Tax Incremental Finance (TIF) - Allocation Amendments

  1. Can a municipality allocate increment between its TIDs with different overlying taxing jurisdictions?

  2. Which TID project plan should we amend to allocate increment from one TID to another?

  3. If a municipality is amending both TID #1 and TID #2 to share with TID #3, how many project plans are needed?

  4. If a project plan is submitted to allocate funds from one TID to another, but circumstances changed and the municipality no longer wants or is unable to do an allocation, is that permitted?

  5. Can a donor TID stay open after its costs are recovered if it is allocating to another TID?

  6. Does the five-year allocation period mean one five-year period or five one-year periods?

  7. When can an allocation transfer take place?

  8. Are allocations made to other TIDs considered a project cost?

  9. Can allocations be made during the expenditure period?

  10. Which type of TID can allocate to another?


  1. Can a municipality allocate increment between its TIDs with different overlying taxing jurisdictions?

    No. State law (sec. 66.1105(6)(f)(1)(a), Wis. Stats.), requires that both the donor and recipient TIDs have the same overlying taxing jurisdictions.

  2. Which TID project plan should we amend to allocate increment from one TID to another?

    Amend the donor district's project plan.

  3. If a municipality is amending both TID #1 and TID #2 to share with TID #3, how many project plans are needed?

    If you are amending TID #1 and TID #2 to become Donor TIDs, you must create two project plans. One for each Donor (#1 and #2). The economic feasibility section of the project plan should show that the donor TID has extra increment to share.

  4. If a project plan is submitted to allocate funds from one TID to another, but circumstances changed and the municipality no longer wants or is unable to do an allocation, is that permitted?

    An allocation occurs when a Donor TID has excess funds and chooses to allocate to another TID. After a project plan is amended to allocated funds, the donor TID can (for whatever reason) choose not to allocate in any given year. There is no additional action required if this occurs.

  5. Can a donor TID stay open after its costs are recovered if it is allocating to another TID?

    Yes. Provided the allocation was approved by the planning commission, local governing body, and Joint Review Board (JRB) and the maximum life of the donor TID is not expired.

  6. Does the five-year allocation period mean one five-year period or five one-year periods?

    The five-year allocation period means one five-year allocation period. State law (sec. 66.1105.(6)(e)3, Wis. Stats.), says, “... a period not to exceed five years.”

  7. When can an allocation transfer take place?

    If funds are available from the donor district, the allocation transfer can occur after the resolution is adopted and the JRB approves it.

  8. Are allocations made to other TIDs considered a project cost?

    Yes. DOR considers allocations a project cost since tax increments can only be used for eligible project costs.

  9. Can allocations be made during the expenditure period?

    Yes. Adopt the allocation amendment before the end of the expenditure period to allocate funds after the end of the expenditure period. The allocations must end when the donor TID reaches its maximum life.

  10. Which type of TID can allocate to another?

    Review the TID Allocation Fact Sheet​.


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

​August 15, 2017