Tax Incremental Finance (TIF) - Municipal-Owned Property

  1. Is municipal-owned property included in the Tax Incremental District (TID) base value?

  2. Which TID form do we use to enter the municipal-owned property?

  3. Should municipal-owned property be valued according to its exempt classification or at its value before it was purchased by the municipality?

  4. In a mixed use TID, is municipal-owned exempt property (park/cemetery) included when determining the 35 percent newly-platted residential limitation in a mixed-use TID?

  5. Can a municipality purchase property and then create a TID for that property?

  1. Is municipal-owned property included in the Tax Incremental District (TID) base value?

    Since October 1, 2015, municipal-owned property is excluded from the base value, unless the purchase date is within one year of the municipality's TID creation resolution. In that case the property's assessed value is included in the base value.

  2. Which TID form do we use to enter the municipal-owned property?

    Use Form PE-619 to enter the TID's municipal-owned parcel numbers and purchase date for each. Enter a value when the purchase date was within one year before the municipality's adopted TID creation resolution date. Email this completed form to Wisconsin Department of Revenue with the other forms in the Base Value Workbook.

  3. Should municipal-owned property be valued according to its exempt classification or at its value before it was purchased by the municipality?

    The municipal purchase date determines which municipal-owned property value to use in the TID base value. Compare the purchase date to the date of the TID creation resolution:

    • More than a year — if the property was purchased more than a year before the municipality's TID creation resolution, the property should be valued at "zero" in the TID base value

    • Within one year — if the property was purchased within one year before the municipality's TID creation resolution, use the assessed value prior to the purchase in the TID base value

  4. In a mixed use TID, is municipal-owned exempt property (park/cemetery) included when determining the 35 percent newly-platted residential limitation in a mixed-use TID?

    No. Parks/cemeteries are not taxable. Do not include this exempt acreage when justifying the calculation of the 35 percent by area.

    Under state law (sec.66.1105(2)(h), Wis. Stats.), "real property" includes all taxable real and personal property defined in secs. 70.03 and 70.04, Wis. Stats. When calculating the percentage of newly-platted residential, do not include parks and cemeteries because these parcels are not taxable.

  5. Can a municipality purchase property and then create a TID for that property?

    Yes. However, under state law (sec. 66.1105(5)(e), Wis. Stats.), any property the municipality purchases within one year before the TID's creation must be treated as if the sale did not occur, unless the municipality can prove it acquired the property for a reason other than creating the TID.

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