Tax Incremental Finance (TIF) - Territory Amendments

  1. How many times can a municipality amend a project plan to change boundaries?

  2. How does a subtraction amendment differ from an addition amendment?

  3. Does all property in a boundary amendment have to be in the same area?

  4. If a municipality adds territory to a TID, does the total area of the TID (original parcels and added parcels) have to meet the 50 percent minimum property type based on its original TID type?

  5. What should the map and the metes and bounds show?

  6. Can a municipality discuss multiple amendments (to update projects, add/subtract territory, allocate to another TID) at the same public hearing?

  7. Does the TID's base value of existing parcels change when territory is added?

  8. Does adding territory affect the TID expenditure period?

  9. Does a municipality need to notify owners of blighted property prior to an amendment hearing?

  10. Can a municipality amend the boundaries of a distressed or severely distressed TID?

  11. If the municipality adds territory to an existing TID, does the TID include the new territory's personal property and personal property value in the base?
  1. How many times can a municipality amend a project plan to change boundaries?

    A municipality can change Tax Incremental District (TID) boundaries up to four times during the TID's life. If a municipality completes an addition and subtraction in the same year, it counts as one of the four territory amendments. Each amendment may add and/or subtract parcels, if all parcels within the TID boundaries remain contiguous.

  2. How does a subtraction amendment differ from an addition amendment?

    Subtraction amendment — decreases the number of parcels in the TID. The value of the removed parcels (at the time they were added to the TID) is subtracted from the base value.

    Addition amendment — increases the number of parcels in the TID. The value of the additional parcels is added to the existing base value.

  3. Does all property in a boundary amendment have to be in the same area?

    No. As long as added or subtracted property is contiguous to the original TID, all the property does not have to be in the same area.

  4. If a municipality adds territory to a TID, does the total area of the TID (original parcels and added parcels) have to meet the 50 percent minimum property type based on its original TID type?

    Yes. After a TID is created and declared a specific type, it must remain that type throughout its life. If a municipality adds parcels, 50 percent of the property must meet the TID's original type. If a municipality subtracts parcels, 50 percent of the remaining property must meet the TID's original type.

  5. What should the map and the metes and bounds show?

    Map – must show an outline of the complete TID and identify the added or subtracted parcels. The new boundary outline must show that the entire TID area remains contiguous. Review Parcels Common Question #3 for more information on maps.

    Metes and bounds – must be revised to describe the updated TID outer boundary of the full TID, including the necessary revisions to account for parcel changes made in the amendment.

  6. Can a municipality discuss multiple amendments (to update projects, add/subtract territory, allocate to another TID) at the same public hearing?

    Yes. However, the municipality must describe each action in a separate statement in the public hearing notice. Also, separate resolutions are recommended.

    See the Tax Incremental District (TID) Checklist.

  7. Does the TID's base value of existing parcels change when territory is added?

    No. The base value of the existing parcels does not change; however, when territory is added the the new parcels' value is added to the TID's existing base value.

    Example: TID #2 was created in 2012 with a base value of $150,000. This value does not change when territory is added. In 2017, the municipality adds 10 parcels valued (as of January 1, 2017) at $45,000. The $150,000 base value plus the $45,000 for the additional parcels equals $195,000. In 2018, the TID's new base value is $195,000.

  8. Does adding territory affect the TID expenditure period?

    No. Adding territory does not change the TID expenditure period. All project costs (original and additional costs) must be incurred within five years before the TID's maximum life.

  9. Does a municipality need to notify owners of blighted property prior to an amendment hearing?

    Yes. When adding parcels to a blighted or rehabilitation/conservation TID, the municipality must notify the owners of parcels being added and identified as blighted or rehabilitation/conservation 15 days before the public hearing.

  10. Can a municipality amend the boundaries of a distressed or severely distressed TID?

    A municipality may complete a boundary amendment to subtract territory; however, a municipality may not add territory to a TID that is declared distressed or severely distressed.

  11. If the municipality adds territory to an existing TID, does the TID include the new territory's personal property and personal property value in the base?

    Yes. When amending a TID, include any taxable personal property within the new territory. If taxable personal property is located in a TID, the taxable personal property value becomes part of the TID's new base value.

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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