Tax Incremental Finance (TIF) - Audits and Annual Report

For more information, review the TIF Audits and Annual Reports page.

  1. What audits and reports does a municipality with a Tax Incremental District (TID) need to complete?

  2. Can the municipal audit take the place of the TID Annual Report?

  3. If the municipality finished its TID's final audit, but continued to incur additional project costs, is the municipality required to submit another final audit?

  4. What determines the last reporting year for the TID Annual Report (Form PE-300)?

  5. Can a municipality use TIF funds to pay a Certified Public Accountant (CPA) for completing the required audits and annual reports?

  6. Can a municipality use TIF funds to pay for Annual Report penalties?

  7. Does the Joint Review Board (JRB) need to meet before the municipality electronically files (e-files) the TID Annual Report(s)?

  8. When a municipality schedules the JRB meeting, can the municipality email the TID Annual Report(s) before the meeting?

  9. Does a municipality need to provide DOR with documentation stating the JRB met to review the TID Annual Report?

  10. When an error is found in a TID Annual Report after the amendment deadline of November 1, how should a municipality correct the report?

  11. Are TID statistical reports available?

  1. What audits and reports does a municipality with a Tax Incremental District (TID) need to complete?

    Under state law, a municipality must complete the following audits and reports:

    1. Audits
      Municipality must complete three Certified Public Accountant (CPA) audits as part of operating a TID.
      1. First audit
        • Required 12 months after the municipality reaches 30 percent of the TID's expenditures. Save a copy in the municipal TID records.
        • If a municipality adds additional project costs as part of a project plan amendment, another "first audit" is required when the expenditures again reach 30 percent
      2. Second audit – required 12 months after the end of the expenditure period. Save a copy in the municipal TID records.
      3. Final audit
        • Required 12 months after the TID is terminated. Save a copy in the municipal TID records. See TIF Terminations Question #2 for all documents and steps required when a TID terminates.
        • Electronically file (e-file) the TID Final Accounting Report (Form PE-110) with DOR

    2. TID Annual Report
      Under state law, municipalities with an active TID must e-file a TID Annual Report (Form PE-300) with DOR for each TID.
      1. Important dates
        • Due July 1 – municipality must e-file this report with DOR every year, using the previous year's information
        • When the report is available for review, before or on July 1 – municipality must conduct a meeting with representatives of the overlying taxing jurisdictions (county, school, technical college, and special district) of each TID to review the TID Annual Report
      2. Grace Period
        • State law allows a 60-day grace period from the due date before the penalty applies
        • After the grace period, the penalty is $100 per TID per day until the TID Annual Report is e-filed

  2. Can the municipal audit take the place of the TID Annual Report?

    No. A municipality must electronically file a TID Annual Report (Form PE-300) on or before July 1 with DOR.

  3. If the municipality finished its TID's final audit, but continued to incur additional project costs, is the municipality required to submit another final audit?

    Yes. A municipality must complete the Final audit after all project costs are paid or it must make arrangements to cover upcoming expenditures (ex: bond payments).

  4. What determines the last reporting year for the TID Annual Report (Form PE-300)?

    The municipal termination resolution adoption date determines the last reporting year for the TID Annual Report. See the TID Termination Timeframes table for details.

  5. Can a municipality use TIF funds to pay a Certified Public Accountant (CPA) for completing the required audits and annual reports?

    Yes. Under state law, professional services are an allowable TID expenditure.

  6. Can a municipality use TIF funds to pay for Annual Report penalties?

    No. Under state law, penalty payments are not an allowable TID expenditure.

  7. Does the Joint Review Board (JRB) need to meet before the municipality electronically files (e-files) the TID Annual Report(s)?

    No. Under state law, the JRB must meet on July 1 or when the report becomes available. The law does not state whether the meeting has to occur before or after e-filing the report with DOR.

  8. When a municipality schedules the JRB meeting, can the municipality email the TID Annual Report(s) before the meeting?

    Yes. However, it is not necessary. State law does not require a municipality to provide the report in advance and does not require a specific method to distribute it. Under the law, the JRB must meet to review the report and the TID's status/performance. For each JRB meeting, a municipality must publish a notice five days before it holds the meeting. At the meeting, it may be helpful to provide paper copies of the report.

  9. Does a municipality need to provide DOR with documentation stating the JRB met to review the TID Annual Report?

    No. The municipality should keep a record of the JRB meeting notice and minutes in its TID files.

  10. When an error is found in a TID Annual Report after the amendment deadline of November 1, how should a municipality correct the report?

    After discovering an error in the TID Annual Report, a municipality should present the corrected report at the next JRB meeting and have revised numbers available for the public upon request.

  11. Are TID statistical reports available?

    Yes. Review the Tax Incremental Financing Reports on our website for information, including yearly data, active TIDs, 12 percent value limit, and changes in TID values.

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