Tax Incremental Finance (TIF) - Parcels

  1. Can parcels be added to the Tax Incremental District (TID) after the hearing notices are published?

  2. How much detail is needed in the boundary description provided to the Wisconsin Department of Revenue (DOR)?

  3. How much detail is needed in the TID map provided to DOR?

  4. Who is responsible for valuing and classifying a TID's land and buildings?

  5. A TID must contain contiguous properties; however, can a municipality omit parcels from the TID's center?

  6. When two parcels are diagonal (kitty corner) from each other, is this contiguous?

  7. If the TID crosses a highway, river or railroad right-of-way, is this contiguous?

  8. What is the difference between a railroad right-of-way and a railroad-owned parcel?

  9. Can a parcel (exempt or non-exempt) be partially in a TID?

  10. Can a municipality combine two parcels if only one of the parcels is in the TID?

  11. If property owned by a utility company is included in a TID, will the property be exempt?

  12. How should a municipality indicate that wetlands are excluded from the TID?

  13. What is a newly platted residential development?

  14. What TID types can include newly platted residential property?

  15. Is a road/highway included in the calculation determining the 35 percent residential use in mixed-use TIDs?

  16. In a mixed-use TID, is the calculation for housing density based only on the units or is it based on the entire plat, including roads and other public infrastructure?

  17. Is an assisted living building considered residential?

  18. Can a TID's boundaries be set based on something that will happen in the future?

  19. Must projects within a TID follow local zoning?

  20. For mixed-use TIDs, does the land need to be zoned correctly before the adopting the creation resolution?

  21. In an industrial TID, do the parcels need to be zoned industrial?

  1. Can parcels be added to the Tax Incremental District (TID) after the hearing notices are published?

    Yes. The purpose of the public hearing is to receive/give input on the proposed boundaries of the district. A municipality may add or remove parcels based on the hearing. The hearing notice does not have to mention the proposed boundaries; however, including a general description of the area is helpful.

  2. How much detail is needed in the boundary description provided to the Wisconsin Department of Revenue (DOR)?

    A metes and bounds description corresponding to the outer TID boundary is required. The boundary description must match the provided map. See the TID Checklist, Boundary and Map section (page 3).

  3. How much detail is needed in the TID map provided to DOR?

    The map must be legible and:
    • Show the outer boundary of the TID
    • Show each parcel boundary
    • Label each parcel by tax number or designate a map identification number
    • Label all areas that may not have a parcel number (ex. streets, rights-of-way, wetlands, or bodies of water)
    • Label the municipality or county boundaries if within the map view
    • Indicate the municipality name and TID number
    • Show the boundaries of the overlapped TID, when overlapping exists

    Each numbered parcel on the map must be listed on the Base Value Workbook.

    Provide additional enlarged areas of the map, where boundaries or parcel numbers are too small to clearly identify even when magnified.

  4. Who is responsible for valuing and classifying a TID's land and buildings?

    The local assessor and DOR manufacturing assessor are responsible for valuing the improvements and land based on state law and the Wisconsin Property Assessment Manual.

  5. A TID must contain contiguous properties; however, can a municipality omit parcels from the TID's center?

    Yes. A municipality may omit parcels, as long as the TID boundaries remain contiguous.

  6. When two parcels are diagonal (kitty corner) from each other, is this contiguous?

    Yes. Two parcels that are diagonal to each other would be considered contiguous and could be included in the same TID. They may or may not have a road between them.

  7. If the TID crosses a highway, river or railroad right-of-way, is this contiguous?

    Yes. Contiguity is maintained when the highway, river or railroad right-of-way is continuously bounded on either side or both sides by parcels in the TID.

  8. What is the difference between a railroad right-of-way and a railroad-owned parcel?

    Property with a separate parcel number, owned by a railroad can be included in the TID and must be contiguous with other TID parcels. Right-of-way gives the railroad permission to use the property. Right-of-way alone does not make a TID contiguous unless it is continuously bounded on either side or both sides by parcels in the TID.

  9. Can a parcel (exempt or non-exempt) be partially in a TID?

    No. Under state law (sec. 66.1105(2)(k), Wis. Stats.), only whole parcels can be in a TID.

  10. Can a municipality combine two parcels if only one of the parcels is in the TID?

    No. A municipality may only do this if it completes a territory amendment to add the non-TID parcel or subtract the TID parcel.

  11. If property owned by a utility company is included in a TID, will the property be exempt?

    Location of a property in a TID does not determine taxability. Generally, utility property is not subject to local taxation and pays a state tax. Contact DOR Manufacturing and Utility for more information. Tax exempt property in a TID does not add to the base value, and does not contribute to the value increment.

  12. How should a municipality indicate that wetlands are excluded from the TID?

    The municipality may describe the boundaries around the wetland or state at the end of the boundary description that all wetlands are excluded.

  13. What is a newly platted residential development?

    State law does not define the term "newly platted residential development." A municipality and its attorney must determine what is considered newly platted residential development.

    One example of residential development is when residential lots are plotted on an undeveloped parcel of land. This includes subdividing a farm field for housing.

  14. What TID types can include newly platted residential property?

    Only TIDs declared as mixed-use type can incur project costs for newly platted residential property, and the property may not exceed 35 percent by area of the TID.

    Under TIF law (sec. 66.1105(2)(f)3 Wis Stats.), a municipality may only spend increment revenue on newly platted residential development in mixed-use TIDs if one of the following applies:

  15. Is a road/highway included in the calculation determining the 35 percent residential use in mixed-use TIDs?

    No. Only taxable land is included in the calculation.

  16. In a mixed-use TID, is the calculation for housing density based only on the units or is it based on the entire plat, including roads and other public infrastructure?

    The calculation for housing density for a mixed-use TID is based on at least three units per acre. Under state law (sec. 66.1105(2)(h), Wis. Stats.), a mixed use TID includes all taxable real and personal property defined in secs. 70.03 and 70.04, Wis. Stats. Roads/public infrastructure are not taxable, therefore those acres should not be included when calculating the three units per acre.

  17. Is an assisted living building considered residential?

    No. It is considered commercial. Structures with 1-3 units are defined as residential; buildings with four or more units, except condominiums, are defined as commercial.

  18. Can a TID's boundaries be set based on something that will happen in the future?

    No. The boundaries are determined based on the parcels when the TID is created. Territory amendments are possible to address parcel splits or annexations.

  19. Must projects within a TID follow local zoning?

    Yes. The TIF statutes do not change municipal zoning rules.

  20. For mixed-use TIDs, does the land need to be zoned correctly before adopting the creation resolution?

    No. The municipality does not need to complete zoning before it adopts the creation resolution. At least 50 percent of the land must be suitable (not necessarily zoned) for at least two of the following types: industrial, commercial or residential. There are no restrictions on the percentage between the types.

  21. In an industrial TID, do the parcels need to be zoned industrial?

    To qualify as an industrial TID, at least 50 percent (by area) must be zoned industrial. Under state law (sec. 66.1105(4)(gm)5 Wis Stats.), the parcels that are zoned industrial when the TID is created must remain zoned industrial for the life of 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

May 4, 2018