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LRBs0111/1
MES:cjs&jld
2015 - 2016 LEGISLATURE
SENATE SUBSTITUTE AMENDMENT 1,
TO SENATE BILL 57
September 15, 2015 - Offered by Senator Gudex.
SB57-SSA1,1,4 1An Act to repeal 66.1105 (5) (h) and 66.1105 (5) (i); to amend 66.1105 (2) (aj),
266.1105 (4m) (a), 66.1105 (4m) (b) 1., 66.1105 (4m) (b) 2. and 66.1105 (5) (a); and
3to create 66.1105 (5) (j) of the statutes; relating to: redetermination of base
4value for certain tax incremental districts.
Analysis by the Legislative Reference Bureau
This substitute amendment repeals the current-law provisions that were
created by 2013 Wisconsin Act 183 and creates a different process for redetermining
the base value of a tax incremental district (TID) in a decrement situation.
Under current law, following the creation of a TID, the Department of Revenue
(DOR) determines the equalized value of the taxable property within the district.
This value is referred to as the TID's "base value." Typically, during the TID's
lifespan, property values of the property in the TID will rise above the base value,
and the portion of taxes collected on the increase in value of property located in the
TID will be used to pay back the project costs of the TID.
Current law, as created by 2013 Wisconsin Act 183, addresses the situation
where the values of property in a TID do not rise as expected, but instead fall. Under
current law as created in that act, a local legislative body of a city or village may,
subject to joint review board (JRB) approval, request that DOR redetermine the base
value of a TID that is in a "decrement situation" that continues for at least two

consecutive years. A "decrement situation" is defined as a decline in current value
of TID property of at least 10 percent compared to the current base value of the TID.
A local legislative body may request redetermination of the base value of a TID in a
decrement situation once during the lifespan of the TID, and DOR may impose a fee
of $1,000 for the redetermination. Additionally, under the current-law provisions
as created by 2013 Wisconsin Act 183, before DOR may carry out a redetermination,
the local legislative body must conduct a financial analysis of the TID, and must
amend the TID project plan to satisfy at least one of the following conditions:
With regard to the total value of public infrastructure improvement in the
district that occurs after JRB approval, at least 51 percent of the value of the
improvements must be financed by a private developer or other private entity in
return for the city's or village's agreement to repay those costs solely through the
payment of cash grants, and that cash grants must be paid through a development
agreement with the city or village.
All project costs are expected to be paid within 90 percent of the TID's remaining
life.
Expenditures may be made only within the first half of the TID's remaining life,
unless approved by a unanimous vote of the JRB, and are subject to the generally
applicable limitations on the timing of expenditures under the tax incremental
financing law.
The substitute amendment authorizes a local legislative body to request a
redetermination any time that a TID is in a decrement situation. Under the
substitute amendment, a local legislative body's ability to request redeterminations
under the process created in the substitute amendment must be authorized in the
TID's project plan, and the JRB must approve the project plan but not each specific
request for redetermination. The ability of a local legislative body to request
multiple redeterminations also must be specifically authorized in the project plan.
Under the substitute amendment, the $1,000 fee to DOR would apply to each
redetermination. The new provisions created in the substitute amendment for
redetermining the base value of a TID in a decrement situation do not apply after
December 31, 2018.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB57-SSA1,1 1Section 1. 66.1105 (2) (aj) of the statutes is amended to read:
SB57-SSA1,3,22 66.1105 (2) (aj) "Decrement situation" means a situation in which the
3aggregate value, as equalized by the department of revenue, of all taxable property
4located within a tax incremental district on or about the date on which a resolution

1is adopted under sub. (5) (h) 1. (j) 1. is at least 10 percent less than the current tax
2incremental base of that district.
SB57-SSA1,2 3Section 2. 66.1105 (4m) (a) of the statutes is amended to read:
SB57-SSA1,4,54 66.1105 (4m) (a) Any city that seeks to create a tax incremental district, amend
5a project plan, have a district's tax incremental base redetermined under sub. (5) (h),
6or incur project costs as described in sub. (2) (f) 1. n. for an area that is outside of a
7district's boundaries, shall convene a temporary joint review board under this
8paragraph, or a standing joint review board under sub. (3) (g), to review the proposal.
9Except as provided in par. (am) and (as), and subject to par. (ae), the board shall
10consist of one representative chosen by the school district that has power to levy taxes
11on the property within the tax incremental district, one representative chosen by the
12technical college district that has power to levy taxes on the property within the tax
13incremental district, one representative chosen by the county that has power to levy
14taxes on the property within the tax incremental district, one representative chosen
15by the city, and one public member. If more than one school district, more than one
16union high school district, more than one elementary school district, more than one
17technical college district or more than one county has the power to levy taxes on the
18property within the tax incremental district, the unit in which is located property of
19the tax incremental district that has the greatest value shall choose that
20representative to the board. The public member and the board's chairperson shall
21be selected by a majority of the other board members before the public hearing under
22sub. (4) (a) or (h) 1. is held. All board members shall be appointed and the first board
23meeting held within 14 days after the notice is published under sub. (4) (a) or (h) 1.
24Additional meetings of the board shall be held upon the call of any member. The city
25that seeks to create the tax incremental district, amend its project plan, have a

