Tax Increment Finance (TIF) Districts in Chickasha

Updated October 2024

Chickasha has three active or upcoming tax increment finance (TIF) districts. The City Council approved the “Gateway to Chickasha” Economic Development Project Plan in September 2024, which designated two TIF districts. The first of these districts, TIF #2, became active January 1, 2025. The second is not yet active.

In January 2026, the City Council approved the Airport Industrial Park Economic Development Project Plan, which created a third district at the Chickasha Airport Industrial Park. This district will become active July 1, 2026 as TIF #3.

Table of Contents
Table of Contents

Gateway to Chickasha Project Plan

Chickasha TIF Project Plan 6/12/2024Download

The first plan approved by the City Council designated two new TIF assessment districts—one containing most of the downtown district, the other including properties along Highway 62 and Grand Avenue on the east side of town, near Interstate 44. TIF Proposal A, now TIF #2, went into effect January 1, 2025, and will have the maximum term of 25 years.

The second, TIF Proposal B, does not yet have an effective date. The city council may set an effective date at any time before 2034.

TIF #2: Downtown

TIF A will capture the benefit of redevelopment in Downtown Chickasha, including the new developments in the Depot area. It runs from 6th St. in the west to the far side of 1st St. in the east, and includes both sides of Choctaw, Chickasha, and Kansas (and some of Iowa).

TIF Proposal B: Highway 62

TIF B will capture new development in Chickasha’s east entryway. It includes largely undeveloped properties along Choctaw Ave./US-62 coming off Interstate 44, as well as along the eastern loop of Grand Avenue.

(Generally speaking, the properties carved out of the above assessment areas are tax exempt or are not expected to increase in value, and thus would not contribute to TIF revenue.)

50% of ad valorem, sales, and hotel tax increment captured in the TIF districts under this project plan will be retained for project costs. The remaining 50% would be returned to the city, county, and schools.

Both TIF districts are created to support up to an estimated $551.6 million in potential infrastructure improvements and $30 million in development financing (i.e. reimbursement incentives), in addition to administrative and financing costs. Projects funded through the TIF may occur anywhere within the project area outlined below.

Airport Industrial Park Project Plan

Final Airport Industrial Park Project PlanDownload

On January 26, 2026, the City Council approved a second project plan, designating the Chickasha Airport Industrial Park and adjacent area as a TIF District, aiming to facilitate the new development at the site. At the same meeting, the effective date was set as July 1, 2026. This district will be designated “TIF #3”.

A map of the Airport Industrial Park TIF assessment area.

This TIF captures 75% of new ad valorem tax, with the remaining 25% returned to taxing jurisdictions. The TIF will support a maximum of $69.8 million in potential development projects, which may be located anywhere within the project area boundaries indicated in the project plan.

About Tax Increment Financing

Tax Increment Financing (TIF) is a public tool that reallocates newly generated tax dollars for up to 25 years for supporting development or redevelopment in certain limited areas of a city, town, or county. In Oklahoma, the terms and conditions for using TIF are provided in the Local Development Act (62 O.S. §§850-869).

—Oklahoma Department of Commerce
A simplified graph illustrating the the existing tax base, potential captured increment during the TIF, and new tax base after the TIF.

The TIF captures some or all of the increase (increment) in tax revenue generated over a set period of time within a specific area. This funding is then available for use in public improvements, and/or certain other purposes outlined in state law and specified by the public body. It does not increase tax rates.

The objective of a TIF district is to enable development that would not happen otherwise—i.e., “but for the TIF, this development will not take place.” In creating the TIF, the city has indicated that the improvements and incentives are necessary to the development of these areas.

City leadership and the EDC have identified utilities and infrastructure to be among the greatest barriers to new development in Chickasha. TIF is a tool that can generate funding for infrastructure projects that the city cannot currently afford.

Other Frequently Asked Questions

No. The TIF does not create a new tax or raise tax rates.

There is no added cost to property owners. The TIF revenue comes from assessed values increasing due to voluntary improvements made to the property. If no improvements are made, and the property value remains consistent, there is little effect.

Property owners will pay the same ad valorem tax rates, based on property value, as they would without the TIF.

The tax revenue captured by the city, county, schools, etc. from affected properties will not decrease. 50% of the increment will be returned to the taxing entities according to normal millage rates, meaning that they will still benefit from improvements to the district.

Additionally, the increment revenue returned to Chickasha Public Schools is excluded from the state funding formula, and therefore does not affect OSDE allocations.

The City of Chickasha will manage the funds generated by the TIF according to the guidelines set by the approved project plan. Individual projects and incentives will be subject to City Council approval as usual.

The EDC assisted in the research and promotion of the TIF but has no authority in the decision-making process.

TIF revenues may be spent only for publicly approved project costs within a specific geographic area, known as the Project Area. The Local Development Act defines project costs to include a wide range of public expenditures including:
  • Cost of public works, public improvements, land acquisition, clearance, and grading
  • Financing, professional services, administration, interest fees
  • Assistance in development financing for private projects
(Source: Oklahoma Dept. of Commerce)
The projected increment in the TIF area amounts to:
  • $10.54 million in ad valorem revenue
  • $57.2 million in sales and use tax revenue
  • $3.44 million in hotel tax revenue
Half of the above amounts would be returned to taxing entities, so a total of $35.6 million would be allocated to TIF projects. This could be matched by up to $30.32 million in state funds.
The city will have the option to offer development finance incentives. If a private developer wishes to perform certain infrastructure improvements that benefit the public as well as their business, the city may reimburse a portion of the developers' costs upon completion. These incentives would be subject to a development agreement between the city and the developer and approved by City Council.

The City Council may choose to activate the TIF districts at any time up to 10 years from the adoption of the project plan. They may be activated together or separately.

The effective date for TIF A (TIF #2) has been set as January 1, 2025. The effective date for TIF B is to be determined.