August 21, 2024
To: TIF/TID List, Municipal Clerks and Treasurers
The Wisconsin Department of Revenue (DOR), State and Local Finance Division is providing additional information about the impact of
2023 Wisconsin Act 12 on new Tax Incremental Districts (TIDs).
New – Joint Review Board (JRB) Requirement
- JRB must determine the year it expects the TID to terminate
- Applies to TIDs with a 2025 (or later) creation year
- At termination, DOR uses the JRB expected termination year to determine if the municipality is eligible for an additional levy limit adjustment
- If a TID closes within 75% of the JRB's expected life, the municipality may use a one-time levy adjustment equal to 15% of the new construction value within the TID
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Note: This 15% levy adjustment is in addition to the one-time levy limit adjustment equal to 10% of new construction within the TID when a TID terminates.
Expected Termination Year
State law does not define expected termination year – the JRB could consider:
- TID's maximum life as described in state law
- When the TID's project costs (and any debt) will be paid
- How the April 15 deadline affects the effective termination year. When the municipality adopts a termination resolution:
- Before April 15 – termination is effective the current calendar year
- After April 15 – termination is effective the following calendar year
- See
Termination Timeframes Table for termination date examples
Additional Information
Questions?
Contact us at tif@wisconsin.gov.