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, 2020, the 2018 and 2019 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 |
|---|
| Year | Equalized Value | Calculation Change | Decline |
|---|
| 2017 | 44,595,000 | 44,595,000 - 49,621,600 = -5,026,200 / 49,621,600 = | 10.13% |
| 2018 | 44,595,000 | 44,595,000 - 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 |
|---|
| Year | Equalized Value | Calculation Change | Decline |
|---|
| 2017 | 6,513,800 | 6,513,800 - 8,113,400 = -1,599,600 / 8,113,400 = | 19.72% |
| 2018 | 6,852,600 | 6,852,600 - 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 2017 to 2018
TID qualifies for a redetermination — new base value is $6,852,600 |
| Example 3: TID created with a base value = $56,813,200 |
|---|
| Year | Equalized Value | Calculation Change | Decline |
|---|
| 2017 | 53,843,100 | 53,843,100 - 56,813,200 = -2,970,100 / 56,813,200 = | 5.23% |
| 2018 | 49,582,600 | 49,582,600 - 56,813,200 = - 7,230,600 / 56,813,200 = | 12.73% |
TID does not qualify for a redetermination because 2017 TID value had only a 5 percent decline
If 2019 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
Certification statement
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