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 a municipality amend to allocate increment from one TID to another?

  3. If a municipality amends 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. If a donor TID paid off all its project costs, can it stay open solely to allocate to another TID?

  6. When can an allocation transfer take place?

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

  8. Can allocations be made during the expenditure period?

  9. Which TID type 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 a municipality amend to allocate increment from one TID to another?

    A municipality should amend the donor district's project plan.

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

    If the municipality is amending TID #1 and TID #2 to become Donor TIDs, it 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 allocate 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. If a donor TID paid off all its project costs, can it stay open solely to allocate to another TID?

    Yes. Provided the municipal allocation amendment resolution was approved before the expenditure period expired and the maximum life of the donor TID is not expired.

  6. 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 approval.

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

    Yes. The Recipient TID must use the allocated money to pay eligible project costs.

  8. Can allocations be made during the expenditure period?

    Yes. A municipality should adopt the allocation amendment resolution 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.

  9. Which TID type can allocate to another?

    See 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

May 4, 2018