Tax Incremental Finance (TIF) - Annexations

  1. Can the municipality create a Tax Incremental District (TID) before approving an annexation?

  2. If annexed property is included in a TID and a court later reverses the annexation, how is the TID affected?

  3. If a town is annexed (absorbed) by a city before a TID created under a cooperative agreement reaches its maximum life, can the city continue to collect the increments to pay for the town projects?

  4. What additional documents must a municipality submit to the Wisconsin Department of Revenue if a TID creation or territory amendment includes annexed parcels?

  1. Can the municipality create a Tax Incremental District (TID) before approving an annexation?

    No. The municipality annexing the property must approve the annexation ordinance before it can adopt the TID creation resolution.

  2. If annexed property is included in a TID and a court later reverses the annexation, how is the TID affected?

    The municipality must complete a territory amendment to remove any annexed property from a TID if a court order reverses the annexation.

  3. If a town is annexed (absorbed) by a city before a TID created under a cooperative agreement reaches its maximum life, can the city continue to collect the increments to pay for the town projects?

    Yes. Under state law (sec. 66.1105(16)(c), Wis. Stats.), when a town TID created under a cooperative agreement with a city (or village) is absorbed by that city (or village), the city (or village) administers the TID as if it were created by that city (or village).

  4. What additional documents must a municipality submit to the Wisconsin Department of Revenue if a TID creation or territory amendment includes annexed parcels?

    A municipality must submit:
    • A separate set of base value forms for the annexed parcels, with signatures from the town's clerk and assessor
    • Copies of the annexation documents including the municipal resolution approving the annexation

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

​August 15, 2017