Tax Incremental Financing (TIF) Value Limitation Report 2015

Wisconsin Department of Revenue (DOR)
Division of State and Local Finance


Use this report to review values and increments of tax incremental district(s) (TIDs) to determine if a municipality can create or amend a TID. Under state law, a municipality cannot create or amend a TID when the total value of its TIDs exceeds a specified percentage of the municipality's Equalized Value.

Report includes:

  • Current value of each TID and municipal total
  • Current increment of each TID and municipal total
  • Current municipal equalized value
  • Percentage test/results

Definitions of terms in the report:

  • Tax Incremental District (TID) - a geographic area within a municipality created for development or rehabilitation
  • TID Base Year - year the TID is established
  • TID Current Year Value - total full value of all property within the TID for the current year
  • TID Current Value Increment
    • Calculated by subtracting the base value from the current year value
    • Taxes generated by the increment are used to pay eligible TID project costs
    • Negative increment is considered zero, generating no payment to the TID
  • Total TID Current Value - total full value of all TIDs in the municipality for the current year
  • Current Municipal Equalized Value - DOR's full value estimate of the taxable property in a taxation district
  • 5%, 7% and 12% tests

    TIDs created under sec. 60.58, Wis. Stats., use the 5% or 7% test
    • 5% - equalized value of the TID's taxable property plus the value increment of all existing TIDs within the town does not exceed 5% of the total equalized value of taxable property within the town
    • 7% - equalized value of the TID's taxable property plus the value increment of all existing TIDs within the town does not exceed 7% of the total equalized value of taxable property within the town

    TIDs created under sec. 66.1105, Wis. Stats., use the 12% test - equalized value of the TID's taxable property plus the value increment of all existing TIDs within the city does not exceed 12% of the total equalized value of taxable property within the city.

Tax Incremental Value Limitation


FOR MORE INFORMATION PLEASE CONTACT:

MS 6-97
WISCONSIN DEPARTMENT OF REVENUE
Office of Technical and Assessment Services
PO Box 8971
Madison, WI 53708-8971
Phone: (608) 261-5335 or (608) 266-5708
Email additional questions to ​tif@wisconsin.gov