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
• No amendments after October 1, 2009
• Had projected TID increments showing the project costs and debt could not 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
• Severely Distressed TIDs only – had an increment in any year that declined at least 25% from the highest value increment

Municipalities with distressed/severely distressed TIDs may not:

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