New Reporting Requirements for Tax Incremental Districts

March 27, 2017|Tom Karman

Municipalities with a tax incremental district must now provide an annual report to the Wisconsin Department of Revenue. Reports must contain specific information and be submitted annually by the July 1 deadline.

One of the annual requirements for municipal tax incremental districts has been to provide an accounting of each district’s activity to each of the overlying taxing jurisdictions that comprised the district. State legislative action has now expanded reporting requirements, and you must also provide an annual report to the Wisconsin Department of Revenue (DOR).

You must include the following elements in the report:

  • Name of the district
  • Declared classification of the district
    • Blighted area district
    • Rehabilitation or conservation district
    • Industrial district
    • Mixed-use district
  • Name of any developer named in a developer’s agreement with the municipality or who receives any financial assistance from tax increments
  • Date the municipality expects the district to terminate
  • Amount of tax increments collected
  • Analysis of district finances
    • Beginning fund balance
    • Amounts collected
    • Listing of expenditures by project plan budget items
    • Ending fund balance
  • Contact information of the person designated to respond to questions or concerns regarding the annual report

You are required to electronically file the new annual report with the DOR by July 1 of each subsequent year, as well as provide a copy of that report to each overlying taxing jurisdiction by July 1. In addition, the Joint Review Board must meet prior to July 1 to review each district’s annual report, performance and status. The 2017 deadline is July 3, 2017.

Visit the Wisconsin Department of Revenue website for more information regarding the report and its filing:

  1. Click on the Governments heading near the top of the page.
  2. Under Towns, Villages, Cities, click on Clerk
  3. Under Online Services, beneath the Tax Incremental District (TID) bullet, click on TID Annual Report (PE-300)

For help with any questions you may have regarding this new report, please contact your Schenck representative or any member of Schenck’s Government team at 800-236-2246.

Tom Karman, CPA, is a shareholder with nearly 35 years of experience working exclusively in the areas of accounting and auditing for governments and not-for-profit organizations. He also keeps clients up-to-date on new accounting standards, and assists clients with the implementation of new standards.