Tax Incremental Finance (TIF) - Terminations

  1. When does a municipality terminate a Tax Incremental District (TID)?

  2. What should the municipality provide to the 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 DOR a certification administrative fee?

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

  6. When a municipality terminates a TID, what happens if there are still debts?

  7. How does the municipality divide excess funds among the overlying taxing jurisdictions?

  8. 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?

  9. If a municipality adopts a TID termination resolution and notified DOR, can it rescind the termination resolution so it can adopt an affordable housing resolution?

  1. When does a municipality terminate a Tax Incremental District (TID)?

    The municipality must adopt a termination resolution when one of the following occurs:
    • All project costs have been recovered
    • TID reaches its maximum life
    • Municipality decides to end the TID for any other reason

  2. What should the municipality provide to the 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 changed 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 DOR a certification administrative fee?

    The answer depends on the date the local legislative body adopts the termination resolution:
    • On or before April 15 — if the local legislative body adopts the termination resolution on or before April 15, the municipality does not pay the certification administrative fee that year
    • After April 15 — if the local legislative body 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 municipality is over the 12 percent value limit, the local legislative body must adopt the termination resolution before adopting the creation resolution for another TID. The municipality must remain below the 12 percent value limit after terminating a TID, to create another TID.

    If the municipality is under the 12 percent value limit, the local legislative body can adopt a creation resolution for a new TID if the municipality remains below the 12 percent value limit. The termination resolution for an existing TID can occur at any time in the same year.

  6. When a municipality terminates a TID, what happens if there are still debts?

    The municipality is responsible for any remaining debt.

  7. How does the municipality divide excess funds among the overlying taxing jurisdictions?

    According to state law (sec. 66.1105(6)(c), Wis. Stats.), excess funds are paid to the taxing entities based on the entity's portion of the total tax rate. DOR recommends basing the distribution on the most recent tax levy proportions without the tax increment. Column A of the Tax Increment Worksheet (PC-202) may be used for this calculation. Contact lgs@wisconsin.gov for further assistance.


  8. 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.

  9. If a municipality adopts a TID termination resolution and notified DOR, can it rescind the termination resolution so it can adopt an affordable housing resolution?

    The answer depends on whether the termination deadline has passed and the TID's remaining maximum life. Municipalities must certify a TID as active or inactive by April 15 under state law (sec. 66.1105(6)(ae), and 60.85(6)(am), Wis. Stats.). Both the termination and rescission must be in the same year based on this deadline. See the TID Termination Timeframes table.

    Rescinding a termination resolution is possible when all items below apply:
    • TID did not reach its maximum life (or extended life) date
    • Municipality paid the certification administrative fee for the year to keep the TID active. If the fee is paid, DOR considers the TID active.
    • April 15 deadline has not passed; the TID number is still coded on the current year assessment/tax roll parcels

    Rescinding a termination resolution is not possible if any of the items below apply:
    • TID's maximum life (or extended life) date has passed
    • Certification administrative fee deadline has passed and fee was not paid. Since the fee was not paid, DOR considers this TID no longer active.
    • April 15 deadline has passed; the TID number is removed from the current year assessment/tax roll parcels

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