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Special Tax Assessment

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​An STA is a negotiated agreement between a business and the host municipality that applies to the entire assessed value of a parcel, not just the increment, like a TIF. Current, as well as future local tax revenues, are exempted.

​Unlike TIF agreements, no personal property taxes may be exempted under an STA agreement.

STAs have 5-year minimum and 20-year maximum terms and must minimally comply with the following 5-year schedule:

  • Year One: not less than 50% of total property taxes exempted
  • Year Two: not less than 25% of total property taxes exempted
  • Year Three: not less than 25% of total property taxes exempted
  • Year Four: not less than 5% of total property taxes exempted
  • Year Five: not less than 5% of total property taxes exempted 
May elect to exempt a greater percentage (not less) in any given year; may not elect to go less than five years in length. An STA's negotiation and approval processes are identical to the TIF process.