2017 Act 70 - Environmental Remediation (ER) TIDs

February 20, 2018

To: Assessors, Real Property Listers, Municipal Clerks & Treasurers, TID/TIF


The Wisconsin Department of Revenue (DOR) is providing this summary of recent changes to the Tax Incremental Financing (TIF) law.


Summary of 2017 Act 70 Environmental Remediation (ER) Tax Incremental Districts (TID):


General Information

Effective date November 29, 2017

  • ER TIDs created by a municipal resolution:
  • Currently – all ER TIDs must now be created under section 66.1105, Wis. Stats.

Requirements/Limits

  • Maximum life is 27 years with the possibility of a 3-year standard extension
  • Before creating an ER TID under sec. 66.1105 Wis. Stats., the municipality must obtain a certified Department of Natural Resources (DNR) site investigation report and email it to DOR
    To obtain this certified report, a municipality must provide DNR:
    • Description of the environmental pollution in the proposed district
    • Proposed remedial action plan
    • Cost estimates for expected project costs
    • Schedule for remediation (design, implementation, construction)
  • At least 50 percent of the TID area has significant environmental pollution
  • Project plan must specify either:
    • All project costs will be paid within 90 percent of the TIDs remaining life
    • Expenditures will only be made in the first half of the TID life, except for significant environmental pollution not identified in the certified site investigation report
      • Expenditures for significant environmental pollution not identified in the certified site investigation report may continue for 22 years (5 years before the maximum life)
  • May only allocate excess funds to other ER TIDs (created under 66.1105 or 66.1106, Wis. Stats.)
  • A municipality may designate only one ER TID created under sec. 66.1105 Wis. Stats., as excluded from the 12 percent value limit. Once the excluded TID is designated, it cannot be changed.

TID Base Value

  • When an ER TID is created under sec 66.1105 Wis. Stats., DOR sets the base value to $1
  • If the ER TID is amended to add territory, the full value of the additional parcels as of January 1 of the amendment year is added to the existing $1 base value

Questions?

  • As new information becomes available, we will post it to our website
  • If you have any questions, contact us at tif@wisconsin.gov