Tax Incremental Finance (TIF) - Overlaps

  1. What is an overlap?

  2. Which TID is affected by value changes in the overlapped area?

  3. Will a frozen overlap value of a Tax Incremental District (TID) be unfrozen if the overlapping TID is terminated?

  4. Does the Wisconsin Department of Revenue (DOR) use the parcel overlap value in determining the 12 percent compliance test?

  5. When an overlap occurs are all the overlapping parcels coded to the TID on the assessment/tax roll?

  1. What is an overlap?

    An overlap is when the boundary of one Tax Incremental District (TID) covers one or more existing TIDs. For more information, review state law (sec. 66.1105(10), Wis. Stats.).

  2. Which 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. Will a frozen overlap value of a Tax Incremental District (TID) be unfrozen if the overlapping TID is terminated?

    No. Once a frozen overlap value exists with an overlapped TID, the frozen overlap value is included in the current year TID value until the overlapped TID terminates.

  4. Does the Wisconsin Department of Revenue (DOR) use the parcel overlap value in determining the 12 percent compliance test?

    No. Under state law (sec. 66.1105(10) (c), Wis. Stats.), DOR excludes this value when determining compliance with the 12 percent limit.

  5. When an overlap occurs are all the overlapping parcels coded to the TID on the assessment/tax roll?

    No. On the assessment/tax roll, the overlapped (older) TID is taken off the parcel and the overlapping (newer) TID number is coded to the parcel.

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

July 13, 2017