1district's tax incremental base redetermined under sub. (5) (h),
or make or incur an
2expenditure as described in sub. (2) (f) 1. n. for an area that is outside of a district's
3boundaries shall provide administrative support for the board. By majority vote, the
4board may disband following approval or rejection of the proposal, unless the board
5is a standing board that is created by the city under sub. (3) (g).
SB57-SSA1,3 6Section 3. 66.1105 (4m) (b) 1. of the statutes is amended to read:
SB57-SSA1,4,107 66.1105 (4m) (b) 1. The board shall review the public record, planning
8documents and the resolution passed by the local legislative body or planning
9commission under sub. (4) (gm) or (h) 1., or sub. (5) (h) 1. As part of its deliberations
10the board may hold additional hearings on the proposal.
SB57-SSA1,4 11Section 4. 66.1105 (4m) (b) 2. of the statutes is amended to read:
SB57-SSA1,5,212 66.1105 (4m) (b) 2. Except as provided in subd. 2m., no tax incremental district
13may be created and no project plan may be amended unless the board approves the
14resolution adopted under sub. (4) (gm) or (h) 1., and no tax incremental base may be
15redetermined under sub. (5) (h) unless the board approves the resolution adopted
16under sub. (5) (h) 1.,
by a majority vote within 30 days after receiving the resolution.
17With regard to a multijurisdictional tax incremental district created under this
18section, each public member of a participating city must be part of the majority that
19votes for approval of the resolution or the district may not be created. The board may
20not approve the resolution under this subdivision unless the board's approval
21contains a positive assertion that, in its judgment, the development described in the
22documents the board has reviewed under subd. 1. would not occur without the
23creation of a tax incremental district. The board may not approve the resolution
24under this subdivision unless the board finds that, with regard to a tax incremental

1district that is proposed to be created by a city under sub. (17) (a), such a district
2would be the only existing district created under that subsection by that city.
SB57-SSA1,5 3Section 5. 66.1105 (5) (a) of the statutes is amended to read:
SB57-SSA1,5,124 66.1105 (5) (a) Subject to sub. (8) (d), upon the creation of a tax incremental
5district, upon adoption of any amendment subject to par. (c), or upon the adoption and
6approval of a resolution under par. (h),
upon the adoption of a resolution under par.
7(j) 1.,
its tax incremental base shall be determined or redetermined as soon as
8reasonably possible. The department of revenue may impose a fee of $1,000 on a city
9to determine or redetermine the tax incremental base of a tax incremental district
10under this subsection, except that if the redetermination is based on a single
11amendment to a project plan that both adds and subtracts territory, the department
12may impose a fee of $2,000.
SB57-SSA1,6 13Section 6. 66.1105 (5) (h) of the statutes is repealed.
SB57-SSA1,7 14Section 7. 66.1105 (5) (i) of the statutes is repealed.
SB57-SSA1,8 15Section 8. 66.1105 (5) (j) of the statutes is created to read:
SB57-SSA1,5,1816 66.1105 (5) (j) 1. Subject to subd. 2., a local legislative body may adopt a
17resolution requiring the department of revenue to redetermine the tax incremental
18base of a district that is in a decrement situation.
SB57-SSA1,5,2219 2. A local legislative body may adopt a resolution under subd. 1. only if the
20project plan authorizes, or is amended to authorize, the resolution. A local legislative
21body may adopt multiple resolutions under subd. 1. only if the project plan or
22amendment specifically authorizes multiple resolutions.
SB57-SSA1,5,2523 3. Upon adoption of a resolution by a local legislative body under subd. 1., the
24department of revenue shall redetermine the tax incremental base of the district
25under par. (a).
SB57-SSA1,6,1
14. This paragraph does not apply after December 31, 2018.
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