Tax Incremental Financing (TIF) Value Limitation Report for 2016

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 or total increment 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 Municipal Equalized Value - DOR's full value estimate of the taxable property in a taxation district
  • 5%, 7% and 12% test – to determine if additional TIDs can be created:
    TIDs created under sec. 60.85, Wis. Stats., use the 5% or 7% test:
    • 5% - sum of all TID value increments divided by the municipal equalized value
    • 7% - sum of the current value of all TIDs in the municipality divided by the municipal equalized value
    • Note: A new TID can only be created under this section if its proposed value does not exceed one of the tests

    TIDs created under sec. 66.1105, Wis. Stats., use the 12% test
    • 12% - sum of all TID value increments divided by the municipal equalized value
    • Note: A new TID can only be created under this section if the proposed value does not exceed the 12% test

Tax Incremental Value Limitation

Contact Information

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