Wisconsin TIF program captures $60 billion in incremental property value over decades

The Sheboygan City Plan Commission meeting on May 12, 2025, focused on the implications of Tax Increment Financing (TIF) as a tool for economic development. The discussion highlighted how TIF districts operate and their significance in promoting growth within the community.

During the meeting, officials explained that property taxes generated from TIF districts are distributed to various taxing jurisdictions, including the city, county, school district, and technical college, just as they would be without a TIF district. The key aspect of TIF is the concept of "increment," which refers to the increase in property values within the defined district after its creation. This increment is captured and used to fund project costs within the district.

The duration of TIF districts can vary, lasting between 20 to 27 years, after which all property values, including the increment, are returned to the tax rolls. This process ensures that all taxing jurisdictions benefit from the increased property values over time.

The meeting also provided historical context, noting that TIF has been utilized in Wisconsin since the mid-1970s as a response to economic downturns. Over the years, TIF has facilitated approximately $60 billion in incremental value, demonstrating its effectiveness in spurring economic growth and redevelopment.

In conclusion, the City Plan Commission emphasized the importance of TIF as a strategic tool for fostering economic development in Sheboygan, particularly in uncertain market conditions. The discussions underscored the ongoing relevance of TIF in supporting community growth and stability.