ABSTRACT
This chapter provides an overview of the four value capture (VC) mechanisms: special assessment districts (SADs), Tax Increment Financing (TIF), joint development, and the transit impact fee. These four are the most commonly used VC mechanisms in the US. The revenues from property taxes and other local broad-based taxes, such as sales and local income and business taxes, usually flow into a jurisdictions general fund and can be spent on almost any local government function. The federal emphasis on land use-transportation integration through the Intermodal Surface Transportation Efficiency Act (ISTEA), the Transportation Equity Act for the 21st Century (TEA-21), the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) and more recently, the American Recovery and Reinvestment Act has further reinforced the need for transit. Joint development involves cooperation between private and public entities often a transit agency/local government and a real estate developer to develop a real estate project.
