TAX INCREMENTAL FINANCING

 

Tax Increment Financing (TIF) is a tool the City uses to support development by using the future increase in property tax revenue created by that development.

What is TIF?

In Wisconsin, cities, villages, and towns have limited tools available to support economic development. Unlike other states, local governments cannot use options such as local sales taxes or broad tax abatements.

As a result, Tax Increment Financing (TIF) is the most common—and often the only—tool available at the municipal level to help fund development, create jobs, and support community growth.

The City of Oak Creek uses TIF in the same way as communities across Wisconsin: to help make projects possible that would not occur “but for” this investment.

How TIF Works: 

  • A TIF district is created within a defined geographic area
  • Property values within the district are set at a base level
  • As development occurs, property values increase
  • The increment (new property tax revenue from that increase) is used to pay for eligible project costs
  • Once those costs are recovered, the full property value is returned to the overall tax base

Why Oak Creek Uses TIF:

  • Support redevelopment of underutilized or challenging sites
  • Attract new businesses and employers
  • Invest in infrastructure needed to support growth
  • Strengthen key areas such as Drexel Town Square and other strategic locations
  • Encourage private investment that benefits the broader community

Without TIF, many of these projects would not move forward at the same scale or within the same timeframe.

TIF in Oak Creek:

The City has used TIF to support projects that contribute to economic growth, job creation, and community development.

Examples include:

  • Development and continued investment in Drexel Town Square as a civic and economic center
  • Infrastructure improvements that support new commercial and industrial development
  • Redevelopment of sites that would otherwise remain underutilized

These investments help expand the City’s tax base over time and support long-term financial sustainability.

Frequently Asked Questions

Does TIF raise my taxes?
Does TIF take money away from schools or other services?
How long does a TIF district last?
Why not use other economic development tools instead of TIF?
How are TIF projects approved?

 

Transparency and Oversight

 The City of Oak Creek follows all State of Wisconsin requirements for Tax Increment Financing, including:

  • Public review and approval processes
  • Annual reporting on TIF district performance
  • Oversight by a Joint Review Board that includes representatives from local taxing jurisdictions

This ensures that TIF is used responsibly, transparently, and in alignment with community goals.