Tax Incremental Finance (TIF) Distressed/Severely Distressed TID

Sec. 66.1105(4e), Wis. Stats.

A municipality can no longer designate an active Tax Incremental District (TID) as distressed or severely distressed. This provision sunset on September 30, 2015.

Distressed vs. Severely Distressed

  • Distressed – allowed the municipality to extend a TID 10 years past the original termination date
  • Severely distressed – allowed a municipality to extend a TID up to 40 years from the creation date

Distressed/severely distressed TIDs:

  • Created before October 1, 2008
  • No amendments after October 1, 2009
  • Had projected TID increments showing the project costs and debt could not be paid within the normal life of the TID
  • Must use any increment that exceeds the TID's annual expenditures to retire the TID debt or establish a reserve fund that can only be used to retire the debt of the distressed/severely distressed TID
  • Severely Distressed TIDs only – had an increment in any year that declined at least 25% from the highest value increment

Municipalities with distressed/severely distressed TIDs may not:

  • Make any additional expenditures in the TID after the original expenditure period ends
  • Amend the TID's project plan to add any new costs, add any new territory or become a donor TID
  • Overlap the TID's boundaries with another TID
  • Spend any funds outside the TID boundaries
  • Rescind the TID's designation. The TID must remain distressed/severely distressed until the municipality terminates it.

Municipalities with distressed/severely distressed TIDs may:

  • Subtract parcels from the distressed/severely distressed TID
  • Request a base value redetermination if the TID is in a decrement situation
  • Terminate the distressed/severely distressed TID before the extended life

​​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