Tax Incremental Finance (TIF)
Distressed/Severely Distressed TID
An active Tax Incremental District (TID) may be designated as distressed or severely distressed in specific cases and on or before September 30, 2015. This state law (sec. 66.1105, Wis. Stats), was created under the 2009 Act 310.
Distressed vs. severely distressed
- Distressed - allows the municipality to extend a TID 10 years past the original termination date
- Severely distressed - allows a municipality to extend a TID up to 40 years from the creation date
- To become distressed/severely distressed, the TID must:
- Be created before October 1, 2008
- Not be amended after October 1, 2009
- Have projected TID increments that show the TID will not be able to pay project costs and debt within the normal life of the TID
- Use any increment that exceeds the TID's annual expenditures to retire the TID debt or establish a reserve fund that can only be used to retire the debt of the distressed or severely distressed TID
- Note: Severely Distressed TIDS only - must have an increment in any year that has declined at least 25 percent from the highest value increment
- Distressed/severely distressed TIDs may not:
- Make any additional expenditures after the original expenditure period ends
- Amend the project plan to add any new costs, any new territory or become a donor TID
- Become part of a TID with overlapping boundaries
- Spend any funds outside its boundaries
- You must complete and submit the packet forms to DOR on or before December 31 in the same year of the resolution
- Tax Incremental Financing Remittance Fee – After you notify DOR that your municipality is amending a TID, we will send you a bill through "My Tax Account"
Completing the packet
It is essential that you accurately complete the forms, since mistakes could mean your TID does not get certified.
|Checklists – follow when completing the packet|
|PE-109||TID Application Checklist – lists the forms you need to complete|
|Forms – complete with valuation information for the property within the TID|
|PE-605D||A list of the legal requirements for the distressed/severely distressed TID|
To send your completed forms by email, click the Attach Documents button.
Note: This opens an email to attach the files.
Complete and return the appropriate form to:
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 firstname.lastname@example.org
March 16, 2015
Updates were made to the code or formatting on this page as of March 16, 2015. This date does not reflect the effective date or any other date relating to the content of this page.