What is the difference between TIF and a Tax Incremental District (TID)?
TIF — an economic development program which helps promote local tax base expansion by using property tax revenues to fund site improvements to attract new industrial or mixed-use development, rehabilitate/conserve property, eliminate blight and remediate the environment
TID — the actual physical area (whole parcels) designated for improvements using tax incremental financing
What is the Wisconsin Department of Revenue's (DOR) role?
- The TIF program is intended to be locally initiated and locally managed, with minimal State oversight. However, DOR cannot certify a tax incremental base until we determine procedures were followed, documents were completed correctly, and notices were provided timely.
- Facts supporting any document adopted or action taken by the local governing body are not subject to review by DOR. The responsibility for specific TIF expenditures belongs to the municipality with consultation from its attorney and auditor.
- If you have questions about a specific project in a TID, contact the municipality or the members of the Joint Review Board (JRB) that approved the TID project plan and boundaries.
What statutes regulate the TIF Program?
How is TIF funded?
When a TID is created, the municipality and other taxing entities agree to support their normal operations from the existing tax base within the district, assuming that if the TID was not created, there would be no additional growth to the existing tax base. Property taxes for the school, county, technical college, and municipality are based on the taxable value of the TID at the time it is created. The tax rates are applied to the TID value increment, which results in additional revenues collected for the district's fund. Eligible TID costs are paid from these revenues before the additional tax base is shared.
The State of Wisconsin does
not collect or pay increments to municipal governments.
Besides a municipality, what are the other taxing entities?
The other taxing entities are the school district, county, and technical college. A municipality may also have a lake district, sanitary district or metro sewer district.
Are there limits on the use of TIF?
Yes. Limits are applied to the creation of new districts or the addition of property to existing districts. The equalized value of property in the district, plus the value increment of all existing districts cannot exceed 12 percent of the total equalized value of taxable property within the municipality. This restriction does not apply to an Environmental Remediation TID created under
sec. 66.1106, Wis. Stats., or when subtracting territory from a district. For more information, review the
Value Limit Common Questions.
What is the TID maximum life with or without extensions?
The TID maximum life without an extension depends on the TID type declared in the creation resolution and the date the municipality adopted the resolution. For more information on the maximum life without an extension for each type, see the
TID Criteria Matrix.
The municipality can approve an extension as a separate resolution later in a TID's life. The TID maximum life with an extension depends on the extension type. See
TID Extension Types for extensions available including the length.
How can I obtain information (ex: map, parcels) about a particular TID?
For information on a particular TID, contact the municipality. You can also review yearly statistical information on DOR's website, under
Tax Incremental Financing Reports.
What fees are involved with having a TID and how does a municipality pay them?
Municipality must pay the following fees electronically through
My Tax Account:
Payable by October 31 - once per request
- Creation: $1,000
- Territory Amendment (addition or subtraction): $1,000
- Territory Amendment (addition and subtraction): $2,000
- Base Value Redetermination: $1,000
Payable by April 15* - yearly
- Certification administrative fee: $150 per active TID
*Effective January 1, 2018, the TID certification administrative fee deadline changed from May 15 to April 15. See
2017 Act 15 for additional information.
When are reports and documents due?
- July 1 — Annual Report (late fee of $100 per TID per day applicable after grace period) – e-file Form PE-300 located on the
DOR online filing page
- October 31 — Creations, Territory Amendments, and Base Value Redeterminations – email required documents to
- December 31 — Project Plan and/or Allocation Amendments – e-mail required documents to
TID Dates and Requirements for additional information.
FOR MORE INFORMATION PLEASE CONTACT:
WISCONSIN DEPARTMENT OF REVENUE
Office of Technical and Assessment Services
PO Box 8971
Madison, WI 53708-8971
Phone: (608) 261-5335 or (608) 266-5708
Email additional questions to email@example.com