the Business District Created?

The Business District was created September of 2016.

What is a Business District?

A Business District is an additional 1% sales tax within a certain boundary of Lake Villa.  This sales tax can only be used within the district for public improvements, private building renovations, building construction and property acquisition.

How does a Business District work?

The Village receives funds from this special sales taxes and can use it to make public improvements within the district or the Village can elect to grant it to businesses. 

What are the boundaries of the Business District?

View the Business District Boundaries here

Contact Us

In this Department

More Information