Tax Incremental Finance (TIF) is a financing tool that allows municipalities to invest in infrastructure and other improvements, and pay for these investments by capturing property tax revenue from the newly developed property. A municipality identifies an area, the tax incremental district (TID) as appropriate for a certain type of development. The municipality identifies projects to encourage and facilitate the desired development. Then as property values rise, the municipality uses the property tax paid on that private development to pay for the projects. After the project costs are paid, the municipality closes the TID. The municipality, schools, county, and technical college are all able to levy taxes on the value of the new development.
TIF use varies depending on the project and the municipality. In some cases, the municipality chooses an area it would like to develop, or that is unlikely to develop without assistance. Then the municipality designs improvements (i.e., roads, sidewalks, sewer systems) that will attract growth. In other cases, a developer or company identifies a site where they might locate. Then and as part of negotiations with the municipal body, TIF may be used to fund some improvements (i.e., demolition, soil clean up, roads, water) that the developer needs. Either way, an area that faces development challenges receives help to grow. This creates a larger tax base for the municipality and the overlying taxing jurisdictions. In Wisconsin, when the tax base grows and spending is stable, tax rates and tax bills are expected to go down, decreasing the property tax burden for everyone.
The Village of Bellevue has two (2) Tax Incremental Finance Districts.
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The Village does require any entity or individual whom is requesting assistance in one of the Tax Incremental Finance Districts to read through the TIF Assistance Policy and submit a completed application and associated fee for staff to review and make a recommendation to the Village Board on the merits of the assistance request.
For questions regarding the Bellevue Tax Incremental Finance Districts or possible assistance requests, please contact the Village of Bellevue Community Development Director, Andrew J. Vissers