Tax Incremental Finance (TIF)

Project Plan

  1. Must all projects in the plan be completed?
  2. Certain projects do not have to be within the Tax Incremental District (TID) to be eligible to be paid with tax increments, can they also be outside the municipality?
  3. If the Planning Commission denies the proposal to create a new TID, can the local governing body overrule the Plan Commission and approve the TID?
  4. Does a project plan have to be amended if unanticipated development takes place?
  5. How long does it take to amend a project plan?
  6. If a project plan is amended, does that mean no costs may be incurred for newly platted residential development?
  7. Does a new economic feasibility study have to be done when a project plan is amended?

  1. Must all projects in the plan be completed?

    No. It is a capital improvement plan not an approved budget. Many municipalities start individual projects as the money becomes available (pay-as-you-go).

  2. Certain projects do not have to be within the Tax Incremental District (TID) to be eligible to be paid with tax increments, can they also be outside the municipality?

    Yes, for example a water tower that is built on a parcel owned by the municipality but not within the municipality's corporate boundary, can have a proportionate share of the costs funded by the TID to the extent that the water tower benefits the TID. See sec. 66.1105 (2)(f)1.k., Wis. Stats., for further information.

  3. If the Planning Commission denies the proposal to create a new TID, can the local governing body overrule the Plan Commission and approve the TID?

    No. The Planning Commission needs to adopt a project plan for a proposed TID before the local legislative body can act. Please see sec. 66.1105(4)(f), Wis. Stats., for additional information.

  4. Does a project plan have to be amended if unanticipated development takes place?

    No, unless more projects to be paid with tax increments are needed to support the unexpected development.

  5. How long does it take to amend a project plan?

    It depends on how long it takes to put the information together. Generally, it takes less time than creating a new TID, because there is no waiting period between the public hearing and when the local governing body can approve it.

  6. If a project plan is amended, does that mean no costs may be incurred for newly platted residential development?

    No. Costs for newly platted residential may only be incurred in mixed-use TIDs created after 10/1/04.

  7. Does a new economic feasibility study have to be done when a project plan is amended?

    Yes, if additional project costs are being added, an economic feasibility study is required in the project plan.

    See publication PE-215, Municipality Common Language Guidelines for Project Plans for additional information.

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