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- Tax Increment Districts (TID/TIF)
Tax Increment Districts (TID/TIF)
Tax incremental financing (TIF) is the most effective tool Wisconsin cities and villages have to spur economic development and job creation. Municipalities have been using TIF successfully since 1975. The TIF process allows a municipality to pay for public improvements and other eligible costs within a designated area, called a tax incremental district (TID), using the future taxes collected on the TID’s increased property value to repay the cost of the improvements. The rationale behind TIF is that the public investment will promote private development, jobs, and tax base growth that would not otherwise occur absent the TID.
The City of Shawano utilizes Tax Increment Districts (TIDs) as a way to help achieve our economic development goals. The City of Shawano currently has 5 active TID districts throughout our community and is in the planning stages to add an additional TID (TID #9) in the coming months.
Scroll though this page to learn more about how a TID works, additional information regarding the City's active and future TIDs.
- What is the difference between "TID" and "TIF"?
TID = Tax Increment District
The actual physical area designated for potential development projects.
TIF = Tax Increment Financing
The economic development program that helps promote local tax base expansion by using property tax revenue to fund site improvements within a specified area (see TID).
- How does TIF work?
Every year when we pay our property tax bills, several different taxing entities receive a portion of this revenue. The jurisdictions include the City, Shawano School District, Shawano County, Technical College, and the State of Wisconsin. Although the City collects the full property tax payment from you, we only retain a portion of the total for our operations and finances. And while the City is the only entity involved in investing in the growth of the tax base, the other taxing jurisdictions also benefit from that growth.
When new development occurs within a TID, 100% of the new tax revenue is retained to pay off project costs. Projects could be new roads, water, sewer, blight elimination/raising of buildings (such as the Naber building, which is currently being developed into the Downtown Plaza), development incentives, and other project costs permitted by state law. General city property taxpayers DO NOT pay for these costs – they are paid for only by developments that occur within the TID itself.
It is important to note that revenue from the original, pre-TID property values continues to go to the taxing entities, like the school district, to ensure they are not losing revenue. One of the common misconceptions about TIF is that properties within a district do not pay taxes. That is not true. Each property owner within the district is charged property taxes based on the value of their property, and at the same rate as everyone else in the community.
Essentially, the other taxing entities are foregoing new tax revenue (generated only from tax base that would not occur “but for” the TID being in place) for a period of years until the TID closes. When the TID closes, ALL of the taxing entities benefit from the increased tax revenues within the TID. The local city or village is the agent that invests in economic development, but from which all other entities benefit financially.
Prior to the creation of any TID, a Joint Review Board must approve it. This Joint Review Board, required by state law, has a voting representative from each of the affected taxing entities, as well as a citizen representative. Further, the Joint Review Board must be assured the TID is financially able to pay itself off so general taxpayers do not have to pay for costs associated with TID projects.
- Why would a community use TIF?
Cities, villages, and towns, even when they are neighbors, often compete for new tax base and job growth as they look for revenue to ensure they can continue to provide residents with the best possible public services with the lowest property tax burden. The desire to be the best possible place to live and work is a value held by all communities; thus, the associated competition for economic development. New tax base means new revenue; new job growth means more money available to spend in the local economy and on local businesses; new businesses and amenities (public and private) means more people viewing the community as a place to invest in a home and/or in which to raise a family. New economic development increases tax base so residents do not experience higher property tax bills in the future. The City of Shawano Common Council wishes to ensure high-quality services and amenities, with the lowest required taxes possible.
City of Shawano Active TIDs
TID District #4
(Click here for a map of TID #4 boundaries)
TID #4 was created in 2000, with plan amendments occurring in both 2007 and 2013. This district is located primarily along Main Street throughout our historic downtown. The purpose of this district is for the revitalization of a blighted area, improve a portion of the City, enhance the value of property, and broaden the property tax base.
TID District #5
(Click here for a map of TID #5 boundaries).
TID #5 was created in 2001, with plan amendments occurring in both 2003 and 2013. This district is located within Bay Lakes Industrial Park. The purpose of this district is to promote industrial development, improve a portion of the City, enhance the value of properties, broaden the property tax base, and grow the employment base of the community by allowing businesses to locate and expand in Shawano.
TID District #6
(Click here for a map of TID #6 boundaries).
TID #6 was created in 2014, with a plan amendment occurring in 2016. This district is located along East Green Bay Street from North Andrews Street to Rusch Road. The purpose of this district is for the promotion of blight elimination by promoting redevelopment, stimulating revitalization, providing adequate infrastructure, making the City competitive with other communities and offering and environment that will positively influence economic development decisions and help existing business to flourish and expand.
TID District #7
(Click here for a map of TID #7 boundaries).
TID #7 was created was created in 2016, with a plan amendment occurring in 2018. This district is located adjacent to Airport Road and County Highway B. The purpose of this district is to promote mixed-use development and redevelopment of properties, improve a portion of the City, enhance the value of the TID, and broaden the property tax base.
TID District #8
(Click here for a map of TID #8 boundaries).
TID #8 was created in 2018. This district is located on the parcels that make up the "old hospital site" along the Wolf River. The purpose of this district is to promote residential development adjacent to the Wolf River.
TID District #9 (Proposed Plan)
The TID #9 Boundary map can be found on Page 7 of the proposed plan.
Tax Incremental District (“TID”) No. 9 (“District”) is a proposed In Need of Rehabilitation or Conservation District comprising approximately 47 acres located in the City’s downtown area. The District partially overlays TID No. 4, which was created in 2000 and has a maximum life of 2028, and an expenditure period that ends in 2022. The District will be created to pay the costs of development incentives in the form of grants and low interest loans to allow redevelopment to continue within the downtown area. The plan also includes a portion of the Franklin Park Plaza and associated streetscaping work and additional boat parking in Huckleberry Harbor to allow boat traffic to access the downtown. In addition to the incremental property value that will be created, the City expects the Project will result in additional dining and shopping areas, including additional job growth within the City. Furthermore, apartment and other additional living areas will be developed within the city’s downtown area.