How many times can a municipality amend a project plan to change boundaries?
A municipality may 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.
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 (in the amendment year) is added to the existing base value.
Does all property in a boundary amendment have to be in the same area?
No. As long as added or subtracted parcels are contiguous to the original TID, the added or subtracted parcels do not have to be in the same area.
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.
What should the map and the metes and bounds (boundary legal description) show in a Territory Amendment?
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 remains contiguous. Review
Parcels Common Question #3 for more information on maps.
Boundary legal description – 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.
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.
Tax Incremental District (TID) Checklist.
Can a municipality complete a territory addition amendment and update the project plan with new projects at the same time?
Yes. A municipality usually updates the project plan during a territory amendment to add projects in the new territory. The municipality can also update the project plan with projects that do not relate to the new territory. In both cases, the municipality can complete and submit one set of forms to DOR.
TID Checklist for the required forms and documents.
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 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 2019, the municipality adds 10 parcels valued (as of January 1, 2019) at $45,000. The $150,000 existing base value plus the $45,000 sum of additional parcels equals $195,000. In 2020, the TID's new base value is $195,000.
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.
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.
Can a municipality amend the boundaries of a distressed or severely distressed TID?
A municipality may complete a boundary amendment to subtract territory from an existing distressed or severely distressed TID; however, a municipality may not add territory to a TID that is declared distressed or severely distressed.
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, a municipality must 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.
If a municipality is over the 12 percent value limit, can the municipality add and subtract territory simultaneously?
If a municipality is over the 12 percent value limit, it can add and subtract territory in the same TID at the same time as long as the net change to the base value is negative. However, the value of the added and subtracted parcels are determined differently.
Value of the:
- Subtracted parcels – is the original value when the parcels entered the TID
- Additional parcels – is the value as of January 1 of the amendment year.
See Value Limit Common
Question #9 for additional information.
FOR QUESTIONS OR COMMENTS CONTACT:
WISCONSIN DEPARTMENT OF REVENUE
Office of Technical and Assessment Services
PO Box 8971
Madison, WI 53708-8971
Phone: (608) 266-7750
Email additional questions to firstname.lastname@example.org