Inside a TIRZ, your appraisal growth doesn't go where you think. It goes here.
Drag the sliders. The dashed line is your home's value the year the zone was created. Everything below the line is taxed normally. Everything above the line is "the increment" — and the City of Houston's share of it gets diverted to a Redevelopment Authority for that specific zone, not the General Fund.
Property value over time
Base value (taxed normally)Increment (TIRZ captures City share)Base year line
22 yr
5.5%
$120k
Yes — increment captured
What's happening to your dollars
Current appraised value
$385k
After 22 years at 5.5% annual growth
Base portion (taxed normally)
$120k
Property value at zone creation
Increment
$265k
Appraisal growth since base year
Diverted to TIRZ this year
$1,376
Your City of Houston tax on the increment ($0.51919 / $100)
Cumulative diverted (lifetime of zone)
$12,810
Approx., assuming the same growth curve since year 1
THE MECHANISM
Other taxing units — your school district, county, hospital district, port — usually keep collecting on the full value (statute and individual zone agreements vary; verify per zone). The City of Houston is the unit that consents to divert its share, and almost every Houston TIRZ relies on the City contribution as its primary funding source. The Redevelopment Authority that receives those funds is governed by a board whose members the Mayor appoints, not voters elect.