Distressed/Severely Distressed Tax Incremental District (TID)

A municipality may designate a TID as distressed or severely distressed under certain limited circumstances. A summary of sec. 66.1105(4e), Wis. Stats., is provided below and is followed by the form that a municipality must submit to the Department of Revenue (DOR) to request a designation of a distressed or severely distressed TID.

Steps for a Municipality to Designate a TID as Distressed or Severely Distressed:

1. Conduct a public hearing prior to the resolution regarding the proposed designation.
2. Adopt a resolution finding that the TID’s project costs exceed the revenues.
• The resolution must designate the TID as distressed or severely distressed no later than September 30, 2015.
  • A “distressed” designation will allow the extension of a TID’s maximum life by 10 years beyond the original termination date.
  • A “severely distressed” designation will allow the extension of a TID’s maximum life by up to 40 years after the district is created.
  • The extended life does not impact the expenditure period.
• The clerk must provide the resolution to the Joint Review Board and DOR.
• The Joint Review Board shall evaluate the resolution, approve or deny the designation, and send a copy of its findings to the common council.
  • The Joint Review Board must provide a determination within 30 days.
3. The planning commission must amend the TID’s project plan.
4. The clerk must submit a $500 fee and the PE-605D to DOR by December 31 of the year when the TID is designated as distressed or severely distressed.

Requirements for a Distressed or Severely Distressed TID:

1. The TID must have been created before October 1, 2008.
2. The TID has not been amended after October 1, 2009.
3. The projected TID increments are insufficient to pay project costs and debt during the TID’s life.
4. The TID’s increment in any year has declined at least 25% from the highest value increment (Severely Distressed only).
5. Any increment that exceeds the TID’s annual expenditures shall retire any debt of the TID or establish a reserve used only to retire debt of the distressed, or severely distressed TID.

Distressed or severely distressed TIDs May NOT:

1. Make any expenditures after its original expenditure period ends.
2. Amend its project plan to add any new project costs.
3. Become part of a TID with overlapping boundaries.
4. Expend any funds outside its boundaries.
5. Add territory.
6. Become a donor TID.

Form Name	Description
Checklist	Contains list of all items to address when completing the amendment packet for the Distressed or Severely Distressed Amendment.
	Tax Incremental Financing Remittance Fee Note: All fees will be transmitted electronically through "My Tax Account." Upon notification that a TID has been declared distressed or severely distressed a bill will be generated in "My Tax Account" for payment.
PE-605D	Distressed and Severely Distressed Project Plan Amendment - Legal Requirements (4/13)

Complete and return the appropriate form and documents to:

Wisconsin Department of Revenue
Attn: Equalization Bureau
Mail Stop 6-97, P.O. Box 8971
Madison, WI 53708-8971
Phone (608) 266-2149
Fax (608) 264-6897
Email - tif@revenue.wi.gov

Last updated May 30, 2013