Tax Incremental Finance (TIF)

Municipal-Owned Property

  1. Where is the value of municipal-owned property placed on the Tax Incremental District (TID) forms and Statement of Assessment (SOA)?
  2. What types of municipal-owned property must be listed on the PE-619 form and which ones should be valued?
  3. Should municipal-owned property be valued at its selling price (which may be reduced to encourage development) or at what its value will be after it is privately owned?
  4. If the municipality has some municipal-owned parcels within the TID that are leased to property owners for agricultural use, should the value be based on use-value or fair market value?
  5. Can municipal-owned exempt property (park/cemetery) be used in determining the 35% limitation in a mixed-use TID?

  1. Where is the value of municipal-owned property placed on the Tax Incremental District (TID) forms and Statement of Assessment (SOA)?

    It is entered only on the PE-619 ( TID Parcel List – Municipal-Owned Property) form.

  2. What types of municipal-owned property must be listed on the PE-619 form and which ones should be valued?

    All municipal-owned property located in the TID must be listed on the PE-619 form. Anything not being used for municipal operations (i.e. vacant land, industrial park, or property being held for development) must also be classified and valued (see question #4 below). Municipal used property is classified as exempt and no value is required.

  3. Should municipal-owned property be valued at its selling price (which may be reduced to encourage development) or at what its value will be after it is privately owned?

    This is a local issue. The value needs to be as of January 1st of the year the TID is created or amended.

  4. If the municipality has some municipal-owned parcels within the TID that are leased to property owners for agricultural use, should the value be based on use-value or fair market value?

    You should always use the estimated fair market value for any municipal-owned parcels that are not used by the municipality. The classification should be similar to the criteria that the assessor would use if the parcels were assessable.

  5. Can municipal-owned exempt property (park/cemetery) be used in determining the 35% limitation in a mixed-use TID?

    The following information describes the inclusion of exempt parcels in a mixed-use TID and the calculation toward the 35% limitation for newly platted residential use.

    • Definition of a "mixed-use development" as stated in sec. 66.1105 (2)(cm), Wis. Stats., is a development that contains a combination of industrial, commercial, or residential uses, except that lands proposed for newly platted residential use, as shown in the project plan, may not exceed 35 percent, by area, of the real property within the district.
    • Under sec. 66.1105 (2) Definitions (h), Wis. Stats., "Real property" has the meaning prescribed in sec. 70.03, Wis. Stats.
    • Chapter 70, General Property Taxes, includes real property in its definition of general property in sec. 70.02, Wis. Stats., as all taxable real and personal property defined in sections 70.03 & 70.04, Wis. Stats.

    Since the park/cemetery are exempt and not taxable, that exempt acreage should be excluded when justifying the calculation of the 35% by area.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Division of State and Local Finance
Office of Technical and Assessment Services
P.O. Box 8971 MS 6-97
Madison, WI 53708-8971
Phone: (608) 266-5708
Fax: (608) 264-6897
E-Mail Additional Questions

Last updated March 22, 2013