Tax Incremental Finance (TIF) - Tax Increments

  1. Who certifies the value increment annually?

  2. When does the municipality receive its first tax increment on a new creation?

  3. Does residential development in a TID produce value increment?

  4. If personal property is located within a TID, is the personal property's value included in the TID's base value?

  5. If a municipality received enough increment to pay off debt incurred for the district, can the excess increment be used for more projects?

  6. If a TID terminates after April 15, is an increment still added to the tax levies in December?

  7. Should a municipality collect the entire final tax increment the last year if it is not all needed?

  8. Can a municipality choose not to levy the increment on the tax roll?

  9. How is the tax increment calculated using the tax rate?

  10. How does the Wisconsin Department of Revenue (DOR) notify a municipality regarding its increment?

  1. Who certifies the value increment annually?

    The Wisconsin Department of Revenue (DOR) certifies the annual value increment by August 15 each year. This value is based on the municipal assessor's Tax Incremental District (TID) Assessment Report, due the second Monday in June. Each year, a municipality must pay a $150 certification administrative fee for each active TID to request that DOR certify the municipality's increment for that year. This payment is due before or on April 15 in My Tax Account.

    2017 Act 15 – Effective January 1, 2018, the TID administrative fee deadline changed from May 15 to April 15.


  2. When does the municipality receive its first tax increment on a new creation?

    The date the municipality adopts the creation resolution determines when it will receive its first increment. The TID Creation Timeframes table explains the timing of the first tax increment.

  3. Does residential development in a TID produce value increment?

    All taxable property value that increases a TID's value becomes part of the increment.

  4. If personal property is located within a TID, is the personal property's value included in the TID's base value?

    Yes. The TID base value includes taxable real estate and personal property located in the boundaries of the TID in the creation year or amendment year. The current year TID value includes the same real estate and personal property as valued each year by the Assessor. The current year TID value minus the TID base value is the TID increment value.

  5. If a municipality received enough increment to pay off debt incurred for the district, can the excess increment be used for more projects?

    Yes. A municipality may use excess increment for more projects if the expenditure period is not expired; however, only projects in the approved plan can be paid with TIF funds. If the project is not in the approved plan, the municipality must complete a project plan amendment and email the required documents to DOR.

  6. If a TID terminates after April 15, is an increment still added to the tax levies in December?

    Yes. If the municipality terminates a TID after April 15, then DOR will certify a value increment and the tax increment for that year must be levied and collected. See the TID Termination Timeframes table for more information.

    2017 Act 15 – Effective January 1, 2018, the TID certification deadline changed from May 15 to April 15.


  7. Should a municipality collect the entire final tax increment the last year if it is not all needed?

    Yes. A municipality must collect the entire final tax increment to maintain equal taxation. State law (sec 66.1105(6)(c), Wis. Stats.), requires the municipality to return any surplus to the TID's overlying taxing jurisdictions.

  8. Can a municipality choose not to levy the increment on the tax roll?

    No. Wisconsin's constitution has a uniformity clause whereby all taxpayers must be uniformly taxed. By not levying the increment, the taxpayers in that municipality would be taxed at a different rate (for school, technical college, or county) than the other taxpayers in those same districts.

  9. How is the tax increment calculated using the tax rate?

  10. Step a) A municipality determines the tax rate per $1,000 of property value.

    Example: In the example below, the tax rate is $23.73. This amount is then apportioned to the taxing jurisdictions.


Jurisdiction

Tax Rate
Percent
of Total Rate

County

3.81

16.05%

Municipality

9.52

40.12%

School District

1​​0.36

43.66%

Technical College

0.04

0.17%

Total

$23.73

100%

Step b) The tax rate is multiplied by the value increment DOR certifies to determine the actual dollars available to pay eligible project costs.​

Example: The example shows a new TID with a 2017 creation year. Changes to the increment value or tax rate result in a different tax increment.

Year Assessed
Year Available

Increment Value

Tax Rate Percent

Tax Increment

2017

2018

0

.02373

0

2018

20​​19

1,500,000

.02373

35,595

2019

2020

1,500,000

.02401

36,015

2020

2021

1,800,000

.02401

43,218

Each municipality must complete the Tax Increment Worksheet (Form PC-202) each December to calculate the actual tax increment.


  1. How does the Wisconsin Department of Revenue (DOR) notify a municipality regarding its increment?

    Each year (on August 15 and September 1), DOR posts TIF reports to the web.

    Posted Report Links:

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

February 1, 2018