Tax Incremental Finance (TIF) - Terminations

  1. What is the difference between terminating and dissolving a Tax Incremental District (TID)?

  2. What should the municipality provide to Wisconsin Department of Revenue (DOR) when a TID terminates?

  3. What is the last year a municipality receives an increment for a terminated TID?

  4. If a municipality adopts a TID termination resolution, does the municipality need to pay the DOR certification administrative fee?

  5. Can a municipality terminate an existing TID and then create another TID in the same year?

  6. What if a municipality terminated a TID and has some outstanding expenses to pay before disbursing any extra funds to the other overlying tax jurisdictions?

  1. What is the difference between terminating and dissolving a Tax Incremental District (TID)?

    Terminate – all project costs are recovered or the TID reaches its maximum life

    Dissolve – the municipality decides to end the TID for any other reason. A dissolution must be completed by resolution, similar to a termination.

  2. What should the municipality provide to Wisconsin Department of Revenue (DOR) when a TID terminates?

    1. Within 60 days of adopting the termination resolution, email tif@wisconsin.gov:

    2. Within six months of adopting the termination resolution:
      • Provide a list of the TID parcels to the appropriate Real Property Lister. Verify the TID number is removed from the correct tax/assessment roll year.
      • Complete the Final Audit. Save a copy in the Municipal TID records.
      • Electronically file the Final Accounting Report Form PE-110 with DOR

  3. What is the last year a municipality receives an increment for a terminated TID?

    The date the municipality adopts the termination resolution determines the last year it receives an increment for that TID. For more details see the TID Termination Timeframes table.

    Effective January 1, 2018, the TID termination deadline changes from May 15 to April 15. See 2017 Act 15.

  4. If a municipality adopts a TID termination resolution, does the municipality need to pay the DOR certification administrative fee?

    The answer depends on the date the municipality adopts the termination resolution:
    • If the municipality adopts the termination resolution before or on April 15, the municipality does not pay the certification administrative fee that year
    • If the municipality adopts the termination resolution after April 15 the municipality must pay the certification administrative fee that year

  5. Can a municipality terminate an existing TID and then create another TID in the same year?

    Yes. If the 12% value limit is an issue, a municipality can adopt the termination resolution before adopting the creation resolution of another TID. The municipality must remain below the 12 percent value limit after terminating a TID, to create another TID.

  6. What if a municipality terminated a TID and has some outstanding expenses to pay before disbursing any extra funds to the other overlying tax jurisdictions?

    It is the municipality's responsibility to determine proper administration in this situation. For example, a municipality may set up a temporary escrow account to cover the final payment. This allows the municipality to complete its final audit.

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

May 4, 2018