The City of Winter Park CRA is funded through Tax Increment Financing (TIF). Tax increment funds are derived from 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 Winter Park and Orange County but not including the library, school district or the water management district. The method of determining the amount of funding the CRA receives each fiscal year (October 1 – September 30) is described below.
When the CRA was created in 1991 the assessed value of the area was set as the base year tax base. Thereafter, the taxes from additional increases in property values are dedicated to the redevelopment agency. In each subsequent year, the Orange County Property Appraiser determines the taxable value of the area. The difference between the taxable value of the base year and the current year is calculated. This is referred to as the “increment”. The increment is multiplied by the millage rate of each contributing taxing entity. The taxing entity remits 95 percent of that amount of money to the CRA Trust Fund.