Town Tax Incremental Districts (TIDs) created under sec. 60.23, Wis. Stats.

  1. The project plan requires selecting Option (a), (b) or (c) from state law (sec. 60.23(32)(f)2., Wis. Stats.). What impact do these three options have on the project plan?

  2. Is debt service included in the timeframe for Option (b) or Option (c)?

  3. Does a town have to choose an option (a, b or c) each time it amends a TID, or does it apply just to creating a TID?

  4. What limitation percentage affects a town?

  5. What additional requirements must a town meet compared to a city or village when creating a TID under sec. 60.23, Wis. Stats.?

  6. Do the procedures (ex: notices, public hearings, resolutions) for creating a town TID under state law (sec. 60.23, Wis. Stats.), differ from those for a city or village?

  7. Can a town TID still be created under sec. 60.85, Wis. Stats.?

  1. The project plan requires selecting Option (a), (b) or (c) from state law (sec. 60.23(32)(f)2., Wis. Stats.). What impact do these three options have on the project plan?

    • Option (a) – (sec. 60.23(32)(f)2.a.)
      • At least 51 percent of the public infrastructure improvement value must be financed by a private developer or entity
      • Development agreement is required to receive cash grants which will solely repay the developer or entity for public infrastructure costs

    • Option (b) – (sec. 60.23(32)(f)2.b.)
      • The town expects all project costs to be paid within 90 percent of the TID's maximum life

    • Option (c) – (sec 60.23(32)(f)2.c.)
      • Expenditures may be made only within the first half of the TID's maximum life
      • Joint Review Board can unanimously approve additional expenditure(s), but not beyond the original expenditure period

  2. Is debt service included in the timeframe for Option (b) or Option (c)?

    Option (b) – the creation project plan must demonstrate the TID will have sufficient revenue to pay off debt and all project costs within 90 percent of the TID's maximum life. After all project costs are paid, the TID terminates.

    Option (c) – the municipality may only take on project costs within the first half of the TID's maximum life. Debt payments may continue through the TID's maximum life.

  3. Does a town have to choose an option (a, b or c) each time it amends a TID, or does it apply just to creating a TID?

    A town must select an option (a, b, or c) when creating the TID. If the town completes an amendment, it must reconfirm the TID's original creation option or select a different option.

  4. What limitation percentage affects a town?

    5 or 7 percent – if the TID is created under sec. 60.85, Wis. Stats., the 5 percent or 7 percent limitation is used.

    12 percent – if the TID is created under sec. 60.23, Wis. Stats., the 12 percent limitation is used because the town chose to exercise all powers of a city under sec. 66.1105, Wis. Stats.

    See the Value Limit Test Common Questions for more information.

  5. What additional requirements must a town meet compared to a city or village when creating a TID under sec. 60.23, Wis. Stats.?

    There are three additional requirements:
    1. Prior year Equalized Value – must be at least $500,000,000
    2. Prior year population – must be at least 3,500 based on the Wisconsin Department of Administration's most recent Annual Population Estimates
    3. Sewer service – is or will be provided before use or operation of any improvements

  6. Do the procedures (ex: notices, public hearings, resolutions) for creating a town TID under state law (sec. 60.23, Wis. Stats.), differ from those for a city or village?

    No. The procedures do not differ because the town chose to exercise all powers of a city under sec. 66.1105, Wis. Stats. For specific details/guidance, the town should review the Creation Resolution Checklist.

  7. Can a town TID still be created under sec. 60.85, Wis. Stats.?

    Yes. This statute is still in effect. Review our Town Creation page for more information.

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