Tax Incremental Financing Districts, or TIDs, are local governments’ main tool to support development that could not happen without public funding help. The Village has seven TIDs that attract companies and jobs, new housing, and expand the tax base to benefit all Mount Pleasant property owners in the long term.
How TIDs Work
A Joint Review Board of members of all impacted taxing jurisdictions votes to create a TID, set its geographic boundaries, and approve the types of projects the TID could support within those boundaries. New construction within the district creates new property value, generating more property taxes. Those property taxes are used to pay off the project costs approved through the district.
A district closes either when it pays for all of its project costs or at the end of its statutory life. When that happens, the new property value is added to the tax base of all taxing jurisdictions, including the county and school district. In addition to benefits stemming directly from the completed district projects, the wider tax base they create supports governmental services and provides property tax relief. A Wisconsin statute also gives municipalities the option of extending a TID’s life up to one year to raise funding for affordable housing.
Incremental Growth
The Village’s seven TIDs had a combined real estate value of $198.4 million when they were each created. By 2025, that combined value increased to over $2.3 billion, and is expected to exceed $3.5 billion in new real estate value before the TIDs all close.