Tax Incremental Finance (TIF) - Project Plan

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

  2. Are there any projects outside the municipality 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 governing body overrule the Planning Commission and approve the TID?

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

  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?

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

    No. Since the project plan is a capital improvement plan (not an approved budget), a municipality does not have to complete all projects. It is a local decision on when and which projects are completed. Many municipalities start individual projects as the funds become available (pay-as-you-go).

  2. Are there any projects outside the municipality that can be paid with tax increments?

    Yes. Projects within a half-mile radius of the TID may be paid if they are documented in the project plan and approved by the Joint Review Board.

    Also, public improvements outside the TID may be paid with tax increments if the improvement serves property in the TID (ex: water tower, water or sewage lines, treatment plants). These improvements can have a proportionate share of the costs funded by the TID.

    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 governing 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 act.

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

    No. However, the municipality must amend the project plan if it needs tax increments to support the unexpected development.

  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.

    For more information on the required steps, review the PE-109 "Tax Incremental District (TID) Application 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:
    • Mixed-use TIDs created after October 1, 2004, or
    • TIDs created before September 30, 1995
    • See Parcels question #11 for additional information on which development qualifies

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

    Yes. If a municipality has additional project costs, the municipality must update its economic feasibility study in the project plan. Review our publication (PE-215), Municipality Common Language Guidelines for Project Plans, for detailed information on what to include in a project plan.

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