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

​​​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.).

Requirements

  • TID must be created under state law (sec. 66.1105, Wis. Stats.); TIDs created under other sections are not eligible
  • TID's current year value is at least 10 percent below the TID's base value for two consecutive years (decrement)
    (see TID Statement of Changes Report)
    • The date of the municipality's redetermination resolution determines the two consecutive years
    • Example: if the municipal resolution is adopted May 21, 2021, the 2019 and 2020 values must be 10 percent below the TID's current base value
  • Only one base value redetermination is allowed during a TID's life

Decrement Determination Examples

Example 1: TID created with a base value = $49,621,600
YearEqualized ValueCalculationDecline
201844,595,00044,595,000 - 49,621,600 = -5,026,200 / 49,621,600 =10.13%
201944,595,00044,595,000 - 49,621,600 = -5,026,200 / 49,621,600 =10.13%
Value decreased by 10 percent and was 10 percent lower for two consecutive years
TID qualifies for a redetermination — new base value is $44,595,000

Example 2: TID created with a base value = $8,113,400
YearEqualized ValueCalculationDecline
20186,513,8006,513,800 - 8,113,400 = -1,599,600 / 8,113,400 =19.72%
20196,852,6006,852,600 - 8,113,400 = -1,260,800 / 8,113,400 =15.54%
Value decreased by 10 percent for two consecutive years and met the requirement, even though the TID value increased from 2018 to 2019
TID qualifies for a redetermination — new base value is $6,852,600

Example 3: TID created with a base value = $56,813,200
YearEqualized ValueCalculationDecline
201853,843,10053,843,100 - 56,813,200 = -2,970,100 / 56,813,200 =5.23%
201949,582,60049,582,600 - 56,813,200 = - 7,230,600 / 56,813,200 =12.73%
TID does not qualify for a redetermination because 2018 TID value had only a 5 percent decline
If 2020 results in a decline of at least 10 percent, the TID would qualify for a base redetermination

Due date/process

  • Municipal resolution must be adopted by September 30 of the redetermination amendment year
  • All TID documents due to Wisconsin Department of Revenue (DOR) by October 31 of the redetermination amendment year
  • ​TIF fee - after a municipality notifies DOR it amended a TID, DOR posts a bill in My Tax Account
  • DOR redetermines base values after January 1 of the year following the redetermination amendment

 Forms
PE-605BTID Base Value Redetermination - Legal Requirements
Decrement WorksheetTID Base Redetermination Worksheet

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

FOR QUESTIONS OR COMMENTS CONTACT:

MS 6-97
WISCONSIN DEPARTMENT OF REVENUE
Office of Technical and Assessment Services
PO Box 8971
Madison, WI 53708-8971
Phone: (608) 266-7750
Email additional questions to ​tif@wisconsin.gov

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