Tax Incremental Finance (TIF)

Amendments - Territory and Allocation

Territory

  1. How often can a project plan be amended to change boundaries?
  2. Does all property in a boundary amendment have to be in the same area?
  3. When territory is added to a Tax Incremental District (TID) must 50% of the total area (original and new amended parcels) meet the creation criteria and type?
  4. What should a map look like?
  5. When is the deadline to apply to the Department of Revenue (DOR) for a redetermined base value?
  6. Can amendments for adding projects, adding territory, and allocating increment be done at the same time with the same hearing?
  7. Does the original base value of the TID change when territory is added?
  8. How does adding territory affect the TID expenditure period?
  9. Do owners of blighted property have to be notified before an amendment hearing?

Allocation

  1. Can a municipality allocate increment between their TIDs with different overlying taxing jurisdictions?
  2. Which TID project plan is amended to allocate increment from one TID to another?
  3. If a municipality is amending TID #1 to share with TID #3 and also amending TID #2 to share with TID #3, how many project plans do you need?
  4. If a project plan was submitted to allocate funds from one TID to another, but circumstances changed and the municipality doesn't want or is unable to do an allocation, is that permitted?
  5. Can a donor TID stay open after its costs are recovered, if it is allocating to another TID?
  6. Does the five year allocation period mean one five-year period or five-one year periods?
  7. When can an allocation transfer take place?
  8. Are allocations made to other TIDs considered a project cost?
  9. Can allocations be made during the last five years of the life of the TID?
  10. How do I know which type of TID can allocate to another?

Territory

  1. How often can a project plan be amended to change boundaries?

    TID boundaries may be changed up to four times; each amendment may add and/or subtract contiguous parcels, or add and/or subtract parcels that do not remove contiguity to the district.

  2. Does all property in a boundary amendment have to be in the same area?

    As long as added property is contiguous to the original TID, it does not have to all be in one area.

  3. When territory is added to a Tax Incremental District (TID) must 50% of the total area (original and new amended parcels) meet the creation criteria and type?

    Once a TID is created as a specific type, it remains that type throughout the rest of its life. Fifty percent of the added parcels must be consistent with the type of TID originally created.

  4. What should a map look like?

    The map should show an outline of the complete TID. Only the parcels that are being added to the district need to be highlighted and marked. The new boundary should show that the entire area is contiguous.

  5. When is the deadline to apply to the Department of Revenue (DOR) for a redetermined base value?

    Applications must be submitted by December 31st to DOR for a base value. DOR will certify the values the following year. For example, to obtain a base value set on January 1, 2010, the creation resolution must be adopted before September 30, 2010, and the application must be received on or before December 31, 2010. DOR will certify the value between January and April 2011.

  6. Can amendments for adding projects, adding territory, and allocating increment be done at the same time with the same hearing?

    Yes, but each action should be described in a separate statement in the public hearing notices. Also, separate resolutions or line item descriptions are suggested.

    For sample timelines see Publication PE-221A , Municipal TIF Districts Timeline for Amending Project Plans, and for the towns publication PE-221AT , Town TIF Districts Timeline for Amending Project Plans.

  7. Does the original base value of the TID change when territory is added?

    No, the value of the new area is determined and added to the original base value, which then becomes the new base value.

  8. How does adding territory affect the TID expenditure period?

    The expenditure period for the original TID is not changed. All project costs (original and additional ones) must be incurred up to five years before the unextended termination date of a TID.

  9. Do owners of blighted property have to be notified before an amendment hearing?

    Yes, if the TID was created as blighted or a rehabilitation/conservation, the property owners of parcels being added to the existing TID need to be notified 15 days before the public hearing.

Allocation

  1. Can a municipality allocate increment between their TIDs with different overlying taxing jurisdictions?

    No, both the donor and recipient TIDs must have the same overlying taxing jurisdictions.

  2. Which TID project plan is amended to allocate increment from one TID to another?

    The donor district's plan must be amended.

  3. If a municipality is amending TID #1 to share with TID #3 and also amending TID #2 to share with TID #3, how many project plans do you need?

    If you are amending TID #1 and TID #2 to become Donor TIDs, you need to do two project plans.  One for each Donor (#1 and #2).

  4. If a project plan was submitted to allocate funds from one TID to another, but circumstances changed and the municipality doesn't want or is unable to do an allocation, is that permitted?

    An allocation occurs when a Donor TID has excess funds and chooses to allocate to another TID. After a project plan has been amended to allocated funds, the donor TID can, for whatever reason, choose not to allocate in any given year. There is no additional action required if this occurs.

  5. Can a donor TID stay open after its costs are recovered, if it is allocating to another TID?

    Yes, provided the allocation has been approved by the planning commission, local governing body, and joint review board and the maximum life of the donor TID has not expired.

  6. Does the five year allocation period mean one five-year period or five-one year periods?

    One five-year period as specified by sec. 66.1105(6)(e)3, Wis. Stats., which states “… a period not to exceed five years.”

  7. When can an allocation transfer take place?

    If funds are available from the donor district, the allocation transfer can be done as soon as the resolution has been adopted.

  8. Are allocations made to other TIDs considered a project cost?

    Yes. They are considered a project cost of the donor TID. Although allocations are not defined in state law (sec. 66.1105, Wis. Stats.), as a project cost, DOR maintains they are because tax increments are being used and can only be used for eligible project costs.

  9. Can allocations be made during the last five years of the life of the TID?

    Yes. If the project plan amendment was done before the end of the expenditure period, allocations may continue until the maximum life of the TID is reached.

  10. How do I know which type of TID can allocate to another?

    Review the TID Allocation Fact Sheet for details on what is allowed.

FOR MORE INFORMATION PLEASE CONTACT:

Wisconsin Department of Revenue
Attn: Office of Technical and Assessment Services
PO Box 8971, MS 6-97
Madison, WI 53708-8971
Phone (608) 266-5708
Fax (608) 264-6897
Email additional questions to tif@revenue.wi.gov

Page last updated July 10, 2014