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 page.
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, 2017, the 2016 and 2015 values must be 10 percent below the TID's current base value).
- TID must be created under state law
(sec. 66.1105, Wis. Stats.)
- Only one base value redetermination is allowed during the life of a TID
- Distressed or severely distressed TIDs can qualify for a base value redetermination
Examples of a 10 percent decrement situation
| Example 1: TID created in 2009 with a base value = 49,621,600 |
|---|
| Year | Equalized Value | Calculation Change | Decline |
|---|
| 2015 | 44,595,000 | 44,595,000 - 49,621,600 = -5,026,200 / 49,621,600 = | 10.13% |
| 2016 | 44,595,000 | 44,595,000 - 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 in 2008 with a base value = 8,113,400 |
|---|
| Year | Equalized Value | Calculation Change | Decline |
|---|
| 2015 | 6,513,800 | 6,513,800 - 8,113,400 = -1,599,600 / 8,113,400 = | 19.72% |
| 2016 | 6,852,600 | 6,852,600 - 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 2015 to 2016
TID qualifies for a redetermination — new base value will be $6,852,600 |
| Example 3: TID created in 2010 with a base value = 56,813,200 |
|---|
| Year | Equalized Value | Calculation Change | Decline |
|---|
| 2015 | 53,843,100 | 53,843,100 - 56,813,200 = -2,970,100 / 56,813,200 = | 5.23% |
| 2016 | 49,582,600 | 49,582,600 - 56,813,200 = - 7,230,600 / 56,813,200 = | 12.73% |
TID does not currently qualify for a redetermination
2017 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, submit the application forms and supporting documents to DOR by
October 31
- DOR redetermines base values after January 1 of the year following submission
-
Tax Incremental Financing Remittance Fee — after notifying DOR of the amended TID, we will issue a bill through
"My Tax Account"
| Application Forms |
|---|
|
PE-605B | TID Base Value Redetermination -
Legal Requirements |
|
Decrement Worksheet | TID Base Redetermination Worksheet |
| To send your completed forms and supporting documents by email, click "Attach Documents."
Attach Documents |
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