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
  • Cannot amend after October 1, 2009
  • Have projected TID increments showing the project costs and debt cannot 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
  • Note: Severely Distressed TIDS only - must have an increment in any year that has declined at least 25% from the highest value increment

Municipalities with distressed/severely distressed TIDs may not:

  • Make any additional expenditures in the distressed/severely distressed 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 distressed/severely distressed TID's boundaries with another TID
  • Spend any funds outside the TID boundaries
  • Rescind the TID's distressed/severely distressed 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

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