Tax Incremental Finance (TIF) - Overlaps

Sec. 66.1105, Wis. Stats.

1. What is an overlap?


2. Which Tax Incremental District (TID) is affected by value changes in the overlapped area?


3. Where can the municipality view the TID's frozen overlap value?


4. Will the frozen overlap value of an overlapped TID be deleted if the overlapping TID is terminated?


5. Does the Wisconsin Department of Revenue (DOR) use the parcel overlap value in determining the 12 percent value limit?


6. Are the parcels in the overlapped area coded to both the new and old TID number on the assessment/tax roll?


7. Can a distressed or severely distressed TID be overlapped by a newly created TID?


8. Can an Environmental Remediation (ER) TID created under sec. 66.1105, Wis. Stats., overlap another TID created under the same section? Or another ER TID created under sec. 66.1106, Wis. Stats.?

1. What is an overlap?
   
   An overlap is when the boundary of one Tax Incremental District (TID) covers one or more existing TID's boundaries. For more information, review state law (sec. 66.1105(10), Wis. Stats.).


2. Which Tax Incremental District (TID) is affected by value changes in the overlapped area?
   
   The newest TID is affected by value changes in the overlapped parcels. The value of the overlapped parcels is frozen in the older TID the year the overlap occurs.


3. Where can the municipality view the TID's frozen overlap value?
   
   The municipality can view the value of the frozen overlap on the TID Statement of Changes report.


4. Will the frozen overlap value of an overlapped TID be deleted if the overlapping TID is terminated?
   
   No. Once a frozen overlap value exists for an overlapped TID, the frozen overlap value is included in the current year TID value until the overlapped TID terminates. The frozen overlap value does not change even if the overlapping TID terminates.


5. Does the Wisconsin Department of Revenue (DOR) use the parcel overlap value in determining the 12 percent value limit?
   
   No. Under state law (sec. 66.1105(10)(c), Wis. Stats.), DOR excludes this value when determining compliance with the 12 percent limit.


6. Are the parcels in the overlapped area coded to both the new and old TID number on the assessment/tax roll?
   
   No. On the assessment/tax roll, the overlapped (older) TID number is removed from the parcel and the overlapping (newer) TID number is added to the parcel. A parcel may only have one TID number on the assessment/tax roll.


7. Can a distressed or severely distressed TID be overlapped by a newly created TID?
   
   No. A newly created TID or an active TID that is adding parcels may not overlap a distressed or severely distressed TID.


8. Can an Environmental Remediation (ER) TID created under sec. 66.1105, Wis. Stats., overlap another TID created under the same section? Or another ER TID created under sec. 66.1106, Wis. Stats.?
   
   Yes. An ER TID created under sec. 66.1105, Wis. Stats., can overlap another TID created under the same section or an ER TID created under sec. 66.1106, Wis. Stats.

Certification statement