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Market Value x Class Rate = Tax Capacity Estimated Tax Capacity Original Tax Capacity = Captured Tax Capacity x Local Tax Rate = Tax Increment TAX INCREMENT CALCULATION The Market Value is the value of property as determined by the county assessor each January 2nd. The Class Rate is prescribed by Statute according to the type and use of the property (i.e. commercial, residential homestead, residential rental, agricultural). The Tax Capacity is the taxable value of the property and is determined by multiplying the Market Value by the Class Rate. The Estimated Tax Capacity is the tax capacity of property within a TIF District at the time the development or redevelopment within the TIF District is completed. The Original Tax Capacity is the tax capacity of the property within a TIF District at the time the TIF District is created. The Captured Tax Capacity is the difference between the Estimated Tax Capacity and the Original Tax Capacity and represents the added value resulting from the development or redevelopment. The Local Tax Rate is the total tax rates of the city, county, school district(s) and other taxing jurisdictions. The Tax Increment is the result of multiplying the Captured Tax Capacity by the Local Tax Rate and is remitted by the County to the City in July and December of each year.