In the government-wide statement of activities, how are tax-increment revenues classified?

In the government-wide statement of activities, tax-increment revenues are classified as general revenues. This classification stems from the nature of tax-increment financing, where the additional tax revenues generated from property value increases within a designated tax increment district are intended for various public purposes. These revenues are not directly tied to any specific program but rather serve to support government operations and activities broadly.

By categorizing tax-increment revenues as general revenues, the statement reflects that they can be utilized for a range of governmental functions rather than being earmarked for specific projects or programs. This distinction is important for financial reporting, as it helps in assessing how much funding is available to support a variety of services and obligations that the government has.

The other classifications of program revenues—operating grants and contributions or capital grants and contributions—are generally designated for specific uses. These types of revenues are tied to specific programs or projects, which is not the case with tax-increment revenues. Therefore, recognizing them as general revenues provides a clearer picture of their role in financing the overall activities of the government.