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 the Wisconsin Department of Revenue (DOR) when a TID terminates?

  3. Can a municipality terminate an existing TID and then create another TID in the same year if it needs more increment?

  4. If a TID terminates by April 15 of any given year, is it still eligible for an increment for that year?

  5. If a TID terminates by April 15 of any given year, must the municipality still pay the $150 administrative fee?

  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 – TID is terminated when all project costs are recovered or it reaches its maximum life

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

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

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

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

  3. Can a municipality terminate an existing TID and then create another TID in the same year if it needs more increment?

    Yes. A municipality must adopt the termination resolution on or before the adoption of the creation resolution. For more details, review the TID Termination Timeframes table and the TID Creation Timeframes table.

    Details
    • Termination resolution must occur after April 15 and the creation resolution for the new TID must take place between April 15 and September 30
      • Effective January 1, 2018, the TID termination deadline changes from May 15 to April 15 with 2017 Act 15
    • DOR will certify the new TID with the values as of January 1. The terminated TID value will not count in the 12 percent test.
    • TID terminated after April 15, 2018, receives its final increment in 2019. A TID created in 2018 receives its first increment in 2020 from the 2019 tax roll.

  4. If a TID terminates by April 15 of any given year, is it still eligible for an increment for that year?

    No. For example, if a TID is terminated by April 15, 2018, it will not receive an increment for 2018 taxes payable in 2019. For more details, review the TID Termination Timeframes table.

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

  5. If a TID terminates by April 15 of any given year, must the municipality still pay the $150 administrative fee?

    No. There is no need to pay the administrative fee for certification if the termination occurs by April 15.

    • Effective January 1, 2018, the TID termination deadline changes from May 15 to April 15, 2017 Act 15.
    • The terminated TID should not appear on the Tax Incremental District Assessment Report (TAR).

  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

October 26, 2017