Many Wisconsin cities and villages have created Tax Incremental Districts under Wisconsin Statute 66.1105. Tax Incremental Finance (TIF) is a financing tool available to municipalities to invest in projects such as infrastructure and other improvements and to utilize property tax revenue from the new developments to pay for the project costs.
According to Section 66.1105(2)(f)1.n., a municipality may, with joint review board approval, include project costs in the TIF project plan for territory that is located within a one-half mile radius of the district’s boundaries and is within the city or village that created the district. The joint review board approval must take place before the municipality incurs the expenditure. Refer to the definition of project costs within the TIF statute. As noted in subsection (6)(d) of the statute, there is an exception to this provision related to the City of Kenosha.
The Wisconsin Department of Revenue is an excellent source of information related to TIF districts. You can also contact your Baker Tilly auditor for additional information.
Review the state statute and consult with your TIF advisors at Baker Tilly to determine if this is an option for your community.