Tax Incremental Finance (TIF) - Annexations

  1. Can the municipality create a Tax Incremental District (TID) that includes annexed parcels before approving the annexation?

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

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

  4. 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?


  1. Can the municipality create a Tax Incremental District (TID) that includes annexed parcels before approving the annexation?

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

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

    Municipality must submit:
    • 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

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

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

  4. 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).


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