Proposed Tax Incremental Financing District
February 01, 2010 | 12:14 PM Posted by the
Village
Manager
The Village is considering the creation of a Tax
Incremental Financing District to promote
redevelopment at Southridge Mall. Below is a link to
a draft of the Project Plan for the proposed
district. The document is the Project Plan (“Project
Plan”) for Tax Increment District Number One, Village
of Greendale (the “District”). The Project Plan has
been prepared in conformance with the provisions of
Wisconsin Statutes Section 66.1105 (the “Tax
Increment Law”).
Tax Increment Financing is simple in concept. TIF calls for local taxing bodies to make a joint investment in the development or redevelopment of an area, with the intent that any short term gains be reinvested and leveraged so that all the taxing bodies will receive larger financial gains in the future. The funds for this investment do not come from current tax revenues, but from the additional generated by the new development. These new revenues are generated by increased public and private investment in identified, underperforming, areas.
When a TIF redevelopment project area (often called a TIF district) is created, the value of the property in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had. It is the growth of the value of the property over the base that generates the tax increment. This increment is collected for use by the municipality to make additional investments in the TIF project area. This reinvestment generates additional growth in property value, which results in even more revenue growth for reinvestment.
Additional Information on Tax Incremental Financing can be found on the Wisconsin Department of Revenue’s web site by using the following link: http://www.revenue.wi.gov/pubs/slf/tif/cvmanual.html
Click here to download a draft of the Village's Project Plan (pdf)
Tax Increment Financing is simple in concept. TIF calls for local taxing bodies to make a joint investment in the development or redevelopment of an area, with the intent that any short term gains be reinvested and leveraged so that all the taxing bodies will receive larger financial gains in the future. The funds for this investment do not come from current tax revenues, but from the additional generated by the new development. These new revenues are generated by increased public and private investment in identified, underperforming, areas.
When a TIF redevelopment project area (often called a TIF district) is created, the value of the property in the area is established as the “base” amount. The property taxes paid on this base amount continue to go to the various taxing bodies as they always had. It is the growth of the value of the property over the base that generates the tax increment. This increment is collected for use by the municipality to make additional investments in the TIF project area. This reinvestment generates additional growth in property value, which results in even more revenue growth for reinvestment.
Additional Information on Tax Incremental Financing can be found on the Wisconsin Department of Revenue’s web site by using the following link: http://www.revenue.wi.gov/pubs/slf/tif/cvmanual.html
Click here to download a draft of the Village's Project Plan (pdf)
