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The base year for all state sales tax tax increment financing (TIF) districts is 1985. Each year, the department calculates the sales tax generated within the TIF district and compares it to the base year amounts. If there has been growth in the district, the department then applies the 80-60-40 formula to the state growth figure. The 80-60-40 formula allows districts to receive 80% of the first $100,000.00 of growth, 60% of any amount between $100,000.00 and $500,000.00, and 40% of any amount over $500,000.00. The result is called the net state increment. Your individual net state increment is then divided into the total net state increment for all of the participating districts to arrive at your prorated share of the quarterly distribution.