TIF Districts

Tax Increment Financing (TIF) is a financing tool available to local governing bodies to encourage economic development that would not occur without public assistance. It's a partnership between the taxing jurisdictions allowing municipalities to invest in infrastructure and other project improvements. These investments are funded by collecting property tax revenue from the newly developed property. As property values rise, the property tax paid on that development is used by the municipality to pay for the eligible project costs. After the project costs are paid off, the TID is closed and the whole value of the expanded tax base is shared by the municipality, school, county and technical college.

A Tax Increment District (TID) is a contiguous geographical area within a municipality consisting solely of whole property units assessed for general property tax purposes. A TID does not include railroad rights-of-way, rivers or highways, or wetlands under state law (sec. 23.32, Wis. Stats.). The municipality must declare a TID type in its municipal resolution where projects are identified to encourage and facilitate the desired development.