Tax Incremental Financing (TIF)

Tax Incremental Financing (TIF) is a financing option that allows a municipality (town, village or city) to fund infrastructure and other improvements, through property tax revenue on newly developed property . A municipality identifies an area, the Tax Incremental District (TID), as appropriate for a certain type of development . The municipality identifies projects to encourage and facilitate the desired development . Then as property values rise, the municipality uses the property tax paid on that development to pay for the projects . After the project costs are paid, the municipality closes the TID . The municipality, schools, county, and technical college are able to levy taxes on the value of the new development . TIF use varies depending on the project and the municipality . In some cases, the municipality chooses an area it would like to develop or that is unlikely to develop without assistance . Then the municipality designs improvements (ex: roads, sidewalks, sewer systems) to attract growth . In other cases, a developer or company identifies a site where they might locate . A developer may also negotiate with the municipality to use TIF to fund some improvements (ex: demolition, soil clean up, roads, water) the developer needs. Either way, an area facing development challenges receives help to grow . This creates a larger tax base for the municipality and the overlying taxing jurisdictions (ex: schools, county, technical colleges) . Generally, when the tax base grows and spending is stable, tax rates go down, decreasing property taxes for everyone.

The City of Ladysmith has a number of active TIF Districts (TIDs).  Click the links below for information on Tax Incremental Financng in Wisconsin, Annual statewide reports, and information on each active district within the City of Ladysmith, including the most recent project plan.

Tax Incremental Financing (TIF) Manual - Exit to Wisconsin Department of Revenue

Tax Incremental Financing District (TID) Annual Reports - Exit to Wisconsin Department of Revenue