2015 - 2016 LEGISLATURE
March 5, 2015 - Introduced by Representatives Vorpagel,
Hintz, Steffen, Quinn,
Genrich, Kahl, Spiros, Weatherston, Ripp, Thiesfeldt, Macco, Novak, E.
Brooks, Katsma, Schraa, Doyle and Tittl, cosponsored by Senators Gudex,
Petrowski, Bewley, Olsen and Harris Dodd. Referred to Committee on Ways
1An Act to repeal
66.1105 (5) (i); and to amend
66.1105 (5) (h) 1. of the statutes; 2relating to: changing the conditions under which a city or village may require
3the Department of Revenue to redetermine the value of the tax incremental
4base of a tax incremental district that is in a decrement situation.
Analysis by the Legislative Reference Bureau
Under the current tax incremental financing (TIF) program, a city or village
may create a tax incremental district (TID) in part of its territory to foster
development if at least 50 percent of the area to be included in the TID is blighted,
in need of rehabilitation or conservation, suitable for industrial sites, or suitable for
mixed-use development. Currently, towns and counties also have a limited ability
to create a TID under certain circumstances. Before a city or village may create a
TID, several steps and plans are required. These steps and plans include public
hearings on the proposed TID within specified time frames, preparation and
adoption by the local planning commission of a proposed project plan for the TID,
approval of the proposed project plan by the common council or village board,
approval of the city's or village's proposed TID by a joint review board (JRB) that
consists of members who represent the overlying taxation districts, and adoption of
a resolution by the common council or village board that creates the TID as of a date
provided in the resolution.
Generally under current law a local planning commission may amend the
project plan of a TID, by adding or subtracting territory from the district, not more
than four times during the TID's existence. If a TID's project plan is amended,
current law authorizes the Department of Revenue (DOR) to redetermine the TID's
tax incremental base. DOR may charge a city or village $1,000 to determine or
redetermine a TID's tax incremental base or, if a project plan amendment both adds
and subtracts territory, DOR may impose a fee of $2,000.
Also under current law a city or village may adopt a resolution, subject to JRB
approval, and not more than once during a TID's life, requiring DOR to redetermine
the tax incremental base of a TID that is in a decrement situation that has continued
for at least two consecutive years. Decrement situation is defined as a situation in
which the current aggregate equalized value of all the taxable property within the
TID is at least 10 percent less than the current value of the TID's tax incremental
base. DOR may charge the city or village $1,000 for the redetermination.
Currently, before a city or village may adopt a resolution requiring DOR to
redetermine the tax incremental base of a TID that is in a decrement situation, the
city or village must complete a financial analysis of the TID and must amend the
TID's project plan to meet at least one of the following three conditions:
1. With regard to the total value of public infrastructure improvements in the
district that occur 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 under a development
agreement with the city or village.
2. That all project costs are expected to be paid within 90 percent of the TID's
3. That expenditures may be made only within the first one-half of the TID's
remaining life, unless approved by unanimous vote of the JRB, and subject to the
generally applicable limitations or the timing of expenditures under TIF law.
Under this bill, a city or village may adopt a resolution requiring DOR to
redetermine the tax incremental base of a TID that is in a decrement situation that
has continued for at least two consecutive years without first completing a financial
analysis of the TID and without amending the TID's project plan to meet any of the
three conditions that are required under current law.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
66.1105 (5) (h) 1. of the statutes is amended to read:
(h) 1. Subject to subds. 2. and 3. and par. (i)
, a local legislative body 3
may adopt a resolution requiring the department of revenue to redetermine the tax
incremental base of a district that is in a decrement situation that has continued for 2
at least 2 consecutive years.
66.1105 (5) (i) of the statutes is repealed.