Tax Incremental Finance (TIF) (sec. 66.1105, Wis. Stats.) Base Value Redetermination

A municipality may request a base value redetermination for a Tax Incremental District (TID) in a decrement situation under state law (sec. 66.1105(2)(aj), Wis. Stats.). For more information on base value redetermination, visit our Base Value Redetermination Common Questions.

Qualifications

  • TID's current year value is at least 10 percent below the base value of the TID for two consecutive years (decrement) (see TID Statement of Changes Report)

    The date of the municipality's redetermination resolution determines the two consecutive years (ex: if the resolution date is May 21, 2018, the 2016 and 2017 values must be 10 percent below the TID's current base value).

  • TID must be created under state law (sec. 66.1105, Wis. Stats.)

Note

  • Only one base value redetermination is allowed during the TID's life
  • Distressed or severely distressed TIDs can qualify for a base value redetermination

Examples of a 10 percent decrement situation

Example 1: TID created with a base value = 49,621,600
YearEqualized ValueCalculation ChangeDecline
201644,595,00044,595,000 - 49,621,600 = -5,026,200 / 49,621,600 =10.13%
201744,595,00044,595,000 - 49,621,600 = -5,026,200 / 49,621,600 =10.13%
Value declined by 10 percent and was 10 percent lower for two consecutive years
TID qualifies for a redetermination — new base value will be $44,595,000

Example 2: TID created with a base value = 8,113,400
YearEqualized ValueCalculation ChangeDecline
20166,513,8006,513,800 - 8,113,400 = -1,599,600 / 8,113,400 =19.72%
20176,852,6006,852,600 - 8,113,400 = -1,260,800 / 8,113,400 =15.54%
Value declined by 10 percent for two consecutive years and met the requirement, even though the TID value showed an increase from 2016 to 2017
TID qualifies for a redetermination — new base value will be $6,852,600

Example 3: TID created with a base value = 56,813,200
YearEqualized ValueCalculation ChangeDecline
201653,843,10053,843,100 - 56,813,200 = -2,970,100 / 56,813,200 =5.23%
201749,582,60049,582,600 - 56,813,200 = - 7,230,600 / 56,813,200 =12.73%
TID does not currently qualify for a redetermination
2018 TID value would need to maintain the 10 percent decline to qualify for the two consecutive years requirement

Due date/process

  • If the municipal resolution is adopted by September 30, use the "Attach Documents" button below to email the required forms and supporting documents to Wisconsin Department of Revenue ( DOR) by October 31
  • DOR redetermines base values after January 1 of the year following submission
  • TIF Fee — after your municipality notifies DOR that it amended a TID, DOR posts a bill in My Tax Account

 Forms
PE-605BTID Base Value Redetermination - legal requirements
Decrement WorksheetTID Base Redetermination Worksheet

Attach Documents

Select "Attach Documents" to email your TID documents




Publications/Information
TID Checklist - required forms to complete and documents to provide
Resolution Checklist – required resolution information
Guidelines for Project Plans – required project plan information
TIF Public Notices – information on public notices
TIF Manual – TIF reference guide

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