Tax Incremental Finance (TIF) - Allocation Amendments

  1. Can a municipality allocate increment between its Tax Incremental Districts (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. After a municipality completes an allocation amendment, can the municipality decide not to allocate the funds?

  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 Tax Incremental Districts (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 must amend the donor district's project plan. For details on how to complete an allocation amendment, see Municipal TIF Project Plan and/or Allocation Amendments.

  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 must show that the Donor TID has extra increment to share.

  4. After a municipality completes an allocation amendment, can the municipality decide not to allocate the funds?

    After a project plan is amended and resolutions adopted to allocate funds, the municipality 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 approves the allocation.

  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 must adopt the allocation amendment resolution before the donor TID's expenditure period ends. The the municipality can allocate funds to another TID after the donor TID's expenditure period or until it 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

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