OUR PRESENTATION Mary will introduce the event and cover the first few (maybe five) slides Phillip will cover the TIF “Governmental” Basics from (a) the Wisconsin Leg Council Information Memorandum and (b) The Wisconsin Taxpayer (April 2002 and May 2009) and (c) CLUE 2009 Greg Will cover the TIF “Economic Development” Basics from (a) Moskal 2005and (b) The Wisconsin Taxpayer (April 2002 and May 2009) and (c) CLUE 2009 and (d) Dye & Merriman 1999 and (e) Merriman, Skidmore & Kashian 2007 and COWS 2006 Mary will wrap up with concluding slide(s) and moderate remaining program Slide concepts follow

An Overview of Tax Incremental Financing Economic Development & Governmental Considerations Education and Economic Development Committee Marathon County Board of Supervisors Marathon County Towns Village and City Officials January 2013 Greg Wise, Community Development Specialist Philip Freeburg, Local Government Specialist Mary Kluz, Community Resource Development Educator University of Wisconsin-Extension Cooperative Extension

TIF and TID Tax incremental financing (TIF) is a tool municipalities may use to spur economic development Targeted public improvements are planned for a designated area of the municipality, called a tax incremental district (TID)

Enabling Legislation Wisconsin cities and villages have been able to use TIF since 1975 In 2004, towns were authorized to use TIF (with different rules than cities and villages) In 2006, the county board of a county with no cities or villages was authorized to use TIF (Florence and Menominee Counties)

Basics Original use was for redevelopment of blighted areas, then expanded to stimulate new development Allows public dollars to be use to encourage private development Improvements made in TID are recouped by extra taxes generated on increased property value of TID The government creating the TID keeps the added increment of taxes for all taxing jurisdictions in the TID

Why TIF? First implemented in California in 1952, many states adopted this tool in the 1970s Cities and villages generally shouldered the costs of public improvements that led to private development while school districts, counties, and others participated in the tax base expansion, but did not share in the cost of public improvements