Innovative transportation finance : value capture techniques applied in the state of Texas

Transportation finance has been historically dominated by assessing taxes totransportation users and taxes on the general public. Innovative financing mechanismssuch as tax increment financing, special assessment districts, and others represent valuecapture techniques that tax property owners to pay for transportation costs. Value capturetechniques provide supplemental funds to support capital construction costs but are notsubstitutes for existing dedicated and traditional tax revenue methods. The majorfindings of Texas practice indicate that tax increment financing for transit does notsignificantly contribute towards the transit infrastructure. Instead tax increment fundsfinance the improvement of public infrastructure surrounding transit stations and stopsand can be labeled transit-supportive investments.