Secs. 60.23(32), 60.85, 66.1105, and 66.1106, Wis. Stats.

For more information, review the TIF manual.

1. What is the difference between TIF and a Tax Incremental District (TID)?


2. What is the Wisconsin Department of Revenue's (DOR) role?


3. What statutes regulate TIF?


4. How is TIF funded?


5. Besides a municipality, what are the other taxing jurisdictions?


6. Are there limits on the use of TIF?


7. What is the TID maximum life with or without extensions?


8. How can I obtain information (ex: map, parcels) about a specific TID or TIDs throughout the state?


9. When property is in a TID, does that change how the property assessment is determined?


10. What fees are involved with having a TID and how does a municipality pay them?


11. When are reports and documents due?

1. What is the difference between TIF and a Tax Incremental District (TID)?
   
   
   • TIF — an economic development technique to expand the property tax base. Property value increases fund site improvements that would not otherwise occur.
   
   
   • TID — the actual physical area (whole parcels) designated for improvements using tax incremental financing
   
   


2. What is the Wisconsin Department of Revenue's (DOR) role?
   
   
   • TIF is intended to be locally initiated and 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 municipality's documents and proposed project costs must comply with state law. A municipality is encouraged to consult with an attorney and auditor about any questions.
   
   
   • 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
   
   


3. What statutes regulate TIF?
   
   
   • Village and City (regular) — sec. 66.1105, Wis. Stats.
   • Town — sec. 60.85 and sec. 60.23(32), Wis. Stats.
   • Environmental remediation (municipal resolution adopted before November 29, 2017) — sec. 66.1106, Wis. Stats.
   
   


4. How is TIF funded?
   
   

   When a TID is created, the municipality and other taxing jurisdictions agree to support their normal operations from the existing tax base within the district. 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 municipality funds development through the increases to the property values in the TID. The taxes on the TID value increment (the difference between the TID's current value and the TID's base value), results in additional revenues collected for the district's fund. The municipality must use the funds to pay eligible TID costs. When costs are paid and the municipality closes the TID, the increased tax base is shared with all taxing jurisdictions.

   The State of Wisconsin does not collect or pay tax increments to municipal governments.



5. Besides a municipality, what are the other taxing jurisdictions?
   
   

   The other taxing jurisdictions are the school district, county, and technical college. A municipality may also have a lake district, sanitary district or metro sewer district.



6. Are there limits on the use of TIF?
   
   

   Yes. State law limits a municipality's ability to create new TIDs and add property to existing TIDs. The equalized value of property in the TID, plus the value increment of all existing TIDs cannot exceed 12% of the total municipal equalized value. This restriction does not apply to an Environmental Remediation TID created under sec. 66.1106, Wis. Stats., or when subtracting territory from a TID. For more information, review the Value Limit Common Questions.



7. 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.



8. How can I obtain information (ex: map, parcels) about a specific TID or TIDs throughout the state?
   
   

   Contact the municipality where the TID is located for information on a specific TID. Visit the DOR Reports page for yearly statewide TID reports; select "Tax Incremental Financing" as the category.



9. When property is in a TID, does that change how the property assessment is determined?
   
   

   No. Property in a TID is assessed the same way as other taxable property. See the DOR Guide for Property Owners for more information.



10. 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

    • Administrative fee: $150 per active TID
    
    


11. When are reports and documents due?
    
    

    Due dates:

    • July 1 — TID Annual Report (late fee of $100 per TID per day applicable after grace period) – e-file Form PE-300 through My DOR Government Account
    
    
    • October 31 — Creations, Territory Amendments, and Base Value Redeterminations – email required documents to tif@wisconsin.gov
    
    
    • December 31 — Project Plan and/or Allocation Amendments – email required documents to tif@wisconsin.gov
    
    

    See TID Dates and Requirements for additional information.