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:
- Conduct a public hearing prior to the resolution regarding the proposed designation.
- 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.
Requirements for a Distressed or Severely Distressed TID:
- The TID must have been created before October 1, 2008.
- The TID has not been amended after October 1, 2009.
- The projected TID increments are insufficient to pay project costs and debt during the TID’s life.
- The TID’s increment in any year has declined at least 25% from the highest value increment (Severely Distressed only).
- 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:
- Make any expenditures after its original expenditure period ends.
- Amend its project plan to add any new project costs.
- Become part of a TID with overlapping boundaries.
- Expend any funds outside its boundaries.
- Add territory.
- Become a donor TID.
|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 (9/11)| Fill-In Form|
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 - firstname.lastname@example.org
Last updated May 1, 2013