Like most CRAs, the Ocala CRA is funded primarily through tax increment financing (TIF). Tax increment financing is a unique tool available to cities and counties for redevelopment activities. Tax Increment funds are based on ad valorem property taxes. The CRA is not a taxing authority, nor does it set millage rates or assess property. Tax increment funds come through existing taxing entities, including the City of Ocala and Marion County but not including the school district or the water management district.
The CRA tax increment revenues can be used immediately, saved for a particular project, or can be bonded to maximize the funds available. Any funds received from a tax increment financing area must be used for specific redevelopment purposes within the sub-area, and not for general government purposes.
