Tax Incremental Finance (TIF) - Territory Amendments

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

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

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

  4. What should the map and the metes and bounds look like?

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

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

  7. How does adding territory affect the TID expenditure period?

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

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

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

  1. How often 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, as long as the entire TID boundaries remain contiguous.

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

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

  3. If a municipality adds territory to a TID, does the total area (original parcels and added parcels) of the TID have to meet the 50 percent level 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, the fifty percent level must be maintained based on the TID's original type.

  4. What should the map and the metes and bounds look like?

    Map – must show an outline of the complete TID with street names and identify the added or subtracted parcels. The new boundary outline must show that the entire area is contiguous.

    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.

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

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

    For more information on the required steps, review Form PE-109 "Tax Incremental District (TID) Application Checklist."

  6. 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 value of the new parcels is added to the TID's existing base.

  7. How does adding territory affect the TID expenditure period?

    Adding territory does not change the expenditure period for the TID. All project costs (original and additional costs) must be incurred within five years before the TID's maximum life.

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

    Yes. If a municipality adds territory to a blighted or rehabilitation/conservation TID, the owners of parcels being added and identified as blighted or rehabilitation/conservation must be notified 15 days before the public hearing.

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

    Subtraction amendment – decreases the number of parcels in the TID. The TID must remain contiguous. 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

  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.

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

​July 13, 2017