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% 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, 2022, the 2020 and 2021 values must be 10% below the TID's current base value
  • Only one base value redetermination is allowed during a TID's life

Due date/process

  1. Follow the TID Checklist
  2. Notify tif@wisconsin.gov 60 days after adopting the amendment resolution
  3. Adopt the municipal resolution by September 30 of the amendment year
  4. Email required documents to tif@wisconsin.gov by October 31 of the amendment year:
  5. Pay the one-time DOR fee in My Tax Account by October 31 of the amendment year
  6. DOR emails a recertification letter by February of the year after the amendment year
    • DOR sets the base value to the equalized value on the date of the municipal resolution

Decrement Determination Examples

Example 1: TID created with a base value = $49,621,600
YearEqualized ValueCalculationDecline
201944,595,00044,595,000 - 49,621,600 = -5,026,200 / 49,621,600 =10.13%
202044,595,00044,595,000 - 49,621,600 = -5,026,200 / 49,621,600 =10.13%
Value decreased by 10% and was 10% 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
20196,513,8006,513,800 - 8,113,400 = -1,599,600 / 8,113,400 =19.72%
20206,852,6006,852,600 - 8,113,400 = -1,260,800 / 8,113,400 =15.54%
Value decreased by 10% for two consecutive years and met the requirement, even though the TID value increased from 2019 to 2020
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
201953,843,10053,843,100 - 56,813,200 = -2,970,100 / 56,813,200 =5.23%
202049,582,60049,582,600 - 56,813,200 = - 7,230,600 / 56,813,200 =12.73%
TID does not qualify for a redetermination because 2019 TID value had only a 5% decline
If 2021 results in a decline of at least 10%, the TID would qualify for a base redetermination


 Forms
PE-605BTID Base Value Redetermination – Legal Requirements
Decrement WorksheetTID Base Redetermination Worksheet – use this worksheet to show the TID values meet the decrement criteria

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


​​Contact Us

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: ​tif@wisconsin.gov

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