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 legislative 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. 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 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 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 takes place?

    No. However, the municipality must amend the project plan if it needs tax increment 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.

    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 TID declared as a mixed-use type.

    See Parcels question #14 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 adds projects, it must update the economic feasibility study in the project plan. See Guidelines for Project Plans.

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