Tax Incremental Finance (TIF) - Project Plan

​ Secs. 60.23(32), 60.85, 66.1105, and 66.1106, Wis. Stats.

For more information, review the Municipal TIF Project Plan and/or Allocation Amendments, or Town TIF Amendment web pages.

1. Does a municipality need to complete all projects in the plan?


2. Are there any projects outside the Tax Incremental District (TID) that can be paid with tax increments?


3. If the Planning Commission denies a municipality's proposal to create a new TID, can the local legislative body overrule the Planning Commission and approve the TID?


4. Does a municipality need to amend a project plan if an unanticipated development occurs?


5. How long does it take to amend a project plan?


6. If a municipality amends a project plan, can the municipality incur costs for a newly platted residential development?


7. Does a municipality need to conduct a new economic feasibility study when it amends a project plan?


8. Can the municipality add projects or costs to the plan after the public hearing notice is published?

1. Does a municipality need to complete all projects in the plan?
   
   

   No. The project plan is a capital improvement plan (not an approved budget), therefore a municipality does not have to complete all projects. The municipality decides when and which project to complete. Many municipalities start individual projects as the funds become available (pay-as-you-go).



2. Are there any projects outside the Tax Incremental District (TID) that can be paid with tax increments?
   
   

   Yes. The municipality may pay for projects within a half-mile radius of the TID if they are documented in the project plan and approved by the Joint Review Board. For more information, review state law (sec. 66.1105(2)(f)1.n., Wis. Stats.).

   Also, the municipality may pay for a proportionate share of public improvements outside the TID with tax increments if the improvement serves property in the TID (ex: water tower, water or sewage lines, treatment plants). For more information, review state law (sec. 66.1105(2)(f)1.k., Wis. Stats.).



3. If the Planning Commission denies a municipality's proposal to create a new TID, can the local legislative body overrule the Planning Commission and approve the TID?
   
   

   No. The Planning Commission must adopt a project plan for a proposed TID before the local legislative body can approve the TID.



4. Does a municipality need to amend a project plan if an unanticipated development occurs?
   
   

   No. However, the municipality must amend the project plan if it needs tax increment to support the unexpected development. Except for planning costs, the municipality must complete the project plan amendment before using tax increments to pay for projects not in the project plan.



5. How long does it take to amend a project plan?
   
   

   It depends on how long it takes the municipality to assemble the information and hold the necessary meetings. Generally, it takes less time than creating a new TID because only one hearing notice is required and there is no required waiting period between the public hearing and the municipal resolution.

   See the Tax Incremental District (TID) Checklist.



6. If a municipality amends a project plan, can the municipality incur costs for a newly platted residential development?
   
   

   A municipality may only incur costs for a newly platted residential development for a mixed-use type TID.

   See Parcels question ​15 for additional information on development types allowed.



7. Does a municipality need to conduct a new economic feasibility study when it amends a project plan?
   
   

   Yes. If a municipality amends the plan, it must update the economic feasibility study in the project plan. See Guidelines for Project Plans.



8. Can the municipality add projects or costs to the plan after the public hearing notice is published?
   
   

   Yes. The municipality may revise the project plan and costs any time before adopting the municipal resolution. The Joint Review Board must adopt a resolution approving the final project plan.