What is a Tax Incremental District (TID)?

A Tax Incremental District (TID) is a financial tool used by municipalities to promote economic development, redevelopment, or public improvements in a designated area. Established under Wisconsin Statutes Section 66.1105, a TID allows a municipality to invest in infrastructure and other improvements to stimulate private investment and increase property values. The key concept behind a TID is Tax Increment Financing (TIF): the increase in property tax revenue (referred to as the "increment") generated by the rise in property values within the district.

TIDs are often used to address blighted areas, promote industrial growth, or support mixed-use developments, aligning with the municipality’s long-term planning goals. In Wisconsin, TIDs are subject to strict compliance with state laws, ensuring they do not overly burden taxpayers in overlapping jurisdictions. This financing mechanism helps communities grow economically while minimizing upfront costs to taxpayers.